BASIC CONCEPTS OF REDUCTION IN FORCE Sam Wilkins, Director Human Resources Division.

BASIC CONCEPTSOF REDUCTION IN FORCE

Sam Wilkins, Director

Human Resources Division

S.C. Budget and Control Board Office of Human Resources

Cost Savings ApproachesAvailable to Agencies

Recruitment• Hire Temporary employees

• Hiring Freeze

• Retrain/Reassign Employees to Other Areas

Furlough

Separation Programs• Voluntary Separation Program

• Retirement Incentive Program

• Reduction In Force

• Terminate Employees not

Covered by Grievance Act

Restricted Activity• Travel• Overtime• Tuition Assistance

Flexible Work Options• Job Sharing• Teleworking

S.C. Budget and Control Board Human Resources Division

Furlough

• Voluntary Furlough (Proviso 89.77) Employees may furlough for up to 90 days

• Mandatory Furlough (Proviso 89.120) State agencies, universities and colleges may institute mandatory furlough programs of up to 10 days for all employees in the agency, a department or program

• Higher Education Mandatory Furlough (Proviso 6.18)

Universities and Colleges may institute mandatory furlough programs of up to 20 days agency-wide (Higher Education agencies may not exceed 20 days between the provisions of Provisos 89.120 and 6.31)

• Reduction in Force/Agency Head Furlough (Proviso 89.80)

In the event of a reduction in force, the agency head must furlough for 5 days (Constitutional Officers would be exempt from this provision)

• Constitutional Officer & Agency Head Voluntary Furlough (Proviso 89.52)

Constitutional officers and agency heads may voluntarily furlough for up to 36 days

• Employee could be eligible for unemployment compensation


Separation Programs

Voluntary Separation Program• To realign resources and

permanently downsize based on ability to demonstrate recurring cost savings.

• Only employees covered by the Grievance Act in FTE positions are eligible.

• VSP participants are not eligible for the RIP programs.

• Separation payment not to exceed one year’s base salary.

Retirement Incentive Program• To purchase service credit on

behalf of employees who are close or currently eligible to retire and demonstrate recurring cost savings.

• Only employees covered by the Grievance Act in FTE positions are eligible. TERI employees are not eligible.

• RIP participants are not eligible for the VSP program.

• Separation payment not to exceed one year’s base salary.

These programs must be approved by the Agency Head and HRD.

Employees not Covered by the Grievance Act

• State Agencies may terminate the following employees not covered by the State Employee Grievance Act:– Temporary– Time-Limited Project – Temporary Grant– Probationary– Employee who entered the TERI program after 6/6/05– Retirees in FTE positions

• State Agencies should be aware that terminating only TERI participants or Retirees could lead to claims of age discrimination.



Four Reasons for Reduction-in-Force (RIF)

• Budget Reduction– State Funds– Federal Funds– Other Funds

(note: the elimination of employees is not based on the funding of their positions)

• Reorganization• Work Shortage• Outsourcing / Privatization


Employee RIF Rights

• Employees with RIF Rights:– In full time equivalent (FTE) positions having completed

a 12 month probationary period.

• Employees without RIF rights:– In temporary, temporary grant, or time-limited positions– Retirees Rehired– TERI participants after June 6, 2005– Employees who have not completed a 12 month

probationary period– Any other employees exempt from State Employee

Grievance Procedure Act


RIF Policy versus RIF Plan

• A RIF Policy is the document created to outline the components of a RIF and the manner in which it is implemented.

• A RIF Plan is the document that outlines how a specific RIF will be implemented in accordance with an agency’s RIF Policy.


RIF Policy

• Each agency develops its own policy which outlines the general components an agency will use to develop and implement a RIF plan.

• An agency has several options in tailoring its RIF policy to meet its needs.

• The Budget and Control Board’s Human Resources Division (HRD) approves the RIF policy and the agency disseminates it to agency employees before it becomes effective.


RIF Plan

• An agency develops a specific plan to implement a RIF.

• The RIF plan must be in compliance with its RIF policy.

• The Budget and Control Board reviews and approves the RIF plan for procedural correctness prior to agency implementing


Competitive Area

• The competitive area is the part of the agency in which the RIF will occur.

• The agency determines the competitive area.• It is defined in one of the following three ways:

– Agency Wide– Division, Department, or Unit– Geographic Region

• The competitive area should be an area that is clearly distinguishable from other areas of the agency.

Admin.Spec. II

Proc. Spec.I

ProcurementMgr. II

Admin.Spec. II

Acctg./FiscalAnalyst I

Acct./FiscalMgr. I

Admin.Spec. II

HRSpec. I

HRDir. I

Div. of Admin.Director

Admin.Spec. II

Acctg./Fiscal

Analyst II

GreenvilleOffice

ProgramMgr. I

Admin.Spec. II

Acctg./Fiscal

Analyst II

Rock HillOffice

ProgramMgr. I

PiedmontRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II

ColumbiaOffice

ProgramMgr. I

Admin.Spec. II

Acctg./Fiscal

Analyst II

SumterOfficeProgram.Mgr. I

MidlandsRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II

CharlestonOfficeProgramMgr. I

Admin.Spec. II

Acctg./Fiscal

Analyst II

BeaufortOfficeProgram.Mgr. I

Low CountryRegion

Prog. Mgr. II

Div. of RegionalOperationsDirector

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III

Div. of AuditServicesDirector

Agency Director

Area circled in red denotes competitive area.

