Building the perfect perks: legislatures need to emphasize fair, competitive pay plans and strong benefits to attract and retain good employees.

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Most people drawn to legislative work are motivated by a desire for public service. The opportunity to participate in the policymaking process and the chance for a meaningful career go beyond earning a paycheck. That's why most legislatures have a dedicated and loyal workforce.

But times are changing. Generation X and Y employees often are focused on balancing work with life, and more likely to make many career changes.

So legislatures are beginning to provide incentives to attract and retain the 21st century professional. They also are exploring ways to retain retirement-ready baby boomers for their expertise and to mentor the next generation.

According to a survey by the Society for Human Resource Management, public employees ranked the top job satisfaction factors as:

* Benefits

* Work/life balance

* Compensation

* Job security

* Good communication between employee and supervisor.

An NCSL survey found a slightly different mix, suggesting legislative employees may view traditional pay and benefits ahead of other forms of compensation and reward. Nonmonetary rewards do have an important place in the package, but fair, competitive pay plans and strong benefits packages will attract and retain the best employees.

MONETARY COMPENSATION

1

BONUSES

Cash bonuses can be awarded when hiring a top-notch person or to keep one. Merit bonuses are rare in legislatures, but some do offer them.

In Florida, the Legislature can grant a one-time lump sum bonus to a salaried employee. The policy establishes qualifications, which must be approved by the presiding officers and cannot exceed 10 percent of the employee's annual base rate of pay.

Some worry that bonuses can be politically difficult and expose the legislature to negative publicity. Lump-sum payments to public employees sometimes find detractors. But the practice, if carefully applied, may actually save money in the long run. It's common with many employers that legislatures compete with for talent.

2

LONGEVITY BONUS PAY

Longevity pay can be an effective incentive to retain talented employees. As with all lump-sum payments, however, legislatures need to design them carefully so that they have the intended effect at a reasonable cost.

Legislative staff in Nevada who have worked eight years or more receive longevity checks totaling $150 annually. Those who have worked 30 years or more receive $2,350.

3

EDUCATIONAL ASSISTANCE

Many employer--legislatures include--subsidize some or all of continuing education costs. The Illinois House of Representatives pays education expenses on a case-by-case basis at the discretion of the speaker. The director of Indiana's Office of Legislative Service can award similar support. These policies typically require that the continuing education have relevance to the job.

4

"DROP" PROGRAMS

In Alabama, Arizona, Arkansas, Florida, Louisiana, Maryland and South Carolina a deferred retirement option program (DROP) allows retirement-bound staff to stay at work beyond their normal retirement date, usually for a fixed number of years. Florida's retirement program allows vested employees who are 62 or have 30 years of service to retire and begin accumulating retirement benefits without terminating employment for up to 60 months. The monthly retirement benefit is held in the Florida Retirement System Trust Fund and earns an annual cost-of-living increase plus interest.

5

WELLNESS

Employee Assistance Programs (counseling and referral services for employees and their household members), health-club benefits and ergonomic services can improve job satisfaction and improve productivity. Access to Employee Assistance Programs is widespread in state legislatures, but other wellness practices are more common to the business world.

The Alaska Legislature remodeled an old school with a gym into a legislative office building in Juneau and added two treadmills, an elliptical machine and a steam room. Alaska legislators and staff also compete in a basketball league against rival teams from the governor's office, the lobby corps and legislative pages.

The Oregon legislature has a Safety and Wellness Committee that plans events for all staff and invites all state agencies. Recently, it sponsored its second annual "safety fair" that featured health screenings, introduction to alternative medical options such as acupuncture, and basic health awareness information.

6

ON-LOCATION SERVICES

More and more, employers are looking to make the workplace more convenient. Onsite child care, better food services, dry cleaning pick-up and delivery, onsite medical services such as flu shots and health fairs, and even free coffee and tea can save time and money for employees and promote productivity. In 1987, the Connecticut General Assembly established the Capitol Child Development Center to provide child care for children of legislators and other state employees.

7

OTHER MONETARY OR "IN-KIND" INCENTIVES

The number of potential perks and incentives is limited only by the imagination. Here are a few other possibilities:

* Use of cell phones, laptops, Blackberries, software or other work-related tools.

* Subscriptions and memberships to professional journals or associations.

* Free parking or exclusive, close-in parking.

* Monthly appreciation lunches.

* Travel to professional development seminars.

* Educational scholarships to family members, or discounts for in-state college tuition.

* Staff retreats for training and teambuilding with co-workers.

* Transportation subsidies for use of public transit systems.

* Carpooling services or bicycle lockup facilities.

NONMONETARY COMPENSATION

In a recent national survey conducted by NCSL, 89 percent of legislative human resources managers responding said that their legislature was constrained in the use of direct monetary rewards.

Instead, many state legislatures are experimenting with other forms of compensation, such as recognition awards, flexible work conditions and training. The American Compensation Association says these rewards have advantages over cash awards. They cost less. They have "memory" value when they involve a plaque, certificate or similar memento. They have "trophy" value when they can be shared with coworkers, friends and family. They are flexible and can be designed to recognize a special effort or accomplishment by an individual or team. Positive, authentic recognition of extraordinary effort can be a powerful motivator.

Nonmonetary compensation for legislative employees should have the following:

Input based: These awards focus on an employee's special contribution to the workplace rather than on her productivity. They recognize leadership, innovation, teamwork or individual effort.

Targeted: These match the reward to different jobs and responsibilities and employee demographics. Computer staff tend to value training and communication with managers; work/life balance often has more meaning to younger employees; older workers may like to have input on key decisions. Programs designed to motivate employees should be developed with their input. Research by the Society for Human Resource Management shows that human resources staff can make incorrect assumptions about how employees perceive workplace incentives.

Fair and Inclusive: Nonmonetary rewards should use a fair and objective selection process. They should have broad application and not be limited to an exclusive group of employees.

Review: Examine these rewards regularly and modify or replace them if necessary. Recognition programs that lose their meaning or become the office joke can do more damage than good.

As states enter tougher budgetary times, legislatures will struggle to keep staff compensation at levels that are competitive. Other perks and nonmonetary forms of compensation may also come under pressure, but any innovative options exist for rewarding and motivating legislative employees--some that are low or no cost.

NONMONETARY REWARDS

Many ways exist for rewarding and motivating legislative employees that are free or cost very little.

* Awards and recognition

* Flexible work hours

* Telecommuting 

* Casual dress code

* Training opportunities

* Security

Brian Weberg directs the Legislative Management Division of NCSL.