Compensation Administration Guide C H A P T E R 6 G U I D E L I N E S OVERVIEW
The authority for the establishment and administration of a uniform pay plan is contained in Article X , Section 10(A)(a) of the Louisiana Constitution and in Chapter 6 of the SCS Rules. The uniform pay plan regulates the compensation of all classified state employees. It is developed after taking into consideration several factors, including market conditions and practices of market competitors. Changes to Chapter 6 Pay Rules, because they affect the compensation of state classified employees, require approval of both the SCS Commission and the Governor. This chapter contains both operational and optional pay provisions and provides information regarding all of the mechanisms and pay flexibilities available for compensating state classified employees. HR IMPACT Chapter 6 Pay Rules is one of the most important chapters to the HR professional. The various pay options available within these rules allow the appointing authority to strategically plan compensation for classified employees, as well as develop and establish programs to motivate and reward employees. These pay rules address recruitment and retention issues, market conditions, pay for performance, pay for special conditions and situations, in addition to the regular compensation provided to employees for hiring, promotion, reallocation, etc. It is incumbent upon the HR professional to thoroughly understand the purpose, use and application of the various compensation rules in order to provide sound recommendations to the appointing authority. SCS Rules provide the framework and parameters for compensating classified employees. HR professionals are responsible for ensuring accuracy and timeliness in compensating employees, as well as, understanding the impact of payment errors. SCS RULE 6.1 PHILOSOPHY It is the policy of the State to maintain labor market competitiveness within the boundaries of financial feasibility. The State is committed to attracting and retaining a diverse workforce of high performing employees with the competencies, knowledge, skills, abilities and dedication needed to consistently provide state services.
There are four elements of maintaining market competitiveness: • The pay range structures must be at a competitive position relative to the market. • The actual salaries of employees must move within their assigned pay ranges to maintain pace with the market as those employees gain experience, skills and competencies. • The jobs assigned to those pay ranges must be regularly evaluated to ensure that the pay ranges continue to be appropriate as the jobs evolve and the market for those jobs change. • The compensation philosophy is applied when developing pay solutions to appropriately and conservatively meet the
human capital needs of state agencies. Compensation Administration Guide
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