Slide Number: Faculty Range Salary Schedule Recommendation March 20, 2012 ALAMO COLLEGES UMGHR HARNESSING THE POWER OF HUMAN CAPITAL

Slide Number: INTRODUCTION An Alamo Colleges “Advisory Committee” was established to issue recommendations to the Chancellor’s Executive Committee on possible ways to reorganize and rebalance the faculty salary schedule within existing resources for full-time faculty The Advisory Committee was composed of faculty and administrators across the District and was tasked to review Alamo’ Faculty Compensation Study conducted by UM Global HR A final report and proposed faculty salary schedule was submitted to the Chancellor and Executive Committee As part of the Alamo Colleges’ Faculty Compensation Study, UM Global HR was asked to review the committee’s proposed salary schedule This report is the result of the review and presentation of a “Range” salary schedule which incorporates the major elements of the Advisory Committee’s salary schedule report, while addressing cost and equity issues inherent in Alamo Colleges current “Step” salary schedule 1 March 20, 2012

Slide Number: On December 2 nd 2011,UM Global HR met with the Advisory Committee and recommended a change from the current Step Salary Schedule to a Range Salary Schedule with a slightly lower initial placement rate. –Currently four of the Big Eight colleges use a step salary schedule (Alamo, Austin, El Paso, and Houston), and four use a Range Salary Schedule (Dallas, Lone Star, San Jacinto, and Tarrant). After reviewing the Step Schedule and the Range Schedule, it was agreed that UM Global HR, Alamo HR, and a faculty representative work together to adjust the Range Schedule to take into account salary compression, provide for a transparent reporting system, and to report back. –Salary compression is when current faculty earn the same or less than new faculty. The revised Range Salary Schedule was reported to the Advisory Committee by the faculty representative and Alamo Colleges Human Resources in early March. 2 BACKGROUND March 20, 2012

Slide Number: CONTEXT In the comparison of Alamo Colleges with peer colleges: Alamo Colleges’ total average faculty salary ranked 6 th among peers Alamo Colleges’ average salary by salary class ranked no better than 4 th or 5 th Of the salary classes, BA, MA, MA+12, and PhD showed the greatest disparity In the TCCTA 2010 – 2011 annual faculty survey of community colleges, among peer colleges, Alamo College’s total average faculty salary is ranked 8 among the Big Eight Colleges 3 March 20, 2012

Slide Number: THE SALARY RANGE SCHEDULE The purpose of the new range schedule is to: 1.Make Alamo Colleges’ faculty salaries competitive with peer colleges 2.Address internal equity and salary compression issues between current faculty and new hires 3.Address faculty salary needs identified in Alamo’s 2008 to 2009 Faculty Compensation Study and TCCTA Comparisons 4.Align Alamo’s compensation policies and practices as third among peer colleges— the “threeness” criterion 4 March 20, 2012

Slide Number: UNDERSTANDING ALAMO COLLEGES’ CURRENT FACULTY STEP SALARY SCHEDULE 5 ection ONE March 20, 2012

Slide Number: ALAMO COLLEGES’ EXISTING SALARY STRUCTURE 6 1.Initial placement Step A, new hire with no experience and no credit hours at MA = $38,758 Up to 5 years credit for experience, or Step F = $43,789 2.Step increases of 4% first year and roughly 2% thereafter I n bygone days, steps were the next pay level for each year of service, up to step AC (29yrs) An annual step increase is not guaranteed Step increase are always Board approved based on available funding 3.Progression in salary classification Seven classifications defined by degree and graduate credit hours; from BA, MA, to PhD Variable increases ranging from 2.6% to 5.6% between MA classes and more for BA and PhD – 2011 Base Salary Schedule What’s Included? March 20, 2012

Slide Number: ALAMO COLLEGES IS THE ONLY PEER COMMUNITY COLLEGE AMONG PEERS THAT PAYS FOR RANK 7 1 Rank pay is cumulative: an Assistant Professor is paid $1,468 above base salary, an Associate Professor is paid $2,919 above base ($1,469 + $1,450), and a professor is paid $4,388 above base ($2,919 + $1,469). 2 New faculty with a doctoral degree in the teaching field, on the recommendation of the President, and with the concurrence of the Chancellor, may be appointed at the rank of Assistant Professor. In such cases, the faculty member is placed in the appropriate cell of the salary schedule and $1, is added to their pay. 3 Faculty hired prior to January 1977 may apply for promotion to Asst. Professor If the criteria for Class I are met. Rank Schedule 1 All Salary Classifications See footnotes 2 and 3 All Salary Classifications See footnotes 2 and 3 Initial Placement 1 INSTRUCTOR 3 Years as Instructor $1, Additional Criteria: MA + 12 or Above Satisfactory Progression on Tenure Track $1, Additional Criteria: MA + 12 or Above Satisfactory Progression on Tenure Track ASST. PROFESSOR 2 $1, Additional Criteria: MA + 24 or Above Satisfactory Progression on Tenure Track $1, Additional Criteria: MA + 24 or Above Satisfactory Progression on Tenure Track 4 Years as Asst. Prof. ASSOC. PROFESSOR 5 Years as Assoc. Prof. $1, Additional Criteria: MA + 36 or Above Satisfactory Progression on Tenure Track $1, Additional Criteria: MA + 36 or Above Satisfactory Progression on Tenure Track PROFESSOR March 20, 2012

