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Compensation
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Today’s Agenda
• Explore Compensation Issues for NESA Schools•What is working and what is not?•Are there new trends or issues for which you should
be preparing?•Discuss Compensation Philosophy Process
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Components of Compensation – Overseas Faculty Hire
• Salary• Tuition assistance•Health Insurance•Housing•Retirement
•Airfare to home of record• Shipping• Transportation•What else?
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Human Resource Management
• HR• Personnel• Salary• Housing• Recruitment• Transportation• Tuition for Kids• Handbook
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Key Common Challenges - Background
•Knowledge driven economy• Increasing demand for high quality International
education• Increasing number of schools (China)• Expanding schools
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Key Common Challenges - HR
•Critical to the success of a school is your ability to reach, engage, attract and retain best global talent•Develop best practices in talent management
and employee services
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Best Practices
•Planning for needs•Recruitment•Hiring / contracting•On board – orientation• Employment / retention• Termination / separation
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Needs – HR planning
•Project School growth, student enrollment, revenue expectations•Assess internal needs – placement, current updates,
new jobs•Develop HR plan for recruitment and management•Number of overseas vs. local hires• Expectation levels
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Recruitment
•Develop strategy – compensation benefits•Coordination between Director and HR/BO•Detail the plan•Marketing materials•Use staff to sell school, country•Recruitment fairs, on-line options•Referrals•Bonus plan
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Bonus Plan?
• Should schools consider a retention or early signing bonus for faculty whose contracts are expiring?
• What about something to motivate faculty to inform the school if they are planning to leave?
• Should there be something different for local hire employees?
• Are there attendance issues? If so, are the policies and procedures in place adequate to handle these situations?
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Hiring / Contracting
•Offer letter / letter of intent• Standard contract•Addendum – specific•Contract signing
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On boarding / Orienting
• Stay in touch often / Establish a buddy• Support travel / relocation plans, housing – end
to end•Welcome committee, Campus tour•Help settle in – furnishing, banking, phones,
net, utilities•Orientation to operations•Assign teacher mentor
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Termination /Separation
• Exit interview•Review•No surprises
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Compensation Questions
•Do we have to pay more for some teachers? - Math, Science, Computer•Do we pay less for Lower School?•What about collegiality issues with differentiated
pay – traditions of equity on campus?•Does everyone deserve a raise every year?• Is compensation the thing that motivates teachers?
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Compensation and Benefits Strategies
•Market Position•Cost per Employee• Internal vs. External equity• Lead vs. Lag•Attraction vs. Retention• Seniority vs. Performance• Education vs. Skills
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Compensation Philosophy
Compensation Philosophy
Budget
Salary & Benefits
Organization Mission and Vision
•Developed by Board and Superintendent
•Drives Decisions
•Supports Mission
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Why is philosophy important?
•Operational framework: Leads to compensation and benefits strategy•Provides consistency over time•Guides decision making•Communicates reason for decisions•Demonstrates what is important to the school
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The philosophy statement is not:
• Static document• The answer to all compensation and benefits questions
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Determining Philosophy
•Classify employee needs.• Identify categories of protected persons.•What should be rewarded or valued in regard to
human capital?•What are the school’s employment and
retention goals for the next 5 years?
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Develop Philosophy Statement
• What role does compensation and benefits play in the achievement of the school’s strategic plans (financial goals)?
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Benefits
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Shipping
•What are the standard arrangements for shipping of personal items for exiting employees?•What help is available to the business manager
for the logistics? • Is there a way for schools to work together to
reduce costs?
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Benefits• Health and Dental insurance – what is offered?
Is there a cost to the employee? Does it matter if the employee is single / married / family?
• Retirement plans – end of service benefits.• Professional development – what is offered?
How is this determined? Is anything required?• Travel allowance / summer / holiday /
emergencies / bereavement / sick family member / etc.
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Benefits
• Tuition remission – is this 100 % / for all children / for all faculty and staff / local and ex-pat?
• Long Term Disability (LTD)• Unemployment insurance – what are the local
requirements?• Who handles the visas and immigration issues
and paperwork?
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Benefits
• Is housing provided for all ex-pat employees and families? What is included in this – furnishing / utilities / cleaning / maintenance / etc.• Is a vehicle provided for ex-pat employees?
What about transportation to / from school / other requirements?•Are laptop computers provided for faculty –
both local and ex-pat?
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Mission &21st Century Education
Financial ConstraintsInnovation
Your Challenge
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Sunday morning topics
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Cracker Barrell
• Used text books• Reporting to Faculty• Software systems• Administrative structure• Facility/Security Structure• Procurement• Non-profit• Tuition Collection and discounts