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New separation incentives and phased retirement

February 7, 2011

by Larry Lewellen, VP for Human Resources

The evolving nature of higher education, an aging population and a tough economic climate means that we need ongoing flexibility in structuring our workforce to meet the challenge of a changing world. At Ohio State, we are focused on adapting to those outside forces in a way that takes care of people and also allows us to be good stewards of our resources.

One way we will do so is through the anticipated adoption of a separation incentive and phased retirement program by Ohio State’s Board of Trustees at its February meeting. If approved, the program will offer flexibility for colleges and vice president units to proactively adjust their workforce to achieve positive economic and programmatic outcomes. I’m writing you now to describe the incentives in a fully transparent manner.

Separation incentives provide an opportunity for those who may be thinking about separating from Ohio State - to relocate for personal reasons or to jump-start a career change, for example - and they can receive a cash incentive to provide an economic bridge. The department can then use the vacated positions for new programs or to make budget adjustments.

Phased retirement provides similar opportunities, but also allows for knowledge transfer to occur, replacement recruiting, or appropriate time to make changes in program offerings. This may be especially attractive to those who will not qualify for retirement for a couple of years, and/or would enjoy the ability to phase into retirement versus making a sudden change.

The program has two components, separation incentives and phased retirement. Separation incentives ease the transition out of the university through inducements, such as monetary support to cover gaps in salary and benefits. Phased retirement helps assist the timing of retirement for eligible faculty and staff, ensuring a smooth transition of highly knowledgeable and skilled individuals.

To understand the separation incentives program, it’s important to clarify:

• The decision to initiate separation incentives for specific units and colleges will rest with Vice Presidents and Deans.
• This is a voluntary program. Faculty and staff do not have to accept an offering that may be made available.
• It proactively manages an area’s workforce, and will not be allowed to focus on individuals. The program looks to gain efficiencies on a larger scale by concentrating on groups.
• Only those offered a separation incentive are eligible.
• The program is not intended to address poor performance. Rationale for offering incentives is based on planning for a robust talent mix that meets strategic needs.
• It does not offer an early retirement incentive by purchasing service credit such as those offered in the past.

Because workforce factors affect colleges and units differently, this program is designed to create flexibility, while a common and detailed approach ensures it is effective and fair. When a need is identified, the vice president or dean, the Office of Human Resources, and the Office of Legal Affairs will work together to:

• Develop a solid rationale for the change, identifying efficiencies to be gained and clarifying how the new structure will help achieve the unit’s goals.
• Develop specific criteria that identify the group(s) of faculty and staff who will be eligible for a separation incentive, such as retirement-eligible individuals, or specific departments or occupations.
• Communicate the separation incentives to eligible faculty and staff, ensuring adequate time to make a decision.

It is important to note that anyone accepting an incentive to retire will be ineligible to be rehired for any other university positions. Those who choose the separation incentive must wait two years before reapplying for any university position. This in no way reflects negatively on individuals, but  is simply a way to ensure we are acting as strong fiscal stewards, and using the dollars that fund the incentives wisely.

I am pleased that we’ve developed a set of guidelines that allow us to recognize the contributions of our faculty and staff as we proactively respond to the changing economic environment and an aging workforce. As always, I will continue to share information with you as we move forward. In the meantime, we have established a web site to provide additional answers, and I urge you to review it often.

New cash system makes life easier on the road

January 22, 2009

by Jeff McCallister

Kelly George had a small dilemma: She was a resident director for the Department of Animal Science’s Study Abroad trip to Ireland over the holiday break, and between visits to the Dublin Zoo, local veterinary offices, Blarney Castle, a dog track and numerous other stops, the group had fallen a bit behind schedule.

Again, it was only a small problem and easily solved. George and the other two resident directors decided to use part of the $3,000 cash advance issued by the Office of International Affairs to buy lunch for the group to eat on the bus traveling between stops.

“We had a lot we wanted to do and see and learn on the trip, so we planned a fast-paced tour,” George said.

George, an accountant in the department, was in charge of the money. She simply pulled out her GET card and paid for the meals and the group moved on.

“No big deal,” she said. “Very simple, very straightforward.”

Anyone who traveled with a group using university money before last autumn quarter may recognize a subtle but important change in that procedure: George didn’t have to use her own debit card.

The GET, or Group Extended Travel, cards are the latest part of the university’s Streamlining and Simplification Initiative. They were used on about half of the Study Abroad trips during winter break and will be used on all spring break Study Abroad group trips. Along with International Affairs, the Office of Student Life has begun using a similar system for its travel programs.

“The cash advances are to be used for in-country expenses, things that can’t be paid for in advance — some meals, gratuities, admission into some events or attractions, emergencies,” said Grace Johnson, Study Abroad director in the OIA.

“In the past, we’d just direct-deposit the funds into the resident director’s personal account and wait for them to bring back all their receipts,” she said. “No one liked that system, having to mingle personal money with travel funds and having to keep a strict accounting. It was a very cumbersome, sometimes confusing process.”

The GET cards, however, provide a separate, unique account to hold those funds. The cards work like a pre-loaded debit card — used like a credit card for purchases or to withdraw funds in local currency from almost any ATM.

“I thought it worked wonderfully,” George said. “It was really convenient, and it was nice being able to keep track of the exact balance without having to always mentally separate my personal funds from the Study Abroad funds.”

“The directors still have to keep all their receipts, but each individual card will have its own statement so all the purchases hit the books back here automatically. We’ll have a good idea where the money is being spent before the groups even get back to this country,” Johnson said.

“It’s just a much cleaner, more efficient way for resident directors to manage the group’s cash while in-country and we’re happy with how it worked.”

The use of GET cards come on the heels of a streamlined reimbursement procedure that was the first measure of the initiative to be put into action.

Leslie Flesch, associate vice president for Resource Management Systems, who chaired the Streamlining and Simplification force, said more measures are on the way.

Each answers concerns raised by an external review of the university’s operational structures and helps advance President Gordon Gee’s strategic goal to simplify systems and structures.