FACULTY & STAFF COMPENSATION STUDY

Transcription

1 Yavapai College FACULTY & STAFF COMPENSATION STUDY Staff Briefing Sessions October 18, 2013 Copyright 2013 by The Segal Group, Inc. All rights reserved.

2 Agenda for Today s Session 1. Background and Introduction 2. Project Objectives and Project Team Roles & Responsibilities 3. Project Plan and Timeline 4. Yavapai s Current Compensation Program 5. Effective Compensation Practices 6. Immediate Next Steps Copyright 2013 by The Segal Group, Inc. All rights reserved. 1

3 Our Organization Sibson History Sibson Consulting was founded in 1959 and specializes in human capital consulting for employers in a wide variety of industries. Higher Education in particular, is a major focus of our firm. Our National Higher Education Practice is staffed with senior level consultants in all of our major service areas who consult primarily, or exclusively, to academic institutions Sibson joined the Segal family in The Segal Company, established in 1939, is a premier employee benefits, actuarial, and consulting firm. Segal has just under 1,000 employees in 22 offices throughout the United States and Canada. The result of Segal and Sibson s combined expertise is a firm with a unique and unparalleled competency in all aspects of employment-related consulting Segal is now the only long-standing, major HR and benefits consulting firm that remains independent. We continue our commitment to being an independent consulting firm; our strong financial results allow us to do so As an independent privately held consulting firm, our most senior employees (about 200 officers of the company) own the firm. Our independence allows us to apply all our energy and focus to working with our clients and meeting their needs. Our management team and consultants are not distracted by pressure from outside investors or the need to keep Wall Street analysts informed of and satisfied with our shortterm, quarterly results A Tradition of Trust A Commitment to People 2

4 Our Organization Our Firm s Higher Education Practice A Firm-Wide Commitment to Higher Education Sibson has extensive experience in partnering with colleges and universities. This experience, and our understanding of the dynamics of academic institutions, enables us to collaborate effectively with our higher education clients to develop solutions that support and facilitate their institution s strategy for faculty, administration and staff Our extensive expertise and ongoing commitment in higher education is evidenced by our extensive list of clients Our cross-functional National Higher Education Team consists of senior level consultants who focus predominantly on working with colleges and universities. This team keeps current on human capital and higher education trends, and consults with clients in all of our service areas Our broad and deep higher education experience helps ensure credibility with internal constituencies We draw upon the experiences of colleagues working outside academia to bring effective practices to our higher education clients, adapting those practices as needed to suit the academic environment Our size, nimble decision-making process, and collaborative consulting philosophy enable us to tailor our partnership with our higher education clients to suit each institution s needs Consulting Services Compensation (faculty, executive, administration, and staff) Total Rewards Strategy Benefits Retirement Performance Management Talent Management and Skill/Competency Models Human Resources Strategy and Metrics Human Resources Function Assessment Communications Partnerships College and University Professional Association for Human Resources (CUPA-HR) National Association of College and University Business Officers (NACUBO) Association of Consortium Leadership (ACL) American Council of Education (ACE) Association of Governing Boards (AGB) Corporate Sponsor 3

5 Previous Work with Yavapai College Past Compensation Study Sibson partnered with the College during its last compensation study in 2004, the results of which were implemented and effective in July 2005 Additional Project Assistance 2005 Assistance with role definitions and job titling protocols 2005 Assistance with FLSA determination for select jobs 4

6 Select Public Higher Education Clients Arizona State University Broward College Central Piedmont Community College Cleveland State University Coconino Community College Colorado Community College Sys. Community Colleges of Philadelphia Coppin State University Florida State College at Jacksonville Florida State University George Mason University Georgia Tech Germanna Community College Grand Rapids Community College James Madison University Maricopa Community Colleges Maryland Institute College of Art Medical College of Georgia Medical University of South Carolina Michigan State University Minnesota State Colleges & Universities Morehead State University Mott Community College Nevada System of Higher Education North Carolina State University Northern Michigan University Northern Virginia Community College Northern Wyoming Community College District Oakton Community College Oregon State University Palomar College (CA) Parkland College (IL) Pennsylvania State System of Higher Education (PASSHE) Pima Community College Portland Community College Purdue University Radford University Rutgers, The State University of NJ The Citadel The Ohio State University The University of Arizona The University of Oklahoma The University of Vermont Texas A&M University Corpus Christi Texas Southern University Texas State University Texas Woman s University Thunderbird School of Global Management University at Buffalo (SUNY) University of Alaska University of California Hastings College of the Law University of California Retirement System University of California, Santa Barbara University of Massachusetts Lowell University of Delaware University of Idaho University of Mary Washington University of Michigan University of Missouri University of North Texas University of Utah University of Virginia Utah State University Virginia Tech Weber State University Westmont College Institutions shown in blue font are current or recent compensation clients 5

