Overview of the Classification and Compensation Plan Review

Presented by: CBIZ Human Capital Services December 9, 2014

Introduction

Edward Rataj • Managing Director, Compensation Consulting • Certified Compensation Professional (CCP) • Certified Executive Compensation Professional (CECP) • Frequently quoted in national news publications such as the

Wall Street Journal

and

Smartmoney.com

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Introduction

What we want to accomplish today: • Kick-off the classification and compensation plan review • Maintain expectations • Provide an overview of classification and compensation plan design • • Communicate next steps

Answer your questions

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Introduction

Pittsburg State University has asked CBIZ to review current practices and recommend improvements related to: • Job classifications and descriptions • Current pay compared to market • Internal equity • Salary structures • Compensation policies and procedures • Hourly and salaried classifications 4

Expectations

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Expectations

• Change the way we pay, not necessarily pay itself.

• A few employees may receive pay increases as a result of the study.

• No employee salaries will be decreased.

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Expectations

“Thank goodness we are conducting this compensation evaluation. I have been over-worked and under paid for 30 years now.” 7

Expectations

Office Space Up in the Air

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Classification & Compensation Plan Design

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Project Planning

Tasks Completed to Date: • Engaged CBIZ • Planning meeting • Data collection underway • Job analysis questionnaire (JAQ) is ready for distribution to employees 10

Job Evaluation

• Employees complete JAQs • Evaluate job descriptions and JAQs • Revise classification families – Common professions/vocations – Market influences – Career paths 11

JAQ Questions and Misconceptions

• What if I am not a good writer?

• The more comprehensive my description, the more pay I can expect.

• Does it really matter what I write/if I complete the JAQ?

• How much time does it take to complete?

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Job Evaluation

• Help consultants better understand the duties & responsibilities of each job • Develop titling structure • Determine exempt/non-exempt status • Update job descriptions 14

Market Pricing Methodology

• • What is market pricing?

Valuation of pay for the University’s jobs in the external labor markets.

Key considerations when determining labor markets: – Location o Local o Statewide o Region o Nation – Industry o Higher Education o Broad spectrum of employers – Size o Revenue/Operating budget o Number of employees 15

Market Pricing Methodology

• • Reliable Data – Published survey data o Major consulting and surveying firms o Statistically validated o Standard deviation analysis of data Unreliable data examples: – Self-reported – DOL – Most free internet data 16

Market Pricing Methodology

Salary Structure Development Title: Job XYZ Market Price: $35,455

Grade

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Minimum

$24,778 $27,398 $31,508

Midpoint

$30,972 $35,618 $40,960

Maximum

$37,166 $43,837 $50,413 17

Next Steps

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Next Steps

1. Distribute JAQ for employees to complete 2. Supervisors review and approve JAQs 3. Once reviewed, supervisors return completed form to HR 4. HR will coordinate sending all data to CBIZ 19

Questions?