1 ACC FY07 Classification and Compensation Study.

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Presentation transcript:

1 ACC FY07 Classification and Compensation Study

2 Project Scope  Classification study of all prof/tech & classified positions.  Review current classification/compensation structures.  Conduct salary survey of benchmark classifications.  Develop an appropriate hierarchy of job titles and salary ranges based on internal relationships and external competitiveness.  Recommend implementation/adoption strategies.  Develop job descriptions reflecting current work duties and responsibilities.

3 Project Goals  Correct classification of positions.  Updated Job Descriptions.  “Measure” of competitiveness in employment market, and development of competitive salary plan.  Salary ranges based on job content, internal equity and external competitiveness.  Salary administration showing fiscal responsibility.

4 Classification Methodology  Position Analysis Questionnaire – generic PSPC version reviewed and revised by compensation committee.  Employee Orientation Meetings - Series of presentations for employees on how to complete the questionnaire.  Interviews incumbents were interviewed to confirm the information provided and to obtain a greater depth of understanding of the scope and complexity of each job classification.  Job Groups – job classes were group by occupational job family (i.e. accounting, human resources etc).

5 Classification Methodology  Hierarchy developed – arranged jobs within job family group with different levels. Using preliminary salary survey data, current internal relationships, and logical spreads, assigned “ job grades” to establish internal hierarchy. The President’s Leadership Team approved the hierarchy.  Hierarchy Review – met with the Leadership Team over 2 days to review internal relationships for jobs in their divisions.  Leadership Team reviewed final recommendations for College wide internal relationships.

6 Classification Findings and Actions  86% of employees completed a PAQ. The remaining were classified based on those that submitted a questionnaire, by using existing job descriptions, or by their supervisor.  94% of the 967 positions were assigned to proper occupational job class.  Approximately 328 current job titles were consolidated in to 282 recommended job titles in 64 job families.  91 total FLSA exemption status changes  80 exempt to non-exempt  11 non-exempt to exempt  All reviewed by Austin labor attorney (7 changed)

7 Q: Why Are Salary Surveys Conducted?  Wages are subject to fluctuation due to supply and demand for different occupations.  Helps to identify necessary salary range adjustments.  Salary surveys assist in the maintenance of externally competitive salary policies and practices.  Salary surveys are one tool used to develop Salary Plans.  Salary Plans are used to price jobs, not people.

8 Q: What is a Salary Survey Benchmark?  A standard occupational class with characteristics so detailed that other classes can be compared as being above, below or comparable to it.  Non-benchmark jobs are linked to them through internal job relationships.

9 Salary Survey Comparators  Where do you recruit from and where do you lose people to?  List of suggested comparators was reviewed by Compensation Committee, Administrators and Consultant.  Upon completion, the survey reflects current prevailing rates for which ACC competes with other employers to hire and retain qualified people.  Salary surveys assist in the maintenance of externally competitive salary policies and practices.

10 Comparators Educational – “Metro 8” (Alamo, Collin, Dallas, Houston, Lee, North Harris Montgomery, San Jacinto, Tarrant Community Colleges) Other Public Sector – City of Austin, Travis County, Austin Independent School District Other Surveys – Austin Area Pay & Benefits Survey (AON), Texas Workforce Commission, College & University Professional Association (CUPA), Higher Ed Information for Technology Services (HEITS), CSD and Communication By Hand for Sign Language Interpreters.

11 Salary Survey Methodology  Market data is utilized to identify occupations for which the agency is paying wages below or above the prevailing rates.  Benchmark occupations are initially placed at a salary range whose Midpoint is nearest the prevailing rates, without damaging internal relationships. Adjustment to range assignments are then made (up or down) before finalizing salary plan.  Non-benchmark occupations placed at a salary range in relation to the benchmark occupations and other job classes within the same occupational grouping or job family.

12 Salary Survey Methodology  Salary Range Midpoint Comparison – We used “structure- to-structure” midpoint method to compare ACC’s current salary structure midpoint to the prevailing rates. (Midpoint = Journey Level Rates).  Data Projection – We factored the external data from all sources forward from their date of collection to the common date of September 1, 2006 by the annual prevailing rate increase factor of 4.0%.

13 Salary Survey Findings  Survey Comparison - reveals that ACC competitive for approximately 53% of the benchmark job classes, and not competitive for 47% of the benchmark job classes.  “Competitive” defined as within 5% of prevailing rates.  Survey Summary is for comparison purposes only - comparing ACC’s structure to the prevailing rates. Survey data serves as a starting point when designing salary ranges for each classification.

14 Other Factors Used to Determine Salary Range Assignments  Internal “hierarchy” relationships were reviewed by HR, Administrators and the Leadership Team with no $$ shown  Job Content  5% / 10% / 15% / 25% Guideline (logical spreads between levels within a job family)  ACC’s Salary Competitiveness Policy (to pay at market)

15 Salary Plan Development Methodology  Currently use multiple Salary Schedules - ACC utilizes multiple salary plans with no consistency in range width or between midpoints.  Recommended Permanent Salary Range Table – Provides equal in-range opportunity of 50% with 5% between sequential midpoints.

16  Flexible Structure – Unlimited options for individual salary placement between Minimum and Maximum.  Provides a Structure for Moving Individual Salaries - within the salary range based on merit or across-the-board adjustments.  Adoption Requires Below Minimum Adjustment as well as possible in-range adjustment. Permanent Salary Range Table

17 Project Recommendations Adopt a salary range table that is market based; Adjust salaries that are below the minimum of the new salary range scale; Adopt a one-time implementation plan to place employees within their respective salary ranges closer to prevailing rates; Provide the annual 4% increase for all positions, including those exceeding the maximum of the new salary range Adopt the Universal Living Wage of $11.12/hour (based on efficiency apartment); and Adopt a plan to meet the market at 100% at the five years of experience range.