1. Christopher Newport University Development and Implementation of a Compensation Program February 7, 2012 McKnight Associates, Inc. www.smcknight.com

2. Proprietary and Confidential: 2 Today’s Discussion Consulting Team Compensation Study ePDQ Demonstration

3. Proprietary and Confidential: 3 Consulting Team

4. Proprietary and Confidential: 4 McKnight Associates, Inc. Founded in 1996 Practice is Human Resources Primarily Higher Education Clients –Colleges and Universities –Medical Centers Other Public Sector Clients –Public Utilities –Health Care Systems Clients are Located Internationally Consultants are Highly Experienced in and Knowledgeable of Higher Education

5. Proprietary and Confidential: 5 Client List Arizona Western Community College Arizona State University Arizona University System California State University-Monterey Bay California State University-San Marcos California State University - Sacramento Canisius College Charles R. Drew University City University CUPA-HR Benefits Survey Cuyahoga Community College District Dubai School of Government Duke University Eastern New Mexico – Roswell CC Embry-Riddle Aeronautical University Elgin Community College Franciscan University Georgia College & State University Gonzaga University Jamestown Community College John F. Kennedy University Lebanese American University Laverne University National University North Dakota University System Northern Arizona University Peirce College Pepperdine University-Graziadio Business Pomona College Robert Morris College Samuel Merritt College San Jose State University Southern Connecticut State University St. John’s College St. Olaf College SUNY-Binghamton SUNY-Cortland SUNY Downstate Medical Center-Brooklyn SUNY Health Science Center-Syracuse University of Arizona University of California-San Diego University of California-San Francisco University of Florida University of Mary Washington University of Maryland University of Minnesota University of New Hampshire University of Notre Dame University of Virginia – Darden Business United Arab Emirates university Utah State University Woodbury University

6. Proprietary and Confidential: 6 Project Team Stan McKnight –More than 30 Years in Higher Education Sector –UCLA, Purdue, Iowa, Tennessee, Oklahoma Universities –Started Consulting Business in 1996  Drew Brock –12 Years in Higher Education Sector –Ph.D. Industrial Relations –Consulting Business with McKnight since 1998

7. Proprietary and Confidential: 7 Compensation Study

8. Proprietary and Confidential: 8 Compensation Study Summary Phase One: Planning and Initial Communications –Planning and Organizing –Town Hall Meetings Phase Two: Market Study –Layout and Benchmark –Published Surveys –Gap Analysis Phase Three: Job Analysis –Update Job Descriptions –Electronic Form (e-PDQ) –Supervisor and Employee Training –Review Results Phase Four: Pay Structure –Model Pay Line Blends Market and Point Count Data –Compression/Equity Analysis –Cost Analysis and Multiyear Implementation Plan –Communications and Feedback

9. Proprietary and Confidential: 9 Our Approach Market Analysis and Solution Building Job Analysis Design Pay Ranges

10. Proprietary and Confidential: 10 Job Evaluation Study Steps Job Information Collected by March 10, 2012 using Position Description Questionnaire (e-PDQ) Jobs Evaluated using Weighted Point Counts and Assigned Pay Ranges based on Points that will be Linked to Market Data Questionnaire Collected by e-Mail using MS Excel Program

11. Proprietary and Confidential: 11 Summary Of Weighted Factors FactorPercent of Total Points A.Entry Qualifications: Education, Training, Experience, etc. 25% B.Job Content Difficulty of Thinking and Problem-Solving 22% Personal Interaction 10% Supervision Exercised 14% Working Conditions 4% Total Content 50% C.Responsibility and Impact on End Results 25% TOTAL 100%

12. Proprietary and Confidential: 12 Who Should Complete the e-PDQ? Completing the e-PDQ is the Responsibility of Supervisors Collaborative Approach Between the Supervisor and Staff Member is Encouraged Staff may also Collaborate Together if the Duties of Several Positions are Nearly Identical Goal is to Provide the Most Complete and Accurate Information Possible Timely Completion is Important –Deadline March 10, 2012

13. Proprietary and Confidential: 13 Timeline Estimated Project Schedule ObjectivesKey TasksMilestones Develop Baseline ViewCampus Meetings Market Study ePDQ Training Job Analysis Start Project February 2012 Recommendations and Options Review ResultsApril 2012 Finalize Options and Communicate Final Report Feedback Conclusion May 2012

14. Proprietary and Confidential: 14 Philosophy How should exempt staff salaries compare to faculty salaries? How should staff salaries compare to other Higher Ed Institutions? Where should we position staff salaries in the market, i.e., mid or upper quartile? Appropriate external benchmarks? How should we balance external/internal equity? Pay for Performance for all jobs? Variable Pay Opportunities for what jobs?