[NCASG] Establishing new hire starting rate

[Mike Bonds]

Doug,

In Arkansas, new hires are generally expected to start at the entry level of their respective grades.  However, there are ways we can exceed the entry:


  *   All departments can go as high as 15% above entry (it's a 45% pay band, min to max) for hires they consider extraordinarily well qualified (EWQ) without OPM approval.
  *   Departments can ask OPM to go as high as 30% above entry for EWQ hires.
  *   If OPM has established a labor market rate for the classification, the salary can be set anywhere up to the LMR.
  *   If OPM has established a salary administration grid (works like a small pay plan within a pay range) for the classification, pay can start above the entry.

Mike


[A picture containing logo  Description automatically generated]
Mike Bonds, J.D.
Assistant Personnel Administrator
Office of Personnel Management
Arkansas Department of Transformation & Shared Services
501 Woodlane, Suite 205, Little Rock, AR  72201
(501) 682-5145
mike.bonds at arkansas.gov<mailto:mike.bonds at arkansas.gov>



From: Pine, Doug <Doug.Pine at vermont.gov>
Sent: Sunday, February 27, 2022 6:52 PM
To: dhr_ncasg_survey_list at admws.idaho.gov
Subject: [NCASG] Establishing new hire starting rate

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________________________________
Hello -

A policy/procedural question instead of a salary survey for a change.

We're interested in how you set the salary for a new hire. Of course, that sounds simple but we run a very much legacy classification/compensation system (we're working on it!)  We have a single pay chart and new hires come in at step 1 of the pay grade to which the job is assigned. We do have a "hire into range" policy<https://protect-us.mimecast.com/s/FkeDCZ6nG0UPoDYKIzaMWQ?domain=humanresources.vermont.gov> that allows us to bring someone in at a step higher than 1 if the hiring department can meet the criteria within the hire into range policy, which is very old.

I poked around and found some policies that are similar and again they are mostly with systems that have traditional grade and step pay charts.

What is becoming increasingly apparent is that we have disparities. So applicants who know about this policy may negotiate for a hire into range and those who don't know about it assume that the starting rate that we publish is "the number." It has been suggested by our legal folks that some groups may be less likely because of cultural norms to negotiate or advocate for themselves. Some of our hiring managers don't disclose that there's even an option while others do. So we're trying to look at this from an equity standpoint.

Also in our current labor market it simply makes no sense to bring someone in with a significant amount of experience at the beginning of the range.

So what is your policy on establishing the rate for a new hire? Is there flexibility and if so how is that administered? Or is it similar to the process that we have which is to assume hire at step 1 (or the minimum of the range) and anything above that is an exception that requires higher approval. Have other people dealt with the equity issue?

Thanks,


Douglas Pine, Ph.D., Deputy Director, HR Operations
Talent Acquisition Services|Compensation|Workforce Analysis
Department of Human Resources
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