 Compensation Philosophy  Implementation Policies and Procedures  Survey  Timing, Position Descriptions, Pay Plan Relationships, Cost  Additional Information and Reporting

 Compensation program enables the institution to attract and retain the highly skilled and talented employees necessary to meet its operational needs and priorities.

 Establish compensation levels for positions on the basis of their duties and responsibilities, external competitiveness within relative labor markets, and relative internal worth.  Reward employees on the basis of work performance and longevity.  HR encourages implementing 100% of market results.

 Administer pay equitably and consistently.  Administer the compensation program in a judicious manner within funding availability, the Rules and Regulations of the TSUS, and federal and state statutory requirements.

 Work/Research Begins  Sent to PC  Comp Philosophy Update

 The compensation program will be well communicated to the campus.  The compensation program under the Texas State Philosophy does not include benefits or other amenities outside of pay.  Salary surveys of relative labor markets will be conducted each fiscal year.  PC approves markets and pay plan relationships prior to survey process each fiscal year.

 Benchmark jobs- representative positions which are commonly found in most participating organizations. This means that not all jobs/positions are surveyed.  3 Markets: Local, University, Athletics

 University Market  Defined by PC.  CUPA-HR Mid-Level Administrative and Professional Salary Surveys.  Positions that are recruited nationally and/or are unique to institutions of higher education.  Median rate used to establish pay plan minimums. “Unweighted Median Salary by Budget Quartile- Doctoral Institutions.”

 Local Market  Defined by PC.  Our primary local market survey data comes from purchased surveys for the Austin/San Antonio area.  I-35--San Antonio-Austin Corridor- Local Vendors  Unweighted median rate used to establish pay plan minimums.

 Local Market  Titles determined by PC which are not recruited nationally and are not unique to higher education.  Recruited locally.  Approximately 100 survey titles.  Data from purchased surveys from local human resources management groups in conjunction with national consulting firms.  Represents local (public and private) employers and employees in benchmark jobs.  Examples: Accountants, IT positions, HR positions, Admin Assts, Custodians, Nurses.

 Athletics Market:  CUPA-HR administrative and professional data.  Median rates used.

 Coaches:  CUPA median data, FCS and FBS data reported for each coaching position.  “Data on Demand”-CUPA  Coach data for comparison purposes only.  FCS data used for football coaches (Div I-AA).  FBS data used for all other sports (Div I-A).

 Our budget is $415,730,473.  CUPA Survey Quartile is: $292.7-$543.4 (Admin Comp)  CUPA Survey Quartile is $286.2-$493.1 (Mid-level)  2 nd Quartile for both surveys  Median is the middle figure of a rank ordered list or the average of the two middle figures.  Examples: $28,000$42,000 $36,000$44,000 $43,000$46,000 $36,000 is median$54,000 $45,000 is median

 Previous surveys focused on comparison to market pay plan minimums.  Medians are greater than pay plan minimums.  Results in higher pay ranges, greater maximums and minimums.

 “Market rate” is median rate  Local, University and Athletics pay plan minimums= 96% of median rate placed on nearest grade.  Nearest grade: Minimum could be higher or lower than median rate.  HR only makes recommendations on pay plan minimums, not actual salaries.  HR encourages implementing 100% of market results.

 Every year  Feb-March PC receives current pay plan relationships for review and comment  Receive survey data in March-April from vendors  Analyze data April-May.  Present data to PC in June prior to salary review and Legislative Appropriations Request (LAR).

 Texas State does not collect or use survey data based upon titles or credentials.  Only duties are used to compare positions.

 Survey position descriptions represent a summary of the most important duties, not all duties.  Survey position descriptions do not represent individual GOJAs.  Represent duties performed by a class of employees, not individual employees.

 Plug- Used by all employers to establish the relative value of positions. Used when evaluating a position which does not have a match in the market data.  5PC- Used by president’s cabinet to determine the proper pay plan minimum.  5CB- Indicates a continuation of the current pay plan minimum.  GA- Indicates the number of “grades above” another position in relative value. Represents usage of a plug.  GB- Indicates the number of “grades below” another position in relative value. Represents usage of a plug.

 Commonly used by all organizations to assign appropriate base (entry) rates to positions which are not found in survey documentation.  Can be set at any rate acceptable by management (PC).  Shows the relative value of one job to another in a hierarchy.

 Example:  Duplicating Equipment Operator- market data  Printer II- 140% Dup. Equip. Op.  Printer I, Bindery Operator, Phototypesetter, Camera Operator- 90% Printer II.  PC members approve plugs for positions in their division and approve pay plan relationships.

 University Mkt  Unclassified Academic Advisor I 5GB Academic Advisor II Academic Advisor II Academic Advisor/Counselor Admin Financial Analyst 1 GB Acct III Apartment Manager Res Hall Mgr-Rm and Board Classified Accompanist 5PC Admissions Processor Academic Evaluator Child Care Teacher Aide 6GB Child Care Teacher Construction Contract Admin Coord Construction Projects  Local Mkt  Unclassified  Accountant II Accountant II  Accountant III 3 GA Accountant II  Plant Engineer 3 GA Crew Supv, CRO  Procurement Analyst 100% Procurement Specialist  Systems Analyst I 4 GB Systems Analyst II Systems Analyst II Systems Analyst II  Classified  Accountant I Accountant  Accounting Clerk I Accounting Clerk I  Accounting Clerk II 1 GA Accounting Clerk I Administrative Asst I Admin Asst  Administrative Asst II 2GB Admin Asst III Define terms in pay plan relationship documents: 5PC, 5CB, GA, GB

 HR provides PC the total cost and method cost of implementing market results.  This year Total Cost:  $3,245,606  University Market$986,030  Local Market$2,151,662  Athletics Market$107,914

 Method Costs:  $1,695,635  University Market$568,695  Local Market$1,126,940  Athletics Market$0.00

 HR tracks the “cost of living” represented in the CPI-U.  CPI-U as of 6/23/10 was 1.9% for YTD  Recommendations made to increase pay plan by CPI-U figure.  Recommendations made both with and without implementing “no cost reallocations.” Total cost of implementing w/wo no cost reallocations # of employees affected With: $110, Without: $63,070123

 No cost reallocations as of 6/23/10:  Includes titles in which an increase to the pay plan minimum would not result in a cost.  All employees in these titles are above the proposed market pay plan minimum. #/% Titles% before/after no cost reallocation # before /after no cost reallocation At mkt.16%/65%98/399 Below mkt.81%/32%495/194 Above mkt.3%/3%19/19

 Market Index Data:  % distance of each title from market combined with turnover data, rank ordered.  Number of employees in each title and number of employees affected.  Cost to bring titles to market, including BRP.

 Final report with recommended pay plan minimums.  PC considers data and makes final approval/decision on proposed changes.  “President’s Cabinet, at its discretion, may set minimum pay plan salaries at levels different from those derived by the methodologies described above. The reason for such a decision will be documented and on file in the Texas State Human Resources Office.”