T he NEW University Career Architecture

2. The NEW University Career Architecture Let’s look at how we got here…

3. University Career Architecture Project (UCAP) A collaborative and informed process to improve our job and compensation system for Appointed Professionals and Classified Staff. Elements we addressed: Compensation Philosophy Market-based Salary Ranges Total Rewards Strategy Job Functions and Families Career Streams Organizational Alignment

4. Why UCAP? Important Goals Guiding UCAP:

5. Why UCAP? OUR PAST OUR FUTURE • Difficulty identifying and comparing jobs with similar responsibilities – inconsistent internal equity comparisons. • Pay was not linked to market data limiting external competitiveness. • Unclear paths for career advancement causing confusion and frustration. • Two employment categories with different conditions and benefits leading to confusion. • New Career Architecture to be implemented January 27, 2020. • Logical job groupings to help create better equity across positions with similar responsibilities. • Pay grades based on market data, revisited regularly and adjusted as necessary. • Clear career pathways to help chart progression and development. • One employment category with consistent employment conditions and benefits.

6. What’s Staying the Same CURRENT TITLE You may retain your current title as a working title. PAY Your pay will not be reduced. RETIREMENT PLAN Your retirement plan elections can remain the same. VACATION BALANCES Your vacation balances will not be reduced.

7. What Might Change for University Staff RETIREMENT PLAN OPTIONS Classified Staff are required to participate in ASRS. New University Staff hires will have the option to elect ASRS or ORP. If a Classified employee chooses to opt-in, they will have an option to switch to ORP. VACATION ACCRUALS If a Classified employee chooses to opt-in, those employees with less than 5 years of service will increase their vacation accrual to 22 days annually.

8. What’s Changing Creating consistent employment conditions and benefits across the University. ONE EMPLOYMENT CATEGORY PAY GRADES AND RANGES Established transparent pay grades and ranges that are informed by market data and evaluated regularly. JOB FUNCTIONS AND FAMILIES All jobs across the University (within scope of this project) have been organized into 26 functions and corresponding job families. CAREER STREAMS Three clear, established career streams to help you chart your path and understand the skills you need to develop to advance. DATA-INFORMED PAY Pay grades linked to market data to support faster, more informed decisions about compensation. WORK DIMENSIONS Clear and standardized descriptors to distinguish one level of a job from the next (i.e., knowledge, work complexity, experience, etc.). EQUITY COMPARATORS Positions with similar responsibilities grouped together to create clearer equity comparisons. FUTURE TITLES Though current you do not have to change your title, the University is establishing standardized titles for future employees.

9. Impact on Employees • One employment category: University Staff • Replacing current Classified Staff and Appointed Professional employment categories • Classified Staff have the option to opt-in to transition to University Staff. If you opt-out, your job will remain unchanged but you will have to transition to University Staff for promotions or job changes. • All University Staff will be employed at will, eliminating need for year-to-year appointments for staff positions. • If your most recent contract is scheduled to end January 26, 2020, it is because you will transition to University Staff employment beginning January 27, 2020. • As a result of the new program, you are now placed in a clear career pathway with defined opportunities for advancement.

10. Our Journey: Overview

11. Our Journey: A Review of the Process 5 1 6 2 3 7 8 4 Reviewed current state Designed career architecture: streams, levels, functions and families Defined work dimensions and develop leveling guides Developed job code descriptor title guidelines Established position mapping guides Calibrated and finalized career architecture and job mapping Mapped positions to jobs within the architecture Completed benchmarking and mapped jobs to new pay structure

12. Our Journey: Position Mapping What is Position Mapping? A process that allows an organization to group positions into market-referenced functions and families to make it easier to align jobs to a Career Architecture. Job Function Job Family Broad categories of work that can be logically grouped together based on similar characteristics and required skills. A grouping of jobs within a job function with similar characteristics, disciplines and functional areas.

13. Our Journey: Position Mapping Position Mapping was used to align Appointed Professionals and Classified Staff positions—based on direct employee feedback and external market data — to the Career Architecture. BEFORE Position Mapping: 11,150 positions in scope 2,940 unique primary job titles 2,176 of those titles described a singular position AFTER Position Mapping: 26 identified Job Functions 146 established Job Families 1,500 jobs/job titles

14. Our Journey: Position Mapping How was Position Mapping done? Through collaboration Aligned with Career Architecture Thoughtful placement With calibration Supervisors reviewed the new architecture and determined the appropriate job function and family for each position. Conducted over 140 calibration sessions to ensure consistent leveling and placement across job functions and across colleges and division. Employees and supervisors reviewed/prepared position documentation together. Supervisors used available resources to determine career stream and, using work dimensions, job level.

