Salisbury University
Policy and Decision Paper
Administration and Finance Division
January 31, 2005
Management of Contingent II Status Employment of
Nonexempt and Exempt Staff Employees
Context:
In 1996 the USM Board of Regents adopted a USM policy on the appointment and compensation of individuals for Contingent Status employment (Board Policy - VII.40). The policy established two categories of contingent employment. Contingent I status pertains to employees whose contract term is of six months or less. Contingent II status pertains to employees whose contract term is for six to twelve months and is renewable. The purpose of contingent status employees was to augment staffing requirements. At that time, Salisbury University employed over 210 people as contingent II employees.
By 2001 it was apparent that it had become necessary for USM institutions to rely upon Contingent II status employment for more than just staffing augmentation. In many cases it had become de facto regular employment with incumbents serving for many years but without the benefits of regular status. Accordingly, the Board modified the policy to require conversion of all Contingent Category II employees after two or more years of consecutive service to Regular Status by February 9, 2004.
Shortly thereafter, Salisbury University initiated a multiyear program to convert Contingent II employees to regular status. This program made great progress reducing the University’s reliance on Contingent II employees. From FY 1997 to FY 2002, the University, through conversions and attrition, was able to reduce the total number of contingent II employees by almost 74.8% (from approx. 210 to 57). However, conversion is expensive as the benefits associated with regular status employment are costly and average approximately 30% of base salary. Accordingly, when confronted with budget reductions in FY ‘03 and ‘04, the conversion process was held in abeyance.
Recognizing that fiscal circumstances made it exceedingly difficult to meet the original conversion deadline of February 9, 2004, in October 2004 the Board again amended the policy to require conversion after three consecutive years and to “phase in” conversion of current employees as follows:
For Contingent Category II employees on the payroll as of October 22, 2004, and who remain employed by the institution, the following conversion timeline shall apply:
o Employees with six or more consecutive years of service shall be converted by July 1, 2005;
o Employees with less than six but at least three years of consecutive service shall be converted by July 1, 2006; and,
o Employees with less than three years of service shall be converted by July 1, 2007.
o The above noted provision does not apply to employees in positions funded through a Research/Service Grant or Contract, through Clinical Revenue; or athletic coaches, employees on internships, and employees choosing not to convert to Regular Status employment.
Facts:
I. At present SU employs 46 Contingent II employees, 25 under the State Support budget and 21 under Auxiliary. This excludes employees funded through a Research/Service Grant or Contract who are exempt from the conversion requirement.
a. The full conversion cost of all 46 employees is $519,054 ($268,978 for State Support and $250,076 for Auxiliaries).
b. Cost per employee converted is approximately $11,300 consisting of the following components:
1. Retirement benefits,
2. Health, prescription, dental and other institution- sponsored insurance programs, and
3. Contribution to retiree’s Health Plan. (Once vested in this plan, an employee and possibly his/her spouse are covered upon retirement.)
II. Contingent II employees serve in a wide variety of essential services and units, which could not function effectively without their presence.
III. Based upon the Board policy conversion schedule for employees on the payroll on October 22, 2004, and who remain employed by the institution, the number of employees to be converted by date would be as follows:
a. July 2005 - 1
b. July 2006 - 26 for $303,212
c. July 2007 - 19 for $215,842
IV. Continuation of Contingent II positions no longer needed is not required.
V. Contingent II status when used as a substitute for regular employment status in continuing positions has been shown in many cases to be an impediment to efficiency and effectiveness, making both recruitment and retention more difficult and training more costly.
VI. At present, the campus is operating under an interim policy of limiting the appointment term of any newly hired Contingent II employee to a limit of two years in a position.
Policies:
· The process of converting Contingent II employees established in 2001 will be resumed.
· Conversions will be implemented as soon as financially feasible ahead of the Board policy deadlines, when and if possible.
· Employee conversions for those employees on the payroll as of October 22, 2004, will occur in order of length of continuous service to the University. State Support positions and Auxiliary positions will be handled as separate categories for this purpose.
· The President may approve “early” conversions based upon critical institutional needs as recommended by the Executive Staff.
· In order to be eligible for conversion, an employee must have received at least a rating of “Meets Standards” on the most recent PMP. Employees who have active disciplinary actions in their record will be reviewed by the supervising Director and the Director of Human Resources to determine if conversion will be granted based upon the nature of the action requiring discipline and the employees performance subsequent to the discipline.
Implementation Plan:
· No further Contingent II positions will be approved for filling when the need for regular state or auxiliary funded position is apparent. Contingent II positions will be used for “soft money” positions and temporary appointments of no more than two years.
· When vacancies occur in currently authorized Contingent II positions, they will be evaluated as to their continued need by the respective Vice President. If the evaluation concludes that the need exists to fill the position on a continuing basis, a request to fill the position as a Regular Status position will be submitted to Human Resources for consideration by the Executive Staff and the President. If the need for the position is temporary (two years or less), it shall be requested as a Contingent II position.
· The established processes of employee evaluation and contract renewal and non renewal of Contingent II employees will continue.
· The University will convert positions as soon as financially feasible, but no later than the dates proscribed in BOR Policy VI.40. That is:
o Employees with six or more consecutive years of service shall be converted by July 1, 2005 (1 employee as of January 27, 2005;
o Employees with less than six but at least three years of consecutive service shall be converted by July 1, 2006 (26 employees as of January 27, 2005); and,
o Employees with less than three years of service shall be converted by July 1, 2007 (19 employees as of January 27, 2005).
· This conversion schedule and policy will be placed on file with the Human
Resources Office. Pursuant to the BOR Policy, progress toward full conversion
shall be included in the required annual report (August 1) to the USM Office.
Approved By SU Executive Staff
February 1, 2005