Slide Number: COMPONENTS OF ALAMO COLLEGES’ FACULTY COMPENSATION BASE BUILDING Per Existing Schedule BASE BUILDING Per Existing Schedule Promotion to a higher Salary Classification Based on Degree or Credit Hours CLASS PROMOTION IN CLASS BASE BUILDING Flat Rate BASE BUILDING Flat Rate RANK Evaluation System for Tenure Track Faculty PROMOTION IN RANK BASE BUILDING Per Existing Schedule BASE BUILDING Per Existing Schedule General Increase Percent Increases Based on Board Approval and Fund Availability GENERAL PERCENT INCREASES BASE BUILDING BASE BUILDING MARKET AVERAGES Placement in Salary Schedule at Hire Based on Degree, Credit Hours, and Prior Experience INITIAL PLACEMENT Salary Schedule 1 1 Rank Schedule = Salary March 20, 2012

Slide Number: PROPOSED RANGE SALARY STRUCTURE 9 ection TWO March 20, 2012

Slide Number: To improve Alamo Colleges’ faculty salary competitiveness in each “Salary Class” by achieving “Threeness” among Alamo’s eight peer community colleges 10 Note: The “Threeness criterion is based on the Advisory Committee’s goal of placing Alamo Colleges Faculty salaries among the top three of entry level salaries and average salaries compared to peer institutions. GOAL March 20, 2012

Slide Number: 11 THE RANGE STRUCTURE March 20, 2012 Faculty with no experience are placed at the minimum of their “Range Class”. New faculty with up to seven years experience are placed higher in the range according to an "Initial Placement Salary Schedule". Faculty can move within a range through annual increases, market increases, internal equity adjustment, or promotion in Rank. Faculty move to higher classes by achievement of required credit hours and/or higher degree. Range Spread Per Class = 96.4% Midpoint to Midpoint Progression = 2% to 9% The 96.4% Range Spread represents threeness among base 8 colleges. Max Midpoint Min BA Max Midpoint Min MA Max Midpoint Min MA + 12 Max Midpoint Min MA + 24 Max Midpoint Min MA + 36 Max Midpoint Min MA + 48 Max Midpoint Min PhD = Range Spread = Midpoint to Midpoint Progression

Slide Number: 12 RANGE SALARY SCHEDULE March 20, 2012 Range Midpoint Progression Class MIN (Initial Pay) MidpointMAX Spread (Min to Max) BA$38,500$57,057$75, % MA$42,000$62,244$82, % $5, % $1, % MA+12$43,050$63,800$84, % $1, % MA+24$44,126$65,395$86, % $1, % MA+36$45,229$67,030$88, % $1, % MA+48$46,360$68,706$91, % $3, % PhD$46,678$71,141$95, % RANK Assistant Professor$1,469 Associate Professor$2,919 Professor$4,388

Slide Number: 13 TREATMENT OF INITIAL PLACEMENT UNDER THE RANGE SCHEDULE (INCREASE FROM 5 TO 7 YEARS) Initial placement for new hires is increased from 5 years to 7 years, with 1.75% increase for each year, to a 12.25% maximum (current value is 12%) A constant, non-compounded, 1.75% per year (instead of the current 4% for the first year and 2% thereafter up to 5 years) helps prevent salary compression and places more value on years at Alamo March 20, 2012 Initial Placement Under the Range Salary Schedule EDUCATIONBaseYears of Experience CLASSIFICATION0 Years1 Year2 Years3 Years4 Years5 Years6 Years7 Years BA$38,500$39,174$39,848$40,521$41,195$41,869$42,543$43,216 MA$42,000$42,735$43,470$44,205$44,940$45,675$46,410$47,145 MA + 12$43,050$43,803$44,557$45,310$46,064$46,817$47,570$48,324 MA + 24$44,126$44,898$45,670$46,443$47,215$47,987$48,759$49,531 MA + 36$45,229$46,021$46,812$47,604$48,395$49,187$49,978$50,770 MA + 48$46,360$47,171$47,983$48,794$49,605$50,417$51,228$52,039 PhD$48,678$49,530$50,382$51,234$52,085$52,937$53,789$54,641 Experience Increase Non- Compounding 1.75%3.50%5.25%7.00%8.75%10.50%12.25% Credit per Year 1.75% Alamo's Current Rate2.00%4.04%6.12%8.24%10.41%12.62%14.87%

