Staff Compensation Program - Georgia College & State University

Staff Compensation
Employee Communication
June 4-5, 2012
Why Focus on Compensation?
Georgia College’s Compensation Program Re-Design
ensures the institution remains an employer of choice
 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.
Today’s Agenda
 Overview of Compensation Program Re-Design
 Compensation Program Details
 Implementation of Compensation Program
 Frequently Asked Questions
 Other Questions
Overview of Staff
Program Re-Design
Overview of the Staff Compensation Program
Old 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 Outdated pay system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
‒ Internal inequity
‒ Pay may not be linked to individual
‒ Limited career progression
New Compensation Program
 Competitive, market-based
 Policies for pay administration to
‒ Fairness and consistency across
the institution
‒ Ongoing maintenance of program
 Foundation for future HR
‒ Performance management
‒ Career progression
 Increased communication and
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
Project Phases
The objectives were accomplished through the following four phases:
Phase 1:
Phase 2:
Market Assessment
August – November 2011
 Survey on current
compensation program
 Key stakeholder and
committee interviews
 Compensation
development, including
comparison markets to
be used in market
November 2011 –
January 2012
 Approach and process
for market assessment
 Detailed market pricing
 Assessment of GC
pay against market
Phase 3:
Salary Structure and
Salary Administration
Guidelines Development
Phase 4:
Program Implementation
and Training
May – June 2012
January– May 2012
 New pay structure for
exempt and nonexempt employees
 Validation and
finalization of structure
and job assignments
with leadership
 Salary administration
 Implementation plan,
including training and
ongoing communications
 Finalized salary
 Manager training
 Employee
Full implementation of the new compensation
program will occur on July 1, 2012.
Staff Compensation
Program Details
Compensation Philosophy
Vision 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
Pay components of the compensation philosophy are contingent upon the financial resources of the institution.
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
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
Compensation Philosophy continued
Management of the Program
Cabinet Members
 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
Human Resources
 Collaborates with managers and supervisors to set
appropriate salaries
 Collects market data and assesses pay
 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
Managers and Supervisors
 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
 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
Compensation Philosophy continued
Job Category
Type of Employer(s)
Senior Administrators
(Directors and above)
For higher education specific jobs: Public and
private, 4-year Master’s (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
Contributors and
Entry Level Exempt
(office support, technical,
trades, etc.)
For higher education specific jobs: Public and
private, 4-year Masters (Small, Medium, Large),
Doctoral, and Research-Intensive institutions
Other Criteria Used
Range around
operating budget,
faculty FTE, and
student FTE
Range around
operating budget
region; Georgia
All organizations
Central Georgia;
Baldwin County
For cross-industry jobs: Blend of general
industry and not-for-profit organizations;
functionally relevant markets for jobs/job families
will be used
Blend of general industry and not-for-profit
organizations; functionally relevant markets for
jobs/job families will be used
Compensation Program
Development Process
The development of the compensation program followed best
practice within Higher Education.
Job Content and
Job Matching
 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
the Market
 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
Building the
Salary Structure
 Developed structure with:
 13 salary grades
 Competitive salary ranges
 Wide range spreads to
allow for growth within
a job
Developed new policies to:
 Placed benchmarked jobs by
market value and internal
relationships; placed nonbenchmark jobs by internal
 Reward performance
and support
career growth
 Help ensure fair and
consistent salary
 Establish competitive
and equitable salaries
 Validated job assignments to
grades with Vice Presidents
Market Surveys Represent Target Employers
Survey Publisher
Survey Name
Bureau of Labor Statistics
Wage 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
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 College’s
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
* Effective July 1, 2012
The New Compensation Policies
Compensation policies address a variety of situations.
Help Ensure Fair and Equitable
Administration of Salaries
Reward Performance
and Support Career Growth
 Paying within the grade
 Merit pay
 Starting salaries
 Promotion
 Annual salary increases
 Transfers
 Temporary assignments/
interim appointments
 Maintaining the program
New compensation policies will be
found on the GCHR website in June.
Implementation of
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
 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
Implementation Details
 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
Re-Evaluation Schedule
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).
Fall Semester
Spring Semester
July 1
January 6
August 8
February 28
August 15
March 5
September 5
April 30
October 1
July 1
Fully processed re-evaluation form
submitted to HR
Supervisor notified of the
classification determination by HR
Deadline to appeal classification
Appeal decisions complete and
department notified of decision
Effective date for any re-evaluation
Frequently Asked
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
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, President’s Cabinet, Compensation Study Committee, and
HR Project Team. Please see website for further details on participants of
each group.
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.
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.
Additional Questions
or Comments?