A Biennial Report on the State’s Position ... - Texas

A Biennial Report on

The State's Position Classification Plan for the 2020-2021 Biennium

October 2018

Report No. 19-702

State Auditor's Office reports are available on the Internet at .

A Biennial Report on

The State's Position Classification Plan for the 2020-2021 Biennium

SAO Report No. 19-702 October 2018

Overall Conclusion

The State Auditor's Office reviewed the State's Position Classification Plan (Plan), which provides the salary structure for the State's

Background Information

The State Auditor's Office has a statutory responsibility under Texas Government Code, Chapter 654, to review the State's Position

147,486 classified, regular full-time and parttime employees, and determined that most job classification titles have competitive salary ranges that allow for agencies to pay their employees a competitive rate compared with similar positions in the public and private

Classification Plan (Plan) and to make recommendations that are necessary to improve the Plan.

The Plan's salary structure establishes salary ranges for positions and allows agencies to classify and pay employees for the work they perform (excluding employees of higher education institutions and legislative agencies). For situations in which the

sectors. This report provides the results of the State Auditor's Office's analysis and recommendations for changes to keep the Plan current and competitive.

salary ranges are no longer competitive or equitable, Plan changes may be necessary. Without those changes, agencies may face an increased risk of turnover and an inability to compete for and retain qualified employees.

This report covers Salary Schedules A and B in the

Those changes include:

Plan. Market analysis for positions in Salary Schedule C, which covers more than 5,433 law enforcement

Adding 28 new job classification titles to

positions, was addressed in A Report on the State's Law Enforcement Salary Schedule (Salary Schedule

address gaps in the Plan, which would provide agencies with new positions that

C) for the 2020-2021 Biennium (State Auditor's Office Report No. 19-701, September 2018).

more clearly distinguish the work being

performed and create new levels in

current job classification series. For example, the State Auditor's Office is

recommending a Payroll Specialist (six levels) job classification series.

Reallocating 103 job classification titles to a higher salary group to better align them with the average market pay and/or to create internal parity within the Plan with other similar jobs. For example, the analysis indicated that, on average, salary ranges for the Maintenance Specialists were 17 percent below the market. Moving Maintenance Specialists to a higher salary group would enable agencies to adjust those positions' salaries to be more competitive.

Changing 76 job classification titles to better describe the job functions, to reflect current industry terminology, and to create title consistency. For example, if the Engineer I job classification title is deleted from the Engineer job classification series as recommended, the Engineer II job classification title will need to be changed to Engineer I.

Deleting 36 job classification titles that were underutilized or not being used, had duties that overlapped with other job classification titles, or no longer provided a competitive salary. An example is the recommendation to

This project was conducted in accordance with Texas Government Code, Sections 654.036 and 654.037.

For more information regarding this report, please contact John Young, Audit Manager, or Lisa Collier, First Assistant State Auditor, at (512) 936-9500.

A Biennial Report on The State's Position Classification Plan for the 2020-2021 Biennium

SAO Report No. 19-702

delete the Claims Assistant job classification title because it is not being used.

Reassigning three job classification titles from Salary Schedule A to Salary Schedule B. Applying this reassignment to the Fingerprint Analyst I, II, and III job classification titles would better reflect the changing nature and complexity of the job. Although the salary schedule would change, the salary ranges would remain the same for each level.

Adding a higher-level salary group B36 to Salary Schedule B with a salary range of $180,044 to $304,499 to provide agencies flexibility to offer market-competitive salaries to help retain employees in certain job classification titles.

Estimated Cost for Recommended Plan Changes

The estimated cost of the recommended changes to the Plan is $1,302,240 in each year of the 2020-2021 biennium. The Health and Human Services Commission would bear the largest share (58.8 percent) of the costs associated with the recommendations. If the Legislature adopts these recommendations, agencies will be required to implement them.

Agencies Exceeding 17.0 Percent Turnover in Fiscal Year 2017

In addition, 12 state agencies had turnover rates exceeding 17.0 percent in fiscal year 2017.1 The State Auditor's Office analyzed turnover at those agencies to comply with the requirements of Texas Government Code, Section 654.037 (see text box and Chapter 3 of this report for additional details).

Objectives and Scope

Turnover Analysis

Texas Government Code, Section 654.037, requires the State Auditor's Office to (1) identify state agencies that experienced an employee turnover rate exceeding 17.0 percent during the preceding biennium and (2) conduct a comparative study of salary rates within those agencies. The comparative study is discussed in Chapter 3 of this report.

The objectives of this study were to (1) determine the competitiveness of the Plan with similar positions in the private and public sectors, (2) determine whether changes to the Plan are needed, and (3) identify state agencies with a turnover rate exceeding 17.0 percent during the preceding biennium and conduct a comparative study of salary rates within those agencies.

The scope included analyzing the placement of positions within the Plan, specifically positions in Salary Schedules A and B, and analyzing market pay for benchmarks positions. The State Auditor's Office conducted this study in

1 Turnover rates for state agencies (including the courts) that have fewer than 50 employees may appear inflated. In addition, self-directed, semi-independent agencies and legislative agencies are exempt from the State's Position Classification Plan. Therefore, the State Auditor's Office excluded those agencies from its turnover analysis in Chapter 3.

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A Biennial Report on The State's Position Classification Plan for the 2020-2021 Biennium

SAO Report No. 19-702

accordance with the Position Classification Act in Texas Government Code, Chapter 654, which requires the State Auditor's Office to: Maintain and keep the Plan current. Make recommendations that are necessary and desirable about the operation

and improvement of the Plan to the Governor and the Legislature. Make periodic studies of salary rates at other governmental entities and in

industries for similar work performed in state government and report that information to the Governor and the Legislative Budget Board. Identify state agencies that experienced an employee turnover rate exceeding 17.0 percent during the preceding biennium and conduct a comparative study of salary rates within those agencies. This project was not an audit; therefore, the information in this report was not subjected to all the tests and confirmations that would be performed in an audit. However, the information in this report was subjected to certain quality control procedures to ensure accuracy.

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Contents

Detailed Results

Chapter 1

Overview of the State's Position Classification Plan .............1

Chapter 2

Recommended Changes to the State's Position Classification Plan .....................................................3

Chapter 3

Agencies with a Turnover Rate Exceeding 17.0 Percent....... 10

Appendices

Appendix 1

Objectives, Scope, and Methodology ............................. 14

Appendix 2

Salary Schedules A and B ........................................... 19

Appendix 3

Recommendations by Occupational Category and Position ............................................................... 23

Appendix 4

Market Analysis ...................................................... 61

Appendix 5

Market Analyses for Agencies with a Turnover Rate Exceeding 17.0 Percent ............................................ 77

Appendix 6

Detailed Justifications for Plan Recommendations by Occupational Category ............................................. 98

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