1. Human Resources Administration in Education
Chapter 8: Compensation
Ronald W. Rebore
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2. Variables Affecting Compensation Performance
“The evaluation of performance is concerned with a basic question: ‘Did you get the job done?’ ”
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3. 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.
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4. 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
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5. Variables Affecting Compensation Continued
Seniority
Skills
Job Requirements
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6. Copyright © Allyn & Bacon 2007
Types of Compensation
Intrinsic
Participation in Policy Making
Discretion
Responsibility
Professional Development
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7. Types of Compensation Continued
Extrinsic and Direct
Salary
Merit Pay
Overtime and Sick Leave
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8. Types of Compensation Continued
Extrinsic and Indirect
Holiday and Vacation Leave
Services
Insurance Programs
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9. 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”
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10. 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
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11. Direct Compensation: Salary and Wage Administration Continued
Salary and Wage Review
Salary Schedule Construction
Multiple Salary ranges
Establishing Base Salaries
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12. 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
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13. 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
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14. 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.
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15. 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
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16. 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.
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17. 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
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18. 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
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19. Indirect Compensation: Fringe Benefits Administration Continued
Crisis Event Management
Crisis occur because of a variety of situations:
Accidents
Misconduct
Natural disasters
Technology malevolence
Violence
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