Topics

1. Compensation Philosophy Implementation Policies and Procedures Survey Timing, Position Descriptions, Pay Plan Relationships, Cost Additional Information and Reporting Topics

2. Compensation program enables the institution to attract and retain the highly skilled and talented employees necessary to meet its operational needs and priorities. Texas State University- Comp Philosophy

3. Establish compensation levels for positions on the basis of their duties and responsibilities, external competitiveness within relative labor markets, and relative internal worth. Reward employees on the basis of work performance and longevity. HR encourages implementing 100% of market results. Comp Philosophy

4. Administer pay equitably and consistently. Administer the compensation program in a judicious manner within funding availability, the Rules and Regulations of the TSUS, and federal and state statutory requirements. Comp Philosophy

5. 2001- Work/Research Begins 2002- Sent to PC 2009- Comp Philosophy Update Comp philosophy-history

6. The compensation program will be well communicated to the campus. The compensation program under the Texas State Philosophy does not include benefits or other amenities outside of pay. Salary surveys of relative labor markets will be conducted each fiscal year. PC approves markets and pay plan relationships prior to survey process each fiscal year. Implementation Policies and Procedures

7. Benchmark jobs- representative positions which are commonly found in most participating organizations. This means that not all jobs/positions are surveyed. 3 Markets: Local, University, Athletics Implementation policies and procesures

8. University Market • Defined by PC. • CUPA-HR Mid-Level Administrative and Professional Salary Surveys. • Positions that are recruited nationally and/or are unique to institutions of higher education. • Median rate used to establish pay plan minimums. “Unweighted Median Salary by Budget Quartile-Doctoral Institutions.” Market Survey

9. Local Market • Defined by PC. • Our primary local market survey data comes from purchased surveys for the Austin/San Antonio area. • I-35--San Antonio-Austin Corridor- Local Vendors • Unweighted median rate used to establish pay plan minimums. Market Survey

10. Local Market • Titles determined by PC which are not recruited nationally and are not unique to higher education. • Recruited locally. • Approximately 100 survey titles. • Data from purchased surveys from local human resources management groups in conjunction with national consulting firms. • Represents 300 + local (public and private) employers and 1000 + employees in benchmark jobs. • Examples: Accountants, IT positions, HR positions, Admin Assts, Custodians, Nurses. Market Survey

11. Athletics Market: • CUPA-HR administrative and professional data. • Median rates used. Survey

12. Coaches: • CUPA median data, FCS and FBS data reported for each coaching position. • “Data on Demand”-CUPA • Coach data for comparison purposes only. • FCS data used for football coaches (Div I-AA). • FBS data used for all other sports (Div I-A). Survey

13. Our budget is $415,730,473. • CUPA Survey Quartile is: $292.7-$543.4 (Admin Comp) • CUPA Survey Quartile is $286.2-$493.1 (Mid-level) • 2nd Quartile for both surveys • Median is the middle figure of a rank ordered list or the average of the two middle figures. • Examples: $28,000 $42,000 $36,000 $44,000 $43,000 $46,000 $36,000 is median $54,000 $45,000 is median Survey quartiles and median rates

14. Previous surveys focused on comparison to market pay plan minimums. Medians are greater than pay plan minimums. Results in higher pay ranges, greater maximums and minimums. Median: it’s a good thing

15. “Market rate” is median rate Local, University and Athletics pay plan minimums= 96% of median rate placed on nearest grade. Nearest grade: Minimum could be higher or lower than median rate. HR only makes recommendations on pay plan minimums, not actual salaries. HR encourages implementing 100% of market results. Market Implementation

16. Every year Feb-March PC receives current pay plan relationships for review and comment Receive survey data in March-April from vendors Analyze data April-May . Present data to PC in June prior to salary review and Legislative Appropriations Request (LAR). Timing

17. Texas State does not collect or use survey data based upon titles or credentials. Only duties are used to compare positions. Position Descriptions

18. Survey position descriptions represent a summary of the most important duties, not all duties. Survey position descriptions do not represent individual GOJAs. Represent duties performed by a class of employees, not individual employees. Position Descriptions

19. Plug- Used by all employers to establish the relative value of positions. Used when evaluating a position which does not have a match in the market data. 5PC- Used by president’s cabinet to determine the proper pay plan minimum. 5CB- Indicates a continuation of the current pay plan minimum. GA- Indicates the number of “grades above” another position in relative value. Represents usage of a plug. GB- Indicates the number of “grades below” another position in relative value. Represents usage of a plug. Definitions

20. Commonly used by all organizations to assign appropriate base (entry) rates to positions which are not found in survey documentation. Can be set at any rate acceptable by management (PC). Shows the relative value of one job to another in a hierarchy. Plugs

21. Example: Duplicating Equipment Operator- market data Printer II- 140% Dup. Equip. Op. Printer I, Bindery Operator, Phototypesetter, Camera Operator- 90% Printer II. PC members approve plugs for positions in their division and approve pay plan relationships. Plugs

22. Pay plan relationships Define terms in pay plan relationship documents: 5PC, 5CB, GA, GB • University Mkt • Unclassified Academic Advisor I 5GB Academic Advisor II Academic Advisor II Academic Advisor/Counselor Admin Financial Analyst 1 GB Acct III Apartment Manager Res Hall Mgr-Rm and Board Classified Accompanist 5PC Admissions Processor Academic Evaluator Child Care Teacher Aide 6GB Child Care Teacher Construction Contract Admin Coord Construction Projects • Local Mkt • Unclassified • Accountant II Accountant II • Accountant III 3 GA Accountant II • Plant Engineer 3 GA Crew Supv, CRO • Procurement Analyst 100% Procurement Specialist • Systems Analyst I 4 GB Systems Analyst II Systems Analyst II Systems Analyst II • Classified • Accountant I Accountant • Accounting Clerk I Accounting Clerk I • Accounting Clerk II 1 GA Accounting Clerk I Administrative Asst I Admin Asst • Administrative Asst II 2GB Admin Asst III

23. HR provides PC the total cost and method cost of implementing market results. • This year Total Cost: • $3,245,606 • University Market $986,030 • Local Market $2,151,662 • Athletics Market $107,914 FY 10- Cost

24. Method Costs: • $1,695,635 • University Market $568,695 • Local Market $1,126,940 • Athletics Market $0.00 FY 10-Cost

25. HR tracks the “cost of living” represented in the CPI-U. • CPI-U as of 6/23/10 was 1.9% for YTD • Recommendations made to increase pay plan by CPI-U figure. • Recommendations made both with and without implementing “no cost reallocations.” Staff pay plan structure maintenance

26. No cost reallocations as of 6/23/10: • Includes titles in which an increase to the pay plan minimum would not result in a cost. • All employees in these titles are above the proposed market pay plan minimum. Additional information

27. Market Index Data: • % distance of each title from market combined with turnover data, rank ordered. • Number of employees in each title and number of employees affected. • Cost to bring titles to market, including BRP. Additional information

28. Final report with recommended pay plan minimums. PC considers data and makes final approval/decision on proposed changes. “President’s Cabinet, at its discretion, may set minimum pay plan salaries at levels different from those derived by the methodologies described above. The reason for such a decision will be documented and on file in the Texas State Human Resources Office.” Survey Report