7 Sibson Project Team Members Carol Mercer, Vice President Engagement Partner providing strategic direction and ensuring knowledge transfer of all work steps Andrew Knutson, Project Manager Project Manager and day-today contact for the course of the project Katie O Connor, Tori Easterday Associate Consultant, Analyst, providing analytical support for the project 6

8 Yavapai College Project Team Project Team Member Tom Aldridge Andrea Annibale Cindy DeCecco Tim Diesch Kirsten Fanning Julie Garver Dean Holbrook Bob Hoskovec Rose Hurley Jennifer Jacobson Judy McFarland Scott Nardo Joni Westcott Executive Sponsors Dr. Clint Ewell Barbara Wing Department IT Manager Technology Solution Services Administrative Specialist, IT; Yavapai College Staff Solutions Faculty, Art Assistant III, Administrative Support, Marketing HR Manager Payroll Manager Dean, Foundation Studies District Director, Student Life HR Director Faculty, Sociology Supervisor, Facilities Academic Advisor Assistant II, Enrollment Services VP for Finance & Administrative Services Interim VP for Instruction & Student Services 7

9 Agenda for Today s Session 1. Background and Introduction 2. Project Objectives and Project Team Roles & Responsibilities 3. Project Plan and Timeline 4. Yavapai s Current Compensation Program 5. Effective Compensation Practices 6. Immediate Next Steps Copyright 2013 by The Segal Group, Inc. All rights reserved. 8

10 Project Needs and Goals Effective compensation practice to test current compensation program against the market in order to maintain a healthy compensation program Because of this, Yavapai College is now undertaking a compensation study for both faculty and staff The table below outlines how Sibson s approach to address Yavapai s goals and needs: Project Goals/Needs Determination of competitiveness of employees pay compared to relevant labor markets Determination of competitiveness of faculty and staff salary structures Sibson Approach Development of a market strategy that identifies the College s labor markets and desired market positioning Assessment of current salary market competitiveness of select benchmark jobs and preparation of a compensation report of our findings Alignment of current salary structure(s) to target competitive market levels as identified in the compensation philosophy Determination as to how well the College is prepared to address future compensation trends Compensation program that is dynamic and easy to maintain Compensation system that is equitable, fair, transparent, and consistent 9

11 Roles & Responsibilities Serves as subject matter expert and conducts analyses, develops program designs and policies and other project deliverables Ensures key deliverables are completed on time Plans and facilitates project meetings and conference calls Prepares reports of findings Sibson Faculty YC Senior Leadership HR Compensation Project Team Provides leadership perspectives for development of analysis plan Provides overall sponsorship for project Allocates resources as needed Collaborates with Sibson throughout the project and acts as the primary contact Provides insight, feedback and input into the recommended processes and direction Is involved in day-to-day project activities as needed Provides data on pay, rank, discipline, etc. needed for study purposes Staff Receives continuous update on project progress Provides insight and input on process Serves as Project Champions 10

12 What to Expect The study is a common practice and should be seen much like a preventive health check-up for the College s compensation system Studies like these are considered a standard process that organizations undergo in order to assess pay against the market place During a compensation study, following may occur: Pay grades/structure may change or be adjusted Individual pay may stay the same or be adjusted if below the appropriate market level If a person s job is found to be above the market, the College is committed to maintaining their current salary level. However, the individual may be capped until the market changes or catches up 11

13 Agenda for Today s Session 1. Background and Introduction 2. Project Objectives and Project Team Roles & Responsibilities 3. Project Plan and Timeline 4. Yavapai s Current Compensation Program 5. Effective Compensation Practices 6. Immediate Next Steps Copyright 2013 by The Segal Group, Inc. All rights reserved. 12

14 Project Plan Phases and Steps Phase 1 Market Competitive Assessment Conduct kickoff meeting Completed Conduct briefing sessions (2 faculty and 2 staff) In progress Review and confirm labor markets and data sources for benchmarks Identify benchmark jobs Collect and analyze data Phase 2 Study Recommendations Discuss findings with HR and Compensation Project Team Develop sound, practical and sustainable recommendations Phase 3 Report Preparation & Presentation of Findings Prepare report identifying study findings Present study findings to Senior Leadership Conduct briefing sessions (2 faculty and 2 staff) 13

