Staff Compensation

ProgramManager Training

May 21 – 22, 2012

Today’s Agenda

Content Timing

Overview of Compensation Program Re-Design 15 min

Compensation Program Details 20 min

Implementation of Compensation Program 10 min

Manager’s Role in Implementation 15 min

Frequently Asked Questions and Practice Exercise 30 min

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Overview of Staff Compensation

Program Re-Design

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Why Focus on Compensation?

Georgia College’s Compensation Program Re-Design ensures the institution remains an employer of choice through:

· Alignment of pay with the philosophy and goals of GC

· The recruitment and retention of top talent

· Recognition of employee contributions to their jobs

· Pay aligned to our competitive market

· Internal equity in pay among our employees The University is committed to providing employees with market competitive pay and opportunities to grow and develop within our

institution. 4

Overview of the Staff Compensation Program

· Outdated pay system‒ Last system update in 2005‒ Last comprehensive staff

compensation analysis in 2001‒ Inaccurate job descriptions

· Continued concerns around:‒ Inconsistent administration of pay‒ Pay compression‒ Misalignment of pay to the

external market ‒ Internal inequity‒ Pay may not be linked to

individual contributions‒ Limited career progression

opportunities

· Competitive, market-based structure

· Policies for pay administration to ensure: ‒ Fairness and consistency across

the institution‒ Ongoing maintenance of

program

· Foundation for future HR initiatives‒ Performance management‒ Career progression

· Increased communication and transparency

Old Compensation Program New Compensation Program

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Outcomes of the New Program

Key outcomes of the new program include:

• Current & Accurate Job Descriptions: Documentation of key responsibilities, skills, education, and experience requirements for the job

• Compensation Philosophy: Description of the role of pay and GC’s expectations for the management of pay in attracting, retaining, and rewarding employees at the University

• Comparison Markets: Development of comparison markets for market data comparisons by broad employee level groupings

• Compensation Structure: Management of compensation through market-based salary grade ranges

• Compensation Policies: Policies for managing compensation at the University to help ensure internal equity and consistent application of the program

The final materials for the items above will be available in June on the Human Resources

website (http://www.gcsu.edu/equity/payupdates.htm

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Project Phases

The objectives were accomplished through the following four phases:

Phase 4: Program Implementation

and Training

May – June 2012

Phase 3: Salary Structure and Salary Administration

Guidelines Development

January– May 2012

· Survey on current compensation program perspectives

· Key stakeholder and committee interviews

· Compensation philosophy development, including comparison markets to be used in market assessment

· Approach and process for market assessment

· Detailed market pricing analysis

· Assessment of GC pay against market

· New pay structure for exempt and non-exempt employees

· Validation and finalization of structure and job assignments with leadership

· Salary administration guidelines development

· Implementation plan, including training and ongoing communications

· Finalized salary adjustments

· Manager and Employee Training sessions

Full implementation of the new compensation program will occur on

July 1, 2012.

Phase 2: Market Assessment

November 2011 – January 2012

Phase 1: Compensation

Philosophy

August – November 2011

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Staff Compensation

Program Details

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Compensation PhilosophyVision for the Staff Compensation Program

The program1 is intended to provide competitive, fair, and equitable salaries in order to attract, retain, and engage highly qualified administrators and staff without regard to race, color, religion, sex, sexual orientation, national origin, age, disability, veteran status, or any other legally protected status. The principles of this program are intended to cover all non-faculty jobs.2

How The Vision Will be Realized Program Model

GC’s staff compensation program will be designed to provide organization and structure to the way in which salaries are administered, while allowing for sufficient flexibility to meet the needs of the University. To this end, GC will:

•Provide pay opportunities/ranges that:

•Are based on job responsibilities (not individuals)

•Are competitive within the markets in which the College competes for talent

•Promote internal equity across the institution

•Consider the institution’s financial resources

•Recognize and compensate expertise, sustained contributions, and performance

•Manage salaries for all divisions and schools using the same program and guiding principles

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1 Pay components of the compensation philosophy are contingent upon the financial resources of the institution.2 Non-Faculty Jobs: All GC jobs in which the individual’s administrative, non-teaching responsibilities represent at least 50% of full-time effort.

