Staff Compensation Review Project Highlights

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Staff Compensation ReviewProject Highlights
June 2008
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Todays Discussion

• Project Background and Approach
• Review Highlights
  
  
• Compensation Philosophy Statement
• Overview of Market Findings
• Key Design Components
• Overview of Salary Grades
• Job Placement Processes
• Pay Opportunities
• Job Redefinition and Job Enrichment
• Next Steps

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Project Background and Approach
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Project Background and Approach

• Mercer was asked to assist Emerson in a
  compensation program review and salary structure
  design for its non-faculty staff
• To assist Emerson in its objectives, Mercer
  conducted a review that included
• Meetings with Emerson to gather input on the
  current program and understand core job
  responsibilities
• Discussions with Emerson HR and Leadership to
  understand the compensation philosophy
• Conducting a market review of base salary levels
  for approximately 60 of employees (and 112 jobs)
• Creating a guide to utilize in placing
  non-benchmark jobs into the new salary structure
• Developing a salary structure based on current
  market data for consideration by Emerson

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Project Background and Approach (contd)

• Emerson completed the project effort by
• Confirming the desired salary structure
• Working with VPs to place department positions in
  the new structure (based on a similar set of
  internal factors)
• Developing and receiving approval from the Board
  for any salary associated-costs for moving
  employees to new grades based on current,
  market-based practices

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Review Highlights
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Review Highlights Compensation Philosophy
Statement

• Goal To provide a total compensation program
  that allows Emerson
• College to attract, retain, and reward high
  quality staff that actively
• support the achievement of the Colleges academic
  objectives in
• excellence in communications and the arts.

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Review Highlights (contd) Overview of Market
Findings

• This study confirmed that, overall, Emersons
  base salary levels were slightly below the
  desired positioning of the market 50th percentile
  (i.e., market median), at 5 below median
• This study encompassed approximately 60 of the
  Emerson population, which is a strong sample size
  to assess the competitiveness of an
  organizations pay levels
• Jobs that were reviewed are called benchmark
  jobs and are typically commonly understood jobs
  in the market place, with similar
  responsibilities
• Market levels are based on the defined labor
  market for talent. Accordingly,
• The national market place of higher education
  institutions and peers was typically used for
  senior management jobs and those jobs exclusive
  to higher education
• Regional and local data was reviewed for jobs in
  which we recruit talent from general industry
  (i.e., both within and outside of higher
  education), this includes support and entry-level
  professional jobs
• Some positions were reviewed within both higher
  education and general industry

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Review Highlights (contd)Key Design Components
Eight Salary Grades
Jobs Placed in Grades Based on Market and
Internal Job Factors
Pay Based on Target Market 50th Percentile
Positioning
Approved Market and Equity Adjustments for Jobs
and Incumbents Below Market
Future Program Enhancements Merit Increases
Based on Performance
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Review Highlights (contd)Market data and
internal factors were used to help place jobs
into the new salary grades
Job Analysis
Job Description
Job Evaluation (internal equity)
Market Analysis (external equity)
Reconciliation
Grade Assignment
Implementation
On-going Compensation Decisions
Budgeting Process
Policies and Procedures
Performance Management
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Review Highlights (contd)Eight Salary Grades

• Eight salary ranges were developed based on
  market compensation levels for benchmark jobs
• The midpoints typically reflect market median
  practices
• The maximums are typically above market 75th
  percentile levels to provide greater flexibility
  in managing pay
• Midpoint intervals are the difference between
  midpoints in adjacent salary grades
• Range spreads are how wide the ranges are (i.e.,
  the difference between the maximum and minimum of
  a range)
• No employee will generally be paid below the
  minimum salary for the salary grade for his/her
  job. Most salaries will be managed within the
  jobs grade.

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Review Highlights (contd)Job Placement Process

• Jobs were placed into the eight salary grades
  using a career level framework
• Career levels are a way of grouping Emerson jobs
  based on the type/nature of work performed on
  campus
• They represent a major step in an employees
  career
• Are defined by a set of dimensions that
  distinguish one level from the next
• Mercer placed benchmark jobs in the salary grades
  based on market
• HR preliminary placed all non-benchmark jobs in
  the career level framework using the dimensions
  above. These placements were then shared and
  refined with Department VPs, as appropriate.
• It is important to note that jobs, not
  individuals were placed into the structure. Job
  placement is irrespective of individual
  performance contributions.
• Our annual merit increases serve as the tool to
  recognize and reward individual performance

• Career Level Dimensions
• Role Overview and Impact
• Leadership/Mentorship
• Autonomy
• Minimum Background/Experience

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Review Highlights (contd)Sample of one career
dimension across four levels

• The Leadership/Mentorship dimension, outlined
  below, shows an increase in applied skill and
  responsibilities of jobs across levels A through
  D

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Review Highlights (contd)Pay Opportunities -
There are three types of salary increases in the
Program

• Merit increases will continue to be awarded to
  employees, on an annual basis, based on their
  performance and the Colleges budget

• A market adjustment is a salary increase that is
  provided to staff members whose jobs fall well
  below market levels
• Emerson HR will review the competitiveness of
  salaries on an ongoing basis and provide market
  adjustments, if deemed necessary

• Promotional increases will be based on the
  incumbents skills and competencies they bring to
  a job in a higher salary grade. Increases will
  be determined based on
• The market for the job
• The new salary grade range and
• Internal equity

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Job Redefinition and Job Enrichment

• Job Redefinition is the reassignment/movement of
  a job to a higher career level/salary Grade
• Since our Program is based on broad roles and
  responsibilities, this job change would typically
  result from a significant change in current job
  responsibilities and require a significant
  increase in skill level
• Responsibilities which add a major component to
  the current job requirements and/or
• New responsibilities which are very different
  from current responsibilities.
• If there is a situation in which a job
  redefinition may be necessary, Managers/Supervisor
  s will discuss the issue with HR for review and
  approval
• If a job is redefined to a higher salary grade,
  then guidelines in assessing the amount of a
  promotional increase will be followed
• Job Enrichment is typically when employees take
  on additional tasks or work, without increasing
  the level of responsibility within the job
• Most staff members jobs change in the form of
  job enrichment
• Employees are expected to increase the amount of
  work performed as they become more proficient in
  the job accordingly, job enrichment is typically
  a part of all employee jobs

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Next Steps
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Next Steps

• Incorporate equity adjustments into the next
  effective salary pay cycle
• Equity adjustments were determined based an
  incumbents salaries relative to the market and
  their salary grade range minimum
• Provide all employees with individual letters
  defining their new salary grade and any
• Rollout new performance management program.
  Training to be provided in the summer.
• Linking new performance management program more
  effectively to merit increases