ࡱ> w%` bjbjٕ ;{v@_ppp z T>h>h>hhi\<Zl(llllpp p$:h~owppowowll MMMowllMowMMPlNl ~r3C >hw^`/ 0<{ [{ "1  prXMtuVppp~pppp<owowowowdY>h>h  New Hampshire Personnel Appeals Board Fiscal Year 2008 Annual Report Prepared Pursuant to NH RSA 21-I:46 VI By its Members and Alternate Members Patrick Wood Robert Johnson Joseph Casey Philip Bonafide TABLE OF CONTENTS Section or Topic Page RSA 21-I:46 VI 1 RSA 21-I:45 I, Composition of Board 1 Members/Alternate Members 2 Narrative Summary 3-11 Revision and Adoption of the Boards Administrative Rules 3-5 Education and Training 5 5-Year History of Appeals Filed 6 Caseload and Docketing 7 Scheduling 7-8 Representation of Parties at Appeals Board Proceedings 8 All Appeals Filed During FY 2008 9 Appeals Concluded/Decided During FY 2008 10-11 Observations and Recommendations for Improvement of the Personnel System 12-18 Strategic Planning and Workforce Development 14 Classification 15-16 Performance Management 17-18 Special Recognition 18 Acknowledgments 19 RSA 21-I:46 VI The board shall by September 1 of each year submit an annual report to the governor, commissioner of administrative services, and director of personnel. This report shall include a narrative summary of the work of the board during the previous fiscal year. The report shall also include a description of problems related to the personnel system and the board's recommendations for dealing with those problems. RSA 21-I:45Composition of Board; Compensation; Removal. There is hereby established a personnel appeals board as follows: I. The board shall consist of 3 members, not more than 2 of whom shall be from the same political party. There shall also be 2 alternate members of the board, not more than one of whom shall be a member of the same political party. At least 2 members of the board shall have been gainfully employed as a labor relations or personnel professional for a minimum of 5 years. One member shall have been employed within the public personnel field of employment for a minimum of 3 years. Each member and alternate shall be appointed by the governor with the consent of the council for a term of 3 years, and a person appointed to fill a vacancy shall be appointed for the unexpired term. Each member of the board and alternate shall hold office until his successor is appointed and qualified. The governor shall designate one member as chairman of the board. The board shall elect one member to serve as vice chairman. Either the chairman or vice chairman shall be a member of the New Hampshire bar. No member of the board shall be a member of any state or national committee of a political party, nor an officer or member of a committee in any partisan political club or organization, nor shall hold, or be a candidate for, any remunerative elective public office during his term of office and shall not be otherwise employed in any of the agencies of the state government. NEW HAMPSHIRE PERSONNEL APPEALS BOARD Members/Alternates Terms of Appointment PATRICK H. WOOD, Laconia Chairman June 25, 1997 to June 2, 2011 ROBERT J. JOHNSON, Hillsborough April 5, 1989 to June 2, 2009 JOSEPH M. CASEY, Rochester March 22, 2006 to June 2, 2010 PHILIP P. BONAFIDE, (Alt.) Sanbornton March 8, 2000 to September 24, 2010 Narrative Summary Revision and Adoption of the Boards Administrative Rules RSA 21-I:46, VII requires the Board to adopt rules under the provisions of RSA 541-A, the Administrative Procedures Act, regarding procedures for the Boards conduct of its business. With the majority of the Boards rules due to expire in October 2008, the Board began a preliminary review of its rules in the late summer of 2007, and completed initial revisions in December 2007. By the end of January 2008, the Board and its Executive Secretary had met several times with Attorney Thomas Kehr of the Department of Administrative Services to review the rulemaking timetable along with the various requirements for submission of rulemaking proposals. The Board sent its initial proposals to the Office of Legislative Services in late February, and after receiving the appropriate fiscal impact statements from the Office of Legislative Services, the Board asked for notices to be published in the Rulemaking Register establishing a date for a public hearing on the proposals. The Board held a public hearing on April 23, 2008, covering each of the three rulemaking proposals, and left the record of the hearing open for ten additional days in order to receive and consider written comments. After revising the draft based on additional discussion amongst the members of the Board and comments received at the public hearing, the Board submitted its final proposals for consideration by the Joint Legislative Committee on Administrative Rules (JLCAR). A hearing on the Boards rules was convened by that committee on June 20, 2008. Before proposals are submitted to the JLCAR for consideration, the committees staff attorneys routinely annotate rulemaking proposals, pointing out what they believe to be terms or provisions in a proposal that might exceed an agencys rulemaking authority, or that may not be clear and understandable or subject to uniform application. After reviewing the Boards proposals, the committees attorneys agreed to place two