Compensation Philosophy continued

Pay Components

• Base salary will be the primary method of compensating individuals at GC. It will reflect the value of the job in the market, the role in the University, and the capabilities and contributions of the individual

• Any other additional pay, when permitted, may be granted in accordance with established guidelines

• Other benefits such as tuition remission, health and retirement plans, and work environment will continue to be essential components of the compensation strategy at GC, as a complement to competitive salaries

Internal/External Valuation

• GC will consider both the external competitiveness and internal valuation of jobs. The program will use market data as a reference for creating the salary structure and salary ranges. Pay will be competitive in aggregate

• Benchmarking to comparison markets will inform salary ranges, and will be used as a reference for determining salaries for individuals

• Each school will strive to maintain internal equity across the institution. This is defined as providing similar compensation opportunities for similarly situated administrators and staff (i.e., jobs with similar market values in the same job family will be assigned to the same salary grade; administrators and staff with similar expertise, experience, and performance will be paid similarly)

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Compensation Philosophy continuedLink to Performance

• The structure will help support and facilitate a linkage between compensation, career development, and performance management

• The University intends to support a culture of performance and reward individuals accordingly

• Individual base salaries will be managed within the salary range for the job and will consider the skills, knowledge, experience, and performance of the incumbent

• Salary increases should be determined by the degree to which each individual contributes to GC, department, or area goals depending on the job, and demonstrates excellence in handling their job responsibilities, as documented in the performance evaluation process

• Salary increases and opportunities for advancement will not be an entitlement and will be subject to the institution’s fiscal conditions

• Position and job descriptions will be reviewed and updated as necessary to ensure clear, mutual understanding of responsibilities and performance standards

Communication/Openness

• GC will ensure understanding of the compensation program through open, clear, and accessible communication to staff

• The link between job performance, goal achievement, and salary increases will be clearly communicated to all employees

• Managers will be trained and held accountable for effectively planning, managing, coaching and evaluating the performance of their staff, as well as creating a positive work environment that supports growth and staff development

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Compensation Philosophy continued

Management of the Program

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Cabinet Members Human Resources Managers and Supervisors

· Communicates openly, regularly, and clearly with the University community on all compensation related matters

· Revises, endorses, and proposes programs in consultation with other stakeholders at the University

· Sets and communicates institutional strategy, objectives, and operational goals to the University

· Sets the standard for performance planning, coaching and feedback, and holds their direct/indirect reports accountable for the same

· Collaborates with managers and supervisors to set appropriate salaries

· Collects market data and assesses pay competitiveness

· Provides managers and supervisors with tools and resources needed to make compensation decisions for their staff (market data, hiring ranges, federal/state laws, etc.)

· Designs, develops, and maintains the compensation program, including pay guidelines, and ensures consistency of application

· Communicates the pay and performance management program and ensures understanding by staff and administrators

· Regularly monitors the effectiveness of the compensation program and practices, and its continued competitiveness

· Understands job responsibilities and requirements of jobs in their area of responsibility and gives clear indication of the career path for direct reports

· Maintains accurate and current job descriptions· Develops and maintains open and trusting

relationships with their staff, and with colleagues across the institution

· Recommends and implements performance expectations, provides clear and helpful feedback, and evaluates performance

· Communicates openly with their staff about compensation topics

· Leads by example· Becomes familiar with principles of compensation

and salary administration guidelines in preparation for potentially playing a larger role in salary administration

· The program will be maintained by:‒ Monitoring the market on a regular basis

‒ Regular updates to the salary structure to reflect market influences

‒ Regular reviews of salaries to ensure internal equity

COMPARISON MARKETS

Job Category Type of Employer(s) Other Criteria Used LocationSenior Administrators (Directors and above)

For higher education specific jobs: Public and private, 4-year Master’s (Large) & Doctoral/Research institutionsFor cross-industry jobs: Blend of general industry and not-for-profit organizations; functionally relevant markets for jobs/job families will be used

Range around operating budget, faculty FTE, and student FTE

National

Professionals (Independent Contributors and Managers)

For higher education specific jobs: Public and private, 4-year Masters (Small, Medium, Large), Doctoral, and Research-Intensive institutionsFor cross-industry jobs: Blend of general industry and not-for-profit organizations; functionally relevant markets for jobs/job families will be used

Range around operating budget

Southeast region; Georgia

Entry Level Exempt

Non-exempt (office support, technical, trades, etc.)

Blend of general industry and not-for-profit organizations; functionally relevant markets for jobs/job families will be used

All organizations Central Georgia; Baldwin County

Compensation Philosophy continued

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· Developed structure with: 13 salary grades Competitive salary

ranges Wide range spreads to

allow for growth within a job

· Placed benchmarked jobs by market value and internal relationships; placed non-benchmark jobs by internal relationships

· Validated job assignments to grades with Vice Presidents

Developed new policies to:· Help ensure fair and

consistent salary administration

· Establish competitive and equitable salaries

· Reward performance and support career growth

Compensation Program Development Process

The development of the compensation program followed best practice within Higher Education.

