Presentation on theme: "Faculty & Staff Compensation Programs Board of Regents Meeting"— Presentation transcript:
1 Faculty & Staff Compensation Programs Board of Regents Meeting Compensation ProjectFaculty & Staff Compensation ProgramsBoard of Regents MeetingProject Overview
2 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.
5 Faculty & Staff Short Term Action List Develop a University Compensation PhilosophyCreate a multi-member task forceCharge to review Sibson’s recommended compensation philosophy and create list of pros and cons for university leadership review and/or adoptionReport submitted by Dr. Michael Stankey, Committee Chair for university-wide review and approved by university on December 2013Review of the approved TWU Compensation Philosophy
6 Proposed Faculty & Staff Compensation Compensation Philosophy Linkage:Competitive compensation packagesFocus on external market competitivenessBalance with internal equityProvide university flexibility within salary modelsImportance of Adjusting Salaries:• Hiring • Retention • ExpectationsOngoing Compensation Objective:Continue salary adjustments towards 100% of the market based on available funds each FY
7 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 increaseReview of Faculty Plan (spreadsheet handout)
8 Staff Short Term Action List Assess staff salary levelsDevelop external market database for collection and use of staff surveysProject Team led by HR reviewed data collection tools and surveys and made recommendationsReview staff positions for internal equityDevelop criteria for making equity adjustmentsHR and Academic Financial Services with assistance from legal counsel and an outside consultantMake a decision on developing ranges for professional and administrative positionsHR reviewed available data and made recommendations3. Implementation- Develop an implementation plan
9 Staff Long Term Action List 1. Evaluate salary structure and career advancement opportunitiesa. Review and evaluate the process and job families to determine university appropriateness2. Performance based compensation concepta. Develop criteria for awarding one-time performance stipends for staff and facultyb. Merit or pay differential programc. Evaluate a merit or pay differential program based on new performance evaluation processes
10 PayScale - StaffTWU 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.
11 PayScale - StaffA 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.
12 CUPA - StaffCUPA 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 EducationProfessionals in Higher EducationNon-Exempt Staff in Higher Education
13 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.
14 Usage of Staff Salary Survey Data Classified – PayScale and CUPAProfessionals - PayScale and CUPAAdministrators – CUPANoteworthy Data:440 unique staff position titles surveyedRepresenting 826 staff employeesOnly 2 no match positions
15 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 one-time 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
16 Proposed Staff Distribution Averages & Summary FY 1580% Floor to Market4% Increase4% ProratedAbove Market5% Lump SumNumber Receiving35867943 People will receive less than 4%104 will not receive floor or increase826 all staff employeesAverage Increase$4,019.39$1,592.54$1,213.31$2,275.72
18 Staff Employee Examples Employee receiving all distribution methods:FY 14 Base PayMarket Data% Current Base Pay From Market80% Market Floor80% Market Floor Increase% From Market4% Increase or Capped at 100% MarketTotal Increase to FY 14 BaseFY 15 Base Pay5% Lump Sum PaymentTotal Compensation for FY 15% From Market After Increases$29,418.00$52,451.00-43.91%$41,960.80$12,542.80-20.00%$1,678.43-16.80%$14,221.23$43,639.23$2,181.96$45,821.19-12.64%Employee not receiving 80% market floor:FY 14 Base PayMarket Data% Current Base Pay From Market80% Market Floor80% Market Floor Increase% From Market4% Increase or Capped at 100% MarketTotal Increase to FY 14 BaseFY 15 Base Pay5% Lump Sum PaymentFY 15 Total CompensationTotal FY 15 Compensation % to Market$66,959.00$69,564.00-3.74%$55,651.20$0.00$2,605.000.00%$3,478.20$73,042.20105.00%Employee only receiving 5% lump sum:FY 14 Base PayMarket Data% Current Base Pay From Market80% Market Floor80% Market Floor Increase% From Market4% Increase or Capped at 100% MarketTotal Increase to FY 14 BaseFY 15 Base Pay5% Lump Sum PaymentFY 15 Total CompensationTotal FY 15 Compensation % to Market$97,440.00$90,563.00107.59%$72,450.40$0.00$4,872.00$102,312.00112.97%Staff will be sent a protected link thru the system portal which will provide the above individualized compensation details including their new salary market data.
19 Proposed Staff Distribution Summary Cost FY 1580% Floor to Market4% Increase4% ProratedAbove Market5% Lump SumNumber Receiving35867943104826Cost$1,536,425.72$1,143,306.00$51,261.00N/A$1,878,993.56Total cost of bringing staff employees to 100% of market of all funds including benefits (15%) is $7,478,037 x 1.15% = $8,599,742Total proposed FY 2015 budget reoccurring staff compensation: $2,730,992.72