Finance Job Family Study New Structure and Implementation Employee Information Session October 2 and 3, 2014

Human Resources Office of 1 Agenda Project Overview and Objectives Finance Job Family Definition Project Process Classification and Salary Structure Project Timelines Round 2 Salary and Benefit Impact Q&A

Human Resources Office of 2 Job Classification Redesign Goal: Create and implement a classification system that provides: managers and employees transparent career paths, a classification structure that provides clarity and ease of administration, optimal utilization of payroll dollars, and the ability to attract, engage, and retain high performing employees. 4

Human Resources Office of 3 Job Family Study Overview University-wide initiative – aligned with University’s vision and Operational Excellence Civil Service and P&A positions on all five campuses 18 total job families; 11 are complete Working in partnership with Sibson Consulting Collaborative approach focused on communication and consensus-building Anticipated completion in Spring 2015

Human Resources Office of 4 Finance Job Family Definition Finance Job Family The finance job family includes positions focused on the financial activities of the University: from transaction processing to complex financial analysis and strategic planning. This family includes the functions of accounting, budgeting, financial forecasting and analysis, tax analysis and compliance, billing and collections, investment management, cash and debt management, and insurance. Members of this family provide service and leadership that supports the mission activities of instruction, research, and public service across the University. They are accountable for managing financial activities at a very detailed level within departments, and/or at the highest institutional level; across all funding sources and all types of transactions. They are responsible for the stewardship of University financial resources and must act in accordance with all relevant policies and regulations.

Human Resources Office of 5 Finance Job Family Definition cont’d Financial Management and Operations Jobs involve transactional and analytical functions that aid leadership with short- and long-term utilization of financial resources. Jobs encompass duties across a range of functions including accounting, budgeting, taxes, insurance, financial analysis, debt management, etc. Typical duties include: implementation and oversight of accounting practices for all funds; compliance with financial government and contract regulations and requirements; billing, accounts receivable and collections management for all activities (clinical, student finance, granting agencies, etc.); disbursement of all non- payroll payables; preparation of financial statements; budget process development and coordination; budget entry; development of reports and forecasts related to budgeted and actual financial activity; analysis and recommendations related to tax and insurance interests; oversight and coordination of debt issuances and funding of external debt service; implementation and monitoring of financial policy compliance and detection and resolution of compliance issues; general financial analysis related to topics such as business opportunities/options, resource allocations, balance and available fund status, revenue and expenditure changes, reallocations, program expansions, changes in external support, legal or regulatory compliance, compensation, and so on.

Human Resources Office of 6 Finance Job Family Definition cont’d Investments and Banking Jobs entail investment portfolio management for all of the University’s financial assets and enterprise-wide global treasury management. Employees manage financial and operational risk by executing their fiduciary responsibilities as delegated by the Regents. Typical duties include: structuring global banking services and financial partners; funding daily cash flows and maintaining appropriate levels of liquidity; executing trade settlements, funds transfer and foreign exchange; managing fixed and variable rate debt operations including commercial paper programs, investment of bond proceeds, payments of principal and interest and financial reporting; developing and implementing asset allocation strategies; carrying out research, due diligence, selection and ongoing monitoring of investment managers; researching, selecting and trading fixed income and equity securities; preparing analyses of investment results and reporting to the Regents, Investment Advisory Committee, University leadership and external auditors.

Human Resources Office of 7 Job Family Collaboration Advisory Team Richard Pfutzenreuter Mike Volna Julie Tonneson Andrea Backes Brian Swanson Jill Merriam Karen Dewanz Kristy Frost-Griep Sue Kerry Valerie Watson Sharon Zeise Brent Gustafson Susan Richards Pete Mitsch Kris Wright Mike Overline

Human Resources Office of 8 Andrea Backes Ann Breunig Bobby Wangaard Brent Gustafson Carol Flannigan Caroline Conley Carolyn Chase Catherine Tweedie Colleen Miller David Pappone Diane Wollner Dorothy Cottrell Gail Sauter Gail Renteria Gina Danyluk Jeff Ogden Jeff Thomas Jessie Strader Joe Weisenburger Karen Dewanz Karen Ryan Karen Wagner Katharine Bonneson Kristy Frost-Griep Kwin Zemke Leon Zobel Focus Group Members (invited)

Human Resources Office of 9 Linda Bjornberg Lynn Moore Lynne Shevlin Madonna Monette Michael Rollefson Michael Volna Michelle Wills Missy Peterson Pamela Hudson Pat Ferrian Paula Buchner Robin Dittmann Sharon Zeise Focus Group Members cont’d

Human Resources Office of 10  Operational Activity  Decision-making Authority  Operational Knowledge  Education and Experience  Management Experience  Technical Capabilities  Industry Knowledge  Planning Horizon  Influence on Institution  Scope of Measurable Effect  Problems Solved How Jobs are Mapped to the Structure

Human Resources Office of 11 Steps to Develop a Structure Market PricingJob DescriptionsSalary Structure $$$$

Human Resources Office of 12 Salary Structure Design Reviewed salary survey reports from industry leaders (CUPA, EduComp, Kenexa CompAnalyst) Factors Considered: – Higher education – Minneapolis metro area (for-profit and not-for-profit companies and government) – If specific cuts not available, looked at broader regional or national data