· Collected national, local, higher education, and general industry data

· Collected 25th, 50th, and 75th percentile market data

· Used only quality credible sources of data

· Reviewed matches with HR and Vice Presidents

Analyzing the Market

Understanding Job Content and

Job Matching

Building the Salary Structure

DevelopingPolicies

· Used updated job descriptions to match GC jobs against competitive market data

· Based matching on job content, requirements, scope of accountability, and institutional size

· Matched to survey description if 70% of job content was aligned

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Georgia College’s Compensation Structure ($000)

· Salary grades overlap to allow for flexibility to pay for a range of individual skills, experience, and performance within each grade

· The width of the grade, often referred to as “range spread,” increases as the variation in experience, skills, and competitive pay for the jobs in the grade increases

· The salary grade helps maintain competitiveness with the external market and ensures internal equity among compensation for jobs and individuals at the University

Grade Minimum Midpoint Maximum

13 $84.7 $116.5 $148.2

12 $67.8 $93.2 $118.6

11 $60.9 $77.7 $94.4

10 $54.1 $67.6 $81.2

9 $47.0 $58.8 $70.5

8 $40.9 $51.1 $61.4

7 $36.2 $44.4 $52.5

6 $31.5 $38.6 $45.7

5 $27.4 $33.6 $39.7

4 $23.8 $29.2 $34.5

3 $20.7 $25.4 $30.0

2 $19.3 $23.1 $27.0

1 $17.5 $21.0 $24.5

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The New Compensation Policies

Compensation policies address a variety of situations.

Help Ensure Fair and Equitable Administration of

Salaries

· Paying within the grade

· Starting salaries

· Annual salary increases

· FLSA

· Maintaining the program

New compensation policies will be found on the GCHR website in

June.

Reward Performance and Support Career Growth

· Promotion · Transfers· Temporary assignments/

interim appointments

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Management of Pay within the New Structure

An individual’s grade, skills, experience, and performance determine the actual salary for the job.

+ =

+ =

Grade RecommendedBase Salary

Location inGrade

Role, Responsibilities, and Skill

Requirements

Knowledge, Skills,

Experience, and

Performance

Pay Opportunity

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Implementation of Compensation

Program

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Moving to the New Structure

· This is an entirely new program‒ As part of the implementation, no one will get a pay

decrease

‒ There is no direct relationship between current grades and new grades

· Employee Impact‒ February 1st (completed): Select employees whose

salaries significantly lagged the pay for their job in the external market received increases

‒ August 1st: Employees whose pay are below the grade minimum will be brought to the minimum

‒ Employees will continue to be eligible for annual merit increases as part of the compensation program

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Implementation Details

Implementation· New Individual Employee Letters: Distributed June 2012· Contents include:

‒ New salary grade and range

‒ Salary adjustments (if applicable)

‒ Title changes (if applicable)· Managers will distribute the individual employee letters.

Following the distribution of the letters, GC HR encourages managers to have one-on-one meetings with employees to review the contents and discuss any questions

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Re-Evaluation Schedule

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Fall Semester Spring Semester Action

July 1 January 6 Fully processed re-evaluation form submitted to HR

August 8 February 28 Supervisor notified of the classification determination by HR

August 15 March 5 Deadline to appeal classification determination

September 5 April 30 Appeal decisions complete and department notified of decision

October 1 July 1 Effective date for any re-evaluation

The table below describes key dates and actions for a job re-evaluation.

Manager’s Role in Implementation

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Managers are Critical to the Program’s Success

YOUR RESPONSIBILITIES AS A MANAGER/SUPERVISOR

What you should know

· How and why the program was developed

· The program’s objectives and key messages

· Compensation policies and how to use them

What you should do· Use the salary

policies in consultation with Human Resources to determine appropriate hiring salaries and to manage salaries appropriately

· Keep job descriptions current for your employees

· Stay informed about the policiesHow you should communicate

· Be positive about the program· Answer employees questions openly and

honestly· Research any questions you are uncertain

about· Enlist HR’s help

Understand and

Support the

Program

Compensation Policies will

be available online soon

Follow Compensation

Policies

Help Your Employees Understand the Program

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Manager Tools and Resources for Implementation•Today’s presentation

•Employee Information Session presentation (sessions to be held June 4th and 5th)

•Manager script – “Do Say This, Don’t Say That”

•Manager FAQs – As the trainings are complete, Human Resources will compile all the questions and distribute an updated FAQ for you prior to the distribution of the employees letters

•Human Resources website

•Human Resources—call or email classcomp@gcsu.edu if you have questions

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Manager ScriptDo Say This, Don’t Say That

Do Say This Don’t Say That This program is entirely new and

has no direct relationship to the old system

The University is using this study to find cost savings and is planning to decrease salaries

Your salary will not decrease as a result of the implementation of the new program

The University is using this study to get rid of jobs

The new structure is based on solid, current salary market data

I don’t trust the market data, I’m not sure where they got the information from

Job descriptions and market matches were reviewed several times to ensure accuracy

This outside consulting firm does not understand our jobs

If you are receiving an adjustment, your pay is currently significantly lagging against the market and/or below the grade minimum for your job

This new program makes me angry too!

