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Montana's Competency Project Progress Report
May 1998 Volume
I
State Personnel Division
new
Pay project sets focus
on successful performance
The State of Montana is building a new pay and human resource system to strengthen
government services for taxpayers and career opportunities for state employees.
The new system will be phased in gradually over a number of years. It will offer significant
changes for state agencies, state employees, and ultimately state taxpayers.
Thiseffort, known as Montana's Human Resource (HR) Competency Project, isan initiative
of Gov. Marc Racicot's administration and was approved by the 1997 Legislature.
The HR Competency Project strives to help state agencies remain responsive in fast-
changing times by adding new flexibility to management tools. These tools include job
classification and pay, employee recruitmentand selection, training, and performance appraisal.
(ContinuedonPage7)
Gov. Racicot encourages
&
involvement cooperation
By Gov. Marc Racicot
As a co-worker of yours in state government for more than 20 years
now, admire the efforts that state employees put forth each day on
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behalf of each other and the public we serve. also know that state
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government could do a better job of supporting employees in some of
the efforts that matter most. The good news of Montana's Human Resource Competency
Project is that we're charting a better course. We're aiming to improve the way we train,
evaluate and pay state employees with a new focus on success.
Fortoo long, stategovernment's paysystem hasfailed to recognize or reward employees
for valuable competencies. When say competencies, I'm talking about a combination of
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knowledge, skills, abilities and behaviors that lead to success in a job. Customer service,
teamwork ~ whatever the valued competencies for a particularjob may be ~ it's time we
start trying some new approaches. That's why our administration proposed an alternative
pay and classification system, and the Legislature agreed.
We don't have all the answers yet, but the Human Resource Competency Project is
where and how we'll find them. It's about developing a pay system that keeps up with the
times and keeps up with you. In short, it's about three simple ideas: (1) opportunity; (2)
improvement and involvement.
(3)
By "opportunity," mean we're striving to provide bettercareeroptions and potential for
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employees to grow in their jobs. A pay system that promotes initiative and success can
offer new kinds ofeconomic incentives and rewards.
By "improvement," simply mean we're looking for better ways of training, evaluating
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and paying employees. There will be plenty of adjusting and fine-tuning as we go along.
If indeed we all want a better pay system, then management and employees must be
partners in this endeavor. That's where active employee "involvement" comes in. We're
counting on you and our co-workers to help us build a successful system together. We're
confident these ideas will provide better alternatives and a road map toward success.
What competencies?
are
Examples ofcompetencies include teamwork, communication and initiative. While some competencies
may be acquired through specific training, more often they represent certain skills and behaviors. In the
everyday work environment, employees are put in situations where it is important to succeed and where
success depends on those skills and behaviors.
Competencies can play a key role in employee
Competencies are sets of
recruitment, selection, training, performance evaluation,
promotion and pay. Successful competency-based systems knowledge, skills, abilities and
clearly identifyand define competenciesthatare important behaviors that contribute
for ajob. In a sense, they provide employees with a road to success in ajob.
map toward success in a job, improving opportunities for They are measurable and
career growth. Competencies must be measurable and observable. Competencies may
observable. They need to be identified and developed vary fordifferentjobs.
carefullywith employee involvement. Good communication
between employees and managers, including frequent In all cases, however, the required
coaching and feedback, is necessary for success. competencies ofajob are linked to
the agency's mission andgoals.
Below are some sample competency definitions for
different jobs within the Montana Department of
Corrections. They arejust a small piece ofa broader performance management program developed by
the Department of Corrections with a great deal of employee involvement. Employee-management
communicationswill link mutuallyestablished goalsforemployees and teamsto the department's mission
and objectives. The information here does not even begin to explain the full scope and detail of the
Corrections Performance Management Program, but is provided simply to show examples of some
competency definitions:
1. Communication — effectively listen, 2. Leadersliip and Teamwork --provide
speak and write. guidance, make decisions, and cooperate or elicit
Level A. Communicates information in a way cooperation to accomplish tasks.
that is readily understandable. Demonstrates LevelA. Understandsthe needforand supports
courtesy and respect to the customer, preserves the decisions of the leaders within the agency.
accuracy and confidentiality of information. Works cooperatively and contributes to the unit by
Level B. Seeks participation from others by supporting and encouraging team members.
actively listening. Open to ideas and suggestions Supports consensus decision by unit.
