B7008 - REDLINE RESCIND.PDF

Maricopa County — Formal (2018-02-07)

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Maricopa County Internal Policy Number: B7008
Policy Title: Employee Gainsharing Issue Date:
07/2002RESCINDED: MM-
DD-YYYY
Policy Category: Employee Initiating Department: Revision Date:
Compensation Management and Budget 12/2010Board of
Supervisors Agenda
Number: C-##-##-###-#-##
I. Purpose
The purpose of this policy is to provide a procedure under which employee
gainsharing programs may be adopted to encourage employees to find new revenue
sources and/or ways to achieve greater cost savings.
II. Authority and Responsibilities
The Board of Supervisors/Board of Directors is responsible for authorizing the use of
the program for any given fiscal year and must approve employee gainsharing plans
before they can be implemented. The Office of Management and Budget (OMB) is
responsible for administering this policy. Departments are required to follow this
policy and to direct any questions to OMB.
III. Applicability
This policy applies to all Maricopa County elected offices and appointed departments as
well as Special Districts that follow Maricopa County’s compensation plan, policies, and
procedures. This includes all full and part-time initial probationary, contract, classified,
and unclassified employees, except for temporary employees and individual elected
officials. Volunteers and independent contractors are not County employees and are not
subject to the provisions of this policy.
IV. Definitions
A. Board: The Maricopa County Board of Supervisors, the Maricopa County Flood
Control District Board of Directors, the Maricopa County Library District Board of
Directors, and the Maricopa County Stadium District Board of Directors.
B. Department: For the purpose of this policy, all Maricopa County elected and
appointed departments as well as all Special Districts that follow Maricopa
County’s compensation plan, policies, and procedures.
V. General Provisions
A. Maricopa County and its Special Districts adhere to the fundamental principle that
its employees are critical to the delivery of the many high quality, cost-effective
services. Employees are also the best source of innovative ideas and process
improvements to further improve both the quality and efficiency of those services.
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B. The concept of "employee gainsharing" supports these principles by offering
employees the opportunity to share in the benefits derived from their efforts to
enhance revenues and improve efficiencies, while maintaining or improving service
quality.
C. Departments may, either individually or as part of a group of departments or
functions, design and implement specific gainsharing programs for their
employees.
VI. Procedures
A. If authorized by the Board for any given fiscal year, departments must submit their
gainsharing programs to the Office of Management and Budget. A predefined
format will be used that includes a narrative that explains what, why, who, how,
savings/revenue, distribution, when, and a program flow diagram that mirrors the
narrative. The length of a gainsharing program is one year. Gainsharing programs
must be submitted by April 1st for the upcoming fiscal year beginning July 1st.
B. The Office of Management and Budget’s Employee Compensation and Budget
divisions shall review all gainsharing programs prior to submission to the Board.
Board approval is required to implement all gainsharing programs before the
applicable fiscal year begins.
C. All gainsharing programs must be based on Managing for Results (MFR)
performance measures that are either derived from or directly support the
department's MFR strategic plan. Departmental gainsharing program goals will be
based on historical data, which can be validated from existing systems and/or
departments.
D. Gainsharing program awards shall be funded from the cost reductions or revenue
enhancements identified as performance criteria in the plan. Each department
must remain within its expenditure budget in order to distribute an award under the
plan. The total amount distributed under the plan must not exceed one half of the
savings or revenue enhancements generated under the plan. The remaining
savings will be returned to the respective Fund. The following fiscal year
expenditure budget will be reduced by the full-year impact of the expenditure
savings realized. A program involving revenue enhancement will award its
participants in the following fiscal year, in order for the revenue to be properly
budgeted through an increased expenditure authority.
E. Individual employee awards may not exceed $2,000 per fiscal year, and may be
awarded incrementally as defined by the department's plan. It is intended that an
equal amount be shared with each eligible employee under the plan.
F. All employees (excluding temporary employees) who have worked for a department
for at least six consecutive months by the end of the measurement period, may
be eligible for an award as defined by the department's plan. A measurement
period is defined as a fiscal quarter or combination of two or four consecutive
fiscal quarters. In addition, to be eligible to receive an award, an individual
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employee’s performance must consistently meet or exceed departmental standards
during the measurement period, and the employee must have actively contributed
toward the goals of the plan for at least one half of the measurement period.
G. To earn a gainsharing award, an employee must remain employed through the
date of award distribution or be retired. Employees who have transferred from one
department to another department may be permitted to receive an award as defined
by the appropriate plan.
H. Any material changes in the department accounting procedures and policies during
the fiscal year that may affect the gainsharing program must be disclosed to the
Office of Management and Budget for review. If this review indicates the change
will have a significant effect on the gainsharing program, the review may result in a
recommendation that the gainsharing program be amended or cancelled. Any
amendment or cancellation of a gainsharing program requires Board action.
I. Gainsharing awards may be earned but will not be paid if the department’s
Managing for Results (MFR) performance measures have not been updated and
entered into the MFR database. Once these are validated by the Office of
Management and Budget, awards will be paid to eligible employees. These delays
may cause an award to be paid out in a different fiscal year than earned.
J. A comprehensive validation report, with the necessary documentation, will be
submitted to the Office of Management and Budget when the measurement period
is complete. This report will be submitted whether or not the gainsharing program
goals were achieved. This report must include an original signature by the
department director, which indicates that he/she authenticated the results
submitted. After the report has been evaluated, the Office of Management and
Budget may require the department to perform additional analysis, and to supply
additional supporting documents.
K.A. Each proposed gainsharing program must comply with this policy, or must
identify any provision that does not comply and request approval of the exception
before the program year period begins.
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