Market Survey Plan for FY12

Transcription

1 Market Survey Plan for FY12 HR Compensation February 2011

2 Key Objectives Market Survey Transparency Data Collection Benchmarks Linked Positions Analysis of Market Trends/Comparisons 3 Phases Phase I - Benchmark Analysis Phase 2 - Overall Pay Analysis Phase 3 Pay Structure Analysis (Midpoints/Pay Ranges)

3 Key Definitions 1. Benchmark Positions: Standard jobs that can be price matched in the marketplace. They represent key positions, positions frequently with multiple incumbents, positions that represent a good cross-section of the organization, and positions that are not unique just to one organization. Example: Groundskeeper, Accountant, Administrative Assistant 2. Midpoint : The salary in each pay grade that is halfway between the minimum rate and the maximum. Market rate defined as 5 or more years of experience. 3. Compa-ratio: The ratio of an employee s current salary to the Pay Grade midpoint.

4 Key Definitions 4. Scattergram: Visual display of points plotted to represent a relationship between two data variables such as average market survey pay and ACC benchmark positions. 5. Trend Line: Line representing the best fit for data points plotted. 6. Market Survey Line: Trend line of average market survey results for benchmarked positions surveyed. 7. ACC Overall Pay Line: Trend line of ACC average pay for all classified and professional-technical positions; Macro View.

5 Annual Salary Statistical Methodology Regression Analysis is a statistical method to estimate relationships between variables. The relationship can often be presented as a trend line. $120,000 $100,000 $80,000 $60,000 $40,000 Survey Linear (Survey) $20,000 $0 Selected Jobs

6 PHASES: Phase 3 - Pay Structure Analysis Phase 1 - Benchmark Analysis Phase 2 - Overall Pay Analysis

7 Review of ACC s F-10 Value Statements Market competitive compensation for all employees is critical in attracting and retaining a quality workforce. Compensation market surveys will be used by the College to ensure competitive salaries and internal equity.

8 Phase 1 Benchmark Analysis Benchmark Analysis

9 Gather Survey Data Determine potential ACC benchmark positions. Gather data from multiple survey sources. Age survey data to a common date (9/1/2011).

10 Annual Salary Compare Data Place survey findings in ACC hierarchy by benchmark positions from lowest graded position to highest. Eliminate extreme findings (too high/too low). Survey Findings Example $50,000 $40,000 $30,000 $20,000 $10,000 $0 Clerk 1 Drafter Artist Secretary Title Clerk Drafter Artist Secretary Source A $10,000 $20,000 $30,000 $35,000 Source B $18,000 $22,000 $25,000 $37,000 Source C $19,000 $24,000 $35,000 $100,000

11 Annual Salary Review Benchmark Results for Possible Pay Grade Adjustments $50,000 $40,000 $30,000 $20,000 $10,000 $0 Samples: FY10 Benchmarks Survey Pay Midpoint Pay grade adjustments may be made to the benchmark positions and linked positions in the same or related job family. ACC Titles (*pay grades adjusted)

12 Annual Salary Sample Benchmark Review Adjustment Needed Incumbents maintain compa-ratio in new Pay Grade with midpoint cap.

13 Annual Salary Sample Benchmark Review Adjustment Not Needed

14 Pay Grade Adjustment Strategies Benchmarks and Linked Positions If survey results show that the Benchmark is at or above market No adjustment is needed for the Benchmark and Linked Positions.

15 Pay Grade Adjustment Strategies (cont d) Benchmarks and Linked Positions If survey results show that the Benchmark is below market -- Move titles under market to new pay grades if at least 2.5% below market. Evaluate Linked Positions to see if new pay grades are warranted. Maintain current compa-ratio to midpoint for those jobs that change grades. Cap at midpoint unless title is very specialized.

16 Phase 2 Overall Pay Analysis Overall Pay Analysis

17 Annual Salary Locate Average Survey Results on Pay Graph Calculate the average survey results for each benchmark position and locate on a pay graph. Average Benchmark Survey Results $40,000 $35,000 Secretary $30,000 Artist $25,000 $20,000 $15,000 Clerk 1 Drafter Average $10,000 $5,000 $0 Title Clerk 1 Drafter Artist Secretary Source A -- $20,000 $30,000 $35,000 Source B $18,000 $ $25,000 $37,000 Source C $19,000 $24,000 $34, Average $18,500 $22,000 $30,000 $36,000

18 Annual Salary Create Market Survey Line Create the Market Survey Line for those results. Sample Market Survey Line $40,000 $35,000 Secretary $30,000 $25,000 $20,000 $15,000 Clerk 1 Drafter Artist Average Linear (Average) $10,000 $5,000 $0 Title Clerk 1 Drafter Artist Secretary Source A -- $20,000 $30,000 $35,000 Source B $18,000 $ $25,000 $37,000 Source C $19,000 $24,000 $34, Average $18,500 $22,000 $30,000 $36,000

19 Annual Salary Create ACC Pay Line (Macro View) After making any benchmark/linked position adjustments, place results of all classified and professional-technical employee s pay on graph from lowest to highest pay grade. Where more than one incumbent, calculate average of actual pay for all employees in that position. $70,000 Sample ACC Pay Line $60,000 $50,000 $40,000 Average Linear (Average) $30,000 $20,000 $10,000 $0 Pay Grades (Lowest to Highest)

20 Establish Linear Relationship Compare: Market Survey Line ACC Pay Line Creates an overall (macro) view of how ACC is paying compared to the market.

