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FEDER L RESERVE BO RD

WASHINGTON

T O

T H E FEDERAL RESERVE BOARD

X-6293

Apri l 18, 1929.

SUBJECT: Classification of personnel a t Federal

Reserve Banks.

Dear S i r :

With reference

t o t h e

Board's letter X-6267

of

March

14, 1929 , on th e

above subject,

I beg to ad -

vise that t h e Committee on Personnel a t Federal Reserve

Banks

m e t i n

Chicago

on

April

8 , and

submitted

a

report

t o t h e

Federal Reserve Board, under date

o f

Apri l

10,

recommending that

a

p lan

o f j o b

ana lys i s

a n d

c l a s s i f i c a -

t i o n of employees similar i n scope a n d purpose t o that

ou t l ined b y t h e Board a n d explained i n i t s l e t t e r o f

October

9 ,

1928.,

be

adopted

by

each Federal reserve bank.

The

Committee's report,

a

copy

of

which

i s

enclosed he re -

wi th ,

h a s

been approved

by the

Federal Reserve Board.

I f

your directors concur

i n t h e

Committee's

repor t i t w i l l be apprec ia ted i f you will prepare a n

ana lys i s

of

each po si t i on

o r j o b ,

except appr aise d po si -

t ions ,

i n

your bank

on

form

A , a

supply

o f

which

h a s

been furnished

you by th e

Chairman

o f th e

committee

a nd

forward i t t o t h e Board a t your convenience. The ap -

p ra i s e d p o s i t i o n s , i . e . , p o s i t i o n s f o r which i t i s n o t

p ra c t i c a b l e

to

establish salary ranges, should

be

kept

a t a

minimum.

The

Board hopes that

th e

personnel reports

t o be

submitted

f o r

each bank

a n d

branch will

b e

prepared

a s promptly a s convenient, i n order that they may be re -

viewed b y t h e Board a n d , i f p ra c t i c a b l e , t h e plan placed

i n

actual operation before

the end o-f the

calendar year.

Your report

on

form

A

should

be

accompanied

by

a %is t o f employees i n your bank, showing t h e c l a s s i f i c a -

tion symbol

of

each employee

a s

used

i n t h e

second column

of

form

A, th e

t i t l e

o f the job

held ,

t h e

salary pai d

t o

t h e

employee

on the

date

o f the

repor t ,

a n d

except

in the

case o f appra ised pos i t ions , t h e maximum a n d minimum s a l -

a r y provided f o r t h e p o s i t i o n o r j o b . Experience in the

p a s t

h a s

shown that

i n

adopting

a

plan

o f the

kind under

cons idera t ion

i t

w i l l

be

found that some employees

a r e

receiving more than t h e maximum provided f o r their grade.

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X-6293

3 6

-2—

While i t i s n o t expected that such employees will b e r e -

duced

i n

sa lary

a t t h e

t ine

th e

plan

i s

adopted

i t i s t o

be expected that i n course of t ine t h e s a l a r i e s of such

employees will he brought within t h e salary ranges a p -

proved f o r t h e posit ions occupied.

While t h e Board r e a l i z e s th at some of the

p o s i t i o n s

i n t h e

Federal reserve banks, such

a s

tha t

of

t e l l e r

f o r

ins tance ,

a r e n o t

comparable with similarly

designated posi t ions i n commercial banks, i t expects

tha t i n prepar ing . th e salary ranges f o r t h e d i f f e r e n t *

p o s i t i o n s i n t h e bank you wi ll take int o cons ider atio n

t h e sa l a r i e s pa id by local member banks f o r correspond-

i n g pos i t i ons , a n d that your salary ranges will be in

substant ial accord with salar ies paid

f o r

similar work

by the lo cal banks. Following th is pr in ci pl e i t i s a p -

parent that i n many cases th e salary ranges f o r pos i t ions

i n a branch may be su bst ant ial ly di f f er en t f rom those a t

t h e head of f ice o r a t another branch i n t h e sane, d i s t r ic t .

