What's Happening with Performance Management?

In 2022, Governor Cox signed into law a bill adjusting performance management practices for state managers and employees. For simplicity's sake we'll refer to the law by its original legislative name, HB104. Although colloquially referred to as the “pay for performance” bill, HB104 covers many aspects of performance management beyond compensation. The purpose of this guide is to help agency leaders understand what the new law requires of them as well as to provide a general “map” of what to expect in the coming months regarding DHRM’s assistance in making this transition as successful as possible.

Does My Agency Have Autonomy?

Agency leaders have much discretion as they design a tailored performance management strategy that best suits their agency.

Obviously, agency leaders are responsible for ensuring their individual agency strategies are compliant with HB104 requirements. They also have decisions to make regarding performance management specifics like rating scales, quarterly evaluation specifics, measures, behaviors to evaluate, etc. If the process becomes overwhelming, or if you simply need a second set of eyes, DHRM's Leadership & Organizational Development (LOD) Consultants, as well as your agency's HR field staff, are available to assist.

Recommended Agency Timeline

March

Agencies determine a rating scale (include defined tiers) for FY24
Start training all supervisors (DHRM has a course already developed and ready to launch for your agency)

April

Agencies complete performance policies. This includes:

a) requiring quarterly written performance evaluations;

b) requiring performance standards and behavioral expectations in a performance plan for each employee;

c) defining how/when P4P funds will be distributed (we are suggesting tying it to the rating scale and rewarding annually rather than using complex calculations or systems); and

d) requiring all supervisors to complete performance management training.

June 30

All supervisors must have completed performance management training (either approved by or provided by DHRM).

July 1

Performance Plans in place for all employees (employees should be informed how P4P funds will be distributed and how it relates to performance plans/ratings).

DHRM strongly recommends appropriated P4P funds to be distributed on an annual basis rather than quarterly. There are various other compensation mechanisms in rule that can be used throughout the FY.

DHRM Timeline

DHRM’s goal is to support agency leaders in their efforts to be compliant with HB104 and improve performance management in their agencies. Ultimately, the key decisions about strategy that move beyond compliance will be up to agency leadership. In an effort to be as helpful as we can, an HB104 “Map” is provided above. The next “deliverables” provided by DHRM are consulting tools that will assist leaders in making sure they are thinking about the right things regarding their agencies performance management strategy. Around the same time those tools are delivered, agency leaders will have the opportunity to “request” DHRM’s LOD team to come and consult with their decision makers about strategy and implementation.

In the meantime, please do not hesitate to reach out to your agencies HR team or to the LOD Team.

For questions, contact us at lod@utah.gov.

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