Staff Senate Meeting UofM Compensation Plan Department of Human Resources February 21, 2013

1. Staff Senate Meeting UofM Compensation Plan Department of Human Resources February 21, 2013

2. History • The previous Compensation Plan was over 13 years old • Control points on pay ranges restrained departments from hiring at established averages • UofM’s previous Compensation Plan had 410 pay grades and 600+ unique position titles • Reclassifications required change in pay grades and titles

3. History (continued) • In 2006, the University reviewed its compensation structure • The University sought to change from 410 to 35 pay grades • A proposal was presented to and approved by TBR but was not implemented • Consequently, the plan created in 1999 was in use until 2012

4. History (continued) • In September 2011, HR began a review of the current plan in anticipation of submitting a new proposal to TBR in April 2012 • For over five months, HR has researched and benchmarked best practices, analyzed internal equity while evaluating market salaries • The UofM has developed a new Compensation Plan significantly reducing the number of pay grades and classification titles • HR has developed a Compensation Philosophy to define methodology and practices

5. UofM Compensation Philosophy • Promote growth and recognize the value of its employees • Maintain and increase morale, reduce turnover, instill loyalty, and reward individual contributions and exemplary performance • Attract and develop a diverse workforce • Balance the need for internal equity and the desire to be market competitive

6. Research • Benchmarked peer institutions • Submitted new plan to TBR for review in their June 2012 meeting where it was approved • Met with various stakeholders throughout campus to obtain feedback • Conducted focus groups in conjunction with WorkforUM upgrade in order to include the new Comp Plan in the system redesign

7. Proposal • Reduce structure to 14 pay bands: 13 pay bands for staff, one pay band for faculty, temps, students, and athletic contractual employees, etc. • Pay bands are broad and allow for mobility and flexibility within the band without having to change pay grades (unless necessary) • Position Classification titles areused to identify the function and structure of the positions while utilizing working titles to identify the unique characteristics of the job

8. New Comp Plan • A review of all positions/titles was performed by HR to slot positions within the new structure • All positions will have unique job descriptions to detail functions, percentage of effort and essential and marginal functions (for ADA purposes) • An ongoing review will be conducted to examine salaries for all classifications

9. New Comp Plan (continued) • Positions requiring salary adjustments are being reviewed and a strategy is being developed for implementation • HR worked with a group from BFSS, AA/EEO, ITD, Financial Planning and others to implement new Compensation Plan into Banner • Pay practices including incentive plans, project-based pay additives and on-call pay are being evaluated

10. New Comp Plan (continued) • As part of the new Compensation Plan, starting salaries were raised to $8.75/hour • Positions are evaluated on unique duties, responsibilities, internal equity and other factors. As we discover issues that need to be addressed, we are discussing with the department heads the development of a process to correct them.

11. New Comp Plan (continued)

12. Position Example

13. Position Example

14. Payband Example

15. Position Description in workforUM • Major Duties and Responsibilities • Duty or Responsibility: (5% or higher) Actual Percentage of Task • Importance of Duty: Essential or Marginal • Each position must detail each Duty or Responsibility with the amount of time spent on the task • Most Duties are considered Essential (the reason the job was created). A small amount of tasks are to be considered Marginal. • Each Position Description should have a line item: Other duties as assigned which equals about 5% and is considered Marginal • Total must equal 100%

16. WorkforUM and the Comp Plan • In the previous system, we had many unique titles with varying pay ranges • No ability to compare one job to another • Salary inequities were created because there was no real way to match “like” jobs • Duties, seniority, education and experience were factors that were not easily evaluated

17. How does the Comp Plan Work? Scenario (example): Department has assigned new duties to a position and the job has developed into something different than it currently is. The department head is requesting to reclassify the position and wants to change the title from Accountant I to Accountant II and increase salary from $31,000/yr. to $36,000/yr. How can the department make this happen? • Request to reclassify in workforUM • Identify the unique duties for the position on the Job Description tab including % of time for each task • Complete action and submit through department hierarchy until action is sent to Human Resources

18. How does the Comp Plan Work? (cont) • Once the action is received by HR, the HR Associate assigned to the department/school/division reviews the action • The HR Associate assesses the duties to ensure they are at the Accountant II classification • A salary analysis is conducted to determine if the proposed salary is equitable with other Accountant II’s at the University • A market analysis may be conducted if there is not enough internal data

19. How does the Comp Plan Work? (cont) How can HR make this happen? • If the salary is equitable; • What do other employees in the same classification earn? • What is the education and experience of the other employees? • How long have they been doing the job? • What is the average salary of this classification?

20. How does the Comp Plan Work? (cont) How can HR make this happen? • if the employee possesses the qualifications for the reclassification; • What are the employee’s credentials? • What is their current salary? • How do the specific duties of this position compare with others in the classification? • if the Executive Authority approves the action, HR finalizes the request and completes the reclassification • Does the division concur with the recommendation? • Does the division approve of the salary?

21. How does the Comp Plan Work? (cont) How can HR make this happen? • Once all these questions have been answered, an action can be taken. • HR attempts to create consistency and maintain equity among the classifications while considering the differences in the job duties of similar titles.

22. CURRENT COMP PLAN • Broad PCLS Titles • Unique Working Titles • In the previous system, we had many unique titles with varying pay ranges • No ability to compare one job to another • Salary inequities were created because there was no real way to match “like” jobs • Duties, seniority, education and experience were factors that were not easily evaluated

23. Example: Advisor PCLS • Study Abroad Advisor • College Academic Advisor I • Career Advisor • International Student Advisor • Leadership Programs Advisor • Study Abroad Advisor • College Academic Advisor I • Department AcadAdvEnglish • College Academic Advisor II • College Academic Advisor I • Department Academic Advisor • Distance Education Advisor Previously, these were all unique Job Classes. We have now grouped them all under the ADVISOR PCLS in order to analyze, evaluate and ensure consistency of title, grade, salary, and position requirements. They are now considered Working Titles and used to describe their departmental titles.

24. Example: Advisor PCLS • Study Abroad Advisor • College Academic Advisor I • Career Advisor • International Student Advisor • Leadership Programs Advisor • Study Abroad Advisor • College Academic Advisor I • Department AcadAdvEnglish • College Academic Advisor II • College Academic Advisor I • Department Academic Advisor • Distance Education Advisor • PAYBAND 06 • $27,178-$45,524-$63,869 • Min Mid Max • Placement in Band: • Most between min and midpoint • Salary based on average of title • Unique qualifications account for the disparity in salaries What the majority of the employees for this pay band earn

25. THANK YOU!If you have any questions, please call me at ext. 2056 or email at iricelli@memphis.edu