15 Project Timeline Based on the project scope and plan described, Sibson proposes a five to six-month timeline PROPOSED TIMELINE Project Step Sep Oct Nov Dec Jan Phase 1: Market Competitive Assessment Phase 2: Study Recommendations Phase 3: Report Preparation & Presentation 14

16 Agenda for Today s Session 1. Background and Introduction 2. Project Objectives and Project Team Roles & Responsibilities 3. Project Plan and Timeline 4. Yavapai s Current Compensation Program 5. Effective Compensation Practices 6. Immediate Next Steps Copyright 2013 by The Segal Group, Inc. All rights reserved. 15

17 Yavapai s Current Compensation Program Yavapai College s Compensation Philosophy: The College is committed to providing total compensation, including salary and benefits, that enables the College to attract, retain, and motivate skilled, talented, and diverse employees. The Goals of the Total Compensation Programs and Practices are: Internally equitable Externally competitive within the geographic and professional market for the skills employed Within the financial capability of the College In compliance with College policies and applicable laws and regulations Developed through appropriate collaborative efforts with affected employee groups and committees, as applicable Yavapai College has a Total Compensation Calculator 16

18 Agenda for Today s Session 1. Background and Introduction 2. Project Objectives and Project Team Roles & Responsibilities 3. Project Plan and Timeline 4. Yavapai s Current Compensation Program 5. Effective Compensation Practices 6. Immediate Next Steps Copyright 2013 by The Segal Group, Inc. All rights reserved. 17

19 Market Pricing Process Effective market pricing follows a standard process that includes the following steps: 1. Develop Compensation Philosophy 2. Identify Benchmark Jobs When comparing salaries with other organizations/survey sources, one must identify jobs that are commonly found in other organizations/survey sources and perform similar type and level of work Benchmark jobs should represent a broad array of occupational groups, departments, and pay levels throughout the College Benchmarks are not compared based on job titles, but instead look at the responsibilities of the jobs Single incumbent/single contributor jobs (i.e. ABE Program Coordinator and ID Card System Coordinator) do not make appropriate benchmarks 3. Identify Appropriate Survey(s) 4. Match Jobs to Comparable Jobs in Surveys 5. Select Appropriate Survey Scope/ Cut (industry, location, size, etc.) 6. Make Necessary Geographic Adjustments 7. Update the Data to a Common Point in Time 18

20 Market Study Scope Market Study Components Identify Peer Groups Identify peers Identify aspirational peers (these are Colleges that will be identified that Yavapai strives to become; for example, Colleges that have a better student retention/graduation rates) Identify benchmarks Identify Survey Sources Collect Pay data Actual Salaries Salary Range Information 19

21 Staff Increase History Year Increase Staff % % % % % % % Non-Exempt*; 4.78% Exempt % % Average (non-exempt) 2.75% Average (exempt) 2.65% * This was comprised of 2.95% and additional hours worked (up to 52). 20

22 Current Staff Salary Schedule Grade Minimum Top of the Hiring Range Maximum 3 $21,638 $26,141 $32,897 4 $23,343 $28,206 $35,501 5 $24,668 $30,352 $38,878 6 $26,616 $32,754 $41,960 7 $28,719 $35,347 $45,289 8 $30,990 $38,148 $48,885 9 $33,443 $41,173 $52, $36,093 $44,441 $56, $38,954 $47,969 $61, $42,431 $52,257 $66, $46,221 $56,931 $72, $49,370 $61,863 $80, $53,783 $67,400 $87, $58,595 $73,437 $95, $63,840 $80,017 $104, $68,197 $86,966 $115, $74,305 $94,763 $125, $80,963 $103,262 $136, $89,027 $113,681 $150, $97,897 $124,877 $165, $107,654 $137,332 $181, $118,387 $151,032 $199,999 Grades 23 and 24 are currently not in use 21

23 Agenda for Today s Session 1. Background and Introduction 2. Project Objectives and Project Team Roles & Responsibilities 3. Project Plan and Timeline 4. Yavapai s Current Compensation Program 5. Effective Compensation Practices 6. Immediate Next Steps Copyright 2013 by The Segal Group, Inc. All rights reserved. 22

24 Immediate Next Steps Meet with Project Team to: Determine benchmarks Define rationale for benchmark selection to ensure representation across College Select benchmarks Identify Peer institutions and other labor markets (i.e. public and private sector) Define rationale for selection to ensure reflect appropriate labor markets Define and document labor markets Collect market data Analyze Market Data 23

25 Questions If you think of ANYTHING, let a Project Team member know and they will forward comments and questions to the Project Team 24