Compensation Model Supervisor Training Presented by: Jennifer Larson Valley City State University Human Resources Director February 10, 2015

Employee Appraisal Form Introduction Total Rewards Compensation Model Employee Appraisal Form Total Rewards –Compensation plays a role in your total rewards and you can find the information under employee self-service Compensation Model – There are several elements that make up the compensation model for both staff and faculty Employee Appraisal Form – The form ties into the compensation model.

Total Rewards Total Rewards shows how employees are compensated not only monetarily, but through other means as well. Compensation: Wages/Salary, Bonuses and Awards Retirement: TIAA-Cref and/or NDPERS Retirement Employee Benefits: Health, Life, Disability, Annual Leave, Tuition Discounts, EAP, etc. The chart above is just a sample of how one may look. The chart will change for each employee.

Total Rewards Location Employee Services – Employee Self Service - Main Menu – Self Service –Payroll and Compensation – My Total Rewards

Compensation Model Less than 3% If the annual percentage increase given is less than 3% then everyone will receive an equal across the board percentage increase and the Compensation Model will not be used.

Compensation Model Components Rank/Position Longevity CUPA/Jobs ND Market/Equity Equal % Increase Across the Board Employee Appraisal Merit

Longevity Years in Position are taken into account in the compensation model. http://www.condenaststore.com/-sp/In-recognition-of-your-many-years-of-service-we-d-like-to-offer-you-a-sa-New-Yorker-Cartoon-Prints_i8481524_.htm

To determine the amount given for market/equity, the percentage of the total dollar amount needed for all to be at market is figured using CUPA and Job Service data. For example, if it takes $100,000 to get everyone to market and someone is $5,000 behind their market value, then they need 5% of the total dollars. This person would receive 5% of the market/equity funds

Across the Board (ATB) Across the board means everyone will receive the same annual increase percent.   http://www.dreamstime.com/stock-photo-pay-raise-image17620260

Merit Pay for performance Incentive Pay Links employee pay to measures of performance Staff Only: Each Department Head will receive funds based on their department’s total salaries. They will then determine how much each person in their department will receive. The funds cannot be divided equally without presidential approval; performance reviews will aid in this process.

Faculty Goal To have Faculty salaries at 85% plus 1% for every year at rank up to 10 years for a goal of 95% of market value. 5% is taken into account for our benefit package for a total of 100%. Another goal is to provide an opportunity for faculty to receive merit awards. The annual funds provided by the Legislature for compensation will be dispersed in two components (across the board and market/equity) During years when salary policy is less than 3%, we will continue using the more basic "across-the-board" process we have traditionally used.

Faculty Model Example of allocation with a 4% Legislative increase

Staff & Coaches Compensation Goal To have Staff & Coaches’ salaries at 80% plus 0.75% for every year in position up to twenty years for a goal of 95% of market value. 5% is taken into account for our benefit package for a total of 100%. Another goal is to provide compensation based on performance. The annual funds provided by the Legislature for compensation will be dispersed in three components (across the board, market/equity and merit) During years when salary policy is less than 3%, we will continue using the more basic "across-the-board" process we have traditionally used.

Staff & Coaches Model Example of allocation with a 4% Legislative increase

Additional Compensation Not Included in the Model Faculty $2,000 from institutional funds will be set aside for merit awards. Staff & Coaches $2,000 from institutional funds will be set aside for the Staff Member of the Quarter Awards.

Employee Appraisal Form Aid in Merit Pay for Staff/Coaches Requirements Policies Evaluation Process Merit Pay

NDUS Policy 17 PERFORMANCE DEVELOPMENT 17.1 Performance development is a positive, goal-oriented means to improve individual performance on the job and to recognize improved performance at all levels of employment. Performance development is based on job clarification; improved communication and understanding between management and employees; and upon the definition and review of results for both personal, group, and organizational achievement. 17.2 At the completion of an employee's probationary period and at least once a year thereafter, each staff employee shall participate in a performance development review. At a minimum, the performance development review shall include: The mutual review of job responsibilities insuring they continue to accurately represent the employee's contributing role in departmental objectives and the institution's overall mission; A mutually agreed upon performance development plan which includes a review and discussion of the progress made in accomplishing goals established within prior year performance plans; Determination of an individual's future training needs including necessary resources to achieve the goals as established within the performance development plan; and Solicitation and follow-up on suggestions for continuous improvement of organizational processes and systems within which the individual works. In compliance with: SHBHE 604.3 Performance Evaluations: Benefited Employees

SBHE 604.3 Performance Evaluations: Benefited Employees All benefited university system employees shall have an annual written and verbal performance development review that includes evaluation of performance based upon mutually agreed upon development plans or goals. Procedures governing faculty shall be consistent with requirements stated in Policy 605.1. Requirements for employees included within the broadbanding system are stated in Section 17 of the NDUS Human Resource Policy Manual; those requirements shall also apply to all other employees except faculty. All merit pay increases must be supported by current written performance reviews and consistent with a salary administration plan adopted under policy 702.4.

Performance Evaluations Performance evaluations should not be completed the same way noted in the cartoon! https://www.google.com/search?q=longevity+cartoon&biw=1920&bih=922&tbm=isch&tbo=u&source=univ&sa=X&ei=1lHZVN_yIMmnyASNiYLoCQ&ved=0CB0QsAQ#tbm=isch&q=performance+goals+cartoon&imgdii=_&imgrc=yVNfttSHF05ULM%253A%3BxWl3Jw5oQOH9xM%3Bhttp%253A%252F%252Fwww.cs.vu.nl%252F~frankh%252Fdilbert%252Fannual-review.gif%3Bhttp%253A%252F%252Fwww.cs.vu.nl%252F~frankh%252Fdilbert.html%3B600%3B208

Performance Evaluation Process Employee Appraisal Form Employee Appraisal Form Guide Position Description Last Year’s Appraisal Form www.vcsu.edu/employeeservices Additional information: For those that have dual Supervisors, the one that has them the most will do the evaluation. The other may also provide feedback if they so choose. This power point presentation along with a guide to completing the form can be found on the Employee Services Website.