15. Our Journey: Calibration Calibration: Reviewing the position mapping at the organizational and functional level to analyze and discuss trends and irregularities. This was done in collaboration with University leadership, managers and 250 subject matter experts over the course of 140 calibration sessions. There are two calibration stages: Functional calibration: looking at consistent leveling and placement across 26 job functions. Organizational calibration: looking at how leveling and placement is applied across colleges and divisions. Why Calibration? Calibration promotes consistency in the Career Architecture across functions and families. This helps us create a shared language across the University that we can use when discussing appropriate placement of positions into jobs and related pay grades. Calibration provides a compensation system that delivers the tools and processes for all of us to make informed decisions regarding career advancement and associated compensation.

16. Our Journey: Position Mapping • Factors that were considered in Position Mapping: JOB VS POSITION Mapped to a job level that matched the majority of the work performed. Considered all of the work dimensions when mapping. POSITION NOT PERSON Focused on responsibilities and qualifications required for each position. CORE RESPONSIBILITIES Focused on core or primary responsibilities and/or where the majority of time is spent. RESPONSIBILITIES VS TITLE Positions were mapped based on principal responsibilities and work dimensions of the position, rather than title. CROSS JOB FAMILY ROLES OR PROJECT BASED WORK Considered logical career paths for positions spanning multiple job functions and families or that changed depending on the current project.

17. Our Journey: Position Mapping Why was Position Mapping important? Provide clear career pathways and create a foundation for career planning Ensure equitable pay and competitive salaries based on Compensation Philosophy Promote retention and growth Recruit and attract top talent

18. Market Benchmarking: Our Process What do we mean by “benchmarking the market”? The “market” is made up of organizations similar to the University with whom we compete for talent. The market is sometimes different for different jobs – it can be local, regional or national, higher education, general industry or specialized industries. It’s important to benchmark our positions against the relevant market to ensure that our ranges are competitive, and that you’re being paid appropriately for the work and your expertise. • Being market competitive means… • We use external data to align ourselves with best practices for our location, industry and competitors. • We used this data to create a Career Architecture for Appointed Professionals and Classified Staff position. • This Architecture informs our Total Rewards package – including pay – which allows us to offer benefits and compensation that attract and retain top talent.

19. Market Benchmarking: Our Process Survey Data To establish our benchmarks, we use 12 national surveys published by experts in compensation and career architecture design. We benchmarked based on job type and current recruiting markets across multiple industries. Compensation survey data spanned three key areas: Higher Education General Industry Specialized Industries Analyzed data from Mercer Benchmark Database, Willis Towers Watson Surveys and Arizona Compensation Survey,which include compensation data across all industries. Analyzed compensation data from a segment of specialized industries that have positions similar to some with the University. Industries included: healthcare, broadcasting, engineering, agriculture and athletics. Gathered data from nearly 300 universities of similar size and complexity using multiple industry surveys. This group of higher education institutions spanned the United States to reflect the various markets from which we draw talent. The University worked with leading experts to benchmark 500 existing University of Arizona jobs. These jobs provided good representation across all job functions, job families and employee levels.

20. Details of Compensation and Career Architecture

21. Compensation Philosophy CURRENT AND MARKET INFORMED Offer market competitive compensation to attract and retain top talent and foster a diverse and innovative workforce. Stay informed of current market best practices to help design and refine compensation programs and policies. FISCAL AND LEGAL PRUDENCE Optimize compensation programs based on available funds, fiscal responsibility and regulatory requirements. GEOGRAPHICALLY APPROPRIATE Benchmark our compensation program against local markets in which we compete for talent. Adapt depending on the role, level, talent needs and supply. Leverage our strong brand to attract national and international top talent. TRANSPARENCY AND ACCESSIBILITY Foster career advancement opportunities by creating clear pathways and steps for progression. Develop, maintain and proactively communicate about career frameworks to create transparency and equity. SHARED GOVERNANCE AND ACCOUNTABILITY Promote consistency across the University and flexibility where necessary. Steward compensation programs by following the University’s shared governance model and engaging stakeholders to capture the collective and diverse needs of the University.

