Full text of Mimeograph Letters and Statements of the Board : Letter From the Secretary re Salary Adjustments and Classification of Employees, Number X-1994, Volume 13, Page 701

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..;.
... ,.. SJPOPF1c1o M•u••u
bA.ID F. HOUSTON
IICRI'IARY OP THE TREASURY
CHAIRMAN

JOHN SKELTON WILLIAMS
COJIPTIOLLIR OP THI CUAIINCY

701

W. P. G. HARDING, GOYIRNOR
ALBERT STRAUSS. VICE GOYIIBOI

FEDERAL RESERVE BOARD

ADOLPH C. MILLER
CHARLES S. HAMLIN
HENRY A. MOEHLENPAH

W. T. CHAPMAN, SICRETARY
R. G. EMERSON, AISIITANT SICRITA•Y

-'DDRESS RIJ:Pl.Y TO

FEI)E;R,AL. RESERVE; BOAR!)

~·

WASHINGTON

M.JMLAY, FISCAL AGENT

August 17 1 1920-.
X-1991+

Subject: Salary Adjustments and Classification
of Employees ..

Dear Sir:By direction of the Boards I append h~reto copies of
instructions to employees of the Board announcing the adoption
by the Board of plan of salary adjustments therein explained.
As all Federal Reserve Banks are confronted with the
problem of adjust.ing salar).es} the Board felt that they would be
interested in its method of treating the c;.uesti.on. It will be
noted that no attempt has been made to classify officers} but
that sufficient classes are prescribed to embrace the entire
remainder of the or~nization. In achieving this end) it was
necessary in several instances to create classes covering individual employees.
In determ:i.ning the salary range for each class of
employees1 the Board fixed the figures at approximately the
replacement values of the employees. Xn ea.ch instance 1 the
maximum salary in a cl.ass is 33-1/3% uf. the minim·l.llll greater
than the minimum. Not desidng in any way to su.ggest what
salaries should be paid to employees of Federal Reserve Ba.nks1
the Board instructed me to omH from the en~losed memoranoum
the figures showing the salary scale it adcpted for its own
employees. HoweverJ the figures are sho·.m in the memorandum
given employees1 so that ea.ch emp:J,.oyee knows exactly what opportunity exists in the fi~ld.
Successful operation of the plan demands that those
serving, on the sub-cornw:i.t~ee on staff be acquainted intina tely
with the work of employees whose ratings they present for the
committee's conside1ation.
It has been suggested that should Federal Reserve Banks
desire to adopt a similar plan1 the Board could approve the
salary ranges recommended1 and leave it to the Banks to make



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•

702

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adjustments within the ranges without reference to the Board.
The Board believes it would not only be possible but highly
desirable to have standard classifications adopted by the
Res~rve Banks 1 recognizing, of course, that salary ranges for
such classifications need not be uniform throughout the system.
Of course, should a Federal Reserve Bank adopt t.he plan1 the
Beard would expect the Bar..k to restrict its application to
employees below the rank of Assistant Cashier and v;hose salaries
are $3.. 000 per ann~~ or under 1 am to continue to submit to the
Board for specific approval 1 increases in salaries above the
classification ranges, as well as salaries of all new officers·
and employees who are to receive pay of $2, 400 or more per annum.,
In the event of the adoption of the plan by any Federal Reserve
Bank 1 the Board would, of course 1 desire that the Bank conti me
to submit for the records of the Board as heretofore, a statement
showing its complete organization and salaries paid as of January
1st and July 1st of each year.
It is believed that the present·is ~n opportune moment to
adjust salaries on ~ permanent basis, looking to the abandonment
of the present bonus payments.
· Very truly yours,

Enclosure.
Secretary.,

~0 CH~IR¥FN




OF At!, F.R. BANKS.

70~

•
X-1994 a
FEDERAL RESERVE BOARD
WASHINGTON.
TO THE EMPLOYEES OF THE FEDERAL RESERVE BOARD:

July 1,1920.