As

s t a t e d

i n

previous correspondence after

the

c l a s s i f i ca t i on p l an submi t t ed

by

your bank, including

salary ranges, h a s been approved by the Federal Reserve

Board, yo u w i l l be author ized t o promote employees within

a given grade a n d from one grade t o another without secur-

i n g t h e Board*s approval, with th e understanding, o f course,

t ha t

a l l

employees will

be

engaged upon

t h e

work called

f o r

b y t h e

c l a s s i f i c a t i o n p la n,

an d

that they will

n o t b e

paid

s a l a r i e s

i n

excess

of the

maximum salary provided

in the

plan without

t h e

Board's approval. Aft er th is

new

p l an

i s

i n opera t ion i t w i l l s t i l l b e necessary f o r y o u t o submit

r epor t s to t h e Board f o r approval, annually o r perhaps

of te ne r, showing act ua l sa la ri es pai d t o employees and

changes during th e report per iod. You w i l l be advised of

th e d e t a i l s to covered i n these reports a t a la te r da te .

By

o r | e r

of the

Federal Reserve Board.

Very truly yours,

E. M. McClelland,

Assis tant Secretary.

Enclosure.

TO

GOVERNORS

AND

CHAIRMEN

OF ALL

FEDERAL RESERVE BANKS.

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COPY

X~6293r«a

Aori l 10 , 1929 .

I Q<

REPORT

OF

COMMITTEE

ON

CLASSIFICATION

0 1

PERSONNEL

1

AT

FEDERAL RESERVE BANKS

Federal Reserve Board,

Washington,

D. C.

Gentlemen:

Pursuant to t h e Board ' s l e t t e r of March 14, 1929, (X-6267),

t h e Committee on C l a s s i f i c a t i o n o f Personnel a t Federal Reserve Banks held

a meeting a t t h e Federal Reserve Bank of Chicago on Monday, April 8 , 1929 .

The meeting w as c a l l e d to order a t 1 0 :0 0 A . M. , with Mr . f t . J . Fleming a c t -

i n g a s

temporary Chairman.

Upon motions, Mr. M. J . Fleming was elected Chairman of th e

meeting and Mr . J . S . Walden, J r . , was e lec ted Secre tary , The full committee

cons i s t ing o f t h e fo l lowing repres enta t ives of the va ri ou s re se rv e banks, was

present :

Boston

New York

Phi lade lphia

Cleveland

Richmond

Atlanta

Chicago

S t . Louis

Minneapolis

Kansas City

Dallas

San Francisco

Mr. E. L. Smead of the Federal Reserve Board, an d Mr. S. F .

Gilmore

of th e

Federal Reserve Bank

o f S t .

Louis were al so .pr ese nt

a t t h e

meeting.

The Chairman called upon M r. Smead to ou t l i ne t h e pos i t i on

<Sf t h e Fe der al Reserve Board with res pec t t o t h e approval by th e Board of

salar ies proposed

by th e

various Federal Reserve Banks

f o r

their employes

a n d t h e purposes which t h e Board h a d i n mind when i t asked that the Com-

mittee h e appointed. He s ta ted tha t i n order that t h e Board might be in

a p o s i t i o n t o more adequately a n d in t e l l i gen t l y d i scha rge i t s r e spons ib i l i t y

of passing upon t h e s a l a r i e s of employes a t t h e Federal Reserve Banks, an d

a l so t o f a c i l i t a t e t h e work of the banks i n making their proposals f o r

salary adjustments ,

i t

would seem desirable

to

analyze each

jo b i n t h e

banks

a n d

wherever pr ac t ic ab le , provide

a

salary range

f o r

each

j o b .

M r. Fleming, Chairman o f t h e Sub-Commit t e e , reviewed br ie f l y

t h e work o f t h e Sub-Committee a n d stated what h a d been accomplished by the

Sub-Oommittee, leading t o t h e necess i ty f o r c a l l i n g a meeting of the f u l l

Committee.

W. w.

Paddock

L. R. Rounds

W. H. Hutt

M. J . Fleming

J . S . Walden, J r .

Creed Taylor

J . H .

Di l la rd

0. M. Attebery

B. V. Moore

C. A. Worthington

R. B. Coleman

C. E.

Sarhart

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364

X-6293-a

I t was suggested that t h e members o f the Committee represent-

i n g those hanks which have a def in i te p lan of job ana lys i s an d c l a s s i f i c a t i o n

of employes in operat ion a t t h e pre se nt time, give a brief ou tl in e of the

plans under which they a r e operat ing f o r t h e b en e f i t of rep resen ta t ives of

banks which a r e n o t operating under a n y such plan. Mr. Rounds outlined t h e

plan

i n

operat ion

a t t h e


of New

York,

M r.

Fleming

the

plan proposed b y t h e Cleveland reserve bank, and Mr. Di l l a rd t h e p l a n of the

Chicago reserve bank.

