Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson...
-
Upload
roland-patterson -
Category
Documents
-
view
216 -
download
4
Transcript of Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson...
![Page 1: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/1.jpg)
Gainsharing in the Public Sector
Presented to NPELRAApril 15, 2002
Bruce G. Lawson, CCPFox Lawson & Associates LLC
(602) 840-1070
![Page 2: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/2.jpg)
Strategic Compensation
• Spend dollars to achieve greatest impact
• Match productivity with results– Stimulate creativity
• Enhance "ownership" value
![Page 3: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/3.jpg)
The Environment
Compensation program(s) should be based on
• Business environment
• Organizational environment– Employee considerations
• Market environment
![Page 4: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/4.jpg)
Group Based Incentives
• Group based incentives encourage employees and management to work together in solving problems of cost, quality, end efficiency leading to a monetary reward for documented improvements.
• Programs include:- Small group incentives- Gainsharing/Goalsharing
![Page 5: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/5.jpg)
Characteristics
• Emphasis is on teamwork
• Teams are rewarded for improvement
• Gainsharing rewards ($) are considered "found" money
• Formula based
• Measures of improvement can be financial, operational or a combination
![Page 6: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/6.jpg)
Advantages
• Encourages teamwork and employee involvement
• Increases in pay are funded out of "found" money
• Supports new culture of work• Encourages higher productivity and quality• Lower staffing levels needed
![Page 7: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/7.jpg)
Drawbacks
• Plans need to be re-adjusted every few years
• Difficulty in setting measurable objectives
• Public distrust of paying for improvements
• Productivity improvement features need to be bought back
• Rewards may not be large enough to motivate change in behavior
• Significant time needed to set up
![Page 8: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/8.jpg)
When Will They Work
• When the culture supports teamwork• Good base line performance measures are available• Management and employees enjoy a level of mutual
trust• When all levels of employees are included• When rewards are separate from regular pay• The organization supports total quality initiatives
![Page 9: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/9.jpg)
When Won’t They Work
• Lack of management and supervisor support
• Overly complex bonus formula
• Employee and management distrust
• Legislative meddling
• Lack of good baseline measures
• Poor communication
![Page 10: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/10.jpg)
The Process
• Six essential steps– Organizational assessment– Define desired behavior and system
characteristics– Final design– Transition and training– Evaluation and adjustment– Further implementation
![Page 11: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/11.jpg)
Organizational Assessment
• Review current systems• Assess readiness for change
– Organizational structure and culture– Leadership and management style– Communication practices– Political environment– Prior success/failure with organizational
change– Change agent skills and capabilities
![Page 12: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/12.jpg)
Conceptual Design
• What can and should be rewarded• Link behavior to reward program such as
skill based pay or gainsharing• Assess existence of baseline measures• Is there room for improvement• Determine administrative requirements
– Employee participation and eligibility– Time period for payments– Calculate and verify gain– Buying back productivity gains– Impact on base pay program– Impact on job classification– Ongoing oversight and rules
![Page 13: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/13.jpg)
Final Design
• Finalize productivity and baseline measures (formulas)
• Finalize administrative requirements including Oversight
• Conduct test• Outside/Independent review
– Academic/technical specialists– Political leaders– Business leaders– Labor leaders
![Page 14: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/14.jpg)
Transition and Training
• Establish communication strategies• Conduct training
![Page 15: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/15.jpg)
Evaluation & Adjustment
• Assess test• Make changes as needed• Begin implementation
![Page 16: Gainsharing in the Public Sector Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.us/reader036/viewer/2022082816/56649d135503460f949e7efd/html5/thumbnails/16.jpg)
Case Study
• Baltimore County, Maryland• Tony Sharbaugh. Director of Personnel