COMPENSATION PERSPECTIVES

Reviewing "All Others"

The implementation of the Standard Occupation Classification (SOC) coding system in 2003 has helped provide detailed occupational and workforce planning usage data that is not available from the broad role codes. Now that agencies have had time to gain experience with the SOC coding process, some attention should be given to groups of positions coded to the SOC “all others” (or miscellaneous) categories.

The “all others” categories are used when a position does not fit within a specific, detailed occupational definition. Unfortunately, miscellaneous categories do not establish useful links between role titles, salary data, and workforce reports. Because thousands of state positions are assigned to these categories, agencies are encouraged to review how positions are coded and check the SOC classification structure and user guide to determine if a more definitive code is available. The user guide is particularly helpful in resolving coding questions. Also, DHRM is reviewing Commonwealth occupations for which no SOC code exists. In these cases, a Virginia extension code may be established.

Information that may be helpful in initiating a review of SOC codes follows. To obtain a coding tutorial, or to discuss the purpose and use extension codes, contact Bill Baber or Rue White.

• The classification principles used in applying the SOC are published on the web at http://stats.bls.gov/soc/socguide.htm#LINK4 . They have also been described in more detail in an attachment to CRAB #34 that is available at http://www.dhrm.virginia.gov/compreform/crabs/bulletin34_soc_class.pdf
• If Human Resource professionals are not thoroughly familiar with these principles, they should review them before assigning SOC codes. SOC coding is a part of the total position classification activity that should be performed by HR professionals who are skilled in position classification.
• It is the classifier's goal to classify every position into a detailed occupation that provides specific information about its content. In striving for this goal one must balance two competing principles:
  1. Never force a position into an inappropriate class,
  2. A worker does not have to match every detail of the occupation to be assigned to that occupation.
• Guidance on requesting extensions was provided as part of CRAB #34 and is available on the web. The process of determining if an extension code is needed is described at http://www.dhrm.virginia.gov/compreform/crabs/bulletin34_soc_ext.pdf
• The current 4-digit extension code structure is described at http://www.dhrm.virginia.gov/compreform/crabs/bulletin34_soc_extcodes.pdf

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Occupational Employment Statistics Survey Changes Its Timing

The Occupational Employment Statistics (OES) is a major wage survey. It is conducted by state workforce agencies and compiled nationally by the US Bureau of Labor Statistics (BLS). The Virginia Employment Commission (VEC) collects OES data for Virginia.

In the past the data were collected once a year and reflected wages that were in effect on the 12 th of October, November, or December of each year. The timing has now been changed so that the data are collected and published twice a year, spring and fall. The fall target date is November 12; and the new, spring date is May 12. Unfortunately, the size and complexity of the survey continue to require a substantial publication lag. The new publication dates, however, will lessen the lag effect.

In the past the national data have been based on a sample of over 850,000 employers, with 10,000 taken from Virginia. With the change to semi-annual sampling, the sample sizes have been cut in half. The new samples, therefore, contain over 426,000 employers nationally with 5,000 from Virginia.

Data may be retrieved from the BLS web site. The May 2003 data for Virginia are available at http://www.bls.gov/oes/2003/may/oes_va.htm .

Those for the Richmond-Petersburg metropolitan statistical area (MSA) are at http://www.bls.gov/oes/2003/may/oes_6760.htm .

If you reach the OES data through a link provided by another web site, such as DHRM's, you should examine the URL to determine if it has sent you to the most recent data.

What is the likelihood that a particular employer will be included in a sample? Every state government is included every year in the November sample. Other employers with 250 or more employees can expect to receive survey forms about once every three years. Those with less than 250 employees should expect to be surveyed less often. Because randomization schedules are used in sampling, an employer's actual experience may depart from the general pattern. Furthermore, because sampling also depends on geography and industry, a small employer in a high-density area may never be surveyed.

Why have HR staff in Virginia agencies not received a lengthy OES survey form to complete? The reason is because the SOC codes in the PMIS position records allow the VEC to obtain data without directly surveying the agencies. This is one reason why accurate SOC coding is important. Failure to keep position SOC codes updated can cause an agency to receive an additional reporting requirement.

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Location Codes

The location codes used in the Personnel Management Information System (PMIS) are 3-digit codes taken from the Federal Information Processing Standards (FIPS). They designate the counties and independent cities in Virginia and are used for a variety of purposes. For example, a state legislator or a county board of supervisors may want to know how many state employees work in a certain county. Workforce planners or educators may want to understand concentrations of state workers. Agencies, therefore, should code position and employee data so that it shows actual work placements. A state agency that is largely located in Richmond but has operations throughout the state should not designate all its employees as being in Richmond City. Instead, it should take the necessary time to show the actual work locations of its employees.

The single exception to this principle applies to cases where the employees perform fieldwork and change their location on a daily basis such that they do not regularly work in a single city or county. These employees should be assigned to the county or city that is their home base. The home base is typically where the employee reports to work every morning to receive work assignments or replenish supplies. If the field workers do not have such a usual reporting place, then they may be shown as located in the office that provides their administrative support. Such coding, however, should be kept to a minimum. Persons who work out of their homes have their individual residences as their home base. Their location codes should show the county or city where they reside.

All codes in PMIS are used to answer a variety of questions. Failure to record codes so that they accurately reflect reality means that many questions may be answered incorrectly and the Commonwealth may waste its scarce resources.

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