netrashetty
Netra Shetty
OPOWER is a privately held software-as-a-service company that partners with utility providers to promote energy efficiency. Through contracts with 36 utility companies in 16 states, OPOWER's software creates individualized Home Energy Reports for utility customers that analyze their energy use and offer recommendations on how to save energy and money by making small changes to their energy consumption. The average customer receiving OPOWER reports has cut energy usage by more than 2.5 percent.[1]
OPOWER's comparative reports currently reach 2 million homes, with a target of 4 million by the end of 2010.[2] The American Council for an Energy-Efficient Economy concluded in a June 2010 report[3] that customer-feedback programs, like OPOWER's, could boost energy security, help the environment and save consumers money. "[F]eedback is proving a critical first step in engaging and empowering consumers to thoughtfully manage their energy resources," the study said.
With the concept of broad Roles and expanded pay bands, employees
have opportunities for career growth without having to change positions. This
8
structure allows employees to become more knowledgeable and proactive in
their own self-development and permits agencies to retain key talent.
MANAGEMENT ACCOUNTABILITY
The Compensation Management System is designed to support
managers in achieving their agencies’ organizational mission and objectives.
The pay structure and practices incorporated into the Compensation
Management System provide management increased flexibility in salary
administration within their agencies.
The accountability for pay decisions shifts to agency’s management.
Managers will play a more active role in salary decisions. This shift in
accountability will result in managers having to justify pay decisions to senior
management, explain them to employees and stay within existing budgets. The
success of the pay program will depend initially on the training provided to
managers and employees; ultimately it will be measured by the decisions made
by managers.
The Compensation Management System is designed to permit
managers a more active role in administering employee compensation to
support their agencies’ mission and objectives. There is a deliberate shift in
accountability from the Department of Human Resource Management
(DHRM) to agencies’ management. This shift in accountability will require
agencies to account for and justify the fiscal impact of payroll expenditure to
senior managers, explain pay decisions to employees and stay within existing
budgets. Decisions made because of Compensation Reform will have both
long term and recurring financial impact on agencies. Additionally, since
agencies will have available a number of different pay practice options, they
will be required to monitor and validate salary transactions to ensure
compliance with the Commonwealth’s pay practices.
The Compensation Management System relies on a sound infrastructure
to ensure effective program compliance and performance. This infrastructure
includes policies, pay practices, training and communications, business
transactions, information technology support systems, trends analysis, and
program evaluation at the state and agency levels. A process of defining roles
and authority, and conducting program evaluation provides the critical
components needed to support continued improvement of the Compensation
Management System.
Managing employee pay and the systems that support it is critical to
the success and effectiveness of the Compensation Management System.
The administration of compensation transforms the roles of DHRM, state
agencies, and agency managers, to one of partnership requiring a balanced
investment of support from each partner.
The purpose of this Chapter is to provide guidance related to the
administrative and operational management of the Commonwealth’s
Compensation Management System, and the authority and responsibilities
inherent in an expanded partnership.
AUTHORITY AND RESPONSIBILITIES
• Governor and General Assembly
The Virginia Personnel Act (Title 2, Chapter 10, Section 2.1-113)
designates the Governor as Chief Personnel Officer of the Commonwealth.
The Governor is responsible for establishing and administering a compensation
plan. Additionally, the Governor and the General Assembly approve funding
for annual performance increases that may be granted to eligible classified
employees and adjustments to the pay structure.
• Director of the Department of Human Resource Management
The Director of the Department of Human Resource Management is
responsible for making recommendations regarding the establishment and
maintenance of the Commonwealth’s Compensation Management System. In
accordance with authority delegated by the Code of Virginia, DHRM
promulgates policies and procedures that govern the administration of
compensation for all classified employees of the Commonwealth. DHRM
provides the Governor and the General Assembly with salary survey results
projecting market movement in salaries and pay structure.