of the three proposals on the committees consent calendar so that they could be approved at the June 20, 2008 meeting without further review. As the Board had anticipated, however, JLCAR staff attorneys had annotated the third and most substantive of the three proposals, raising questions about how the Board would determine what constituted good cause for a partys failure to appear at a hearing. They suggested that the Boards proposed standards were too subjective for making a determination of when a partys conduct at a hearing might be considered disruptive behavior, and they questioned what criteria the Board would use to decide how a party would receive a fair hearing. Committee attorneys questioned the Boards assignment of burden of proof as it related to appeals arising out of an alleged conflict of interest. They also asked the Board to edit some rules to conform to their standards for numbering and spacing. Attorney Kehr and the Boards Executive Secretary appeared before the Committee at their June 20, 2008 meeting and successfully addressed the concerns that had been raised by JLCAR staff attorneys. The Committee approved both proposals placed on the consent calendar, and voted unanimously to grant conditional approval to the third proposal if the Board would agree to make the editorial changes and amend language in the rule regarding burden of proof. The Committee agreed with the Board on the remaining annotations. On July 9, 2008, the Board voted to amend the third proposal consistent with the JLCARs conditional approval language, and on July 16, 2008, the Board voted to adopt all three proposals with an effective date of October 23, 2008. By delaying the rules effective date until October, the Board will have sufficient time to notify agencies of the changes in its rules, and revise the Frequently Asked Questions concerning the Boards administrative processes that are now posted on the Division of Personnels web page. It will also allow time for attorneys and employee representatives who frequently appear before the Board to familiarize themselves with the rules and adjust their own internal processes for handling appeals to make them consistent with the new rules. Although the newly adopted rules may not look substantially different from the current rules, there are some significant differences that should be noted: The rules clarify the role of intervenors and the rights that the Board might give them in a matter pending before the Board. The rules outline the duties of a presiding officer, making that person primarily responsible for managing the conduct of hearings. The rules specify those circumstances under which a member of the Board will withdraw from any adjudicative proceeding based on a real or perceived conflict of interest. Procedures for filing and service have been expanded to include initial submission of various pleadings by electronic or facsimile transmission in addition to submissions made by first class mail, certified mail, registered mail, express mail, or any other form of specialized delivery, including messenger mail. The revised rules clarify the circumstances under which an appeal might be dismissed or decided on the pleadings if a party is unable to establish good cause for failure to appear at a scheduled hearing or prehearing conference. The Board has included in its rules specific procedures for parties to move for summary disposition of a matter in dispute when it appears that there are no material facts in dispute, and the moving party is entitled to a judgment in his or her favor as a matter of law. The rules impose more stringent requirements concerning the exchange of information prior to an appeal, clarifying timeframes and requiring parties to exchange documents and witness lists well in advance of a hearing. The revised rules explain the circumstances under which the Board will continue reschedule, recess, or adjourn a hearing. Once adopted, the rules will also allow parties to differentiate between a request for reconsideration and a motion for rehearing of a decision of the Board, thereby protecting their rights of appeal to the NH Supreme Court. Education and Training During FY 2008, the Boards Executive Secretary delivered seven two-day Personnel Appeals Workshops for more than two hundred State employees, many of whom were required to attend as part of their curriculum in the States nationally accredited Certified Public Manager/Certified Public Supervisor programs. The personnel appeals workshop is designed to help managers and employees understand how to navigate the appeals process by meeting filing deadlines, submitting documents required by the Boards rules, exchanging evidence, examining witnesses and making offers of proof. More importantly, though, the workshop actually concentrates on what to do before an appeal is filed, including understanding and administering the personnel rules and the Collective Bargaining Agreement(s) fairly and consistently, developing clear performance expectations, maintaining open and honest communications, practicing effective performance management, maintaining employee records, and understanding the rights and responsibilities in the employment relationship from both the employers and employees perspective. Five-Year History of Appeals Filed FY 04FY 05FY 06FY 07FY 08Classification00010Promotion Non-Selection31023Application of the Rules20016Discipline2068810Termination1815232711Total43223139 =SUM(ABOVE) 30 Between July 1, 2007 and June 30, 2008, the Board received thirty new appeals, with all but nine (9) involving some form of disciplinary action.  