Staff Compensation
Program
Manager Training
May 21 – 22, 2012
Today’s Agenda
Content
Timing
Overview of Compensation Program Re-Design
15 min
Compensation Program Details
20 min
Implementation of Compensation Program
10 min
Manager’s Role in Implementation
15 min
Frequently Asked Questions and Practice
Exercise
30 min
1
Overview of Staff
Compensation
Program Re-Design
2
Why Focus on Compensation?
Georgia College’s 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.
3
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 Outdated pay system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
market
‒ Internal inequity
‒ Pay may not be linked to individual
contributions
‒ Limited career progression
opportunities
New Compensation Program
 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
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 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
(http://www.gcsu.edu/equity/payupdates.htm).
5
Project Phases
The objectives were accomplished through the following four phases:
Phase 1:
Compensation
Philosophy
Phase 2:
Market Assessment
August – November 2011
 Survey on current
compensation program
perspectives
 Key stakeholder and
committee interviews
November 2011 –
January 2012
 Assessment of GC pay
against market
Phase 4:
Program Implementation
and Training
May – June 2012
January– May 2012
 Approach and process for  New pay structure for
market assessment
exempt and nonexempt employees
 Detailed market pricing
analysis
 Compensation
philosophy development,
including comparison
markets to be used in
market assessment
Phase 3:
Salary Structure and
Salary Administration
Guidelines Development
 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 and Employee
Training sessions
Full implementation of the new compensation
program will occur on July 1, 2012.
6
Staff Compensation
Program Details
7
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
1
2
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.
8
Compensation Philosophy continued
Pay Components
 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
 Any other additional pay, when permitted, may be granted in accordance with established
guidelines
 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
Internal/External Valuation
 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
 Benchmarking to comparison markets will inform salary ranges, and will be used as a reference
for determining salaries for individuals
 Each school will strive to maintain internal equity across the institution. This is defined as
providing similar compensation opportunities for similarly situated administrators and staff (i.e.,
jobs with similar market values in the same job family will be assigned to the same salary grade;
administrators and staff with similar expertise, experience, and performance will be paid
similarly)
9
Compensation Philosophy continued
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
‒ Individual base salaries will be managed within the salary range for the job and will consider the skills,
knowledge, experience, and performance of the incumbent
‒ Salary increases should be determined by the degree to which each individual contributes to GC,
department, or area goals depending on the job, and demonstrates excellence in handling their job
responsibilities, as documented in the performance evaluation process
‒ Salary increases and opportunities for advancement will not be an entitlement and will be subject to the
institution’s fiscal conditions
‒ Position and job descriptions will be reviewed and updated as necessary to ensure clear, mutual
understanding of responsibilities and performance standards
Communication/Openness
 GC will ensure understanding of the compensation program through open, clear, and accessible
communication to staff
 The link between job performance, goal achievement, and salary increases will be clearly communicated
to all employees
 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
10
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
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

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
 Leads by example
 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
11
Compensation Philosophy continued
COMPARISON MARKETS
Job Category
Type of Employer(s)
Other Criteria Used
Location
Senior Administrators
(Directors and above)
For higher education specific jobs: Public and Range around
private, 4-year Master’s (Large) &
operating budget,
Doctoral/Research institutions
faculty FTE, and
student FTE
For cross-industry jobs: Blend of general
industry and not-for-profit organizations;
functionally relevant markets for jobs/job families
will be used
National
Professionals
(Independent
Contributors and
Managers)
For higher education specific jobs: Public and Range around
private, 4-year Masters (Small, Medium, Large), operating budget
Doctoral, and Research-Intensive institutions
Southeast
region; Georgia
Entry Level Exempt
Non-exempt (office
support, technical,
trades, etc.)
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
All organizations
Central Georgia;
Baldwin County
12
Compensation Program
Development Process
The development of the compensation program followed best
practice within Higher Education.
Understanding
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
Analyzing
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
 Placed benchmarked jobs
by market value and
internal relationships;
placed non-benchmark jobs
by internal relationships
 Validated job assignments
to grades with Vice
Presidents
Developing
Policies
Developed new policies to:
 Help ensure fair and
consistent salary
administration
 Establish competitive
and equitable salaries
 Reward performance
and support
career growth
13
Georgia College’s
Compensation Structure ($000)
 Salary grades overlap to
allow for flexibility to pay for
a range of individual skills,
experience, and
performance within each
grade
 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
Grade
Minimum
Midpoint
Maximum
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
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
 Promotion
 Starting salaries
 Transfers
 Annual salary increases
 Temporary assignments/
interim appointments
 FLSA
 Maintaining the program
New compensation policies will be
found on the GCHR website in June.
15
Management of Pay within the New Structure
An individual’s grade, skills, experience, and performance
determine the actual salary for the job.
Role,
Responsibilities,
and Skill
Requirements
Grade
+
Knowledge,
Skills,
Experience, and
Performance
+
Location in
Grade
=
Pay Opportunity
=
Recommended
Base Salary
16
Implementation of
Compensation
Program
17
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 annual merit increases as
part of the compensation program
18
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
19
Re-Evaluation Schedule
The table below describes key dates and actions for a job
re-evaluation.
Fall Semester
Spring Semester
Action
July 1
January 6
Fully processed re-evaluation form submitted
to HR
August 8
February 28
Supervisor notified of the classification
determination by HR
August 15
March 5
Deadline to appeal classification
determination
September 5
April 30
Appeal decisions complete and department
notified of decision
October 1
July 1
Effective date for any re-evaluation
20
Manager’s Role in
Implementation
21
Managers are Critical
to the Program’s Success
YOUR RESPONSIBILITIES AS A MANAGER/SUPERVISOR
What you should know
 How and why the program
was developed
 The program’s objectives
and key messages
 Compensation policies and
how to use them
Understand
and Support
the Program
Follow
Compensation
Policies
Help Your
Employees
Understand
the Program
Compensation
Policies will
be available
online soon




