Human Resources Administration in Education Chapter 8: Compensation Ronald W. Rebore This multimedia product and its contents are protected under copyright law. The following are prohibited by law: • Any public performance or display, including transmission of any image over a network; • Preparation of any derivative work, including the extraction, in whole or in part, of any images; • Any rental, lease, or lending of the program. Copyright © Allyn & Bacon 2007

Variables Affecting Compensation Performance “The evaluation of performance is concerned with a basic question: ‘Did you get the job done?’ ” Copyright © Allyn & Bacon 2007

Variables Affecting Compensation Continued Effort Merit Pay A merit pay system will be ineffective unless it has the following components: Effective teacher evaluation procedures. Training programs for management and supervisory personnel who will implement the plan. School board and management commitment to the plan in time and resources. Staff involvement in developing the program. Copyright © Allyn & Bacon 2007

Variables Affecting Compensation Continued Merit Pay cont. Teacher acceptance and satisfaction Adequate financing Merit pay for all who meet the criteria Plausible, fair, and equitable performance criteria Valid and verifiable measures of results Objectivity and consistency in applying assessment measures Increased student learning promoted Copyright © Allyn & Bacon 2007

Variables Affecting Compensation Continued Seniority Skills Job Requirements Copyright © Allyn & Bacon 2007

Copyright © Allyn & Bacon 2007 Types of Compensation Intrinsic Participation in Policy Making Discretion Responsibility Professional Development Copyright © Allyn & Bacon 2007

Types of Compensation Continued Extrinsic and Direct Salary Merit Pay Overtime and Sick Leave Copyright © Allyn & Bacon 2007

Types of Compensation Continued Extrinsic and Indirect Holiday and Vacation Leave Services Insurance Programs Copyright © Allyn & Bacon 2007

Direct Compensation: Salary and Wage Administration Equitable salary system Comparability Position Evaluation Performance Incentive Salary Review The Effects of Salary on Motivation: “Money increases intrinsic motivation” Copyright © Allyn & Bacon 2007

Direct Compensation: Salary and Wage Administration Continued Public Disclosure of Salaries Compensation Packaging Equity of Pay and Performance Employee Relations in Salary Management Collecting Community Wage Data Copyright © Allyn & Bacon 2007

Direct Compensation: Salary and Wage Administration Continued Salary and Wage Review Salary Schedule Construction Multiple Salary ranges Establishing Base Salaries Copyright © Allyn & Bacon 2007

Direct Compensation: Salary and Wage Administration Continued Payroll Deductions “The board of education should have a comprehensive payroll deduction policy covering such areas as the minimum and maximum amounts that may be deducted; the number and types of deductions authorized; deduction procedures; the opening and closing dates for entering deductions on the payroll records”. Pay Periods Copyright © Allyn & Bacon 2007

Direct Compensation: Salary and Wage Administration Continued Principles for Presenting Recommendations to the School Board The Fiscal Condition of the School District The Administrative Organization of the School District Employee Unions and Associations Salary Recommendation Procedures Copyright © Allyn & Bacon 2007

Direct Compensation: Salary and Wage Administration Continued Small Business Job Protection Act of 1996: Commonly referred to as “Minimum Wage Law” Budgets must be adjusted to compensate for the required increase in wages. Copyright © Allyn & Bacon 2007

Indirect Compensation: Fringe Benefits Administration Types of Fringe Benefits Benefits Required by Law: social security premiums, state retirement insurance, unemployment compensation, and workers’ compensation Voluntary Fringe Benefits: insurance programs, time away from job, and services Managed Health Care: school districts must employ case management specialist or contract with a company specializing in third party health care administration Copyright © Allyn & Bacon 2007

Indirect Compensation: Fringe Benefits Administration Continued Health Insurance Portability Act of 1996 “The law addresses the needs of approximately 25 million Americans who are denied health insurance coverage because of an illness or who cannot change jobs because they, their spouse, or their dependents would be denied insurance coverage because of a preexisting medical condition such as diabetes.” Medical Savings Accounts: employees choose the physician, hospitals, and treatments. Major illnesses are paid by the districts’ insurance while money withdrawn from MSA pays for minor costs. Copyright © Allyn & Bacon 2007

Indirect Compensation: Fringe Benefits Administration Continued Procuring Health Care and Related Insurance The Insurance Agent and Broker: While the broker is not under contract to any specific agency, the agent acts on behalf of the company Selecting Insurance Companies: It is essential to check their performance and financial solvency with well-established rating firms Copyright © Allyn & Bacon 2007

Indirect Compensation: Fringe Benefits Administration Continued Health Risks in the Workplace Three categories of health risks for school employees: Facility environmental risks Violence Risk of contracting infectious disease Copyright © Allyn & Bacon 2007

Indirect Compensation: Fringe Benefits Administration Continued Crisis Event Management Crisis occur because of a variety of situations: Accidents Misconduct Natural disasters Technology malevolence Violence Copyright © Allyn & Bacon 2007