Finalizing the Compensation Study December 12, 2014 Brief by Jill Robbins & Jim Watkins

Agenda 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 Offer a living wage Employees to be paid equitably across the institution GMC to become market competitive in regards to salary structure (Recruit, retain, reward) Implement a traditional salary structure Allow managers flexibility to manage budget and staff demands

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 Staff Salary Scale Faculty Salary Scale Correctly aligned responsibilities with pay grades Grade structure begins at 14 (10/hr min) Gives hiring manager flexibility to use judgment with salary offers Gives hiring manager flexibility to use judgment with salary offers Helps prepare for BAS faculty staffing Staff Salary Scale Faculty Salary Scale

*Managers identified as critical jobs Who is affected? 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+) i.e. Director of Purchasing or Registrar Senior level managers Faculty *Managers identified as critical jobs

Cost to Implement 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 One-Time Adjustment Make all recommended adjustments at one time. Pros Significantly improve recruiting, retaining and rewarding staff Immediately rectifies problem areas Sends message through institution Total buy-in from institutional management Cons Larger cost impact than phased approach Phased Approach Spread market adjustments over 2+ years. (Cap year 1 increases at 10% and identify critical jobs, remainder paid year 2) Pros Cost impact is spread over two years Cons 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 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 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%) Best option for Phased Approach

Recommendation Recommendation: Implement the compensation increases identified in the study effective 1 july 2015 (fy16). HR to draft personnel letters to each affected employee HR to Roll out new compensation policies/processes/planning guide Present at January PBAC Total cost to gmc $390,000

Decision Concur/Not concur Option 1: One time Implementation Option 2: Phased Approach A B C Concur/Not concur Signature Date