Future salary adjustments may be made to address internal equity concerns and performance

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Example Manager File

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New Structure ($000)Adjustments Based On Full-Time Equivalent

(FTE) Status ($000)

EE ID Name Job Title Division Department

Actual Salary ($000) Grade Min Mid Max

Amt Below Grade Min

Amt Above Grade Max

2012 Salary (Actual Salary

+ Amount Below Min)

1000 John Smith Accountant II Admin & Ops DivisionFinancial Services $43.0 7 $36.2 $44.4 $52.5 $0.0 $0.0 $43.0

2000 Emily AndersonAdministrative Assistant I Admin & Ops Division

Financial Services $25.5 5 $27.4 $33.6 $39.7 $1.9 $0.0 $27.4

3000 Mary Brown Payroll Manager Admin & Ops DivisionFinancial Services $65.0 8 $40.9 $51.1 $61.4 $0.0 $3.6 $65.0

4000 Mike Taylor Accounting Clerk Admin & Ops DivisionFinancial Services $30.5 4 $23.8 $29.2 $34.5 $0.0 $0.0 $30.5

5000 Lauren Gordon Cashier Admin & Ops DivisionFinancial Services $20.5 1 $17.5 $21.0 $24.5 $0.0 $0.0 $20.5

Manager (David Hoffman) Total: $1.9 $3.6 $186.4

The table below is an example of the file you will be reviewing with HR. It outlines the compensation information of your direct reports.

Frequently Asked Questions

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Frequently Asked Questions Q. How many salary grades are there?

A. There are thirteen broad salary ranges. This information will be available on the GCHR website in June.

Q. How was I assigned to my new grade? What considerations were taken into account?

A. Information related to jobs, not individuals, was obtained through current job descriptions. Information about job content, job requirements and scope of accountability was compared to the same job information from several surveys sources. The results of this process were approved by Vice Presidents.

Q. I do not think that I was assigned to the right grade. What can I do?

A. Every effort was made to objectively obtain relevant market data for GC jobs and to match those jobs to the survey jobs. Benchmark jobs were placed in a grade based on market value and internal relationships, while non-benchmark jobs were placed in a grade by internal relationships. The grade placement of all jobs was validated by Vice Presidents. All grade level determinations are final.

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Frequently Asked Questions continued Q. How can I find out what grade my job is and if I will receive an increase?

A. All employees will be notified of their grade and salary adjustment (if applicable) in a letter that they will receive from their managers in June. Your department head or manager will also be able to advise you of the salary grade and adjustment (if applicable) or you may contact the Human Resources Office for this information.

Q. How can I progress to a higher grade or how can I increase my salary?

A. Employees continue to be encouraged to apply for promotional opportunities when they occur. Qualifying for a job in a higher salary grade, which provides for a significantly broader role, will generally be recognized by a salary increase. Annual merit increases also allow employees to increase their salary while remaining in their current grade.

Q. Will titles change as part of this study?

A. Titles for most jobs will not change. Titles for a small group of jobs will change based on a review of the updated job descriptions and recent department re-organizations.

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Frequently Asked Questions continued

Q. Who from the University was part of the development of this program?

A. The President, President’s Cabinet, Compensation Study Committee, and HR Project Team. Please see website for further details on participants of each group.

Q. Will survey data for job matches be shared with incumbents?

A. No, the survey data is confidential. The survey data was used, and will continue to be used appropriately by GCHR to determine market level pay for our employees.

Q. How often will the market levels be reviewed?

A. Human Resources will conduct regular market reviews and make adjustments to salary grade ranges as necessary.

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Practice Exercise

Please pair up with a colleague and follow the steps below:

1. Have one person be the employee and one be the manager

2. The employee will ask a question to the manager about this new compensation program

3. The manager attempts to answer the question

4. Repeat exercise for the next 10 minutes

5. At the end of the 10 minutes, share the questions and any successes or difficulty in answering the questions with the whole group. This discussion will help inform revisions to the FAQs

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Additional Questions or Comments?

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