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?