Performance & Compensation
Derek Hughes
November/December 2012
Staff
Total Rewards
Martocchio, J. J. (2013). Strategic Compensation: A Human Resource Management Approach. Upper Saddle River, NJ: Pearson.
Shared Perception
Performance & Compensation
Compensation Model
VCSU Staff Model
Comp Factor
Percent
Example (3%)
Across the Board (ATB)
50%
1.50%
Market/Equity
15%
0.45%
Merit
35%
1.05%
100%
3.00%
TOTAL
Across the Board (ATB)
• ATB is indiscriminate
• Employees get 50% of the legislative
increase
Market/Equity
Market/Equity
• CUPA HR & Job Service ND salary data
– CUPA HR primary for higher education, industry specific positions
– Job Service ND for local hire positions common to all industries
• Compare all positions basis the duties in job
description, and education required
– Not title, not person
• Compare all positions to the market median
– Not mean
Merit
• Pay for performance
• Incentive Pay
• Links employee pay to measures of performance
Additional Values
• No employee below an 80% floor.
– No ceilings
• Years of Service (1%/yr.)
– Credit not given for low performing year
• Years merit pay earned performance (3%)
Performance & Compensation
Individual &
Performance Model
Performance Goals
Measure Performance
Performance & Compensation
Timeline
Timeline
• January-March begin a new review year
– Everyone on same timeline (may be some overlap)
– One-year from start date
– Set goals
• July 1, 2014
– Merit model takes effect
Questions
•What is the risk of not changing? If I wait long enough, will
the change just go away?
•What are my choices during the change process? What are
the potential consequences to me of not changing?
•What are the benefits of supporting the change?