22. Career Architecture: Overview Job Function Broad categories of work that can be logically grouped together based on similar characteristics and required skills. Job Family A grouping of jobs within a job function with similar characteristics, disciplines and functional areas. An outline of potential career progression based on current level, type of work and required skills. Career Stream Job levels fall within a job family. Positions within job levels have different sets of knowledge, skill, ability and experience requirements. Job Level Pay grades are clusters of similarly-paid positions that have an associated pay range. Each pay range has a set minimum, midpoint and maximum which helps us determine the appropriate pay for employees. Pay Grade Pay Range

23. Career Architecture: Example

24. Job Functions We have established 26 job functions: Full details for each Job Function available at https://ucap.arizona.edu

25. Job Families There are 156 job families within the job functions. Within each job function there are job families, which represent jobs with similar characteristics, disciplines and functional areas. To learn more, visit https://ucap.arizona.edu

26. Job Titles 1,500 Jobs identified through development of the career architecture and position mapping process Current employees may keep their current UA title as a working title. In the future, each position will maintain a working title and job code description title as outlined in the Career Architecture. This allows for flexibility with working titles, as well as an identifier to group like work together based on similar job characteristics.

27. Career Streams Career streams outline possible career progression. There are three main streams. Think of each stream like a ladder, where each rung describes the nature and level of work being performed at that level. Each position is mapped to one of these ladder rungs.

28. Career Streams

29. Work Dimensions • Work dimensions are descriptors used to distinguish one level of a job from the next. • Through UCAP, we established five key dimensions measured across each job: • Experience, education and knowledge • Communication • Complexity of work • Operational latitude and impact • Leadership and influence (management only) • These dimensions are mapped across each job level (OC 1-4, PC 1-6, M 1-7). To read the full Work Dimensions in detail, visit https://ucap.arizona.edu.

30. Pay Equity The Career Architecture supports pay equityanalysis by organizing jobs within the scope of this project into functions, families and levels that are shared and implemented across the University. This process establishes pay grades and pay ranges so employees in similar positions receive similar pay. This is importantbecause it establishes transparent, consistent and fair compensation practices. Employees under the new Career Architecture can easily see where their pay falls within their possible pay range. They can also see their earning potential based on their career stream.

31. Pay Grades Job Functions Job Families Career Streams Pay Grade and Related Pay Range Pay grades are clusters of similarly-paid positions that have an associated pay range. For example:

32. Pay Ranges Every pay range has a set minimum, midpoint and maximum which helps us determine the appropriate pay for each employee. Pay ranges are informed by market datato ensure we are externally competitive and internally equitable. Your pay range is based on your job level (Function → Family → Career Stream → Level). Where you fall within the pay range depends on a few factors: experience, education, performance, and supply and demand of talent. Minimum Midpoint Maximum • Entry-level pay • Employee demonstrates basic or developing skills associated with the role • Competitive rate of pay for a proficient performer • Employee has considerable knowledge of the role, is consistent performer and helpful resource to others • Top-level pay • Employee is the most experienced with sustained high performance

33. Other Pay Guidelines

34. Fair Labor Standards Act (FLSA) • During the UCAP calibration process, we also reviewed our current positions’ exempt and non-exempt status under the Fair Labor Standards Act (FLSA). • Exempt vs. Non-Exempt Employees • Non-exempt employees: typically paid on an hourly basis for hours worked, and receive overtime for hours worked in excess of 40 in the work week • Exempt employees: paid an annual salary as compensation for all hours worked and are not eligible for overtime pay. • FLSA establishes pay, overtime and employment status requirements that help employers like us determine whether a particular job should be classified as exempt or non-exempt. Several factors are considered, including the type of work and whether supervisory or management responsibilities are part of the job. • No matter your role’s status, we carefully considered the position during our calibration process and mapped it to align with the new Career Architecture.

35. How Employees Benefit I understand how my role is aligned with my colleagues across the University. I see how my job fits into the pay structure – both within my function and across the University. I see what I need to do and the skills I need to build to keep advancing in my career. I understand how pay decisions are made to ensure consistent and equitable pay practices.

