© 2015 Texas Association of School Boards, Inc. All rights reserved. January 29, 2015 Presented by: Ann R. Patton Managing Compensation Consultant Compensation Pay Plan Update This information is provided for educational purposes only to facilitate a general understanding of the law or other regulatory matter. This information is neither an exhaustive treatment on the subject nor is this intended to substitute for the advice of an attorney or other professional advisor. Consult with your attorney or professional advisor to apply these principles to specific fact situations..

© 2015 Texas Association of School Boards, Inc. All rights reserved. PAY SYSTEM OBJECTIVES Recruit Employees –Competitive entry rates –Competitive pay for experienced new hires Retain Employees –Pay increases –Market competitive Pay for Job Value –Maintain fairness –Prevent overpayment or underpayment Control Costs –Salary plan and increases driven by budget

© 2015 Texas Association of School Boards, Inc. All rights reserved. PROJECT ACTIVITIES AND TIMELINE Collect and analyze current district pay information, pay plans, and practices Determine district’s pay concerns October 2014 Collect and analyze job market data Interview district administrators Adjust pay structures as needed Calculate cost of pay increase and adjustments November 2014 Review findings and recommendations with administration Finalize changes December 2014 Final report to Board Transfer data files Review pay procedures January 2015

© 2015 Texas Association of School Boards, Inc. All rights reserved. MARKET COMPARISON Other Sources: Economic Research Institute, 2014 (Dallas/Ft. Worth area) IBM ® Kenexa ® CompAnalyst ® Salary Survey (Dallas/Ft. Worth area) All jobs benchmarked at the 75 th percentile DistrictEnrollment Aledo ISD4,867 Allen ISD20,295 Arlington ISD64,494 Birdville ISD24,136 Carroll ISD7,800 Carrollton-Farmers Branch ISD26,325 Coppell ISD11,323 Crowley ISD15,064 Denton ISD26,667 Eagle Mountain-Saginaw ISD17,867 Fort Worth ISD84,566 Frisco ISD45,924 Grapevine-Colleyville ISD13,700 Highland Park ISD-Dallas County7,014 Hurst-Euless-Bedford ISD21,970 Irving ISD35,355 Keller ISD33,804 Lewisville ISD52,063 Mansfield ISD32,782 McKinney ISD24,449 Plano ISD54,667 Richardson ISD38,185

© 2015 Texas Association of School Boards, Inc. All rights reserved. MARKET BASED PAY A “target” rate is intentionally set –Market value –District goals (75 th Percent for NISD) Range parameters are set to limit employee pay variance from the target rate The goal is that employees are paid near target rate Target rate is adjusted regularly 115% 85% 80% 98% 102% 120% Experienced Special skills Market Target 75 th Percentile for NISD 100% Minimum Maximum Newly Hired

© 2015 Texas Association of School Boards, Inc. All rights reserved. HOW MARKET IS USED Pay Grade 1 Pay Grade 3 Pay Grade 4 Pay Grade 2 Minimum Rate Maximum Rate Midpoint Rate Market Target Set Range Parameters

© 2015 Texas Association of School Boards, Inc. All rights reserved. PAY INCREASES 10 Years $4,681 $3,745 $5, Years $3.896 $5,845 $4,871 5 Years $4,590 $5,508 $3, Years $3,820 $5,730 $4,775 Pay Increases - 4% per year Employee’s Pay Structure Adjustment – 2% per year Minimum Rate Midpoint Rate Maximum Rate $3,600 $4,500 $5,400

© 2015 Texas Association of School Boards, Inc. All rights reserved. TEACHER MARKET

© 2015 Texas Association of School Boards, Inc. All rights reserved. OTHER JOB MARKET COMPARISON Job Family Number of Benchmark Jobs Overall Salary Comparison (75 th Percentile) Current Range to Market (75 th Percentile) Administrator17100%95% Professional24101%97% Campus Leadership7101%107% Information Technology1391%88% Clerical1799% Instructional Support498%97% Auxiliary1894%90% Other Job Comparisons

© 2015 Texas Association of School Boards, Inc. All rights reserved. RECOMMENDATIONS Implement proposed pay structures and classifications based on the level of skill, effort, responsibility and market value of the job. Administrative and Professional (professionals, directors, principals) 9 pay grades Information Technology (technology support, programmers) 6 pay grades Paraprofessional ( aides, clerks, campus secretaries, administrative secretary) 7 pay grades Auxiliary (custodians, bus drivers, skilled trades, food service) 6 pay grades

© 2015 Texas Association of School Boards, Inc. All rights reserved. Provide a general pay increase to employees whose pay is below the pay grade maximum. 3% was included in cost estimate Ensure all employees are paid at least the minimum of their pay grade. Consider paying additional equity adjustments to alleviate pay compression at the bottom of the pay grade for paraprofessionals and auxiliary employees. RECOMMENDATIONS

© 2015 Texas Association of School Boards, Inc. All rights reserved. COST ESTIMATE FOR 3% GPI

© 2015 Texas Association of School Boards, Inc. All rights reserved. Ann R. Patton Sr. Compensation Consultant Texas Association of School Boards CONTACT INFORMATION Questions?