Compensation Project

Report
Compensation Project
Faculty & Staff Compensation Programs
Board of Regents Meeting
Project Overview
http://www.twu.edu/humanresources/
Scope of Compensation Project
• To gather and review our current compensation status, we had four
consultant campus visits with seven group and twenty-five stakeholder
meetings, plus six faculty and staff open general sessions with video
access to all campuses including over 200 in-person session attendees,
plus a completed online compensation survey of Faculty, Staff and
Adjuncts resulting in 778 individual responses (342 Faculty 44%, 436
Staff 56%) including a total of 131 documented comments and
questions received.
• After 18 months of project work, the independent equity analysis has
been completed and the salary survey data gathering process
determined which has resulted in the faculty and staff compensation
delivery models.
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Faculty & Staff Short Term Action List
1. Develop a University Compensation Philosophy
- Create a multi-member task force
- Charge to review Sibson’s recommended compensation
philosophy and create list of pros and cons for university
leadership review and/or adoption
• Report submitted by Dr. Michael Stankey, Committee Chair for
university-wide review and approved by university on
December 2013
• Review of the approved TWU Compensation Philosophy
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Proposed Faculty & Staff Compensation
Compensation Philosophy Linkage:
• Competitive compensation packages
• Focus on external market competitiveness
• Balance with internal equity
• Provide university flexibility within salary models
Importance of Adjusting Salaries:
• Hiring
• Retention
• Expectations
Ongoing Compensation Objective:
• Continue salary adjustments towards 100% of the market
based on available funds each FY
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Proposed Faculty Compensation Plan
Guiding Principles:
• No faculty member’s salary would be reduced
• Time in rank should matter
• Promotion between faculty ranks should result
in a meaningful salary increase
Review of Faculty Plan (spreadsheet handout)
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Staff Short Term Action List
2. Assess staff salary levels
- Develop external market database for collection and use of
staff surveys
- Project Team led by HR reviewed data collection tools and
surveys and made recommendations
- Review staff positions for internal equity
- Develop criteria for making equity adjustments
- HR and Academic Financial Services with assistance from
legal counsel and an outside consultant
- Make a decision on developing ranges for professional and
administrative positions
- HR reviewed available data and made recommendations
3. Implementation
- Develop an implementation plan
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Staff Long Term Action List
1.
Evaluate salary structure and career
advancement opportunities
a. Review and evaluate the process and job families to
determine university appropriateness
2.
Performance based compensation concept
a. Develop criteria for awarding one-time
performance stipends for staff and faculty
b. Merit or pay differential program
c. Evaluate a merit or pay differential program based on
new performance evaluation processes
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PayScale - Staff
• TWU worked with PayScale, a leading company that
provides a compensation tool, to assist with the staff
salary review process.
• PayScale’s Insight Expert software and analytics tool
provides current compensation data for our staff
positions and has features that enable us to choose the
industry and geographical location.
• With PayScale, TWU now has on-demand access to the
largest, most detailed and up-to-date salary database
that allows us to analyze our positions based on pay
factors such as job duties, skills, certifications,
education and years of experience.
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PayScale - Staff
• A PayScale Certified Compensation Professional (CCP)
was assigned to TWU and assisted with performing
the analysis to match our staff positions to current
market data. This analysis was performed on each
unique staff position at TWU.
• As anticipated, our analysis reflected that many of our
staff positions are currently paid under market.
• The next step done was to revise pay structures as
applicable based on this market data.
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CUPA - Staff
CUPA surveys reflect the salaries of 1,138 Colleges
and Universities nationwide, making it a key
resource for salary-related decisions in the higher
education community.
The following surveys were used:
• Administrators in Higher Education
• Professionals in Higher Education
• Non-Exempt Staff in Higher Education
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Updating Staff Market Data
With PayScale and CUPA, TWU will be able to:
• Manage our compensation plan on an ongoing basis.
• Perform quarterly compensation check-ups on a
routine schedule.
• Conduct an annual refresh of our compensation
structure and make recommendations for salary
increases.
• Provide access of staff compensation data to
managers and employees.
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Usage of Staff Salary Survey Data
• Classified – PayScale and CUPA
• Professionals - PayScale and CUPA
• Administrators – CUPA
Noteworthy Data:
• 440 unique staff position titles surveyed
• Representing 826 staff employees
• Only 2 no match positions
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Proposed Fiscal Year 2015 Staff
Compensation Distribution Objectives
• To establish a base minimum floor where no staff
employee would be below 80%* of market.
• Provide an additional 4% ** across the board
increase to all staff employees below the market.
• Provide an extra 5% *** across the board onetime lump-sum payment to all staff.
* This figure may change slightly based on final approved budget
** Individuals at 96% or above will receive an amount not to exceed market
*** Paid on December 1, 2014
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Proposed Staff Distribution Averages & Summary
FY 15
Number
Receiving
Average
Increase
80% Floor
to Market
358
4%
4% Prorated
Increase
679
$4,019.39 $1,592.54
Above
Market
5% Lump
Sum
104 will not
43 People will
826 all staff
receive floor
receive less
employees
or increase
than 4%
$1,213.31
$2,275.72
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Staff Employee Examples
Employee receiving all distribution methods:
FY 14 Base Pay
Market Data
% Current Base
Pay From
Market
80% Market
Floor
80% Market
Floor Increase
% From
Market
4% Increase or
Capped at
100% Market
% From
Market
$29,418.00
$52,451.00
-43.91%
$41,960.80
$12,542.80
-20.00%
$1,678.43
-16.80%
Total Increase
FY 15 Base Pay
to FY 14 Base
$14,221.23
$43,639.23
Total
% From
5% Lump Sum
Compensation Market After
Payment
for FY 15
Increases
$2,181.96
$45,821.19
-12.64%
Employee not receiving 80% market floor:
FY 14 Base Pay
Market Data
% Current
Base Pay
From Market
80% Market Floor
80% Market
Floor
Increase
% From
Market
4% Increase
or Capped at
100% Market
% From
Market
$66,959.00
$69,564.00
-3.74%
$55,651.20
$0.00
-3.74%
$2,605.00
0.00%
Total Increase
FY 15 Base Pay
to FY 14 Base
$2,605.00
$69,564.00
5% Lump Sum
Payment
FY 15 Total
Compensation
$3,478.20
$73,042.20
Total FY 15
Compensation
% to Market
105.00%
Employee only receiving 5% lump sum:
FY 14 Base Pay
$97,440.00
Market Data
$90,563.00
% Current
Base Pay
From
Market
107.59%
80% Market
Floor
$72,450.40
80%
Market
Floor
Increase
$0.00
% From
Market
107.59%
4%
Increase or
% From
Capped at
Market
100%
Market
$0.00 107.59%
Total
FY 15 Base
Increase to
Pay
FY 14 Base
$0.00 $97,440.00
Total FY 15
5% Lump Sum FY 15 Total
Compensation
Payment
Compensation
% to Market
$4,872.00
$102,312.00
112.97%
Staff will be sent a protected email link thru the system portal which will provide the
above individualized compensation details including their new salary market data.
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Proposed Staff Distribution Summary Cost
FY 15
80% Floor
to Market
Number
Receiving
358
679
Cost
$1,536,425.72
$1,143,306.00
Above
Market
5% Lump
Sum
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104
826
$51,261.00
N/A
$1,878,993.56
4% Increase 4% Prorated
Total cost of bringing staff employees to 100% of market of all funds including
benefits (15%) is $7,478,037 x 1.15% = $8,599,742
Total proposed FY 2015 budget reoccurring staff compensation: $2,730,992.72
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