Finalizing the Compensation Study

Finalizing the Compensation Study 1 December 12, 2014 Brief by Jill Robbins & Jim Watkins Agenda 2 GMC Compensation Guiding Principles Independent Assessment Analysis New Salary Structure Who is affected Cost to Implement Implementation Options Implementation Options; Phased Approach Recommendation Decision GMC Compensation Guiding Principles 3 O F F E R A L I V I N G WA G E E M P L O Y E E S T O B E PA I D E Q U I T A B LY A C R O S S T H E INSTITUTION GMC TO BECOME MARKET COMPETITIVE IN REGARDS T O S A L A R Y S T R U C T U R E ( R E C R U I T, R E T A I N , R E WA R D ) IMPLEMENT A TRADITIONAL SALARY STRUCTURE ALLOW MANAGERS FLEXIBILITY TO MANAGE BUDGET

A N D S TA F F D E M A N D S 4 Mercer Independent Assessment Identified key shifts required to implement a strategy that is aligned with market practices, rewards performance and increases employee engagement Structure is built around what we do well (TRS!) THIS APPROACH ADHERES TO THE GUIDING PRINCIPLES New Salary Structures 5

Correctly aligned responsibilities with pay grades Grade structure begins at 14 (10/hr min) Gives hiring manager flexibility to use judgment with salary offers Grade 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Min $15,080 $14,900 $16,400 $18,000 $19,700

$21,600 $23,800 $26,100 $28,700 $31,500 $34,600 $38,900 $43,700 $49,200 $55,200 $62,100 $69,900 Mid $17,000 $18,700 $20,500 $22,500 $24,700 $27,100 $29,800 $32,700 $35,900 $39,400 $43,300 $48,700 $54,700 $61,500 $69,100 $77,700 $87,400

Max $20,400 $22,300 $24,600 $27,000 $29,500 $32,400 $35,700 $39,100 $43,000 $47,200 $51,900 $58,300 $65,500 $73,800 $82,800 $93,100 $104,800 Midpoint Progression 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 12.5% 12.5%

12.5% 12.5% 12.5% 12.5% 12.5% Staff Salary Scale Gives hiring manager flexibility to use judgment with salary offers Helps prepare for BAS faculty staffing Range Width 35% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

50% 50% Faculty Salary Scale Who is affected? 6 Non-Exempt Employees Engineering (Grounds, Custodial, Maintenance, Food Service) Financial Aid Assistants* Exempt Employees Academic Advisors* Admissions Counselors* Financial Aid Counselors* Engineering Supervision (Most front-line supervision/working managers) Who is not affected Most middle managers (PTM1+) Registrar i.e. Director of Purchasing or *Managers identified as critical jobs Senior level managers

Cost to Implement 7 BLUF: $390,000 Initial budget planning wedge FY16: $600,000 $300,000 for comp study $300,000 for pay raises Brings all employees to the minimum of new pay band Yields equitable, competitive, livable wage for all employees Correctly aligns pay band with job duties Implementation Options 8 Option 1 Option 2 One-Time Adjustment Phased Approach Make all recommended adjustments at one time. Spread market adjustments over 2+ years. (Cap year 1 increases at 10% and identify critical jobs, remainder paid year 2) Pros

1. 2. 3. 4. Significantly improve recruiting, retaining and rewarding staff Immediately rectifies problem areas Sends message through institution Total buy-in from institutional management Cons 5. Larger cost impact than phased approach Pros 1. Cost impact is spread over two years Cons 2. 3. Perpetuates problems for recruiting, retaining and rewarding staff for 1 year. Potentially leaves employees outside of their correct pay band (causes issues with evaluating equitable pay).

Implementation Options; Phased Approach 9 Option A: Implement Non-Exempt Year 1, Exempt Year 2 Cost Year 1: $255,000 (Total of all non-exempt moves) Cost Year 2: $135,000 Issue: 26% represents only Milledgeville Engineering moves Lose institutional buy-in (critical jobs not supported; Advisors/Admissions Counselors) Leaves employees outside of the band, creates difficulty with hiring (inequitable) Represents 68/117 Employees on list to receive increase (58%) Option B: Implement Non-Exempt and Critical Jobs Year 1, Excess Year 2 Cost Year 1: $318,000 (N/E, Advisors, Admissions Counselors, select Eng. Front line supervisors) Cost Year 2: $72,000 Leaves employees outside of the band, creates difficulty with hiring (inequitable) Little cost savings from Implementation Strategy 1 Represents 99/117 employees on list to receive increase (85%) Option C: Increases for all; Year 1 capped at 10% with remainder paid Year 2 Cost Year 1: $240,000 Cost Year 2: $150,000 Leaves employees outside of their band, creates difficulty with hiring Represents 117/117 employees on list to receive increase (100%) Recommendation 10 R E C O M M E N D AT I O N : I M P L E M E N T T H E C O M P E N S A T I O N INCREASES IDENTIFIED IN THE STUDY EFFECTIVE

1 J U LY 2 0 1 5 ( F Y 1 6 ) . HR TO DRAFT PERSONNEL LE TTE RS TO E AC H AFFEC TED EMPLOYEE H R T O R O L L O U T N E W C O M P E N S AT I O N POLICIES/PROCESSES/PLANNING GUIDE P R E S E N T AT J A N UA RY P B A C T O TA L C O S T T O G M C $ 3 9 0 , 0 0 0 Decision 11 Option 1: One time Implementation Option 2: Phased Approach A B C CONCUR/NOT CONCUR Signature Date

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