EMBED MSGraph.Chart.8 \s  Caseload and Docketing For purposes of recording, tracking, scheduling and reporting, hearing requests are docketed by type of appeal and date of receipt. The general categories of dispute and the alpha-identifier assigned to each category are listed below: C = Classification and reallocation of a position D = Discipline including letters of warning, withholding of an annual increment, disciplinary suspension, and disciplinary demotion O = Other applications of the rules (including alleged conflicts of interest with state employment appealable under RSA 21-I:52) P = Promotion and non-selection to a vacant position T = Termination from employment (including termination during the initial probationary period and resignation allegedly given under duress) Upon receipt, appeals are logged into a database and assigned a docket number that identifies the fiscal year in which the appeal was received, the nature of the action in dispute, and the order of receipt within that category of appeal. As an example, Docket #2008-T-015 would indicate that the appeal was the fifteenth termination appeal received during fiscal year 2008 (July 1, 2007 through June 30, 2008). Scheduling In almost all cases involving termination from employment or disciplinary action that results in a loss of compensation, hearings are preceded by at least one prehearing conference. Prehearing conferences have proven to be useful tools that assist the Board and the parties in defining the scope of a hearing, managing the process by which parties exchange documents prior to a hearing, and resolving disputes between the parties regarding requests by either party to produce documents or compel the presence of certain witnesses. While that additional step in the process increases the number of days between the Boards receipt of an appeal and the date by which a case can be heard, the Board continues to find that prehearing conferences help parties and the Board use their time at hearing more effectively. As the Board has noted in several of its earlier reports, there are a number of factors that affect how quickly the Board can schedule a matter for hearing after an appeal has been filed. They include: The number of appeals already scheduled for hearing The availability of the parties, their representatives and their witnesses The extent to which either party might engage in pre-hearing discovery, including requests for admissions, interrogatories, requests for production of documents and requests to depose witnesses Availability of Board members, as members must recuse themselves from time to time as a result of a potential conflict of interest Statutory limits on the number of meetings any member can attend in any calendar year A vacancy in one seat on the Board for the last two years Limited access to facilities Representation of Parties at Appeals Board Proceedings RepresentativesFY '04FY '05FY '06FY07FY08Pro Se10581211Private Attorney72741State Employees Association, Troopers Association or NEPBA 2615162318Total Appeals Filed4322313930 As in prior years, union field staff and attorneys represented the majority of employees who filed appeals in FY 2008, although a growing number of appellants are appearing before the Board pro se. In all but ten cases, agencies relied on in-house counsel or staff from the Attorney Generals Office to represent them. Pro se appellants are seldom familiar with the actual practice of presenting a case on appeal, and often do not realize that after filing an appeal, they still can work with the States representatives outside the context of a hearing to resolve a dispute prior to a decision by the Board on the merits of an appeal. Given those circumstances, the Board has been pleased to see the continuing efforts that the States representatives have made to work with those employees and, when appropriate, assist them in developing settlement agreements that provide a mutually acceptable outcome for both employer and employee. Whenever possible, the Board encourages settlement between the parties and takes whatever steps it believes might assist the parties in reaching a mutually agreeable outcome to an appeal. All Appeals Received During FY 2008 (Arranged by Department) DOCKET NUMBERAction under appealAgency name2008-D-005Letter of warning & suspensionCorrections department2008-D-008Letter of warningCorrections department2008-T-011Termination - probationary periodCorrections department2008-P-001Non-selection promotionDept of administrative services2008-T-009Probationary terminationDept of administrative services2008-O-002Layoff - part-time temporaryDept of employment security2008-P-003Non-selection for promotionDept of employment security2008-D-002Performance EvaluationDept of health & human services2008-D-004Letter of warningDept of health & human services2008-D-007Letters of warning - threeDept of health & human services2008-D-009Letter of warning - work standard / conduct Dept of health & human services2008-D-010Letter of warningDept of health & human services2008-O-003Non-certification / non-selection for promotionDept of health & human services2008-O-004Non-certification program planner iDept of health & human services2008-O-006Salary enhancementDept of health & human services2008-T-005Termination - 5 letters of warningDept of health & human services2008-T-007Termination - probationaryDept of health & human services2008-T-010TerminationDept of health & human services2008-T-001Termination - probation - work standardsDept of justice2008-O-005labor gradeDept of safety2008-T-003TerminationDept of safety2008-T-008TerminationDept of safety2008-D-006Letter of warningDept of transportation2008-T-004TerminationDivision for juvenile justice services2008-T-002Termination - non-disciplinary reason (medical)Liquor commission2008-T-006TerminationNH hospital2008-D-001Letter of warning - work standardsNH regional tech community colleges2008-D-003Letter of warningNH regional tech community colleges2008-O-001Layoff from employmentNH regional tech community colleges2008-P-002Non-Selection for PromotionNH regional tech community colleges Appeals Concluded/Decided During FY 2008 Docket #AgencyAppeal typeDecisionIssued2007-C-001NH regional tech community collegesReclassification deniedDenied11/15/20072007-D-001NH veterans homeWithholding increment, failure to meet work standardstermination withdrawn10/29/20072007-D-002NH veterans homeLetter of warning, failure to meet work standardsSettled10/29/20072007-D-003Dept of safetyWritten warning, performance, misconductDenied5/30/20082007-D-007Dept of health & human servicesLetter of warning, failure to meet work standardsDismissed1/23/20082007-D-008Dept of safetyLetter of warning, failure to meet work standardsSettled2/12/20082007-D-009Dept of transportationSuspension without pay for purpose of investigationDenied11/15/20072007-O-001Dept of health & human servicesPerformance summaryDismissed - jurisdiction10/18/20072007-T-001Dept of health & human servicesTermination - violation of a posted policyGranted11/14/20072007-T-013Dept of employment securityTermination, misuse of communication systemsSettled - Order of the Board10/17/20072007-T-014State veterans councilProbationary termination, failure to meet work standardsDenied8/15/20072007-T-015NH veterans homeTermination, willful insubordination, threateningsettled10/29/20072007-T-016Dept of transportationTermination, violation of a posted policyGranted in part4/25/20082007-T-020Dept of safetyTermination, 3-day absence without noticeDenied5/30/20082007-T-021Dept of transportationTermination, failed to attend caip exit interviewGranted in part9/27/20072007-T-022Dept of transportationTermination, loss of licenseDenied10/18/20072007-T-025Dept of transportationTermination, violation of a posted policyWithdrawn11/7/20072007-T-026Dept of transportationTermination endangering the safety of other employeesWithdrawn2/28/20082007-T-027Division for juvenile justice servicesTermination failure to supervise residentsWithdrawn1/29/20082007-T-028NH veterans homeTermination, probationary, violation of a posted policyWithdrawn1/28/20082008-D-001NH regional tech community collegesLetter of warning/use of email for union activityGranted11/15/20072008-D-002Dept of health & human servicesPerformance evaluationDismissed1/23/20082008-D-003NN regional tech community collegesLetter of warningWithdrawn1/1/20082008-D-004Dept of health & human servicesLetter of WarningDenied2/21/20082008-O-001NH regional tech community collegesLayoff from employmentGranted11/15/20072008-O-002Dept of employment securityLayoff - part-time temporaryDismissed - jurisdiction2/28/20082008-O-004Dept of health & human servicesNon-certification Program Planner IWithdrawn1/2/20082008-O-005Dept of safetyDivision Rate and Labor GradeWithdrawn2/15/20082008-P-001Dept of administrative servicesNon-selection for PromotionDenied11/15/20072008-P-002NH regional tech community collegesNon-Selection for PromotionDenied11/15/20072008-P-003Dept of employment securityNon-Selection for PromotionSettled1/15/20082008-T-001Dept of justiceTermination - probation - work standardsWithdrawn2/21/20082008-T-003Dept of safetyTermination (Part time)Dismissed - jurisdiction2/27/20082008-T-004Division for juvenile justice servicesTermination, failure to supervise residentsWithdrawn1/29/20082008-T-007Dept of health & human servicesTermination - probationaryDismissed - no show at hearing6/9/2008 Observations and Recommendations For Improvement of the Personnel System Under the provisions of RSA 21-I:46 VI, the Boards annual report must include both a description of problems related to the personnel system that the Board has observed, and the Boards recommendations for dealing with those problems. Last year the Boards recommendations focused on the critical need for strategic planning and workforce development in all State agencies. Beyond its own observations, the Board cited information from a report published by the Pew Center titled Grading the States which indicated that New Hampshire did not conduct workforce planning and had no workforce profile. On a positive