staff compensation program employee communication june 4-5, 2012

Staff Compensation Program Employee Communication June 4-5, 2012

Why Focus on Compensation? Georgia Colleges 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. 1

Todays Agenda Topics Overview of Compensation Program Re-Design Compensation Program Details Implementation of Compensation Program Frequently Asked Questions Other Questions

Overview of Staff Compensation Program Re-Design 3

Overview of the Staff Compensation Program Outdated pay system Last system update in 2005 Last comprehensive staff compensation analysis in 2001 Inaccurate job descriptions Continued concerns around: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 4

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 GCs 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). 5

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 training sessions Employee communications 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 6

Staff Compensation Program Details 7

Compensation Philosophy Vision for the Staff Compensation Program The program 1 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 GCs 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 institutions financial resources Recognize and compensate expertise, sustained contributions, and performance Manage salaries for all divisions and schools using the same program and guiding principles 8 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 individuals administrative, non-teaching responsibilities represent at least 50% of full-time effort.

Compensation Philosophy continued Key Components of the Philosophy 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 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 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 Link 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 GC will ensure understanding of the compensation program through open, clear, and accessible communication to staff 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 9

Compensation Philosophy continued Management of the Program 10 Cabinet MembersHuman ResourcesManagers 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 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 CategoryType of Employer(s)Other Criteria UsedLocation Senior Administrators (Directors and above) For higher education specific jobs: Public and private, 4-year Masters (Large) & Doctoral/Research institutions For 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 institutions For 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 organizationsCentral Georgia; Baldwin County Compensation Philosophy continued 11

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 Developing Policies 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 12

13 Market Surveys Represent Target Employers Survey PublisherSurvey Name Bureau of Labor StatisticsWage Data by Area and Occupation CUPA-HR (Higher Education)2010-2011 Administrative Compensation Survey 2010-2011 Mid-Level Compensation Survey Kenexa (General Industry)2011-2012 CompAnalyst Database Mercer (General Industry)2012 Executive Compensation Survey 2012 Finance, Accounting, and Legal Compensation Survey 2012 HR Management Compensation Survey 2012 Information Technology Compensation Survey Towers Watson (General Industry) 2010-2011 Human Resources Personnel Compensation 2010-2011 Information Technology and e-Commerce Personnel Compensation 2010-2011 Marketing Personnel Compensation 2011-2012 Supervisory and Middle Management Compensation 2010-2011 Office Personnel Compensation 2011-2012 Professional Administrative Services Personnel Compensation 2011-2012 Technician and Skilled Trades Personnel Compensation 2011-2012 Top Management Compensation

Georgia Colleges Compensation Structure* ($000) 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 Jobs are placed into the grade with the midpoint closest to the market rate. Non-benchmark jobs were placed with similar benchmark jobs GradeMinimumMidpointMaximum 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 14 *Effective July 1, 2012

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 Merit pay Promotion Transfers Temporary assignments/ interim appointments 15

Implementation of Compensation Program 16

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 merit increases as part of the compensation program 17

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 18

Re-Evaluation Schedule 19 Fall SemesterSpring SemesterAction July 1January 6 Fully processed re-evaluation form submitted to HR August 8February 28 Supervisor notified of the classification determination by HR August 15March 5 Deadline to appeal classification determination September 5April 30 Appeal decisions complete and department notified of decision October 1July 1Effective date for any re-evaluation The table below describes key dates and actions for a job re-evaluation, (determining the grade of a new job or job that has changed significantly).

Frequently Asked Questions 20

Frequently Asked Questions 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. Q. Who from the University was part of the development of this program? A.The President, Presidents Cabinet, Compensation Study Committee, and HR Project Team. Please see website for further details on participants of each group. 21

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. 22

Frequently Asked Questions continued Q. Is the midpoint our target or goal? A. The midpoint represents what the market pays for a fully-functional experienced person in the job. Employees can be paid at the midpoint or above depending on their performance and the availability of funding for merit pay. Q. Will employees who received an increase on February 1st be brought to the minimum? A.Yes, if they are still below the salary range minimum. Q. The last program was out dated. How would we keep this program updated and accurate? A.We will update the salary ranges by comparing them to the market every few years. We also must make sure jobs are in the correct salary range. 23

Additional Questions or Comments? 24

staff compensation program employee communication june 4-5, 2012

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