The Office of Compensation and Policy (OCP) is responsible for the
following functions:
§ establishing and maintaining the policies and procedures of the
Compensation Management System;
§ recommending to the Director of DHRM solutions to compensation
and policy issues;
§ providing consultation and technical assistance to agencies regarding
compensation management and general policy matters;
§ conducting legislative studies;
§ obtaining Salary Reference Data and providing agency management
with access to this information;
§ monitoring and evaluating agencies’ usage of pay practices and
effectiveness of the entire compensation system;
§ reviewing and responding to agency appeals;
§ establishing and changing the pay band assignments of Roles (re-
banding);
§ establishing new Career Groups and Roles;
§ establishing or changing pay differentials;
§ reviewing Agency Salary Administration Plans (see Appendix A,
Agency Salary Administration Plan Guidelines and Agency
Implementation Readiness Checklist)
§ conducting program evaluation reviews;
§ approving exceptions to state policy;
§ approving innovative compensation programs;
§ establishing categories of pay supplements to base pay
• Agency Heads
The Virginia Personnel Act specifies that the heads of all state agencies
shall be the appointing authorities of their respective agencies and shall
establish methods of personnel administration within their agencies. Agency
heads, or their designees, are responsible for all personnel and compensation
actions affecting their agencies and may assign specific compensation
responsibilities to employees in leadership roles. All executive branch agencies
have the authority to take the following actions that affect the compensation of
employees:
§ developing, implementing and evaluating the appropriateness and
effectiveness of the Agency Salary Administration Plan and
modifying when necessary;
§ determining and documenting salaries in conjunction with the Agency
Salary Administration Plan;
§ hiring (see Appendix C, Employment Statuses);
§ approving dual incumbency of positions;
§ establishing and abolishing positions;
§ assigning duties to employees;
§ transferring positions to and from locations;
§ administering the Compensation Management System pay practices;
§ conducting salary surveys and analyzing data in accordance with DHRM
guidelines;
§ documenting and requesting differentials, rebanding or Career Group
revisions;
§ approving salary supplements;
§ developing innovative compensation practices for DHRM approval;
§ documenting and maintaining records of all personnel actions;
§ appealing compensation decisions to DHRM (see Appendix D,
Appeals);
§ awarding or denying compensatory leave;
§ establishing alternative approaches to employee performance review (e.g.
team performance)
§ determining the performance rating for all employees; and
§ training agency management and employees on the Compensation
Management System and any prospective actions that affect employees’
compensation
OPOWER's comparative reports currently reach 2 million homes, with a target of 4 million by the end of 2010.[2] The American Council for an Energy-Efficient Economy concluded in a June 2010 report[3] that customer-feedback programs, like OPOWER's, could boost energy security, help the environment and save consumers money. "[F]eedback is proving a critical first step in engaging and empowering consumers to thoughtfully manage their energy resources," the study said.
With the concept of broad Roles and expanded pay bands, employees
have opportunities for career growth without having to change positions. This
8
structure allows employees to become more knowledgeable and proactive in
their own self-development and permits agencies to retain key talent.
MANAGEMENT ACCOUNTABILITY
The Compensation Management System is designed to support
managers in achieving their agencies’ organizational mission and objectives.
The pay structure and practices incorporated into the Compensation
Management System provide management increased flexibility in salary
administration within their agencies.
The accountability for pay decisions shifts to agency’s management.
Managers will play a more active role in salary decisions. This shift in
accountability will result in managers having to justify pay decisions to senior
management, explain them to employees and stay within existing budgets. The
success of the pay program will depend initially on the training provided to
managers and employees; ultimately it will be measured by the decisions made
by managers.
The Compensation Management System is designed to permit
managers a more active role in administering employee compensation to
support their agencies’ mission and objectives. There is a deliberate shift in
accountability from the Department of Human Resource Management
(DHRM) to agencies’ management. This shift in accountability will require
agencies to account for and justify the fiscal impact of payroll expenditure to
senior managers, explain pay decisions to employees and stay within existing
budgets. Decisions made because of Compensation Reform will have both
long term and recurring financial impact on agencies. Additionally, since
agencies will have available a number of different pay practice options, they
will be required to monitor and validate salary transactions to ensure
compliance with the Commonwealth’s pay practices.