note, the report indicated that agencies were beginning to take workforce planning initiatives and develop workforce data, that New Hampshires training and development processes were good, and that the state consistently conducted training assessments to determine the needs of the employees. The report stated that while New Hampshire was making progress at evaluating employees, more progress could be made, and the State would benefit from greater consideration of ways to reward outstanding performers. In preparing for this years annual report, the Board again chose to look to the Pew Centers Grading the States report to see if progress had been noted. Unfortunately, grades for each of the areas studied had declined since the previous report. By way of explanation, the report issued in March 2008 offered the following observations. Amid growing concerns among Americans about job stability, health care and education, there is a new demand for government to work better and cost less. Innovative solutions, particularly at the state level, are driving reform and progress. New Hampshire could benefit from a comprehensive analysis of its management systems, with an eye toward strengthening performance reporting and information technology oversight. A strategic plan that states what New Hampshire government wants to accomplish and how it aims to do so would serve as a good guide for moving the state forward. The areas of activity considered in the study included the following: Money Long-Term Outlook Budget Process Structural Balance Contracting/Purchasing Financial Controls/Reporting People Strategic Workforce Planning Hiring Retaining Employees Training and Development Managing Employee Performance Infrastructure Capital Planning Project Monitoring Maintenance Internal Coordination Intergovernmental Coordination Information Strategic Direction Budgeting for Performance Managing for Performance Performance Auditing & Evaluation Online Services & Information Between 2005 and 2008, New Hampshires rating dropped from an overall rating of C down to a D+. The authors of the study observed that: There is a myth that New Hampshire's fiscally conservative state culture creates frugal but fit government no taxes, no frills, no problem. In truth, while New Hampshire may provide fewer services than other states, the notion that its finances are emblematic of old-fashioned New England Puritanism just isn't true. Meager cost and performance information and tortuous business processes create an institutional inertia that wastes much of the state's limited resources. The governor, who serves a two-year term, doesn't necessarily appoint and cannot remove his own agency heads, who serve four-year terms. So the governor can spend lots of time banging heads with other members of his own cabinet. "The basic system of government is designed to make it difficult to transform anything," explains one former state official. Although there has been little evidence of banging heads, the States overall approach to planning and its effect on the classified system deserves our attention. Strategic Planning and Workforce Development Throughout the course of a year, the Board has had an opportunity to hear from employees and managers working in a number of different agencies. In almost every instance, the Board discovered how diligently our States employees are working to provide high quality services and investigate ways for their agencies to move beyond the status quo and improve business practices to operate more efficiently and effectively. Those employees work at a significant disadvantage, however, when we ask them to increase efficiencies and enhance services without first giving them any kind of strategic direction, clearly articulated goals, specific performance objectives, reliable performance measures or the appropriate resources to carry out the work we direct them to do. Working without an actual plan increases the possibility that individuals, employee teams or entire agencies may be duplicating efforts, misallocating scarce resources, or worse yet, working at cross purposes. Despite their best efforts, managers often have little opportunity to be innovative in addressing deficiencies they see within the system, finding themselves instead with few options but to react to situations as they occur, not knowing if the resources available to them at the time will be sufficient to meet the needs as they arise. Strategic planning in the public sector must look far beyond the biennial budget or the next election cycle, taking instead the long view of what needs are likely to arise in the future and how best they can be met. While individual elements within any plan are subject to amendment when changes in circumstances occur, the long-range view of what the State can and should provide in terms of service to its citizens should be more constant. Otherwise, the likelihood of getting the right resources in the right place at the right time becomes a gamble at best. While the Board understands that strategic planning and workforce development can not solve all of the States problems, the prospects of making substantial progress in managing the States people, money, infrastructure and information should