CHSA Wage Survey Summary & Local Implementation Strategies. March 14, 2014
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1 CHSA Wage Survey Summary & Local Implementation Strategies March 14,
2 Agenda Introduction Rick Mockler Top Line Findings from the Study Kevin Whorton Compensation Planning -- Seth Finestack and Shelly Schwane Questions & Answers moderated by Rick Mockler 2
3 Introduction 3
4 Methodology & Program Profile A total of 63 programs responded (response rate of 45%). N is lower for various survey questions because not all respondents answered all questions (sometimes by choice, other times because the question did not apply). Overall and detailed findings were shared with survey participants who paid for the report; they are also receiving a custom report comparing their results to a small group of defined peers. Programs report a median (midpoint) of 89 full-time equivalent staff, 476 students enrolled, and a $5.1 million operating budget. 90% of respondents are Head Start programs rather than other or non-child development programs. 37% are in rural and 37% are in heavily urbanized areas. 25% are suburban. 64% are private non-profit, 23% other public agencies, 13% school districts. Programs vary considerably in size and structure by geographic area within California. 4
5 Employee Earnings At least half of administration staff positions are paid by salary rather than hourly wage except for clerk, AA, HR assistant, and receptionist positions. A majority of teachers are paid hourly. At least two-thirds of manager positions are paid by salary. The survey converted salary figures into hourly equivalents, using the average hours per year reported by respondents. CEOs ($53/hour), Directors ($43/hour), CFOs ($42/hour), Assistant Directors ($36/hour), Training Director ($33/hour), HR Manager ($31/hour), Education Managers ($31/hour), Systems Analysts ($30/hour), and Health/Nutrition Managers ($29/hour) were paid the highest hourly wages. Only Bus Monitors (mean of $8.70/hour) were paid close to minimum wage. Other positions such as Custodian, Teacher Assistant, Cook, Assistant Cook, and Caretaker were paid a mean of $12 or less per hour. 5
6 Sample page from report 6
7 Employee Profile & Benefits Many administrative staff Assistant Directors, CEOs, Directors, CFOs, Training Directors--have means of 13+ years of experience. Nurses, Lead Teachers, Education Specialists, and Managers of Food Services, Disabilities Services, and Education each have 10+ years. The most experienced and highest paid positions generally have the highest levels of educational attainment: CEOs, Directors, Assistant Directors, Training Directors, Mental Health Specialists, and Education Managers have at least a slight majority reporting graduate education beyond their Bachelor s degree. Almost 80% report offering medical insurance for managerial staff, and more than 73% do the same for other staff. Life insurance, medical insurance for dependents/family, and maternity/paternity leave are offered to a majority of managerial and other staff. 7
8 Other Practices At least one-third offer matching contributions for a 403(b)/401(k), disability and long-term disability insurance, to managerial and other staff. More than one-third also offer mobile/cell/handheld phone purchase/fees and professional membership dues to managerial staff. 92% of programs offer dental, 85% life and 37% disability insurance. All other positions have 50% or fewer being offered dental and life, and a smaller proportion of each position are offered disability insurance. Just under half cover spouses and children with their PPO & HMOs. Most offer PPO (74%) and HMO (66%), fewer HSA (39%) or HSA compatible (27%). The most common threshold set by programs for employee eligibility for benefits is full FTEs only (34%). Another 23% make staff who work 75% of their FTE level and 25% make staff who work 50% of their FTE level eligible for benefits. 8
9 Details for Ordering To order a copy of CHSA s Study Findings, go to: 9
10 Objectives of a Compensation Plan Fair and equitable Top talent Consistency and accountability Recognize the value each position brings to the organization Pay salaries equitable for work being performed Ensure equitable pay across departmental lines Attract and retain qualified employees Ensure wages are comparable to similar work in organizations you compete with for employees Increase understanding of pay administration Minimize inconsistent administration of pay Increase manager accountability 10
11 Regulations OMB Circular No. A Compensation for personal services a. Definition b. Allowability c. Reasonableness Head Start Act Section 640, 42 USC 9835 Section 644, 42 USC 9839 Section 653, 42 USC 9848: Comparability of Wages 11
12 OHS Guidance
13 Traditional Compensation System Create compensation committee Develop/update job descriptions Conduct internal equity analysis Conduct external market analysis Design salary structure Conduct comparative ratio analysis Develop administration policies Create and execute communication plan 13
14 Internal Equity Analysis What Determines the relative value of each position to every other position within the organization on the basis of compensable factors When Establishes a position s relative worth within the organization before conducting an external analysis Who Conducted by the compensation committee or an independent third party Conduct internal equity analysis 14
15 External Market Analysis Determines the market value of each position by comparing it to published compensation data and/or to customized survey results Finding data is rarely a problem. Finding the right data can be the challenge. Secure, reputable and reliable surveys Match job descriptions, not titles Consider demographics industry, geographic location, number of staff, budget, sample size Local, regional, statewide, national data Date of the survey may need to be aged Conduct external market analysis 15
16 Salary Structure (1 of 2) The external market analysis serves as the primary consideration for the development and placement of positions within the salary structure. Sort positions by external market value and calculate a midpoint average for that particular group of positions. This midpoint average will assist you in defining the pay groups throughout the salary structure. Design salary structure 16
17 Salary Structure (2 of 2) Begin with the top position. Subsequent ranges are then developed on the basis of the remaining pay groups. Typically there are approximately 10% progressions between midpoints; however, there may be higher progressions between upper management positions. All positions are then incorporated into the salary structure. Design salary structure 17
18 Comparative Ratio Analysis Allows the agency to determine where current rates of pay fall in relationship to the newly established salary structure midpoints. A highly effective tool for compensation administration to ensure fairness and equity. Conduct comparative ratio analysis 18
19 Plan Administration Develop a written compensation philosophy Outline plan objectives Identify who has responsibility for the plan Describe importance and use of job documentation Describe how the internal and external equity analysis process occurs Describe how the salary structure will be administered Outline how pay adjustments will be handled Incorporate tools utilized Develop administration policies 19
20 Pay Adjustments Market Equity and Administrative Adjustments New Hires Job Reclassification Merit Increases Promotions COLAs (!) Minimum Wage Increases (!) Demotion Develop administration policies 20
21 How We Can Help Human Resources Consulting Products Wage Comparability Studies Change Implementation Strategic Planning Succession Planning Human Resources Policy and Procedure Template (HRPro) Mention CHSA Webinar for a special rate on your Wage Comparability Study with Wipfli LLP! Contact Brian Gaumont at for more information. bgaumont@wipfli.com Strategic Plan Analysis Tool Training On-Site Training Webinars 21
22 Thank You! We love your feedback! Presenter Info: 22
23 Details for Ordering To order a copy of CHSA s Study Findings, go to: 23
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