Competitive Area- Example Agency Wide


Competitive Area Example: Division

Admin.Spec. II

Proc. Spec.I

ProcurementMgr. II

Admin.Spec. II


Acct./FiscalMgr. I

Admin.Spec. II

HRSpec. I

HRDir. I


Admin.Spec. II

Acctg./Fiscal

Analyst II

Gvl. OfficeProg. Mgr.

I

Admin.Spec. II

Acctg./Fiscal

Analyst II

Rock HillOffice

Prog. Mgr.I

PiedmontRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II

Cola.OfficeProg. Mgr.I

Admin.Spec. II

Acctg./Fiscal

Analyst II

SumterOfficeProg. Mgr.I

MidlandsRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II

CharlestonOfficeProg. Mgr.I

Admin.Spec. II

Acctg./Fiscal

Analyst II

BeaufortOfficeProg. Mgr.I

Low CountryRegion

Prog. Mgr. II

Div. of RegionalOperations

Director

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III


Agency Director

Area circled denotes competitive area.


Competitive Area Example: Geographical Location

Admin.Spec. II

Proc. Spec.I

ProcurementMgr. II

Admin.Spec. II


Acct./FiscalMgr. I

Admin.Spec. II

HRSpec. I

HRDir. I

Div.of Admin.Director

Admin.Spec. II

Acctg./Fiscal

Analyst II


I

Admin.Spec. II

Acctg./Fiscal

Analyst II

Rock HillOffice

Prog. Mgr.I

PiedmontRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


MidlandsRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


Low CountryRegion

Prog. Mgr. II

Div. of RegionalOperationsDirector

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III


Agency Director

Area circled denotes competitive area. S.C. Budget and Control Board Human Resources Division


Competitive Group / State Class Titles

• The agency defines the competitive group.• The competitive group is the area of competition

in the RIF in the following three areas:– One State Class Title

• Example: Administrative Specialist II

– State Class Title Series • Example: Auditor I, Auditor II, Auditor III, Auditor IV, Audits

Manager I, Audits Manager II

– Agency Normal Career Path of State Class Titles • Example: Administrative Assistant, Program Coordinator II,

Program Manager I


Competitive Group / State Class Titles

• The agency identifies how many positions within the Competitive Group/State Class Titles are to be eliminated. Up to this point, the agency is focusing on positions only and not employees.

Competitive Group Example: One State Class Title

Admin.Spec. II

Proc. Spec.I

ProcurementMgr. II

Admin.Spec. II


Acct./FiscalMgr. I

Admin.Spec. II

HRSpec. I

HRDir. I


Admin.Spec. II

Acctg./Fiscal

Analyst II


I

Admin.Spec. II

Acctg./Fiscal

Analyst II

Rock HillOffice

Prog. Mgr.I

PiedmontRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


MidlandsRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


Low CountryRegion

Prog. Mgr. II


Director

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III


Agency Director

The boxes in gray denote the competitive group.


Competitive Group Example: Class Title Series

Admin.Spec. II

Proc. Spec.I

ProcurementMgr. II

Admin.Spec. II


Acct./FiscalMgr. I

Admin.Spec. II

HRSpec. I

HRDir. I


Admin.Spec. II

Acctg./Fiscal

Analyst II


I

Admin.Spec. II

Acctg./Fiscal

Analyst II

Rock HillOffice

Prog. Mgr.I

PiedmontRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


MidlandsRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


Low CountryRegion

Prog. Mgr. II


Director

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III


Agency Director



Competitive Group Example: Agency Established Normal Career Path

Admin.Spec. II

Proc. Spec.I

ProcurementMgr. II

Auditor II

Auditor III

AuditorI

AuditorI

AuditorI

Auditor II

Auditor III


Agency Director


Admin.Spec. II


Acct./FiscalMgr. I

Admin.Spec. II

HRSpec. I

HRDir. I


Admin.Spec. II

Acctg./Fiscal

Analyst II


I

Admin.Spec. II

Acctg./Fiscal

Analyst II

Rock HillOffice

Prog. Mgr.I

PiedmontRegion

Prog. Mgr. II

Admin.

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


MidlandsRegion

Prog. Mgr. II

Admin.Spec. II

Acctg./Fiscal

Analyst II


Admin.Spec. II

Acctg./Fiscal

Analyst II


Low CountryRegion

Prog. Mgr. II


Director

AuditorI

AuditorI

AuditorI

Spec. II



Retention Points

• Retention points determine which employees are affected by the RIF.

• Retention point values are defined in an agency’s policy based on a combination following components:– Continuous State Service– Past two performance appraisal ratings

Note: An agency has flexibility in assigning more weight to performance or service in its policy.

