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ACC FY07 Classification and Compensation Study. Classification study of all prof/tech & classified positions. Review current classification/compensation structures. Conduct salary survey of benchmark classifications.

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Presentation Transcript
project scope
Classification study of all prof/tech & classified positions.

Review current classification/compensation structures.

Conduct salary survey of benchmark classifications.

Develop an appropriate hierarchy of job titles and salary ranges based on internal relationships and external competitiveness.

Recommend implementation/adoption strategies.

Develop job descriptions reflecting current work duties and responsibilities.

Project Scope
project goals
Project Goals
  • Correct classification of positions.
  • Updated Job Descriptions.
  • “Measure” of competitiveness in employment market, and development of competitive salary plan.
  • Salary ranges based on job content, internal equity and external competitiveness.
  • Salary administration showing fiscal responsibility.
classification methodology
Classification Methodology
  • Position Analysis Questionnaire –generic PSPC version reviewed and revised by compensation committee.
  • Employee Orientation Meetings - Series of presentations for employees on how to complete the questionnaire.
  • Interviews - 190+ incumbents were interviewed to confirm the information provided and to obtain a greater depth of understanding of the scope and complexity of each job classification.
  • Job Groups – job classes were group by occupational job family (i.e. accounting, human resources etc).
classification methodology5
Classification Methodology
  • Hierarchy developed – arranged jobs within job family group with different levels. Using preliminary salary survey data, current internal relationships, and logical spreads, assigned “ job grades” to establish internal hierarchy. The President’s Leadership Team approved the hierarchy.
  • Hierarchy Review – met with the Leadership Team over 2 days to review internal relationships for jobs in their divisions.
  • Leadership Team reviewed final recommendations for College wide internal relationships.
classification findings and actions
Classification Findings and Actions
  • 86% of employees completed a PAQ. The remaining were classified based on those that submitted a questionnaire, by using existing job descriptions, or by their supervisor .
  • 94% of the 967 positions were assigned to proper occupational job class.
  • Approximately 328 current job titles were consolidated in to 282 recommended job titles in 64 job families.
  • 91 total FLSA exemption status changes
      • 80 exempt to non-exempt
      • 11 non-exempt to exempt
      • All reviewed by Austin labor attorney (7 changed)
q why are salary surveys conducted
Q: Why Are Salary Surveys Conducted?
  • Wages are subject to fluctuation due to supply and demand for different occupations.
  • Helps to identify necessary salary range adjustments.
  • Salary surveys assist in the maintenance of externally competitive salary policies and practices.
  • Salary surveys are one tool used to develop Salary Plans.
  • Salary Plans are used to price jobs, not people.
q what is a salary survey benchmark
Q: What is a Salary Survey Benchmark?
  • A standard occupational class with characteristics so detailed that other classes can be compared as being above, below or comparable to it.
  • Non-benchmark jobs are linked to them through internal job relationships.
salary survey comparators
Salary Survey Comparators
  • Where do you recruit from and where do you lose people to?
  • List of suggested comparators was reviewed by Compensation Committee, Administrators and Consultant.
  • Upon completion, the survey reflects current prevailing rates for which ACC competes with other employers to hire and retain qualified people.
  • Salary surveys assist in the maintenance of externally competitive salary policies and practices.
comparators
Comparators

Educational – “Metro 8” (Alamo, Collin, Dallas, Houston, Lee, North Harris Montgomery, San Jacinto, Tarrant Community Colleges)

Other Public Sector – City of Austin, Travis County, Austin Independent School District

Other Surveys – Austin Area Pay & Benefits Survey (AON), Texas Workforce Commission, College & University Professional Association (CUPA), Higher Ed Information for Technology Services (HEITS), CSD and Communication By Hand for Sign Language Interpreters.

salary survey methodology
Salary Survey Methodology
  • Market data is utilized to identify occupations for which the agency is paying wages below or above the prevailing rates.
  • Benchmark occupations are initially placed at a salary range whose Midpoint is nearest the prevailing rates, without damaging internal relationships. Adjustment to range assignments are then made (up or down) before finalizing salary plan.
  • Non-benchmark occupations placed at a salary range in relation to the benchmark occupations and other job classes within the same occupational grouping or job family.
salary survey methodology12
Salary Survey Methodology
  • Salary Range Midpoint Comparison –We used “structure-to-structure” midpoint method to compare ACC’s current salary structure midpoint to the prevailing rates. (Midpoint = Journey Level Rates).
  • Data Projection –We factored the external data from all sources forward from their date of collection to the common date of September 1, 2006 by the annual prevailing rate increase factor of 4.0%.
salary survey findings
Salary Survey Findings
  • Survey Comparison - reveals that ACC competitive for approximately 53% of the benchmark job classes, and not competitive for 47% of the benchmark job classes.
  • “Competitive” defined as within 5% of prevailing rates.
  • Survey Summary is for comparison purposes only - comparing ACC’s structure to the prevailing rates. Survey data serves as a starting point when designing salary ranges for each classification.
other factors used to determine salary range assignments
Other Factors Used to DetermineSalary Range Assignments
  • Internal “hierarchy” relationships were reviewed by HR, Administrators and the Leadership Team with no $$ shown
  • Job Content
  • 5% / 10% / 15% / 25% Guideline (logical spreads between levels within a job family)
  • ACC’s Salary Competitiveness Policy (to pay at market)
salary plan development methodology
Salary Plan Development Methodology
  • Currently use multiple Salary Schedules - ACC utilizes multiple salary plans with no consistency in range width or between midpoints.
  • Recommended Permanent Salary Range Table – Provides equal in-range opportunity of 50% with 5% between sequential midpoints.
slide16

Permanent Salary Range Table

  • Flexible Structure – Unlimited options for individual salary placement between Minimum and Maximum.
  • Provides a Structure for Moving Individual Salaries - within the salary range based on merit or across-the-board adjustments.
  • Adoption Requires Below Minimum Adjustment as well as possible in-range adjustment.
project recommendations
Project Recommendations
  • Adopt a salary range table that is market based;
  • Adjust salaries that are below the minimum of the new salary range scale;
  • Adopt a one-time implementation plan to place employees within their respective salary ranges closer to prevailing rates;
  • Provide the annual 4% increase for all positions, including those exceeding the maximum of the new salary range
  • Adopt the Universal Living Wage of $11.12/hour (based on efficiency apartment); and
  • Adopt a plan to meet the market at 100% at the five years of experience range.