improve greatly if the State, through its Executive and Legislative Branches, were to create a vision of its future, identify its needs, prioritize its goals, and create a cohesive plan to satisfy its obligations to the State and its citizens. The State appears to have taken a critical first step by appointing a Workforce Development Coordinator at the Division of Personnel and establishing a Workforce Development Committee to review the current situation and recommend action. Classification Another issue that the Board raised in last years report was the status of the classification system, and how a systematic, strategic review of the system might allow the State to promote more cross-training and create career ladders for current employees who, with additional experience, education and training, would be available to fill positions in the future. The Board continues to believe that a review of the system might support the States long-term interests in developing and retaining a quality workforce. Although no new classification appeals were filed with the Board during Fiscal Year 2008, position classification and the contents of employees supplemental job descriptions continued to play a significant role in many of the appeals heard by the Board. Employees frequently reported that neither their class specification nor their supplemental job description accurately or fairly represented the work they were expected to perform. They also raised the issue of how performance expectations and work standards were established and communicated to employees, and whether or not those expectations were consistent with their level of classification and compensation. Although classification appears in the Boards docket as its own category of appeal, the issues surrounding position classifications continue to be a factor in many cases ranging from certification, non-selection for promotion and lay-off to discipline and dismissal. Classification and the inter-relationship between class specifications and supplemental job descriptions are key elements in two appeals filed last fiscal year with the New Hampshire Supreme Court. Those appeals, arising out of the Community College System, pose several questions for the Courts review involving the correct interpretation of the RSA 21-I:42, and whether or not a supplemental job description for a particular position in a generic classification (i.e., Administrator, Program Specialist or Program Assistant) can contain specific requirements for education and experience that are more restrictive or different in any way from those provided in the general class specification. While most of the class specifications in the current system include education and experience requirements that are identical to those that would appear in a positions supplemental job description, there are a handful of classifications that are considered generic. The personnel rules provide for agencies to tailor those requirements to meet documented recruitment needs of the agency or department, provided that the required levels of education and years of experience do not exceed those appearing on the generic class specification. For example, the generic class specification for Administrator IV requires an applicant to possess a Bachelor's degree from a recognized college or university with major study in a field relevant to the program area in which the position is assigned. The minimum experience requirement calls for nine years of work in a field or occupation relevant to the assigned program area, five years of which must have been in a management level position involving administrative or supervisory duties concerned with program administration, program planning and evaluation, business management or related management experience. By comparison, the Administrator IV position assigned to the Bureau of Human Resources at the Department of Health and Human Services calls for an applicant to possess a Bachelor's degree from a recognized college or university with a major study in human resources management, public administration, business administration, personnel management, industrial relations, labor relations, psychology, education, or a related field. An applicant would also need nine years of experience in professional human resource administration, five years of which must have been in a management level position involving administrative or supervisory duties concerned with program administration, program planning and evaluation or related management experience. The levels of education and experience on the supplemental job description are the same as those on the class specification, but they are specifically tailored for a position assigned to human resources administration. In the aforementioned appeals to the NH Supreme Court, the State Employees Association has argued that any modification of the education and experience requirements as they appear on generic class specifications qualifies as a violation of RSA 21-I:42. In the Boards opinion, that interpretation of the law would defeat the purpose of having any generic classifications that can be used to properly allocate positions in different agencies performing different tasks. Should the Court disagree, its