Improving the Garland Water and Wastewater Utilities Depart- ment has always been a top priority for Jack May, the department’s managing director for more than 10 years. He continually strives for excellence by applying best practices – not for recognition – but because that’s the way it should be.

"Most people take access to safe water for granted until something goes wrong. Frankly, we run our business so that they can take it for granted," May said.

For more than a century, the department has provided a safe and abundant supply of potable water sufficient to meet its customers’ needs and has transported wastewater to treatment facilities at the lowest practical costs. On average, the department manages 17,000 calls each year.

Setting Higher Standards For Organizational Success

The department in general – and Jack May in particular – must be doing something right. A little more than a year ago, The Garland Chamber of Commerce recognized the department for its continuous improvement and organizational success with the Garland Performance Excellence Award. Presented annually to organizations that serve as role models for quality, customer satisfaction and performance excellence, it is based on the Malcolm Baldrige National Quality Award criteria and process.

The Garland Performance Excellence Award honors organizations that have made a commitment to applying quality principles in seven organizational areas in their day-to-day operations. Skill-based Pay, originally introduced to the department and crafted by The Waters Consulting Group, brought favorable recognition to the human resource category specifically.

"We found that the Skill-based Pay system fit our organization perfectly and has contributed significantly to our overall success," May said. "It’s the vehicle in which we rode to get us where we are today, earning such a prestigious award."

Improved Productivity and Skills; A Winning Combination

Skill-based Pay varies from traditional compensation methods in that it is person-based, rather than job-based. In a job-based compensation system, the work’s nature and job’s value help determine pay decisions for individual employees. Traditional compensation is a function of the job’s value, not necessarily the employee’s value. In a Skill-based Pay plan, employees are encouraged and rewarded for increasing their knowledge, skills and competencies along with their ability to help attain organizational goals. Compensation is a function of their individual value to the organization, as measured by the quantity and quality of their skills.

The Skill-based Pay system clearly aligned with the department’s human resource needs. Instituted in 1998 as part of a productivity improvement effort, the program assisted the department’s efforts to build and maintain a work environment and employee support climate conducive to performance excellence and to personal and organizational growth.

"Skill-based Pay empowers our employees to do their best for our customers while taking pride in their professional accomplishments," May said.

Skill-based Pay also reduces the liability that may come from the pay system’s training requirements by documenting employee training at various points in time. To receive pay increases, employees and their managers must sign and date the training documentation. "I want to be able to prove my employees are properly trained, and Skill-based Pay offers that opportunity," May added.

This innovative pay system puts more responsibility on everyone within the organization and embodies the teamwork and continuous improvement to help create award-winning organizations like the Garland Water and Wastewater Utilities Department.

To learn more about Skill-based Pay, make sure to register for the free Webcast event on April 18, 2007. The panel discussion, hosted by Rollie Waters, the president of The Waters Consulting Group and the author of The Public Sector’s Guide to Skill-based Pay, will also include Jack May, Director of the Garland Water and Wastewater Utilities Department. Other panelists that have also worked with The Waters Consulting Group in the design and implementation of customized Skill-based Pay programs include representatives from the City of Tucson, AZ and the City of Edmond, OK. Webcast details follow.

Creating a Motivational Climate Using Skill-Based Pay

Wednesday, April 18, 2007

FREE to IG Members - Available as a Webcast Only

Broadcast Airs at 1:00-3:00 ET; 12:00-2:00 CT;

11:00-1:00 MT; 10:00-12:00 PT


This column is provided as a courtesy to IG by Stacy Waters of the Waters Consulting Group, Inc. It is a monthly comment on issues of importance in the human resources arena. It is intended to provide general information and must not be construed as legal advice. Reproductions are allowed as long as credit is given to The Waters Consulting Group, Inc. and IG.