36. Roles and Responsibilities: Guiding Employees Through the New Career Architecture

37. Your Role as a Manager Advocate Understand Communicate • Be an ambassador supporting the new program • Support your team members in their career growth • Know all of the features of the Career Architecture • Be comfortable with the information • Be familiar with the messaging • Conduct department meetings (recommended) • Use and share the information provided • Answer questions as they arise and direct employees to the UCAP website

38. Your Role as a Manager Support Career Planning • Help your employees learn about the newly defined career paths available to them • Identify development opportunities and encourage your employees to work on an action plan for growth and continued career progression Engage Talent • Use the new framework to attract top talent to join the University • Emphasize the value of the new framework (equity, transparency, career opportunities) to current employees and help them envision their future here

39. Thinking About Compensation • Managing pay within a pay range • Each pay range is market-informed with a minimum, midpoint and maximum. Where an employee’s pay falls within the range is determined by a few key factors. BUSINESS CONTEXT AND DEPARTMENT NEEDS PERFORMANCE Differentiate based on individual performance, keeping in mind that higher performers warrant greater rewards. • There are other factors to consider as you think about pay such as, do you have employees who: • Have critical skills? • Are high-potential and seen as key future talent? • Would be difficult to replace in a competitive job market? • Represent equal pay risks within your team? • Have taken on new responsibilities or been involved in highly-visible, successful projects with others outside of your team? • Are high-performing, longer-tenured employees who are paid less than their newly hired peers? INDIVIDUAL PAY Review where each employee sits in the pay range against the midpoint for his or her current job and use that information to shape your decisions.

40. Benefits of Career Architecture: Managers Retain and grow employees through established career pathways Foundation for clear and transparent communication with employees Attract high caliber talent to support University growth Reward and incentivize employees through pay increases within the range Make strategic and informed pay decisions for new hires and employee promotions

41. Managing Pay Increases

42. Preparing to Talk to Employees • As you prepare to discuss the new Career Architecture with employees, it’s important that you understand how it all works. • Manager checklist: • Read the leadership toolkit • Prepare to answer employee questions about the new Career Architecture • Review the UCAP website: https://ucap.arizona.edu • Learn about the Position Mapping process and how it relates to the new framework • Familiarize yourself with the UCAP Mapping Resultsfor your team members • Speak to Human Resources with any questions

43. Career Architecture Transition and Next Steps

44. Transitioning to the New Career Architecture The new Career Architecture will be effective January 27, 2020. Employees will receive information about their role’s placement in the Career Architecture including job function and family, pay range and grade, and career stream on October 29, 2019. Employees currently in the Appointed Professionals group will be automatically transitioned into the new Career Architecture and classified as University Staff on this date. Classified Staff have the option to opt-in to transition to University Staff between October 29, 2019 and December 6, 2019. If you opt-out, your job will remain unchanged but you will have to transition to University Staff for promotions or job changes.

45. Tools and Resources • We have numerous tools and resources that you can use to prepare for implementation and conversations with employees. • Leadership & HR UCAP Implementation Toolkit • UCAP website • FLSA Overview & Toolkit • Creating job descriptions under UCAP • UCAP Frequently Asked Questions (FAQ)

46. Questions?

47. Appendix

48. Our Journey: A Review of the Process PHASE 1: Develop Career Architecture, Define Jobs & Map Positions PLANNING: Design, Study, & Strategy PHASE 2: Assess Market & Design Pay Structure PHASE 3: Slot Jobs & Analyze Impact • Draft job architecture and supporting materials • Confirm approach to position mapping • Calibrate position mapping results through workforce sessions • Finalizemethodology for salary benchmarking • Gather and analyze market data • Develop salary structure and slot benchmark jobs • Continue calibration • Develop approach for and slot non-benchmark jobs • Analyze employee and cost implications of new compensation structure • Gathered internal data – looking at what we had • Internal collaboration & gathering input –focus groups & interviews • Developed compensation philosophy based on collaboration

49. Our Journey: A Review of the Process Today PHASE 4: Plan for Change & Communication PHASE 5: Testing & Implementation Fall 2019 LAUNCH Jan. 27, 2020 • Hold learning seminars • Prepare guides, training materials and employee communications • Finalize implementation/change strategy • Transparently and proactively communicate with employees • Prepare, configure and test all systems for implementation • Review process: employees and supervisors can complete an additional review of job placement in architecture • Launch the new Career Architecture Plan