from others. Expresses ideas and concepts Level B. Recognizes value ofteam approaches
correctly and professionally, orally and in writing. and collective knowledge. Supports collaborative
Uses technology support well. problemsolving. Contributesown opinionsin positive
Level C. Effectively assesses needs of others way. Seeks feedback and participation from others.
through questioning and listening. Uses all Executes decisively once decisions are made.
available meanstocommunicate inwaysthat meet Level C. Builds effective teams dedicated to
oranticipatethe needsofothers. Usestechnology agencygoals. Workseffectivelyinteamenvironment.
to generate innovative and effective Responds positively to coaching and seeks
communication with constituents. developmentofown leadershipandteamworkskills.
Level D. Representsagencyto publicand other Level D. Leads by example with integrity and
agencies within scope of authority and position. confidence. Uses coaching and mentoring
Communicates the highest levels of complex techniques to encourage staff leadership and
concepts effectively in any setting. Guides staffin development. Managessubordinate performance.
preparation of communication about internal
Encourages team opportunities to achieve agency
programs to public or other agencies. goals in a rewarding and challenging environment.
Level E. Represents agency clearly and
Level E. Establishes and models highest level
eafnfdectpivreelsysi.n anGyupiudbeliscvsetanfufeitnoidnecvluedleolpemgiesnlattuorfe leadershipexampleforagency. Createsatmosphere
programsto mosteffectivelycommunicate agency ofintegrityandcollaborationtowardachievingagency
mission. Createsopportunitiesforstaffdevelopment.
programs and needs.
Guides agency to accomplish goals.
Take The Lead
Pilot Projects
state Personnel Division staff - the Competency Currently, there are six pilot projects under way:
Project Team - are currently in the next phase of Montana Chemical Dependency Center
developing the competency system: pilot projects. Treatment Specialists, Department of Public
The purpose of these pilot projects is to test the Health and Human Services
approaches and methods developed in conjunction
withtheadvisory panelsandtocontinuedevelopment Brand Inspectors, Department of Livestock
by testing new approaches, methods and tools to Information Technology, MSU, Office ofPublic
prepare recommendations for the 1999 legislature. Instruction, Department of Transportation, and
Department ofAdministration
The pilot projects chosen represent a variety of
occupations (fromthecareerbandsproposedaspart Law Enforcement/Senate Bill 269, primary
oftheframeworkforthenewsystem), acrosssection focus being on the DepartmentofJustice, butalso
of agencies and positions. Different approaches to including an interagency committee comprised of
competency data collection, competency model representatives from the Department of
development, pay scenarios and performance Transportation, University System, Department of
management are being tested in each pilot to aid in Livestocl<, DepartmentofCorrections, Department
system development and to customize the pilot of Fish, Wildlife and Parks
projects to agency needs. Managers, Department of Commerce
Health Care FacilitySurveyors, Departmentof
Public Health and Human Services
Advisory Panels Aid Project Development
Advisorypanelscomprisedofupperlevel managersand personnel officersfromvariousstateagencies
have been actively involved in the Competency Project and have provided valuable input into system
development.
These panels provided five Research and Design (R&D)Teams with an analysis ofhuman resource
tools currently being used in the agencies - i.e. what works and what does not. The panels also
provided constructive feedback about what tools, structure, and aids they would like to see in the new
system.
SPD employees staffed the five R&D Teams covering the areas of Compensation, Competency
Development, Performance Management, Staffing and Training and Development.
The R&D teams utilized advisory panel feedback to develop products, tools and methods that met
the needs and addressed the concerns of the advisory panels.
The products and recommendations developed as a result of this approach are being tested and
further developed in pilot projects currently underway.
Compare & Contrast
&
Current system future system
Current:
Positions assigned to one of25 grades using the seven-factor Benchmark Factoring System, can be
time consuming.
A Pay decisions are based on job descriptions with no regard for how a person performs in a job.
A Methods of pay, classification, evaluation, training and hiring aren't always linked to agencies' or
employees' vision ofsuccessful performance.
CURRENT
100% of a position's entry pay rate
1
Grades
Note: Longevity is a separate
component - you receive 1.5% of your
base pay rate for every 5 years of
uninterrupted service.
Currently, classification of a position places the job in a grade.
The pay is then set based on the entry level for that grade.
