1. Finalizing the Compensation Study
December 12, 2014
Brief by Jill Robbins & Jim Watkins

2. Agenda GMC Compensation Guiding Principles
Independent Assessment Analysis
New Salary Structure
Who is affected
Cost to Implement
Implementation Options
Implementation Options; Phased Approach
Recommendation
Decision

3. GMC Compensation Guiding Principles
Offer a living wage
Employees to be paid equitably across the institution
GMC to become market competitive in regards to salary structure (Recruit, retain, reward)
Implement a traditional salary structure
Allow managers flexibility to manage budget and staff demands

4. Mercer Independent Assessment
Identified key shifts required to implement a strategy that is aligned with market practices, rewards performance and increases employee engagement
Structure is built around what we do well (TRS!)
THIS APPROACH ADHERES TO THE GUIDING PRINCIPLES

5. New Salary Structures Staff Salary Scale Faculty Salary Scale
Correctly aligned responsibilities with pay grades
Grade structure begins at 14 (10/hr min)
Gives hiring manager flexibility to use judgment with salary offers
Gives hiring manager flexibility to use judgment with salary offers
Helps prepare for BAS faculty staffing
Staff Salary Scale
Faculty Salary Scale

6. *Managers identified as critical jobs
Who is affected?
Non-Exempt Employees
Engineering (Grounds, Custodial, Maintenance, Food Service)
Financial Aid Assistants*
Exempt Employees
Academic Advisors*
Admissions Counselors*
Financial Aid Counselors*
Engineering Supervision (Most front-line supervision/working managers)
Who is not affected
Most middle managers (PTM1+) i.e. Director of Purchasing or Registrar
Senior level managers
Faculty
*Managers identified as critical jobs

7. Cost to Implement BLUF: $390,000
Initial budget planning wedge FY16: $600,000
$300,000 for comp study
$300,000 for pay raises
Brings all employees to the minimum of new pay band
Yields equitable, competitive, livable wage for all employees
Correctly aligns pay band with job duties

8. Implementation Options
One-Time Adjustment
Make all recommended adjustments at one time.
Pros
Significantly improve recruiting, retaining and rewarding staff
Immediately rectifies problem areas
Sends message through institution
Total buy-in from institutional management
Cons
Larger cost impact than phased approach
Phased Approach
Spread market adjustments over 2+ years. (Cap year 1 increases at 10% and identify critical jobs, remainder paid year 2)
Pros
Cost impact is spread over two years
Cons
Perpetuates problems for recruiting, retaining and rewarding staff for 1 year.
Potentially leaves employees outside of their correct pay band (causes issues with evaluating equitable pay).

9. Implementation Options; Phased Approach
Option A: Implement Non-Exempt Year 1, Exempt Year 2
Cost Year 1: $255,000 (Total of all non-exempt moves)
Cost Year 2: $135,000
Issue: 26% represents only Milledgeville Engineering moves
Lose institutional buy-in (critical jobs not supported; Advisors/Admissions Counselors)
Leaves employees outside of the band, creates difficulty with hiring (inequitable)
Represents 68/117 Employees on list to receive increase (58%)
Option B: Implement Non-Exempt and Critical Jobs Year 1, Excess Year 2
Cost Year 1: $318,000 (N/E, Advisors, Admissions Counselors, select Eng. Front line supervisors)
Cost Year 2: $72,000
Little cost savings from Implementation Strategy 1
Represents 99/117 employees on list to receive increase (85%)
Option C: Increases for all; Year 1 capped at 10% with remainder paid Year 2
Cost Year 1: $240,000
Cost Year 2: $150,000
Leaves employees outside of their band, creates difficulty with hiring
Represents 117/117 employees on list to receive increase (100%)
Best option for Phased Approach

10. Recommendation
Recommendation: Implement the compensation increases identified in the study effective
1 july 2015 (fy16).
HR to draft personnel letters to each affected employee
HR to Roll out new compensation policies/processes/planning guide
Present at January PBAC
Total cost to gmc $390,000

11. Decision Concur/Not concur Option 1: One time Implementation
Option 2: Phased Approach A B C
Concur/Not concur
Signature Date