Employee Appraisal Form Section I I. Performance of Duties/Responsibilities and Goals: (Employee completes, supervisor reviews and comments) List duties/responsibilities from the position description and professional goals set for the reviewed period. Comment on the results achieved. (Attach additional sheets as needed.) Duties/Responsibilities & Goals Results 1.   Duties should come directly off the main areas of responsibility from the position description. The duties may be filled in for the employee and should remain consistent while they are in their current position unless there is a change to their position description. Results should address your performance of the main job duties on your position description. Address any goals or actions with your supervisor, specifically for the next year. Attach additional sheets as needed.

Employee Performance Review Section II II. Methods Used to Achieve Results: (Employee completes, supervisor rates and comments) Knowledge/Skills/Abilities (KSAs) that are critical to job success. Always fully demonstrated Consistently patterned presence Occasionally sporadic presence Never little presence Supervisor: Employee and supervisor will separately evaluate and offer helpful comments and feedback. Supervisor should choose their rankings based on the frequency they see for the described behavior. Supervisor should discuss the reasons for the scores chosen and provide examples of both desired behaviors and places for improvement. Examples of ideal outputs are helpful. Employee: Feel free to make any helpful comments, address any strengths, or note areas for improvement. Always: This desired behavior is exhibited virtually at all times, and is considered exceptional  Consistently: This desired behavior is seen on a regular basis, but not always and exceeds expectations on a regular basis. Occasionally: This desired behavior is seen once in a while, but not consistently or often enough and does not meet expectations Never: This desired behavior is not seen, except as an exception and does not meet expectations and is cause for concern.

Employee Performance Review Section III III. Overall Performance Rating: (Supervisor completes) Consider all performance criteria and indicate overall rating. Exceptional Exceeds Objectives Expected Performance Marginal/Needs Improvement Unsatisfactory Supervisor: Supervisor should choose an overall performance rating for the employee that should line up with the rankings in Parts I and II and discuss this with the employee. Employee: Supervisor will share with you their overall rating for your performance. Ask for clarification or specific examples if necessary. Exceptional: Consistently exceeds performance objectives and expectations; makes significant contributions beyond normal job duties, requires little or no direction or supervision. Exceeds Objectives: Exceeds performance objectives and expectations on a regular basis; makes a valuable contribution to the college; infrequently makes errors. Expected Performance: Consistently meets but does not exceed performance objectives; is competent and performing satisfactorily. Marginal/Needs Improvement: Does not adequately accomplish objectives or expectations; must improve performance within a designated time period. A performance improvement plan should be in place. Unsatisfactory: Performance is unacceptable and below expectation and is cause for grave concern. Immediate improvement is required.

Employee Performance Review Section IV IV. Supervisor Summary: Summary and comments about the employee’s overall performance. Supervisor: Supervisor should provide a Summary about the employee’s overall performance. This should line up with the rankings given in section III and discuss with the employee. Employee: Supervisor will share with you their summary in regards to your performance. Ask for clarification or specific examples if necessary.

Employee Performance Review Section V V. Employee Goals: List three to five professional goals for the upcoming year. “Professionalism does not mean wearing a suit or carrying a briefcase; rather, it means conducting oneself with responsibility, integrity, accountability, and excellence. It means communicating effectively and appropriately and always finding a way to be productive.” – Department of Labor Professional Goals 1.   Supervisor: Supervisor and employee should have a conversation and together, set goals for professional development and growth. These should be goals for the upcoming year and should address the campus strategic goals as well. Check for understanding and ask for questions, concerns etc. Make sure you are "on the same page!“ Employee: List some professional goals you have for the upcoming year. Feel free to address any professional development that would be helpful, or of interest to you in your current position.  Make sure you understand your supervisor's expectations; if unsure, ask for clarification!

Employee Performance Review Section VI VI. Employee Acknowledgment: I have read my Position Description, understand the duties/responsibilities and goals for me and my position, and I understand that this is an appraisal based upon my performance in my position. I acknowledge I have read the appraisal and have discussed its contents with my supervisor. I wish to make the following comments: Supervisor: Check for employee signature and any additional comments and follow up as needed. Submit to the Human Resources Office. Employee: After your performance evaluation conference with your supervisor, please sign and make any additional comments. Submit back to supervisor by the designated deadline.

Accomplishing Goals Choose goals that can be obtained within one year.

Employee Appraisal Form & Compensation Model Submit the employee appraisal form to HR Supervisors should meet with their direct report to the president to discuss their employees’ performances and give their recommendations Direct Reports to the President will make final decisions for merit increases

Timeline January-March March 30, 2015 July 1, 2015 Begin a new review year March 30, 2015 Deadline to submit Employee Appraisal Form July 1, 2015 Compensation Model reflects on FY2016 salaries Unless the increase given is less than 3% The new policy will go into effect beginning July 1, 2014 (meaning that July 1, 2015 is the first time that increases will be based on the new policy), and will only be in effect during years in which there is a legislatively-appropriated salary equal to or in excess of 3% (during years when salary policy is less than 3%, we will continue using the more basic "across-the-board" process we have traditionally used).  

Questions