Compare & Contrast
Current system & future system
Future:
Positions assigned to one of nine grades using one factor, less classification hassle and a wider pay
range for career growth.
Pay decisions are based onjob descriptions, but also provide a means to reward individual employee
efforts in the job.
A Employees and agencies align human resource systems with goals and strategies for successful
public service, to the benefit of agencies, employees and taxpayers.
FUTURE
100% of an employee's pay
( ^
JobContent Competency MarketPay
Pay
Competencypay Marketsalary
BANDS
will be a major data iscompiled,
componentof analyzed and
movementwithin maintained by
a payband. the State
Competencypay Personnel
adjustmentswill Division. Inthe
be incremental in future, market
nature (small adjustmentscan
percentageas be made by
comparedtothe occupation
current8-9% and/orby
raisestypicalfora position, and
A piece of paywill still be classification mayconsider
determined usingjob upgrade) and specific
content. Instead of seven representa useful recruitmentand
classificationfactors, we tool formanagers retention issues.
will have onefactor, in providing Managers will
comprised ofthe current employeeswith haveflexibilityto
Complexity and incentivefor assign greater
Knowledge, Skillsand increased paytospecific
Abilities factors. competency jobs based on
growth. marketvalue.
&
Agencies employees
Questions
use competencies .n^
f/f
& Answers
successfully
Measuring skills and competencies is not new to Q. When will the changes described above
state government. In fact, it's fairly common. For start to affect employee pay?
years, state agencies have used similar behavioral- A. Agencies and employees in pilot projects
based measurements to hire and promote between now and December 1998 will
employees. Someagencieshave incorporatedthese identify and grow familiar with the
concepts into their performance management competencies necessary for individual
systems. Those who have integrated behavioral- employee and agency success. The pilot
based measurements with traditional skill- and projectswill build systemsfordeveloping and
knowledge-based measurements find them to be measuring competenciesthatcould allowfor
good indicators of successful performance. competency-based pay in some locations as
Here are some examples of how state agencies early as July 1999.
already use competencies:
Job interview questions that focus on conflict Q. How are appropriate competencies
determined?
resolution, team work or customer service;
Job interview questions that ask about the A. Competencies are sets ofknowledge, skills,
abilities and behaviors that contribute to
applicant's previous experience with leadership
or prioritizing goals under pressure; success in a job. Desirable competencies
are those that best support an agency's
Job reference checks that ask about the mission and business needs in delivering
applicant's ability to positively influence co- effective publicservices. Competencies are
workers and understand internal & external determined in a careful and collaborative
forces on the organization; process involving agencypersonnel atmany
Portions ofperformanceappraisals thatmeasure levels.
behaviors and actions above and beyond
traditional minimum knowledge and skills; Who decides whetheran employee is, or
A Performanceappraisalsthatdealwith itemssuch is not, demonstrating necessary
as creative problems solving, leadership, competencies?
communication skills, planning skills, etc.; Competency-based systems use frequent
A Employeetraining opportunitiesthataren'tdriven feedback between managers and
by traditional minimum knowledge factors, but employees for clear communication about
rather, by competencies such as conflict work expectations. Options for measuring
and assessing competencies range from
resolution, effective communication, team work,
traditional supervisoryevaluations, to newer
etc.
"multi-rater" approaches, which include
Toa largedegree, the newfocus on competencies feedback from employees' peers and
asfactors in paydecisions representsa continuation customers.
orextension ofconceptsthatagencies have applied
successfully in various aspects ofhuman resources
for quite some time. Pay remains the last aspect of Q. Willstateemployeesgetlargerpayraises
human resources unattached to behavioral-based underthe new system?
measurements. A goal of the HR Competency A. Thetotal amountofmoneyavailableforstate
Project is to complete the picture by drawing a link employee wages will remain a decision
between pay and the type of measurements that reached through executive and legislative
manystateagenciesalready useandvalue invarious budgeting. The newsystem doesn't promise
personnel decisions. larger raises for all employees, but does
provide a means for recognizing employee
work contributions as a factor in individual
pay decisions.
