Staff Senate Meeting
UofM Compensation Plan
Department of Human Resources
February 21, 2013
History
• The previous Compensation Plan was over 13
years old
• Control points on pay ranges restrained
departments from hiring at established
averages
• UofM’s previous Compensation Plan had 410
pay grades and 600+ unique position titles
• Reclassifications required change in pay
grades and titles
History (continued)
• In 2006, the University reviewed its
compensation structure
• The University sought to change from 410 to
35 pay grades
• A proposal was presented to and approved by
TBR but was not implemented
• Consequently, the plan created in 1999 was in
use until 2012
History (continued)
• In September 2011, HR began a review of the
current plan in anticipation of submitting a new
proposal to TBR in April 2012
• For over five months, HR has researched and
benchmarked best practices, analyzed internal
equity while evaluating market salaries
• The UofM has developed a new Compensation
Plan significantly reducing the number of pay
grades and classification titles
• HR has developed a Compensation Philosophy to
define methodology and practices
UofM Compensation
Philosophy
• Promote growth and recognize the value of its
employees
• Maintain and increase morale, reduce
turnover, instill loyalty, and reward individual
contributions and exemplary performance
• Attract and develop a diverse workforce
• Balance the need for internal equity and the
desire to be market competitive
Research
• Benchmarked peer institutions
• Submitted new plan to TBR for review in their
June 2012 meeting where it was approved
• Met with various stakeholders throughout
campus to obtain feedback
• Conducted focus groups in conjunction with
WorkforUM upgrade in order to include the
new Comp Plan in the system redesign
Proposal
• Reduce structure to 14 pay bands: 13 pay bands
for staff, one pay band for faculty, temps,
students, and athletic contractual employees, etc.
• Pay bands are broad and allow for mobility and
flexibility within the band without having to
change pay grades (unless necessary)
• Position Classification titles are used to identify
the function and structure of the positions while
utilizing working titles to identify the unique
characteristics of the job
New Comp Plan
• A review of all positions/titles was performed
by HR to slot positions within the new
structure
• All positions will have unique job descriptions
to detail functions, percentage of effort and
essential and marginal functions (for ADA
purposes)
• An ongoing review will be conducted to
examine salaries for all classifications
New Comp Plan
(continued)
• Positions requiring salary adjustments are being
reviewed and a strategy is being developed for
implementation
• HR worked with a group from BFSS, AA/EEO, ITD,
Financial Planning and others to implement new
Compensation Plan into Banner
• Pay practices including incentive plans, projectbased pay additives and on-call pay are being
evaluated
New Comp Plan
(continued)
• As part of the new Compensation Plan,
starting salaries were raised to $8.75/hour
• Positions are evaluated on unique duties,
responsibilities, internal equity and other
factors. As we discover issues that need to be
addressed, we are discussing with the
department heads the development of a
process to correct them.
New Comp Plan
(continued)
Assumptions
All calculations based on 1950 hour work year
Minimums:
Pay Band 01 = $7.25 hour (14,137.50)
Pay Band 02 = Minimum of pay band 01 (14,137.50) + 10%
Subsequent pay bands are increased by an additional 2% (03 = +12%; 04 = +14%; 05 = +16%; etc.)
Maximum salary increment % from min to max listed below
Plan includes all employees: Staff, Faculty, and Out of Pay Plan (EXCEPT Athletics Contractual Employees)
Pay Band
00
01
02
03
04
05
06
07
08
09
10
11
12
13
Min
1.00
14,137.50
15,551.25
17,417.40
19,855.84
23,032.77
27,178.67
32,614.40
39,789.57
49,339.07
62,167.23
79,574.05
103,446.27
136,549.08
Mid
100,000.00
21,913.13
24,493.22
27,867.84
32,265.74
38,004.07
45,524.27
55,444.48
68,637.01
86,343.38
110,346.84
143,233.29
188,789.45
568,274.54
Max
1,000,000.00
29,688.75
33,435.19
38,318.28
44,675.64
52,975.37
63,869.87
78,274.56
97,484.45
123,347.68
158,526.44
206,892.53
274,132.62
1,000,000.00
Increment %
OPEN
110
115
120
125
130
135
140
145
150
155
160
165
OPEN
Position Example
PCLS
Title
Account
Clerk
Pay Banner Title
Job Summary
Minimum Quals.
Band
CL02 Accounting Performs intricate accounts Requires a High School
Clerk II
receivable, payable,
diploma/GED and three
reconciliation and other
years of accounting
accounting functions to
and/or general office
support the financial
experience or an
functions of the department. equivalent combination
Provides services to
of related education
internal and external
and experience.
customers to resolve
financial inquiries.
Position Example
PCLS Title Pay Banner Title
Band
Job Summary
Minimum
Qualifications
Admin.
Assistant
Performs a variety of
complex and
administrative duties in
an office environment;
provides administrative
support to a large
department, School, or
college; typical duties
may include acting as
the key administrative
support person for the
unit.