Human Resources Office of 13 University Structure University Level SVP / VP AVP Director 2 Director 1 Manager 3IC 3 Manager 2IC 2 Manager 1IC 1 Supervisor 4Professional 4 Supervisor 3Professional 3 Supervisor 2Professional 2 Professional 1 Labor Represented Positions (not included in study)

Human Resources Office of 14 Finance: Before 14

Human Resources Office of 15 Finance Job Family Level SVP / VP P&A Exempt N/A Finance Director 2 Finance Director 1 Finance Manager 3Finance Analyst 3 Finance Manager 2Finance Analyst 2 Finance Manager 1Finance Analyst 1 Finance Professional 4, SuprFinance Professional 4 Civil Service Finance Professional 3, SuprFinance Professional 3 Finance Professional 2, SuprFinance Professional 2 Non- Exempt Finance Professional 1

Human Resources Office of 16 Job Family LevelMinMidMax Finance Director 2 $123,900$167,200$210,600 Finance Director 1 $105,900$142,900$180,000 Finance Manager 3Finance Analyst 3 $90,400$122,100$153,700 Finance Manager 2Finance Analyst 2 $77,300$104,400$131,400 Finance Manager 1Finance Analyst 1 $66,100$89,200$112,400 Finance Professional 4, Supervisor Finance Professional 4 $56,400$76,200$95,900 Finance Professional 3, Supervisor Finance Professional 3 $48,200$65,100$81,900 Finance Professional 2, Supervisor Finance Professional 2 $41,200$55,600$70,000 Finance Professional 1 $35,200$47,500$59,800 Finance Salary Structure

Human Resources Office of 17 Implementation Key Dates and Events September 29 – Employees received individual results letters – Start of appeal period October 2 & 3 - Information sessions for employees October 20 – Employee deadline for appeals – Employee deadline to determine employee group preference, if applicable November 10 – Notification of appeal results October 6 - Effective date of new job family structure

Human Resources Office of 18 Review of remaining Finance positions – Pos. descriptions were submitted late or not at all – New employees – Changes to positons (i.e., promotions, etc.) Follows timeline of appeal process – Deadline to submit PDs is Oct 20 – Results communicated Nov 10 – 3 week appeal period Round 2

Human Resources Office of 19 Appeal Process 1.Employee discusses classification result concerns with supervisor 2.If the supervisor, in discussion with their unit HR Office, supports an appeal, the employee submits the appeal form (with documentation and supervisor signature) to their unit HR office 3.Unit HR Office reviews and submits appeal information by the deadline of October 20 4.Appeal panel of subject matter experts reviews 5.Appeal results communicated on/before November 10 Appeal process information found at z.umn.edu/jobfamilies

Human Resources Office of 20 Employee Salary Impact 502 positions were reviewed 19 employees are outside of the new range – For those below range minimum: Salary brought to the range minimum on the effective date – For those above the range maximum: Salary frozen for 3 years or until the range catches up to the salary. If still above the range after 3 years, salary will be adjusted to the top of the range.

Human Resources Office of positions remained in their current employee group 12 positions moved from P&A to Civil Service 44 positions moved from Civil Service to P&A Employee Group Impact

Human Resources Office of 22 Non-exempt positions are not exempt from the overtime pay requirements of the FLSA. -Employees are paid overtime if they work over 40 hours in a work week. -Advanced supervisor approval of OT is required Exempt positions do not require overtime pay. Fair Labor Standards Act: /index.html#generalflsainfo /index.html#generalflsainfo Fair Labor Standards Act (FLSA) Exemption Status

Human Resources Office of 23 Impact on Employee Benefits Employees have the option to stay in their current employee group. Exception: all non-exempt positions are civil service If an employee elects to change employee groups, they may have benefits changes. – Note: Employees who have already exercised their (one time) option to remain in or change their retirement plan do NOT have another option. (per Faculty Retirement Plan ) OHR staff are available to assist these employees in reviewing their options. Handout information describing benefit differences is available today and on the web site.*

Human Resources Office of 24 Finance Job Family Study Results Total number of positions reviewed: 502 Distribution by employee group Civil Service: 342 P&A: 140 Labor Represented: 0 Distribution by type of moves Civil Service to Civil Service: 350 Civil Service to P&A: 44 P&A to Civil Service: 12 P&A to P&A: 96 Civil Service to Labor Represented: 0

Human Resources Office of 25 Finance Job Family Study Results continued Impact on Salary – No impact: 483 – Below the range minimum: 16 – Above the range maximum: 3 Grants vs Finance placement to be reviewed in round 2 – Sponsored and non-sponsored accountants to be assigned to the Finance Job Family. Both families have like mapping and compensation therefore no impact to employees.

Human Resources Office of 26 Additional Information Project Website with Q&A z.umn.edu/jobfamilies z.umn.edu/jobfamilies Civil Service Employee Rules Administrative Policy for Appointments of Academic Professional and Administrative Employees Employee Benefits website Contact Unit Human Resources or call 4-UOHR ( )

Human Resources Office of 27 Employee Benefits Resources Employee Benefits: Academic Disability Program: Vacation and Leave: Minnesota State Retirement Plan: or Faculty Retirement Plan (P&A): Questions? Contact Employee Benefits at 4-UOHR ( ) or

Human Resources Office of 28 Thank you! Questions?