1. Faculty & Staff Compensation Programs Board of Regents Meeting
Compensation Project
Faculty & Staff Compensation Programs
Board of Regents Meeting
Project Overview

2. Scope of Compensation Project
To gather and review our current compensation status, we had four consultant campus visits with seven group and twenty-five stakeholder meetings, plus six faculty and staff open general sessions with video access to all campuses including over 200 in-person session attendees, plus a completed online compensation survey of Faculty, Staff and Adjuncts resulting in 778 individual responses (342 Faculty 44%, 436 Staff 56%) including a total of 131 documented comments and questions received.
After 18 months of project work, the independent equity analysis has been completed and the salary survey data gathering process determined which has resulted in the faculty and staff compensation delivery models.

5. Faculty & Staff Short Term Action List
Develop a University Compensation Philosophy
Create a multi-member task force
Charge to review Sibson’s recommended compensation philosophy and create list of pros and cons for university leadership review and/or adoption
Report submitted by Dr. Michael Stankey, Committee Chair for university-wide review and approved by university on December 2013
Review of the approved TWU Compensation Philosophy

6. Proposed Faculty & Staff Compensation
Compensation Philosophy Linkage:
Competitive compensation packages
Focus on external market competitiveness
Balance with internal equity
Provide university flexibility within salary models
Importance of Adjusting Salaries:
• Hiring • Retention • Expectations
Ongoing Compensation Objective:
Continue salary adjustments towards 100% of the market based on available funds each FY

7. Proposed Faculty Compensation Plan
Guiding Principles:
• No faculty member’s salary would be reduced • Time in rank should matter • Promotion between faculty ranks should result in a meaningful salary increase
Review of Faculty Plan (spreadsheet handout)

8. Staff Short Term Action List
Assess staff salary levels
Develop external market database for collection and use of staff surveys
Project Team led by HR reviewed data collection tools and surveys and made recommendations
Review staff positions for internal equity
Develop criteria for making equity adjustments
HR and Academic Financial Services with assistance from legal counsel and an outside consultant
Make a decision on developing ranges for professional and administrative positions
HR reviewed available data and made recommendations
3. Implementation
- Develop an implementation plan

9. Staff Long Term Action List
1. Evaluate salary structure and career advancement opportunities
a. Review and evaluate the process and job families to determine university appropriateness
2. Performance based compensation concept
a. Develop criteria for awarding one-time performance stipends for staff and faculty
b. Merit or pay differential program
c. Evaluate a merit or pay differential program based on new performance evaluation processes

10. PayScale - Staff
TWU worked with PayScale, a leading company that provides a compensation tool, to assist with the staff salary review process.
PayScale’s Insight Expert software and analytics tool provides current compensation data for our staff positions and has features that enable us to choose the industry and geographical location.
With PayScale, TWU now has on-demand access to the largest, most detailed and up-to-date salary database that allows us to analyze our positions based on pay factors such as job duties, skills, certifications, education and years of experience.

11. PayScale - Staff
A PayScale Certified Compensation Professional (CCP) was assigned to TWU and assisted with performing the analysis to match our staff positions to current market data. This analysis was performed on each unique staff position at TWU.
As anticipated, our analysis reflected that many of our staff positions are currently paid under market.
The next step done was to revise pay structures as applicable based on this market data.

12. CUPA - Staff
CUPA surveys reflect the salaries of 1,138 Colleges and Universities nationwide, making it a key resource for salary-related decisions in the higher education community.
The following surveys were used:
Administrators in Higher Education
Professionals in Higher Education
Non-Exempt Staff in Higher Education

13. Updating Staff Market Data
With PayScale and CUPA, TWU will be able to:
Manage our compensation plan on an ongoing basis.
Perform quarterly compensation check-ups on a routine schedule.
Conduct an annual refresh of our compensation structure and make recommendations for salary increases.
Provide access of staff compensation data to managers and employees.

14. Usage of Staff Salary Survey Data
Classified – PayScale and CUPA
Professionals - PayScale and CUPA
Administrators – CUPA
Noteworthy Data:
440 unique staff position titles surveyed
Representing 826 staff employees
Only 2 no match positions

15. Proposed Fiscal Year 2015 Staff Compensation Distribution Objectives
To establish a base minimum floor where no staff employee would be below 80%* of market.
Provide an additional 4% ** across the board increase to all staff employees below the market.
Provide an extra 5% *** across the board one-time lump-sum payment to all staff.
* This figure may change slightly based on final approved budget
** Individuals at 96% or above will receive an amount not to exceed market
*** Paid on December 1, 2014

16. Proposed Staff Distribution Averages & Summary
 FY 15
80% Floor to Market
4% Increase
4% Prorated
Above Market
5% Lump Sum
Number Receiving
358
679
43 People will receive less than 4%
104 will not receive floor or increase
826 all staff employees
Average Increase
$4,019.39
$1,592.54
$1,213.31
$2,275.72

18. Staff Employee Examples
Employee receiving all distribution methods:
FY 14 Base Pay
Market Data
% Current Base Pay From Market
80% Market Floor
80% Market Floor Increase
% From Market
4% Increase or Capped at 100% Market
Total Increase to FY 14 Base
FY 15 Base Pay
5% Lump Sum Payment
Total Compensation for FY 15
% From Market After Increases
$29,418.00
$52,451.00
-43.91%
$41,960.80
$12,542.80
-20.00%
$1,678.43
-16.80%
$14,221.23
$43,639.23
$2,181.96
$45,821.19
-12.64%
Employee not receiving 80% market floor:
FY 14 Base Pay
Market Data
% Current Base Pay From Market
80% Market Floor
80% Market Floor Increase
% From Market
4% Increase or Capped at 100% Market
Total Increase to FY 14 Base
FY 15 Base Pay
5% Lump Sum Payment
FY 15 Total Compensation
Total FY 15 Compensation % to Market
$66,959.00
$69,564.00
-3.74%
$55,651.20
$0.00
$2,605.00
0.00%
$3,478.20
$73,042.20
105.00%
Employee only receiving 5% lump sum:
FY 14 Base Pay
Market Data
% Current Base Pay From Market
80% Market Floor
80% Market Floor Increase
% From Market
4% Increase or Capped at 100% Market
Total Increase to FY 14 Base
FY 15 Base Pay
5% Lump Sum Payment
FY 15 Total Compensation
Total FY 15 Compensation % to Market
$97,440.00
$90,563.00
107.59%
$72,450.40
$0.00
$4,872.00
$102,312.00
112.97%
Staff will be sent a protected link thru the system portal which will provide the above individualized compensation details including their new salary market data.

19. Proposed Staff Distribution Summary Cost
 FY 15
80% Floor to Market
4% Increase
4% Prorated
Above Market
5% Lump Sum
Number Receiving
358
679 43
104
826
Cost
$1,536,425.72
$1,143,306.00
$51,261.00
N/A
$1,878,993.56
Total cost of bringing staff employees to 100% of market of all funds including benefits (15%) is $7,478,037 x 1.15% = $8,599,742
Total proposed FY 2015 budget reoccurring staff compensation: $2,730,992.72