The Federal Reserve Board has approved1 effective July 1 1 1920,
a plan of classifying its employees into grades with salary range, as
follows:
&lary
MinimU!ll Maximum

SUPERVISORY:
Chief Clerk.
. . . . . . . . . .
Supply Agent
. . . . . . . . . . .
Senior Statistical Accountant • • . • .
Chief, Gold Settlement Division . • • •
Section Supervisor • . • . . . . . . . .
Assistant Chief Clerk . . • • . . . . .
Federal Reserve Note Clerk • . . . . . .
Printing and Record Clerk . . . . . . .
Chief Clerk, Division of Reports and
Statistics • • . . . . . . . .
Chief File Clerk • . • • • . • . . . . . ·
Librarian • . . . . . . . . . . . . · •
General Assistant ., • • • . . . . . . •
Statistical and Accounting Clerk . • • .
CLERICAL:
Office Assistant • • • . . . . • . . · ·
Stenographic Clerk . • . . . . . . . . .
Technical Clerk • . • • • • . . . · · ·
Stenographer • . . .
Clerk-Typist • • • . . . . . . . • . .
Comptometer Operator • • . . . . . . . ·
Typist • • • .
• • . . . . . . · • ·
Clerk . . . . . .
. . . · . · · . · ·
Card Puncher • • • • . . . . . . . . . .
. &1m-cLERICAL: .
lvb.chine Operator • • • . • . . . . . .
Chief Messenger • . • . • • . . . . • ·
Assistant Chief Messenger • . . . . . •
Messenger • . • . . . . • . . • . · · •
Messenger (probationary period 2 mos.)
Junior Messenger • • . . . . • . . . .




704
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As the basis for
the fallowing:

rat~ng

· · :,;· ·.

X-1994 a
each

:Qualification

employee~

Neight:Per Cent:Actual:
rAttained:Weiggt:

!1

.. L

Ability
k&nlication
3. Adaptability
4. Attendance
: 5. Appearance
TOTAL

tha Board has approved

50

~.

:

:

20
13
3

4
:

100

:

On this basis1 the percentage attained by employees Shall
determine the compensation to be received in the respective grades.,
as follows:

R3.ting
.Minimum
70-80 •
51-85 • • • . . .1st increase of
.2nd
86-90
91-100 • . • • • 3rd

1/9
II

For the purpose of administering this plan~ the Board has appointed
the following sub-committee on staff:
Secretary
Assistant Secretary
Statistician
Chief., Divi~ion of E~min~tion
Chief, Division of Reports and Statistics
General Counsel ..
It is the duty of each division chief to r~te each of his
employees on the first of !;larch, Ju.'Yle} Septo:nber and DecetJber.
Employees are therefore assured of a quarterly rating., and of close
attention to their individual efforts for advancement.




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X-1994 a

Division chiefs may also rate particular omployees on dates ether
than those specified.
Recom.'Tiendations of ratings by divjs 1.on chiefs are aubmitted
to the sub-committee on st~ffi meetin~s of which ar~ held monthly1
or at special times when called by the Secretary. Recommendations
growing out of such meetings are submitted to tne Executive Committee
of the Board for consideration at the next regular meeting of the
Board ..
After approval by the Board of ratings recommended by the subeach employee shall be given i~ a sealed envelope a notice
of rating and relative standing in his or her grade.

committee~

In considering the qualifications of employees~ the following
elements are given weight, but these do not preclude the consideration
of other elements wh~ch, in particular eases, rmy be deemed of g,reater
importance.
1. Ability - Accuracy, care, dexterity~ education..

experience, energy, initiative, intelligence,
reliability~ speed.

•

2. Application - Devotion to duties •

3· Adaptability

-Ambition~

cooperatio~, courtesy.. tact~
observation, interest in general
work other than in own particular job, habits•
loy~lty,

4. Attendance - Regularity, punctuality, reliability.

5.

Appearance - Neatness,

alertness~

Any employee feeling full justification therefor, shall have the
rig,ht to file with the sub-commit tee in writing, a request for review
of his or her rating. Such request shall rocite in detail the employee's
reasons for ·believing the rating to be unfair.




(Signed)

W. T .. CHAPMAN ..

Secreury.

705