An Associate's
Degree and four
years of relevant
administrative office
experience, or an
equivalent
combination of
related education
and experience.
CL04 Administrative
Assistant II
Payband Example
46505
Administrative Exempt Employee
AD
AD05
51105
Electronic Technician
CL
CL05
51605
Licensed Practical Nurse Lead
CL
CL05
52505
Safety Inspector
CL
CL05
52705
Test Administrator
CL
CL05
61205
Electrician
CL
CL05
62105
Offset Press Operator
CL
CL05
62505
Plumber
CL
CL05
62805
Sheet Metal Worker
CL
CL05
Position Description
in workforUM
•
•
•
•
Major Duties and Responsibilities
Duty or Responsibility: (5% or higher) Actual Percentage of Task
Importance of Duty: Essential or Marginal
Each position must detail each Duty or Responsibility with the
amount of time spent on the task
• Most Duties are considered Essential (the reason the job was
created). A small amount of tasks are to be considered
Marginal.
• Each Position Description should have a line item: Other
duties as assigned which equals about 5% and is considered
Marginal
• Total must equal 100%
WorkforUM and the
Comp Plan
• In the previous system, we had many unique
titles with varying pay ranges
• No ability to compare one job to another
• Salary inequities were created because there
was no real way to match “like” jobs
• Duties, seniority, education and experience
were factors that were not easily evaluated
How does the Comp
Plan Work?
Scenario (example): Department has assigned new duties to a
position and the job has developed into something different than
it currently is. The department head is requesting to reclassify
the position and wants to change the title from Accountant I to
Accountant II and increase salary from $31,000/yr. to $36,000/yr.
How can the department make this happen?
• Request to reclassify in workforUM
• Identify the unique duties for the position on the Job
Description tab including % of time for each task
• Complete action and submit through department hierarchy
until action is sent to Human Resources
How does the Comp
Plan Work? (cont)
• Once the action is received by HR, the HR Associate assigned to
the department/school/division reviews the action
• The HR Associate assesses the duties to ensure they are at the
Accountant II classification
• A salary analysis is conducted to determine if the proposed
salary is equitable with other Accountant II’s at the University
• A market analysis may be conducted if there is not enough
internal data
How does the Comp
Plan Work? (cont)
How can HR make this happen?
• If the salary is equitable;
1. What do other employees in the same classification earn?
2. What is the education and experience of the other
employees?
3. How long have they been doing the job?
4. What is the average salary of this classification?
How does the Comp
Plan Work? (cont)
How can HR make this happen?
• if the employee possesses the qualifications for the
reclassification;
1. What are the employee’s credentials?
2. What is their current salary?
3. How do the specific duties of this position compare with
others in the classification?
• if the Executive Authority approves the action, HR finalizes the
request and completes the reclassification
1. Does the division concur with the recommendation?
2. Does the division approve of the salary?
How does the Comp
Plan Work? (cont)
How can HR make this happen?
• Once all these questions have been answered, an action can be
taken.
• HR attempts to create consistency and maintain equity among
the classifications while considering the differences in the job
duties of similar titles.
CURRENT COMP
PLAN
• Broad PCLS Titles
• Unique Working Titles
• In the previous system, we had many unique
titles with varying pay ranges
• No ability to compare one job to another
• Salary inequities were created because there was
no real way to match “like” jobs
• Duties, seniority, education and experience were
factors that were not easily evaluated
Example: Advisor
PCLS
•
•
•
•
•
•
•
•
•
•
•
•
Study Abroad Advisor
College Academic Advisor I
Career Advisor
International Student Advisor
Leadership Programs Advisor
Study Abroad Advisor
College Academic Advisor I
Department Acad Adv English
College Academic Advisor II
College Academic Advisor I
Department Academic Advisor
Distance Education Advisor
Previously, these were all
unique Job Classes. We
have now grouped them
all under the ADVISOR
PCLS in order to analyze,
evaluate and ensure
consistency of title, grade,
salary, and position
requirements. They are
now considered Working
Titles and used to describe
their departmental titles.
Example: Advisor
PCLS
•
•
•
•
•
•
•
•
•
•
•
•
Study Abroad Advisor
College Academic Advisor I
Career Advisor
International Student Advisor
Leadership Programs Advisor
Study Abroad Advisor
College Academic Advisor I
Department Acad Adv English
College Academic Advisor II
College Academic Advisor I
Department Academic Advisor
Distance Education Advisor
PAYBAND 06
$27,178-$45,524-$63,869
Min
Mid
Max
Placement in Band:
• Most between min and midpoint
• Salary based on average of title
• Unique qualifications account for
the disparity in salaries
What the majority of the
employees for this pay band
earn
THANK YOU!
If you have any questions,
please call me at ext. 2056 or
email at iricelli@memphis.edu