Compensation Project

Faculty & Staff Compensation ProgramsBoard of Regents

Finance Committee Meeting

Project Overviewhttp://www.twu.edu/humanresources/

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Scope of 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.

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1. 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 (handout)

Faculty & StaffShort Term Action List

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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• ExpectationsOngoing Compensation Objective:• Continue salary adjustments towards 100% of the market based

on available funds each FY

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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)

2. 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

Staff Short Term Action List

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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.

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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.

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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

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Updating Staff Future Market

With CUPA and PayScale, 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.

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Staff Survey Usage

• 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

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FY 15 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 percentage to all staff employees below the market.

• Provide an extra 5% *** across the board one-time lump-sum payment percentage to all staff.

* This figure may rise slightly based on final approved budget** Individuals at 96% or above will receive an amount not to exceed market *** Paid on December 1, 2014

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Staff Distribution Averages & Summary

FY 1580% Floor to Market

4% Increase 4% Prorated Above

Market5% 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

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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% From 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%

Staff Employee ExamplesEmployee receiving all distribution methods:

FY 14 Base Pay Market Data% Current

Base Pay From Market

80% Market Floor80% Market

Floor Increase

% From Market

4% Increase or Capped at 100% Market

% From 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 -3.74% $2,605.00 0.00% $2,605.00 $69,564.00 $3,478.20 $73,042.20 105.00%

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

% From Market

Total Increase to FY 14 Base

FY 15 Base Pay 5% Lump Sum

PaymentFY 15 Total

CompensationTotal FY 15

Compensation % to Market

$97,440.00 $90,563.00 107.59% $72,450.40 $0.00 107.59% $0.00 107.59% $0.00 $97,440.00 $4,872.00 $102,312.00 112.97%

Employee only receiving 5% lump sum:

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Staff Distribution Summary Cost

FY 15 80% Floor to Market 4% Increase 4% Prorated Above

Market5% 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 15 budget reoccurring staff compensation: $2,730,992.72