1. Discussion on Compensation

2. Goal To assist in securing and retaining a staff of necessary quality to achieve the goals and objectives of the organization.

3. Key Decisions Prior to Design What can the University afford? What does it prefer to spend? Where does the University wish to position itself within the labor market? »Lead the market »Follow the market »Trail the market

4. Key Compensation Objectives The program should allow enough flexibility to allow individual department managers to effectively and efficiently administer the salary of their employees The program should provide compensation which is competitive with the external market within the University’s budget constraints. The program should establish and maintain equitable salary relationships among internal positions The program should include the use of a formal salary structure and administrative policies and procedures that provide guidelines for the effective management of compensation.

5. Process Market competitiveness –Utilizing job analysis techniques benchmarks are established in which University jobs are compared to similar positions at peer institutions and within the neighboring job markets. –Utilizing comparative market surveys salary rates and salary structures are created. –Peer institutions and area employers are surveyed to maintain salary rates and salary structures. –Periodic reviews of turnover are undertaken to determine if market position is lost or gained.

6. External Comparisons 21% of the more than 400 positions reviewed to date are represented by a “close” match to the market A positive comparison of more than 80% creates a “benchmark” position. Benchmarks have been achieved in all 11 salary ranges. Percentage values for benefit coverage that match the local average (24%) are used to facilitate comparisons. ( 24% is area average/ 37% is University average)

7. Market Information A variety of information sources are utilized to determine adjustments to the University’s salary structure. Industry Sources –***Administrative Management Society - Professional and Data Processing Survey –***Executive Compensation Service, Inc. – Office Personnel Survey –***Executive Compensation Service, Inc – Professional & Scientific Personnel Report –***Executive Compensation Service, Inc – Supervisory Management Report –*Society for Human Resource Management - Compensation Survey Results - *World at Work (American Compensation Association) National Compensation Report –*Bureau of labor Statistics – National Compensation Survey College & University Sources –*CUPA Administrative Compensation Survey –*CUPA Administrative Compensation Survey for peer institutions –**William M. Mercer, Inc College and University Compensation Survey –^SIUE Survey of St Louis Metropolitan Area Selected

8. To insure internal equity –All positions are analyzed and ranked using a Point/Factor Comparison process. –A series of weighted factors are used by a compensation committee to determine a jobs overall point total. –Based on the results of the analysis all positions are placed within salary ranges –Equity adjustments are made to the salaries of position incumbents based on a guaranteed minimum for years of service. –All open positions must be filled at a salary no lower than 95% of the range median (market rate).

9. Point/Factor Comparison Process Step 1 Establish Benchmarks Step 2 Select the compensable factors Step 3 Define the compensable factors Step 4 Define compensable factor degrees Step 5 Design and implement use of a Position Description Questionnaire Step 7 Rank the benchmark positions by utilizing information from the questionnaire and assign a point total to each benchmark positions. Step 8 Relying on use of the PDQ assign a point total to the remaining positions. Step 9 Assign salary range placement for those remaining jobs based on comparisons to benchmarked positions.

10. Grade & Salary Structure Number of Ranges -11 Salary Range – A salary range represents the acceptable level of pay for jobs assigned to that range/grade Minimum, Market, Midpoint, Maximum Approach Market represents minimum hiring rate Salary Range spread 35-50% Midpoint Differential – The percent difference between range midpoints 9-15% At the time of creation the market suggested an additional structure was needed for mid to senior level information system positions.

11. Weighted Job Factors Knowledge & Skills Required Impact & Accountability Level of Decision Making Communications Freedom to Act Working Conditions –Physical working conditions –Control over prioritization

12. Compensation Management Committee Director of Financial Affairs and Budget Director are rotating chairpersons Each Vice Chancellor appoints two senior level managers from their Division to serve in the group. Length of time spent on the CMC is determined by each individual Vice Chancellor Each member of the committee is involved in the ranking of the positions through the use of a position description questionnaire. HR personnel provide logistic support. Changes to ranges or to data collection methods are determined by the Director of Financial Affairs, Budget Director, and Human Resources Director

13. Positions Ranked by the CMC All administrative professional staff, open range civil service positions, and confidential employees below the rank of Vice Chancellor, (excluding coaches), are ranked by the committee. Administrative staff are defined as non- represented professional staff and open range civil service employees.

14. Merit Pay at SIUE There is no organizational definition for meritorious service. Most work units on campus show a reluctance to install a performance management measurement system. There is no one stated line of logic campus wide for distributing merit pay. We face a “cascade effect” in which through salary compressions inequities are created.

15. Service Equity Adjustments Based on the assumption that continuous service within a position represents one element of merit minimum salary amounts are dictated based on the length of time an incumbent holds a position. This provides some protection from wage compression for incumbents who are in positions that do not provide promotional opportunities. Years in position is defined as calendar year the employee began doing the job or the calendar year of the last salary change based on changes in duties and responsibilities.

16. Service Equity Adjustments Salary Minimums < 3 years – 95% range midpoint > 3 < 6 years – 100% range midpoint > 6 <10 years – 103% range midpoint >10 <15 years – 106% range midpoint >15 <20 years – 109% range midpoint  20 - 112% range midpoint