Riverside Community College
District
Development of Salary Plans - Presentation to
Resources Committee of the Board - January 2009
Prepared by:
Neville Kenning
Vice President Public Sector Consulting
Brenda Danenhauer
Consultant
Kamaron Durocher
Senior Technical Analyst
© 2009 Hay Group. All rights reserved.
Riverside CCD Development of Salary Plan Presentation January 2009.ppt
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Table of Contents
Introduction to Hay Group
Hay Group Experience With Community Colleges
Project Methodology
Why Was This Project Done?
Project Process
What Was the Core Methodology?
What Are the Key Recommendations as an Outcome of This Project?
What is the Potential Fiscal Impact of These Recommendations?
Action Items and Next Steps
© 2009 Hay Group. All rights reserved.
Riverside CCD Development of Salary Plan Presentation January 2009.ppt
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Introduction to Hay Group
Established in
Philadelphia in 1943
47 countries/88 cities
2,370 employees
10,000+ clients
Worldwide
© 2009 Hay Group. All rights reserved.
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Hay Group Experience with Community
Colleges
Hay Group understands the issues associated with the conduct of a
classification, job evaluation and compensation study for a Community
College District. This experience has been gained through working with
Districts such as:
San Diego CCD
Victor Valley CCD
Rancho Santiago CCD
Foothill-DeAnza CCD
North Orange County CCD
Santa Rosa JC
South Orange County CCD
Santa Fe CC
Mt. San Antonio College
Santa Monica College
Mira Costa College
Salt Lake CC
Kern CCD
Contra Costa CCD
© 2009 Hay Group. All rights reserved.
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Project Methodology – The Components
of an Effective Classification and
Compensation Plan
Compensation Philosophy
Classification
The Description of
Work
Job Evaluation
The Measurement
of Work
Pricing
(Pay Structure)
The Value of Work
Pay Delivery
The Recognition of
Performance of
Work
Plan Administration
© 2009 Hay Group. All rights reserved.
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Why Was This Project Done?
In August 2007, Hay was requested to conduct and audit of the process
and outcomes of a classification and compensation study that had been
conducted for RCCD in the period 2005-2007. The audit was concentrated
on four components:
Review of the job evaluation and grading of positions;
Review of the definition of the survey market for the classified and management
surveys;
Review of the selected benchmark positions and instrument used in the surveys; and
Analysis of the survey data and review of the recommended salary structure.
© 2009 Hay Group. All rights reserved.
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Why Was This Project Done? (cont’d)
A summary of the conclusions of the Audit is as follows:
Job Evaluation
Some Variances
Definition of the Survey Market
Appropriate
Selection of Benchmarks
Extensive and appropriate
Survey Instrument
Appropriate and consistent with sound survey practices
Data Analysis and Development
Significant weakness and lack of credibility
Recommended Salary Structures
Significant weakness and lack of credibility
© 2009 Hay Group. All rights reserved.
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Why Was this Project Done? ( cont’d)
As a result of that report, RCCD contracted with Hay to address three specific
components that RCCD viewed as critical in order to have credibility to optimize the
likelihood of successful implementation. These were:
−
The evaluation of all classifications using the Hay method of job evaluation and the
training of an RCCD Job Evaluation Committee;
−
The Development of Recommended Salary Structures and the re-costing of the fiscal
impact of these recommended structures; and
−
Development of an implementation plan in order to optimize the likelihood of
acceptance and implementation of the recommendations.
© 2009 Hay Group. All rights reserved.
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How Was the Project Done?
The following steps have been undertaken in this project:
Evaluation of all RCCD classifications by Hay using the Hay Guide Chart®-Profile
Method of Job Evaluation;
Formation of an RCCD Job Evaluation Committee and the training of that Committee in
the Hay Guide Chart®-Profile Method of Job Evaluation;
Meeting of the RCCD Job Evaluation Committee facilitated by Hay for the purpose of
RCCD review and buy-in to the relative ranking of positions based on the evaluation of
job content;
Updating of market salary data from the date of the previous salary survey;
Development of Grade Structure Options;
Development of Salary Structure Options;
Costing of the Fiscal Impact of the Salary Structure Options; and
Preparation and Presentation of a Project Report.
© 2009 Hay Group. All rights reserved.
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What Was the Core Methodology?
The Hay method of job evaluation is the most widely used method of job evaluation in
the world and is used in all industry sectors, including extensive use in the public and
education sector.
It measures job content in three key areas:
−
−
Know-How – The total of every kind of knowledge and skill required for acceptable
job performance, measured in three dimensions:
−
Practical, technical, specialized knowledge;
−
Managerial, supervisory skills; and
−
Human Relations skills.