(Payprojectsets newfocus . . . Continuedfrom Cover) knowledge, skills, abilities and behaviors in their
jobs. The blending of competency-based factors
The project, coordinated by the Department of
into the pay system and other human resource
Andemeidnsistfroartisoonm,eisagoennctiraecsk atnodmeoecctupiamtmieodnisatien systems can promote employee career
various "pilot projects." The Legislature directed development and high-quality service to the
the executive branch to test the effectiveness of taxpaying public.
proposed changes in the pilot projects and to
Broadbanding
submit a report to lawmakers in 1999.
The HR Competency Project is building the The other key concept of the HR Competency
alternative classification and pay system based on Project is broadbanding - a shifttoward fewer pay
two concepts that promote better service to the levels with broader pay ranges for each level.
public and better career opportunities for state
employees. These concepts are competencies State agencies express a need for greater
and broadbanding. emphasis on job market comparisons in pay
decisions, with less time, hassle, paper work and
Competencies otheradministrative burden spenton classification
decisions.
Competencies are sets of
knowledge, skills, abilities and The new approach will streamline classification
decisions by reducing the seven-factor method of
behaviors that contribute to
success in a job. Examples feavcatlourat-inag jcoobmsbifnoartciloanssioffictahteiocnurpruernptocsoemspltoexointey
includecommunication, customer j/'
service, teamwork, flexibility - a and knowledge factors.
blend of behavioral-based factors with traditional Broadbanding will consolidate state
knowledge-based factors that are important to a government's 25-grade pay system into fewer
particularjob. grades or levels. The 25 pay grades could boil
down to nine "levels," each having broader
State agencies need several types of flexibility minimum-to-maximum ranges than the current
in state government's pay system, including the
grades.
abilityto link payto employeejob performance and
competencies. A broadband framework and simplified
classification system, combined with new pay
Agencies report that the traditional pay system
options for market comparisons, competencies,
doesn't provide incentives for career growth or
and working conditions, can generate betterways
rewardsforexcellent performance. Managers say
of recruiting, retaining and rewarding state
their agencies could better serve the public if employees.
human resource tools such as pay, evaluation,
training and hiring were linked to employee Broadbanding also providesgreateropportunity
competenciesthatsupporteach agency's mission for lateral growth or "career ladders," benefiting
and business strategies. employees and customers ofstate government. A
Agreeing with executive branch leadership, career ladder is a tool by which employees
lawmakers directed the Department of advance in pay when they gain
competencies necessary to
Administration to develop an alternative system
takeon higher-level duties
that identifies competencies "necessary for the
and responsibilities
state and its separate departments and agencies
serving the public.
to provide service excellence to Montana's
citizens." The legislation requires that employee State agencies currently
recruitment, selection, evaluation, and usecareerladdersasaneffectivewayofmaintaining
compensation be based, at least in part, on the high-quality government services and promoting
demonstration of necessary skills and employee career growth. In many situations,
competencies. however, agencies and employees are not able to
usethistool becauseofinflexibilityandadministrative
The current classification and pay system is
position-based and longevity-based. Pay is buArdbernoiandtbhaencdurpraenytsctlrauscstiufirceatwioounlsdysptreomv.ide more
determined by a position description and by an
employee's length of service in a job. The HR ermopolmoyfoerecaanrdeearggernocwythsuwcictehsisn oanjbobe,haplfroomfosttiantge
Competency Project shifts emphasis toward government's customers — the taxpayers of
people-based criteria, such as employees'
Montana.
observable and measurable demonstration of
For more information:
For more information about Montana's Human Resource Competency
Project, please contact your agency's Personnel or Human Resource
Office, or call the State Personnel Division at 444-3871.
Staff of the State Personnel Division are available to provide updates and information
at any time. Please call if you have any questions, any special concerns, or if your
agency would like to arrange a presentation or question-and-answer session about
the HR Competency Project.
Please stay tuned for updates. Future newsletters will provide
more information and will attempt to answer questions that
readers submit to the State Personnel Division. If you prefer to
submit questions by mail rather than by telephone, the address
State Personnel Division, ATTENTION: Newsletter,
is:
PO BOy 200127, HELENA MT 59620-0127.
Alternative Accessible formats of this document will be
provided upon request. Persons who need an alternative
format of this document should contact State Personnel
Division, Box 200127, Helena, Montana 59620-0127;
telephone: (406) 444-3871. For those with a TDD, relay
service is available by dialing 1-800-253-4091.
You may also send e-mail to [email protected] or
access the State Personnel Division website:
http://www.mt.gov/doa/SPD/spdmain.htm.
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