Agenda • Introductions • Project Objectives • Project Steps • Project Timeline • Q&A • Position Information Questionnaire Addendum 2

About the Hay Group • Global Human Resources Management Consulting Firm • 2,000 Employees Worldwide • 9,000 Clients in Various Industries • Partners with Clients to Implement Human Resources Strategies which Align with Business Objectives • Leader in Compensation Assessment and Design 3

Project Objectives Assess New Jersey Institute of Technology’s current position classification program and make recommendations to ensure that it enables pay in an equitable and competitive manner. NJIT’s current classification program has not been formally reviewed in a number of years…concerns have developed about: comparability of roles and job value across the organization, turnover in certain areas, and the increasing complexity of work. 4

Project Objectives Benchmark sample of 80 positions (both aligned and non-aligned) selected to encompass a representative sample of titles and job levels in the following functional areas: Finance and Budget North Jersey Transportation Planning Authority Information Technology 4

Project Objectives Recommend modifications to the design of the current program to ensure that pay structure: Reflects job value and contribution in a consistent methodology Achieves desired and appropriately competitive market targets Note: There will be no reductions in pay as a direct result of this study nor do we anticipate wholesale increases in compensation levels. 4

Step 1: Conduct Employee Orientation Sessions Two sessions to familiarize NJIT employees with the objectives and steps in the process, answer questions and distribute position information questionnaires. 5

Step 2: Conduct Interviews Interviews will be conducted with the defined area Division Heads and Human Resources to understand NJIT’s: Mission and Strategies Job Roles and Challenges Compensation Philosophy and Issues Current Pay Structures and Processes I:/GKN0524.ppt 5

Step 2: Review and Update Job Documentation Classification and corresponding compensation parameters should be linked to job content - in order to fairly “size” the benchmark positions at NJIT: Employees will complete a position information questionnaire to provide current information on job accountabilities, requirements and competencies. Managers will review, comment on and approve the completed questionnaires. New Jersey Institute of Technology Expertise Position Information Questionnaire 6

Step 3: Evaluate Jobs Hay will train a committee comprised of NJIT employees in Hay’s proprietary job measurement methodology. Committee members will include senior management and select representatives from: • Human Resources NJIT currently uses a job measurement approach that is similar to Hay’s methodology. 7

Step 3: Evaluate Jobs (Cont’d) A subset of the Committee will work with Hay to evaluate the benchmark positions over a four day period. Hay’s facilitation will ensure: An objective process is applied to all jobs Evaluations are consistent with external references and standards 7

Step 3: Evaluate Jobs (Cont’d) Quality Control…. The Committee’s evaluations will then be reviewed with the Division Heads to ensure that the relative importance of jobs has accurately been reflected. 7

Step 3: Evaluate Jobs (Cont’d) Hay’s Methodology is the most widely used process in the world: • Measures jobs to reflect their relative weight in the organization • Provides means to assess pay across different market/functions • Evaluates jobs and not people • Not based on performance, title, writing skills or current salary 7

Step 3: Evaluate Jobs (Cont’d) Hay’s Job Evaluation Methodology values all jobs against three factors: Know-How Problem Solving Accountability 8

Step 3: Evaluate Jobs (Cont’d) Know-How - the sum total of knowledge, however acquired, necessary for competent job performance: Technical Know-How Managerial Know-How Human Relations Skills 9

Step 3: Evaluate Jobs (Cont’d) Problem Solving - the amount of original, “self”starting” thinking required to analyze, evaluate, create and make conclusions: Thinking Environment Thinking Challenge 10

Step 3: Evaluate Jobs (Cont’d) Accountability - the latitude to take action and commit resources and the measured effect of the job on the organization: Freedom to Act Impact on End Results Magnitude (Monetary Value of Impact) 11

Step 3: Evaluate Jobs (Cont’d) The result of the job evaluation process is a ranking of positions from top to bottom: 12

Step 4: Conduct Internal Equity Analysis Internal consistency of pay levels can be assessed by matching dollars to points: Base Salary Practice Internal Equity Assessment $ Points 14

Step 5: Conduct Market Pricing Analysis Njit’s pay levels will then be compared to appropriate competitive markets e.G., Regional companies, education sector, not for profits... 140 120 100 80 60 40 20 90th Percentile 75th Percentile ABC Pay Practice Average Annual Dollars (000’s) 25th Percentile 10th Percentile 240 480 720 960 Client Points 15

Step 6: Present Report Hay will prepare a final report of findings and recommendations for NJIT Executives and Human Resources that will cover: Assessment of internal equity Results of market pricing analysis Adjustments to classification and/or compensation structure Cost of implementing changes Impact of changes on current processes and bargaining agreements Hay will review the results of the study with NJIT Human Resources and Division Heads from the Benchmark groups . 16

Step 7: Provide Feedback to Employees Once NJIT has had the opportunity to review Hay’s report, NJIT will present a summary of the findings and recommendations to all employees involved/impacted by the study. 16

Project Timeline Project milestones Completed By • Conduct employee orientation • Conduct interviews • Employees complete questionnaire and send to supervisor • Supervisors review questionnaires, revise and send to NJIT Human Resources • Train committee • Evaluate benchmarks with committee • Conduct compensation analyses • Present findings and recommendations • Feedback to employees Completed By December 10th December 18th December 24th January 2nd Mid/late January Late January February February/March March 17

Benchmark Review of Compensation Employee Orientation December 10, 2001