[NCASG] Establishing new hire starting rate

Wed Mar 2 16:03:56 MST 2022

Hi Doug,

In Louisiana, we do not operate on a step system. All new hires start at the minimum unless one of the provisions of Rule 6.5 applies. Two of the most often used provisions are 6.5(b) for Special Entrance Rates and 6.5(g) for Extraordinary Qualifications.

SERs are approved by State Civil Service and must be based on documented recruiting and/or retention difficulties. Most SERs tend to fall in between the minimum and 1st quartile of the pay range.

6.5(g) allows an appointing authority to hire an individual between the minimum and midpoint of the pay range if the applicant possesses qualifications above the minimum quals. Requests above the midpoint must come to State Civil Service for approval. We have put together some guidelines for use in our Compensation Administration Guide<https://protect-us.mimecast.com/s/0eEKC730yXhEQAGDU8HQNE?domain=civilservice.louisiana.gov>. Here is a snip, below.

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Let me know if I may assist with any further questions?

Janelle Haynsworth, CCP
Compensation Program Manager
Louisiana State Civil Service
225.342.8266
janelle.haynsworth at la.gov<mailto:janelle.haynsworth at la.gov>

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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/5WisClYgk7IOA2RQSgSinU?domain=urldefense.proofpoint.com> 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
120 State Street, Montpelier, VT 05620-2505
(802) 828 -1513 (voice)
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