Exempt Employee Compensation Plan

1
Exempt Employee Compensation Plan

• October 2008

2
Objectives of Analysis

• To attract and retain the right people.
• Evaluate current exempt compensation plan.
• Study best practices for compensation
  administration.
• Articulate the advantages/disadvantages for
  current and alternative systems.
• Recommend action to enhance the administration of
  the exempt compensation plan.

3
Summary of Background

• Review of exempt compensation plan
• 2004/2006 Review by EEA
• Analysis of various compensation methodologies
• HR meetings with EEA
• Trial membership with salary.com
• All matches provided to employee AA
• HR meets with employees / managers to discuss
  matches

4
EEA and HR Findings

• CUPA limitations
• 50 of positions matched under CUPA
• Lack of flexibility
• Need for broader bands
• Ability to review data periodically to maintain
  market competitiveness
• Process transparency

5
Methodology Used

• Review of all position descriptions
• Matched all positions using salary.com
• Approximately 50 matched using CUPA
• Analysis based on duties responsibilities
• Best fit
• Establishment of position salary ranges

6
CUPA Analysis

• Advantages
• Minimal Cost
• Data from only HE
• Filter data by budget accreditation level

• Disadvantages
• Excludes market data
• Benchmarking limited
• Less than 50 direct matches
• Data collected annually
• Descriptors limited

7
Salary.com Analysis

• Advantages
• Market data based on variety of surveys
• Services of compensation analyst
• Data updated monthly
• Better descriptors
• Customized searches

• Disadvantages
• Cost of program
• Data not HE specific

8
CUPA vs. Salary.com

• CUPA Salary.com
• Positions Above
• 40th Percentile 89 51
• 90th Percentile 13 3
• Positions Below
• 40th Percentile 10 49
• 10th Percentile 0 8
• Range
• Within Range 87 88
• Higher End Range 14 84
• Lower Beginning Range 52 45
• Adjusted to 40th percentile 9/1/08

9
Recommendation / Action Plan

• Use Salary.com as compensation tool to establish
  salary ranges for exempt position
• HR will continue to work with AA and employees to
  ensure best match regardless of compensation
  tool used and transparency of process
• AA continue to determine salary level for
  positions
• Publish salary ranges for exempt positions on HR
  web page
• Update salary ranges monthly as positions change
• Review and update all salary ranges yearly
• HR finalize performance management proposal

10
Next Steps

• EEA Governing Board recommendation to Cabinet
• Presentation to Cabinet
• Decision on which salary tool to use
• Communicate decision to EEA
• Implement using salary.com or continue to use
  CUPA to establish salary ranges for exempt
  positions
• Continue to work with managers / staff to ensure
  the best match

11
Questions

• Thank you