What you should do
 Use the salary policies in
consultation with Human
Resources to determine
appropriate hiring
salaries and to manage
salaries appropriately
 Keep job descriptions
current for your
employees
 Stay informed about
the policies
How you should communicate
Be positive about the program
Answer employees questions openly and honestly
Research any questions you are uncertain about
Enlist HR’s help
22
Manager Tools and Resources
for Implementation
 Today’s presentation
 Employee Information Session presentation (sessions to be held
June 4th and 5th)
 Manager script – “Do Say This, Don’t Say That”
 Manager FAQs – As the trainings are complete, Human
Resources will compile all the questions and distribute an
updated FAQ for you prior to the distribution of the employees
letters
 Human Resources website
 Human Resources—call or email classcomp@gcsu.edu if you
have questions
23
Manager Script
Do Say This, Don’t Say That
Don’t Say That
Do Say This

The University is using this study to find
cost savings and is planning to decrease
salaries
Your salary will not decrease as a result
of the implementation of the new
program

The University is using this study to get
rid of jobs

The new structure is based on solid,
current salary market data

I don’t trust the market data, I’m not sure
where they got the information from

Job descriptions and market matches
were reviewed several times to ensure
accuracy

This outside consulting firm does not
understand our jobs

If you are receiving an adjustment, your
pay is currently significantly lagging
against the market and/or below the
grade minimum for your job

This new program makes me angry too!

This program is entirely new and has no
direct relationship to the old system


Future salary adjustments may be made
to address internal equity concerns and
performance
24
Example Manager File
The table below is an example of the file you will be
reviewing with HR. It outlines the compensation
information of your direct reports.
Adjustments Based On Full-Time Equivalent
(FTE) Status ($000)
New Structure ($000)
Department
Actual
Salary
($000)
Grade
Min
Mid
Max
Amt Below
Grade Min
Amt Above
Grade Max
2012 Salary
(Actual Salary
+ Amount
Below Min)
Admin & Ops Division
Financial
Services
$43.0
7
$36.2
$44.4
$52.5
$0.0
$0.0
$43.0
Administrative
2000 Emily Anderson Assistant I
Admin & Ops Division
Financial
Services
$25.5
5
$27.4
$33.6
$39.7
$1.9
$0.0
$27.4
3000 Mary Brown
Payroll Manager
Admin & Ops Division
Financial
Services
$65.0
8
$40.9
$51.1
$61.4
$0.0
$3.6
$65.0
4000 Mike Taylor
Accounting Clerk
Admin & Ops Division
Financial
Services
$30.5
4
$23.8
$29.2
$34.5
$0.0
$0.0
$30.5
5000 Lauren Gordon
Cashier
Admin & Ops Division
Financial
Services
$20.5
1
$17.5
$21.0
$24.5
$0.0
$0.0
$20.5
$1.9
$3.6
$186.4
EE
ID
Name
1000 John Smith
Job Title
Accountant II
Manager (David Hoffman) Total:
Division
25
Frequently Asked
Questions
26
Frequently Asked Questions
Q. How many salary grades are there?
A. There are thirteen broad salary ranges. This information will be available
on the GCHR website in June.
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.
27
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.
28
Frequently Asked Questions continued
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.
Q. Will survey data for job matches be shared with incumbents?
A. No, the survey data is confidential. The survey data was used, and will
continue to be used appropriately by GCHR to determine market level pay
for our employees.
Q. How often will the market levels be reviewed?
A. Human Resources will conduct regular market reviews and make
adjustments to salary grade ranges as necessary.
29
Practice Exercise
Please pair up with a colleague and follow the steps below:
1. Have one person be the employee and one be the manager
2. The employee will ask a question to the manager about this
new compensation program
3. The manager attempts to answer the question
4. Repeat exercise for the next 10 minutes
5. At the end of the 10 minutes, share the questions and any
successes or difficulty in answering the questions with the
whole group. This discussion will help inform revisions to the
FAQs
30
Additional Questions
or Comments?
31