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3 <br />3. Lower Performing Employees <br />Commissioner Gordon asked for additional information on how lower performing employees <br />would be addressed under the pay options and whether there would be gradations within the <br />Needs Improvement category. As Commissioner Gordon points out, there would be a range <br />of work performance in the Needs Improvement category. This would range from employees <br />who need to improve in several job areas and can do so with additional coaching to employees <br />who may be in the final stages of the disciplinary process. <br />From the standpoint of pay administration, these may all be within the Needs Improvement <br />performance- rating category. In none of these situations would the employee receive an in- <br />range salary increase and no differentiation of levels is necessary for pay administration <br />purposes. <br />The different gradations of performance within the Needs Improvement category come into <br />play in how the specific work performance needing improvement is managed rather than in <br />how pay is administered. It is not necessary to have different performance ratings to address <br />the performance management issues. <br />For each Needs Improvement rating, the WPPR program could require a supervisory action <br />plan to address the specific job needs, whether these are coaching, training or disciplinary, <br />with the objective of improving work performance within targeted time frames. An additional <br />element of this in the future will be that the Manager will become involved in situations where <br />the lack of progress in work improvement has reached a critical status such as if work <br />performance involves serious deficiencies that have not been corrected. <br />4. Handling of Gradations of Performance Within the Proficient Category <br />Under the Department Based Pay Option, the supervisor would be making individual salary <br />decisions within the Proficient performance category. Commission Gordon asked how <br />gradations of performance within the Proficient category would be handled. In this context, <br />Commissioner Gordon also had asked about the performance rating levels at UNC -CH. <br />Attachment 3 shows the UNC -CH performance rating categories. These are Outstanding, Very <br />Good, Good, Below Good, Unsatisfactory and Final Written Warning. <br />If the Department Based Pay option were pursued, the policy itself would include any limits <br />established by the Board for salary increases - such as for employees below the midpoint an <br />increase could be from 0 —3 percent and for an employee above the midpoint an increase could <br />be from 0 -2 percent <br />Within the limits established by the Board and the department's funding allocation, part of the <br />Department Based Pay option would involve the department head determining a plan for <br />awarding increases for employees in the department. This would be based on the department <br />head's knowledge of the types of work performance occurring in the department and the <br />possible gradations. <br />There would be gradations of performance within the Proficient level. The Proficient level <br />would encompass the "Very Good" and "Good' categories on the UNC -CH scale. Within the <br />