1. Bangkok Patana School Academic Compensation and Benefits Review 2010

2. Todays Presentation Aims of the Compensation and Benefit Review
Compensation and Benefits Survey
What did we ask?
Methodology used for salary comparisons
What did we find out?
What changes will be made?
Questions

3. Aims of the Compensation and Benefits Review
Understand BPS position in the market
Provide a package that is competitive as well as financially sustainable
Review and reaffirm a link to the UK salary structure
Ensure that teachers (Expatriate and Local) are employed on comparable salaries
Recruit and retain high quality British and International teachers with experience to deliver the Bangkok Patana School curriculum

4. Compensation and Benefits Practices Survey
BPS commissioned Towers Watson to assist with undertaking a comprehensive survey to look at :
Salary comparison between BPS and UK salary structure
Salary and Benefits comparison between BPS and targeted schools in Thailand and South East Asia
* ISB * British International School Jakarta
* NIST * Tanglin Trust School, Singapore
* Shrewsbury * United World College , Singapore
* Harrow (declined) * Alice Smith (Malaysia)

5. What did we ask?
A comprehensive survey was sent to the target schools requesting information on areas including:
General - Length of tenure; staff ratios, turnover, etc
Definitions for Expatriate and Local teaching staff
Localisation
Airfares
Continuing Professional Development
Housing
Salary Progression
Bonuses
Responsibility Payments
Pension
Shipping
Medical benefits
Salary Scales
How salaries are paid (ie NET/Gross; currency, etc)

6. Methodology BPS/UK Salary Comparison
To enable a comparison between UK salary and the equivalent BPS Salary:
A number of benchmark points were chosen
For each of the chosen Benchmark points the equivalent UK salary point was identified using the UK London Fringe Scale as the basis. This was considered to represent the mean salary levels across the UK.
At each identified point on the UK Scale, the net salary was calculated
35% of Net UK salary considered to be required to meet fixed costs and maintained in GPB
65% of Net UK salary considered to be discretionary income and Cost of Living (CoL) adjusted to Thailand
Discretionary income converted to THB using current exchange rate

7. Methodology Salary Comparison – BPS v Target Schools
To enable a comparison between target school salaries and BPS Salaries:
Benchmarking was undertaken using specific points on salary scale relating to years of experience.
Most effective given different length and structure of scales
At each identified point on the scale the salaries were cost of living adjusted and converted to THB to provide a comparison *

8. What did we find out?
Components of BPS package is generally in line with other schools
Some specific findings
Average length of tenure at BPS is 4 years which is in line with other schools
Turnover rate is very similar to other schools in Thailand and slightly higher than other schools surveyed
Teacher student ratios are on average 1 teacher to 10 students
Contract Length – 2 year initial contract, 2 year subsequent contracts
Only 1 school pays for additional hours worked
Localisation – No school localises expatriates after a certain number of years; however there are legal limitations in some countries
Difference do exist between Local and Expatriate Teaching staff
Most schools pay gross salary
Most schools pay in local currency (although scale may have a link to another currency)

9. What did we find out?
All schools pay responsibility allowances , with the majority based on responsibility bandings
Leave (sick, maternity, etc is in line with statutory requirements of country school is based in)
Only half schools have a pension provision
Only 2 schools provide annual airfares
BPS bonus structure is attractive
BPS Housing allowances overall are greater than other Bangkok based schools
Trend amongst target schools towards a sharing of responsibility for medical costs through deductible or co-payment arrangements for both outpatient and inpatient treatment

10. What did we find out? Salary
BPS salary’s are no longer as competitive as in previous years either against the UK or targeted schools
Exchange Rates and Cost of Living have been the major impact on salaries
The differences are not uniform across the salary scale.
Against target school the differences are greatest at the lower ends of our scale
When comparing to the UK the differences were evident in the THB portion of the salary scale
Local Teachers Salaries are 15 – 17% Net higher than Expatriate Teacher salaries

11. Expatriate Teacher Salary and Benefits Amount
Salary paid NET in GBP and THB
Ability to take GBP as THB
Guaranteed exchange rate spread of THB : 1 GBP in place till August 2011
Bonus
2 months salary payable at the end of each 2 year contract, an additional month 2+1 is paid at the end of 4 years
Post Graduate Degree Allowance
Masters - GPB 500
PHD – GBP 750
Pension
Approximately 9% of Gross Salary, paid Net to a fund that meets specified criteria
Housing Allowance
Single THB27,500
Married Couple or Family (1 teacher) THB38,500
Married Teaching Couple THB50,000
Settling In Allowance
Single THB 40,000
Married/Family THB 70,000
Shipping Allowance
Less than 4 years Service Reimbursed up to THB 60,000
Equal or more than 4 years Service Reimbursed up to THB 80,000
CPD
THB 28,000 for up to 4 years for approved courses , after 2 year qualifying period
Medical
Comprehensive Inpatient coverage and outpatient up to THB5,000 per visit for self, spouse and dependant children
Airfares
Return economy flight at end of each 2 year contract; 1 way flight at end of each 1 year contract
Assistant Principal’s and above receive annual economy airfares