decision could have far-reaching implications for the classification system in general, including the number of positions currently assigned to generic class specifications that would need to be reviewed and reclassified in order to have the education and experience requirements accurately reflect the needs of individual positions. Performance Management For the past several years, the Board has devoted a portion of its report to progress that managers in the State classified service have made in complying with the requirements of RSA 21-I:42, XIII, to provide each classified employee with at least one written performance evaluation each year. As the Board noted last year, conducting performance evaluations, no matter how complete, accurate or timely they may be, represents only a small part of an effective system of performance management. According to the federal Office of Personnel Management, key elements of a system of performance management will include the following: Planning work and setting expectations Continually monitoring performance Developing the capacity to perform Periodically rating performance in a summary fashion, and Rewarding good performance Over the years the Board has seen significant progress by agencies in setting work expectations and completing employee performance evaluations on time. More and more agencies also seem to be developing skills in using evaluations as tools to address performance concerns and establish short-term goals. What continues to be missing in many cases, though, is a consistent employee development program designed to improve an employees capacity to perform that also links State-paid education and training to agency mission. Also missing in is an appropriate means to recognize and reward individual achievement and performance excellence. Employees who continually fail to meet work expectations are subject to discipline. If an employee has not yet reached the maximum of his or her salary grade, the employer can sometimes withhold an employees salary increment as a disincentive to continued substandard performance. Ultimately, employees who are unable to meet expectations, either in terms of job performance or workplace conduct, can be dismissed. At the other end of the spectrum, however, are employees who consistently meet or exceed performance expectations, and whose only reward or recognition may come in the form of having additional work assigned to them while their agencies are working through a co-workers misconduct or performance problems. While agencies may be effective in their use of discipline to correct or eliminate substandard performance, it appears they may have been less effective in creating incentives for employees to excel. If the only reward for outstanding performance is the absence of discipline, employees will eventually find a work environment that recognizes and rewards their contributions. Fortunately for New Hampshire, the majority of our classified employees display a commendable work ethic and a remarkable sense of personal commitment to their jobs. In an era of increasing competition for skilled, dedicated, competent employees, however, New Hampshire State government needs to understand the links between rewards, recognition and retention, and take the steps necessary to retain quality employees. Special Recognition Unusual as it may be to use any portion of this report to recognize the efforts of any particular employee or agency, the Board wishes to acknowledge the assistance that Attorney Thomas Kehr, Rules Administrator with the Department of Administrative Services, provided to the Board during the process of rulemaking. While rulemaking may seem routine and unremarkable to agencies that regularly appear before the Joint Legislative Committee on Administrative Rules, boards and commissions that undertake rulemaking less frequently can find the process somewhat daunting. Thanks to Attorney Kehrs competent, patient, endlessly good-natured assistance, the Board and its staff could concentrate on the substance of its administrative rules without having to become mired in the painstaking details and complicated procedures that rulemaking entails. The Board also extends is thanks to Commissioner Linda Hodgdon and the Department of Administrative Services for providing access to her staff during those months. The Board also wishes to acknowledge the hard workand dedication of its Executive Secretary, Mary Ann Steele and her assistant Robin Hoyt in maintaining the Boards records, managing the day-to-day business of the Board,and working directly with employees, agencies and the various representatives who appear before the Board to facilitate their access to theBoard and improve their understanding of the appeals process. Acknowledgments The Board wishes to acknowledge the following individuals for their participation in supporting the Board and its work. Governor John H. Lynch Members of the Executive Council Raymond S. Burton, District 1 John D. Shea, District 2 Beverly A. Hollingworth, District 3 Raymond J. Wieczorek, District 4 Debora Pignatelli, District 5 Commissioner of Administrative Services Linda M. Hodgdon Director of Personnel Karen D. 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