The Compensation Management System relies on a sound infrastructure
to ensure effective program compliance and performance. This infrastructure
includes policies, pay practices, training and communications, business
transactions, information technology support systems, trends analysis, and
program evaluation at the state and agency levels. A process of defining roles
and authority, and conducting program evaluation provides the critical
components needed to support continued improvement of the Compensation
Management System.
Managing employee pay and the systems that support it is critical to
the success and effectiveness of the Compensation Management System.
The administration of compensation transforms the roles of DHRM, state
agencies, and agency managers, to one of partnership requiring a balanced
investment of support from each partner.
The purpose of this Chapter is to provide guidance related to the
administrative and operational management of the Commonwealth’s
Compensation Management System, and the authority and responsibilities
inherent in an expanded partnership.
AUTHORITY AND RESPONSIBILITIES
• Governor and General Assembly
The Virginia Personnel Act (Title 2, Chapter 10, Section 2.1-113)
designates the Governor as Chief Personnel Officer of the Commonwealth.
The Governor is responsible for establishing and administering a compensation
plan. Additionally, the Governor and the General Assembly approve funding
for annual performance increases that may be granted to eligible classified
employees and adjustments to the pay structure.
• Director of the Department of Human Resource Management
The Director of the Department of Human Resource Management is
responsible for making recommendations regarding the establishment and
maintenance of the Commonwealth’s Compensation Management System. In
accordance with authority delegated by the Code of Virginia, DHRM
promulgates policies and procedures that govern the administration of
compensation for all classified employees of the Commonwealth. DHRM
provides the Governor and the General Assembly with salary survey results
projecting market movement in salaries and pay structure.
The Office of Compensation and Policy (OCP) is responsible for the
following functions:
§ establishing and maintaining the policies and procedures of the
Compensation Management System;
§ recommending to the Director of DHRM solutions to compensation
and policy issues;
§ providing consultation and technical assistance to agencies regarding
compensation management and general policy matters;
§ conducting legislative studies;
§ obtaining Salary Reference Data and providing agency management
with access to this information;
§ monitoring and evaluating agencies’ usage of pay practices and
effectiveness of the entire compensation system;
§ reviewing and responding to agency appeals;
§ establishing and changing the pay band assignments of Roles (re-
banding);
§ establishing new Career Groups and Roles;
§ establishing or changing pay differentials;
§ reviewing Agency Salary Administration Plans (see Appendix A,
Agency Salary Administration Plan Guidelines and Agency
Implementation Readiness Checklist)
§ conducting program evaluation reviews;
§ approving exceptions to state policy;
§ approving innovative compensation programs;
§ establishing categories of pay supplements to base pay
• Agency Heads
The Virginia Personnel Act specifies that the heads of all state agencies
shall be the appointing authorities of their respective agencies and shall
establish methods of personnel administration within their agencies. Agency
heads, or their designees, are responsible for all personnel and compensation
actions affecting their agencies and may assign specific compensation
responsibilities to employees in leadership roles. All executive branch agencies
have the authority to take the following actions that affect the compensation of
employees:
§ developing, implementing and evaluating the appropriateness and
effectiveness of the Agency Salary Administration Plan and
modifying when necessary;
§ determining and documenting salaries in conjunction with the Agency
Salary Administration Plan;
§ hiring (see Appendix C, Employment Statuses);
§ approving dual incumbency of positions;
§ establishing and abolishing positions;
§ assigning duties to employees;
§ transferring positions to and from locations;
§ administering the Compensation Management System pay practices;
§ conducting salary surveys and analyzing data in accordance with DHRM
guidelines;
§ documenting and requesting differentials, rebanding or Career Group
revisions;
§ approving salary supplements;
§ developing innovative compensation practices for DHRM approval;
§ documenting and maintaining records of all personnel actions;
§ appealing compensation decisions to DHRM (see Appendix D,
Appeals);
§ awarding or denying compensatory leave;
§ establishing alternative approaches to employee performance review (e.g.
team performance)
§ determining the performance rating for all employees; and
§ training agency management and employees on the Compensation
Management System and any prospective actions that affect employees’
compensation