12. What Changes are being made?
The following changes to salary and benefits will become effective on 1st September 2011:
Shipping Allowance
On leaving the School, (assuming that contract has not been broken), the following changes to shipping allowances will apply:
< 4 years service – Reimbursable up to THB 70,000   (THB 10,000 increase)
> = 4 years service – Reimbursable up to THB 90,000 (THB 10,000 increase)
Airfares for staff on 1 year Contracts
Staff on 1 year contracts will become eligible for a return flight at the end of 2 subsequent 1 year contracts
Paternity Leave
Paternity leave will increase from 3 days paid leave to 5 days paid leave
Maternity Leave
Pregnant staff members will be eligible to use up to 10 days of sick leave for maternity related purposes prior to the official start of maternity leave
Where a staff member elects to take additional unpaid leave above the statutory 45 days paid and 45 days unpaid leave, their bonus will be prorated only for the period of additional leave

13. What Changes are being made?
Medical Benefits
Current costs associated with medical benefits are not sustainable and a new medical benefits plan will be introduced that:
Provides staff access to necessary medical care
Is financially sustainable
encourages staff to participate in the management of their own health care
Co-payment for Medical costs will be introduced as follows:
Outpatient
Co-payment 90/10 (Employee pays 10% of outpatient costs, insurer pays the other 90%, with no further limits applied)
Inpatient
Co-payment 90/10 up to Limit ( Employee pays 10% of inpatient costs up to THB 30,000, Insurer pays additional costs)
A cap of THB 30,000 will be put in place for each event, and in the instance where more than 1 surgery is required for the same condition (in 1 year) the school will self fund the co-payment.
Inclusion of maternity related costs up to THB 80,000 per pregnancy
Other Benefits
All other benefits remain unchanged

14. What Changes are being made?
In order to address the fact that BPS has become less competitive against both the UK and its peers in SE Asian region, the following changes to salary scales and payments will be effective from 1st September 2011:
Principals Scale adjusted by 10% net on the THB portion of salary (net increase of 5.6% overall)
Expatriate Teachers Scale and Assistant Principal Scale are adjusted as :
Points 1 – 14 :   18% net adjustment to THB portion of salary; ( net increase 10.1% overall )
Points 15 – 18 :  14% net adjustment  to THB portion of salary ( net increase of between 6.7% and 8.8% overall)
Points 19 onwards :  10% net adjustment to THB portion of salary (net increase of 5.6% overall)
Responsibility allowance – 14% net adjustment to THB portion of allowance (net increase of 7.8% overall)
Readjust pension to 9% of gross salary at each point on the scale, paid net
Pension to be paid as a monthly payment via payroll
No adjustment to Local salary scales
Salary Scales will be reviewed closely on annual basis to understand the impact of exchange rate and Cost of Living, and to determine whether further adjustments will be made.

15. Questions ?

16. Scale Point Monthly Payment Pension (Net) Baht (Net) £ (Net) £ 1
Year 10/11
Annual
Payment
Monthly Payment
Pension (Net)
Baht (Net)
£ (Net) 1
37,063
597
1,423 2
39,008
628
1,514 3
41,056
661
1,609 4
43,213
695
1,710 5
45,481
732
1,815 6
47,870
771
1,926 7
49,066
790
1,982 8
50,293
809
2,039 9
51,549
830
2,097 10
52,839
851
2,158 11
54,159
872
2,219 12
55,513
894
2,283 13
56,762
913
2,341 14
58,040
935
2,401 15
59,345
955
2,461 16
60,681
977
2,523 17
61,834
995
2,577 18
63,008
1,014
2,631 19
64,205
1,034
2,687 20
65,426
1,053
2,745 21
66,668
1,074
2,802 22
67,936
1,094
2,861 23
69,225
1,114
2,921 24
70,541
1,136
2,982 25
71,881
1,157
3,044 26
73,248
1,180
3,108
Allowances A
2,955 47
137 B
5,909 96
276 C
10,341
168
484 D
14,773
239
688
Scale Point
Year 11/12
Annual
Payment
Monthly Payment
Pension (Net)
Baht (Net)
£ (Net) 1
43,734
597
1,873 2
46,029
628
1,996 3
48,446
661
2,124 4
50,991
695
2,257 5
53,668
732
2,400 6
56,487
771
2,549 7
57,898
790
2,624 8
59,346
809
2,699 9
60,828
830
2,779 10
62,350
851
2,859 11
63,908
872
2,941 12
65,505
894
3,026 13
66,979
913
3,102 14
68,487
935
3,184 15
68,700
955
3,222 16
69,176
977
3,271 17
70,491
995
3,341 18
71,829
1,014
3,413 19
71,900
1,034
3,446 20
71,969
1,053
3,477 21
73,335
1,074
3,553 22
74,730
1,094
3,628 23
76,148
1,114
3,704 24
77,595
1,136
3,784 25
79,069
1,157
3,864 26
80,573
1,180
3,947
Allowances A
3,369 47
180 B
6,736 96
362 C
11,789
168
634 D
16,841
239
905