Each member o f th e Committee was then called upon t o give a

brief account of th e system employed i n h i s bank of ad j u s t i n g t h e sa la r i es

of

employes.

The

system

i n

e f f e c t

a t h i s

bank

was

out l ined

b y

each member

o f t h e Committee, an d each member was called upon t o give an expression of

h i s views and opinion of the proposal f o r a j o b ana lys i s an d c l a s s i f i c a t i o n

of employes according t o jo bs . While a few of t h e members, particularly

those represent ing t h e smaller banks, f e l t tha t adequate supervi sion was be-

i n g given t o t h e considerat ion of s a l a r i e s in their banks, i t wa s agreed by

each member that

a

plan

o f job

ana lys i s

and

c l a s s i f i c a t i o n

of

employes

o f f e r e d no a d m i n i s t r a t i v e d i f f i c u l t i e s , a n d a l l members expressed themselves

a s being favorable to t h e adoption of a p lan . I t was f e l t that experience

might prove that each bank, regardless o f i t s size, might b e mate r i a l ly

b e n e f i t t e d

i n i t s

work

o f

salary adminis t ra t ion

by

using such

a

p lan ,

and

therefore each bank should heartily co-operate i n i t s adoption, looking to

probable benef i t s to be derived, a s explained b y rep resen ta t ives of those

banks which

are now

operating under

a job

analysis plan.

Upon motions duly seconded and car r i ed , i t was voted unanimously-

(1 )

That

a

plan

of job

ana lys i s

and

c l a s s i f i c a t i o n

of

employes

s imi lar in scope a nd purpose to that ou t l ined b y t h e Boafd a n d explained in

t h e le t t e r dated October 9 , 1928, addressed to each Federal Reserve Bank by

t h e

Chairman

o f t h e

Sub-Committee, should

b e

adopted

by

each Federal Reserve

Bank.

( 2 ) That i t i s impract icable to devise a uniform plan f o r u s e

b y a l l

Reserve Banks

an d

Branches,

and

therefore each bank should analyze

t h e jobs a n d c l a s s i f y t h e personnel a s they exist i n t h e individual bank o r

branches a nd submit i t s own plan t o t h e Federal Reserve Board f o r approval.

( 3 ) That in addi t ion t o t h e dut ies o f each j o b , t h e qua l i f i ca t ions

requi red f o r each j o b should b e included i n t h e plan.

(4 ) That a minimum a n d maximum salary f o r each j o b (other than

appra ised jobs) under each group c la s si fi c a ti on should b e es tab l i shed .

(5 ) That a l l jobs a s f a r a s po ss ibl e should be class i f ied under

t h e general scheme of group and g rade c l ass i f i ca t ions a n d appraised jobs,

tha t i s , jobs considered to come under t h e appraised group, should be kept

t o a minimum.

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i 365

- 3 - X-6293-a

(6 )

That each ta nk

i n

submitt ing

i t s

analys i s

of

jobs,

a s t he

jobs exis t

i n t h e

in di vi du al bank

o r

branch should

u s e t h e

form adopted

by

t h e

sub-conr^ittee

a s

revised ,

i n

re qu es ti ng i nfo rma tio n from each bank*

This fbrn

i s

designated

a s

Form

A , and

inasmuch

a s i t

vras printed

a t t h e

pr in t i ng p l an t

of the


of

Cleveland,

a nd t he

type

i s

s t i l l s t anding,

Mr.

Fleming agreed

t o t he

suggestion that

t h e

Cleveland bank

furnish each other bank with a n appropriate supply o f t he form f o r t h e p u r -

pose of submitt ing i t s plan.

( 7 )

That

any

plan adopted

by any

bank should,

f o r t h e

present

time a t leas t , provide a maximum salary . f o r each j o b based on the dut ies of

t h e

p a r t i c u l a r

j ob , a nd no

provision should

be

made

t o p a y

salaries above

t h e

maximum

i n

recogni t ion

of the

length

of

service

of any

p a r t i c u l a r

em-?

ployee. I t w a s f e l t th at inasmuch a s t h e reserve banks a r e comparatively

young ins t i tu t ions

a nd t he

necess i ty

f o r t h e

recogni t ion

of

length

o f s e r -

vice

h a s n o t

been pressing

up to

this t ime, this feature

of any

plan might

be

considered

a n d

taken

u p

with

t h e

Board

a t a

later t ime.

Respectfully submitted:

(S) M. J .

Fleming

Chad rman.

(S ) J . S .

Walden,

J r

Secretary.

frsbog_mim_v30_0361.pdf

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