• An agency may chose in its RIF policy to award additional points for bumping into a lower banded class title.


Bumping Rights

• Bumping rights are provided for covered employees who have accumulated more retention points than those with whom they are competing.

• Employees in a higher pay band may bump employees in a lower pay band in a series of related classes provided their retention points are higher than those in the lower band.

• For bumping to occur, the competitive area must include more that one state class title.


Retention Points Calculation

• Example: John Smith joined State government employment on January 10, 1998. The agency provides one point for each year of continuous state service. John’s last two annual EPMS ratings are “Meets.” The agency uses the following rating scale:– Substantially exceeds = 3– Exceeds =2– Meets = 1– Below = 0

• On February 3, 2008, John Smith’s retention points would be:10 points for continuous state service and 2 points for his EPMS rating. The total retention points are 12.


Bumping Rights Example

• Competitive area: Administrative Division • Competitive classes: Administrative Assistant (AA75/Band

4) and Administrative Specialist (AA50/Band 3). • One Administrative Assistant position needs to be

eliminated. • The following is a list of employees and their retention

points:– Employee A (Adm. Asst. AA75 - 8 retention points)– Employee B (Adm. Asst. AA75 - 4 retention points )– Employee C (Adm. Spec. II AA50 - 6 retention points)– Employee D (Adm. Spec. II AA50 - 3 retention points)

• Employee B (Adm. Asst). would bump down to compete with Employees C and D (Adm. Spec II). Employee D would be separated.


Four Ways an Employeecan be affected by a RIF

• Separation• Demotion

– In accordance with State Human Resources Regulation 19-719.04, an agency may reduce an employee’s salary immediately if he is demoted as the result of a RIF based on loss of funds.

• Reduction in hours• Reassignment

– Movement within an agency of an employee from one position to another position having the same State salary range, or the movement of a position within an agency which does not require reclassification


Retention ofNecessary Qualifications - RNQ

• Knowledge• Abilities• Skills

• Necessary Experience• Supervisory Status

An RNQ is the retention of an employee with lower retention points over an employee with higher retention points based on one or more of the following:

An agency must justify and defend using a retention of necessary qualifications to retain an employee with lower retention points.


RNQ Example - Skill

An agency has determined that one Trades Specialist II needs to be eliminated. Two positions have been identified within the competitive area and competitive group. The remaining position requires employees to have a journeyman license in Heating and Ventilation and Air Conditioning (HVAC). The employee with greater retention points does not have the required license. The agency writes an RNQ to maintain the employee with lower retention points who has a journeyman license in HVAC.

RNQ Example - Knowledge

An agency has determined that one Human Service Specialist I needs to be eliminated. Two positions have been identified within the competitive area and competitive group. The remaining position requires employees to interact with deaf students. The employee with greater retention points does not have the knowledge required in sign language. The agency writes an RNQ to maintain the employee with lower retention points who is fluent in sign language.



OHR Review and Approval of Plan

• The Budget and Control Board’s Human Resources Division reviews a RIF plan in the following two roles:– Consulting with the agency– Reviewing and approving for procedural correctness

• Procedural correctness indicates only that the agency has included

the components in the RIF plan as provided by the agency’s RIF policy.

• Our approval does not include the determination of the competitive areas, classes, or bumping rights.

• An agency must have an approved plan prior to communicating the RIF plan to the employees.


Implementation of the RIF

An agency should communicate the following information to the employees affected by a RIF:• Reason for the RIF• Competitive area(s) and competitive class(es)• Benefits for which the employee is entitled and the

effects upon state benefits• Employee’s right to see the RIF plan• Employee’s grievance rights


Implementation of the RIF (continued)

Reinstatement Rights for One Year:– Employee may apply for any position for which

he meets the minimum training and experience.─If hired into an FTE position, he has all sick

leave restored and the option to buy back all, some, or none of his annual leave at the rate it was paid out.

─The employee will retain continuous service if reinstated within 12 months from effective date of the RIF.


• Recall Rights for One Year:– If a vacancy occurs within the same competitive area in

the same class title as the position the employee held prior to the RIF, the Agency will recall the employee in the inverse order of the reduction in force.

– Agency informs employee how notifications will be made if a job is available.

– Recalled employees are eligible for the same benefits as reinstated employees.

Implementation of the RIF (continued)


Office of Human Resources Sample RIF Plan

http://www.ohr.sc.gov/OHR/employer/RIFSamplePlan.doc

http://www.ohr.sc.gov/OHR/employer/RIFSamplePlan.doc


Budget and Control Board’s Human Resources Division

• An agency is required to record employees who are affected by a RIF in the Human Resources Information System (HRIS). HRD notifies agencies with a listing of displaced employees to consider as vacancies occur.

• HRD provides on-site presentations on change management.

• HRD will provide assistance with employee meetings.

• HRD can provide possible community and other public resources for affected employees


RIF Applicant Pool

RIF Applicant Pool


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BASIC CONCEPTS OF REDUCTION IN FORCE Sam Wilkins, Director Human Resources Division.

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