Slide Number: HOW DOES THE RANGE SALARY SCHEDULE MEET ALAMO COLLEGE’S NEEDS? 14 ection Three March 20, 2012

Slide Number: MARKET “THREENESS” 15 Current vs. Proposed March 20, 2012 Impact of Range Salary Schedules on Initial Placement and Compensation Drivers Initial Placement Per Salary ScheduleRankings Salary ClassificationAlamo CurrentProposedAlamo CurrentProposed Overall Average (Actual Salaries)$54,166$57,68483 BA or Equivalent$35,049$38,50083 MA + 0$38,758$42,00063 MA+12$39,841$43,05052 MA+24$40,943$44,12653 MA+36$42,044$45,22943 MA+48$43,128$46,36053 PhD$45,312$48,67853 Duty Days Class Range: Min to Max76.20%96.4%63 MA+0 to PhD Class (With Rank Pay)25.00% 11 Cost $2,960,383

Slide Number: IMPACT OF PROPOSALS ON ACTUAL FACULTY SALARIES 16 March 20, 2012 BAMAMA+12MA+24MA+36MA+48PhD Overall Average Current Avg. Salary$40,569$45,230$49,884$54,124$59,374$60,975$61,911$54,166 Range Market Adjustment$44,188$48,100$52,533$56,515$61,483$62,674$63,702$56,491 Total With Compression Adjustment $45,233$49,403$53,757$57,572$62,567$63,783$64,943$57,684 Percent Change Over Current 11.50%9.23%7.76%6.37%5.38%4.61%4.90%6.49% N

Slide Number: 17 ANNUAL REPORTING March 20, 2012 Distribution of Faculty Salaries By Class and Years of Experience. Rank Pay Not Included.

Slide Number: 18 THREE-STEP IMPLEMENTATION December 2, 2011 STEP ONE: Transition from Step Table to Range Schedule

Slide Number: STEP TWO: Compression Fix— Adjust the salaries of 425 faculty with 0 to 7 years experience by a factor of 1.75% depending on year hired. 19 THREE-STEP IMPLEMENTATION December 2, 2011

Slide Number: STEP THREE: Increases all faculty base salaries by 1.25% to address overall compression between current faculty and new hires. 20 THREE-STEP IMPLEMENTATION December 2, 2011

Slide Number: Q & A 21 March 20, 2012

Slide Number: 22 CURRENT DUTY DAYS Colleges Duty Days Ranking* Houston Community College164 1 Alamo Colleges164 1 El Paso Community College165 2 Lone Star College165 2 Austin Community College166 3 Tarrant County College166 3 San Jacinto College169 4 Dallas Community College173 5 * Low numbers in duty days are ranked higher March 20, 2012

Slide Number: 23 PROPOSED 2013 SUMMER RATES March 20, 2012 COLLEGESFormula/Summer Pay Written Policy Total Summer Courses Allowed # of Courses at Premium Rate Premium Pay per CourseAdjunct RateRank Avg pay per Course San JacintoFlat Rate: 165% of Adjunct Rate3NA$3, $4, Austin1/3 of 9 mo. for two summer sessions55$3,998.00$3, $3, Lone Star(9 mo salary/9)x1.5 = for one summer22$4,997.00$1, $3, Houston(Mo.Sal x1.5)/6)*3 if 642$4,997.00$1, $3, AlamoPROPOSED: 120% of Adjunct Rate5NA $2,202 - $2,5505 $2,643 - $3,278 DallasChanged to: Formula pay to 1 3-hr course81$3,998.00$1, $2, El PasoFlat Rate: $823/Lec Hr. = $2,4694NA $2, Tarrant Adjunct Rate (Varies by Degree & Credit Hours)4NA $2,

Slide Number: 24 PROPOSED SUMMER 2013 RATES AND NON-TEACHING DUTIES March 20, 2012 Adjunct120% Adjunct BA $2, $2, MA $2, $2, MA+12 $2, $2, MA+24 $2, $3, MA+48 $2, $3, PhD $2, $3, Avg $2, $3, Non-teaching Duties: A faculty member is obligated to perform 10 hours of non-teaching work for each course compensated at 120% adjunct at any time during the summer.

Slide Number: 25 COST SUMMARY March 20, 2012 Cost of Salary Range Schedule = $2,960,383 Summer Savings = $2,019,611 Net Cost Before Benefits = $940,772 Net Cost With Benefits = $1,016,034