21 What may this comparison show?

22 Annual Salary ACC Paying Above the Market $100,000 $80,000 $60,000 = Survey = Pay $40,000 $20,000 $0 Pay Grades (lowest to highest)

23 Annual Salary ACC Paying Below the Market $100,000 $80,000 $60,000 $40,000 = Survey = Pay $20,000 $0 Pay Grades (lowest to highest)

24 Annual Salary Some Other Possible Comparison Outcomes Higher pay grades closer to the market. $100,000 $80,000 $60,000 $40,000 = Survey = Pay $20,000 $0 Pay Grades (lowest to highest) Note: Situation can also occur when pay line is above survey line.

25 Annual Salary Some Other Possible Comparison Outcomes (continued) Lower pay grades closer to the market. $100,000 $80,000 $60,000 $40,000 = Survey = Pay $20,000 $0 Pay Grades (lowest to highest) Note: Situation can also occur when pay line is above survey line.

26 Annual Salary Some Other Possible Comparison Outcomes (continued) Lower pay grades are at or above the market but higher pay grades are under the market. $100,000 $80,000 $60,000 = Survey = Pay $40,000 $20,000 $0 Pay Grades (lowest to highest)

27 Annual Salary Some Other Possible Comparison Outcomes (continued) Higher pay grades are at or above the market but lower pay grades are under the market. $100,000 $80,000 $60,000 $40,000 = Survey = Pay $20,000 $0 Pay Grades (lowest to highest)

28 Results of Overall Pay Analysis The ACC Pay Line should be overlapped or closely aligned with the Market Survey Line (Board Policy F-10). If not, further analysis may be needed.

29 Phase 3 Pay Structure Analysis Pay Structure Analysis

30 Establish Linear Relationship Compare ACC pay grade midpoints to the Market Survey Line.

31 Why Adjust Structure? The ACC pay grade midpoint is defined as market. ACC pays at market midpoint for new employees with 5 or more years experience.

32 Annual Salary OUR GOAL: Pay Structure Midpoints Match Market (Overlapping Lines) $100,000 $80,000 $60,000 $40,000 Pay Line Survey Line $20,000 $0 Pay Grades (lowest to highest)

33 Annual Salary Adjustment to Midpoints of ACC Pay Grades $100,000 $80,000 $60,000 $40,000 Pay Line Survey Line $20,000 $0 Pay Grades (lowest to highest) Establish Revised Minimum and Maximum Levels for ACC Pay Grade Ranges

34 Pay Structure Adjustment Strategies Overall Pay Structure Pay Grade Midpoints OK No adjustment needed. Pay Grade Midpoints Over Market Move pay grade ranges down to match market. No employee loses money. Pay Grade Midpoints Under Market Move pay grade ranges up. Adjust salaries of all current employees by % that the ACC pay range is moving with no cap at midpoint. Structure Issue Not Market Issue Ensures hiring at market but new hires not outpacing current employees.

35 Market Survey Plan Summary Strategy looks at linear relationships between the Market and ACC Pay and ACC Pay Grade Structure. Phase 1 - Benchmark Analysis Comparison/analysis of Benchmark titles to market survey data. Comparison/analysis of Linked Positions. Pay grade adjustments, if needed. Salary market adjustments, if needed.

36 Market Survey Plan Summary (continued) Phase 2 - Overall Pay Analysis Comparison/analysis of Market Survey Line to ACC Pay Line. ACC Pay Line: All staff salaries, including all adjusted salaries for Benchmark and Linked Positions. Establishes the goal of being at market. Phase 3 - Pay Structure Analysis Comparison/analysis of Market Survey Line to ACC Pay Grade Midpoints (Structure). Structure adjustments to midpoints, if needed. Ensures ACC midpoints define current market. Allows ACC to hire at market competitive rates.

37 Timeline Date February/March February 15 March 30 April May May Activity Present Market Survey Plan to PLT and Employee Groups Retrieve and Analyze Survey Data Finalize Benchmarks and Linked Positions; Estimate Budget Impact Present Market Survey Recommendations to PLT Present Market Survey Results to Employee Groups

38 Questions?

39 FY12 Benchmarks and Linked Positions

40 Market Study/Linkage Process Determine Potential Benchmarks Revise Benchmarks Gather Market Data Finalize Family Links and Cross College Links

41 Best Practice 50% of Titles Benchmarked

42 Changes for FY12 Restructured Job Families in Functional Groups Goal: 2 Benchmarks per Family (minimum) Externally funded positions not included Increased Survey Sources Linked Positions (In Process) Family Links Cross College Links

43 Market Survey Sources Texas Metro 8 Community Colleges (ACC Survey) Higher Education Information Technology Survey (HEITS) CUPA-HR (College and University Professional-HR) Mid-Level Administrative Texas Compensation/Mercer Texas Association of School Boards (TASB) Texas Workforce Commission

44 Statistics 355 Non-Faculty Titles Classified 140 Professional-Technical Total Potential Benchmarks 39 FY10 Benchmarks 137 New Potential Benchmarks Target: 49% of Titles Benchmarked

45 Issues Many ACC jobs are unique, single incumbent titles (55 Classified; 153 Prof-Tech) that may not be able to be matched in the market because: Different structure at other institutions Example: Environmental Health & Safety Coordinator and Emergency Management Coordinator Not enough institutions have the position to return a match in the market surveys

46 Timeline: Benchmarks and Linked Positions Date February / March April/May Activity Retrieve and Analyze Survey Data Finalize Benchmarks and Linked Positions; Estimate Budget Impact

47 Questions? Contact: Vicki West, Compensation Manager