Problem Solving – The intensity of the mental process which employs Know-How to
identify, define and resolve problems measured in two dimensions:
−
Thinking environment; and
−
Thinking challenge.
© 2009 Hay Group. All rights reserved.
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What Was the Core Methodology?
(cont’d.)
−
Accountability – The effect of the job on end results, measured in three dimensions:
−
Freedom to act;
−
Type of job impact on end results; and
−
Magnitude of job impact on end results.
In addition to these three factors, which are known as job content, the methodology also
measures job context. These factors include:
−
Physical Effort: Handling of light, medium or heavy weight materials in normal to
difficult work positions or unusual circumstances which results in physical exertion.
−
Environment: Exposure to objectionable or noxious conditions such as dirt, dust,
fumes/gases, extreme temperatures or wide fluctuations in temperature, moisture,
odors, noise which results in physical discomfort.
−
Hazards: Exposure to mechanical, electrical, chemical, biological, or physical factors
which involve risks of accident, personal injury, health impairment or death.
© 2009 Hay Group. All rights reserved.
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−
Sensory Attention: Requirements for concentrated levels of sensory attention,
including seeing, hearing, smelling, testing, touching which may vary in intensity,
duration or frequency.
Hay wishes to publicly acknowledge the time commitment given by representatives of
Management, Classified and Confidential Staff who were trained in this methodology
and reviewed the internal alignment of classifications:
Ruth Adams
Cindy Conley
Art Alcaraz
Debra Creswell
Ed Bush
Vivian Gonzales
Gina Salazar
Donna Plunk
Cid Tenpas
Jim Sutton
Eugenia Vincent
© 2009 Hay Group. All rights reserved.
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What Are the Key Recommendations as
an Outcome of this Project?
1. Adoption of a Grade Structure
For an organization the size of RCCD, ease of administration of the classification and
compensation plan is enhanced if a grade structure is adopted. In addition, it is
important that grade structures be based on the principles of job evaluation used to
measure and differentiate job content.
Hay provided to RCCD four different grade structures based on a point-grade
conversion.
RCCD chose two options for development of grade and salary structure
recommendations and then choose one of those two as the basis for allocation of
classifications and costing purposes.
© 2009 Hay Group. All rights reserved.
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What Are the Key Recommendations as
an Outcome of this Project? ( cont’d)
2. Adoption of Salary Structures
In establishing recommended salary structures, it is very important to understand two
key concepts:
−
Internal Equity
−
External Competitiveness
A pragmatic and practical approach to the creation of a salary structure will be based on
the appropriate balance of these two important principles.
Hay recommends that RCCD adopt a grade and salary structure that incorporates the
concept of a job content grade and a pay grade. For the vast majority of positions,
these two grades will be the same. However, the market does not pay all jobs of the
same content the same. There are some positions which, while they belong in the same
grade as others based on job content, the market is paying them a premium over others
of the same job. Examples are typically in such job families as Nursing, Information
Technology and Trades.
© 2009 Hay Group. All rights reserved.
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What Are the Key Recommendations as
an Outcome of this Project? ( cont’d)
In developing the salary structures, Hay took into consideration:
−
the relativity to the market of the current salary structures; and
−
a level of competitiveness that will enable RCCD to attract and retain the quantity
and quality of employees it needs to meet its mission and objectives.
Salary Structures were developed for Management, Classified and Confidential and
were done within a similar step structure as currently exists.
© 2009 Hay Group. All rights reserved.
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What is the Potential Fiscal Impact of
these Recommendations?
The fiscal impact is typically based on the following:
−
The cost to bring employees who are below Step 1 in the proposed ranges to Step 1;
and
−
The placement of employees on to the next highest step in the proposed salary
range.
Management
Classified
Overall
© 2009 Hay Group. All rights reserved.
$ to
Proposed
Minimum
106,000
260,000
366,000
$ to Next
Highest
Step
136,000
410,000
546,000
Total Cost
To
Implement
242,000
670,000
912,000
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Action Items and Next Steps
Negotiate new salary schedule and implementation strategy with CSEA.
Discuss salary schedule with management/confidential representatives.
Propose Implementation classified and management to proposed “next” step.
Based on budget availability, develop “phased in” implementation strategy.
Depending on negotiation timeline, anticipate bringing salary schedule and
implementation strategy to Board for approval in June 2009 with an effective date of
July 1, 2009.
© 2009 Hay Group. All rights reserved.
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