BPC – 1/15/2016 Staff Compensation Update 1

FY16 Compensation Updates  Annual Reappointment Increases– 2%  $2,858,234  Equity Increases – 1%  $1,134,993 2

Annual Reappointment/Increases  AFSCME, FOP and Classified Non-Bargaining Unit: Employees with satisfactory job performance received 2% across the board raises effective July 1,  Administrative, Administrative Hourly and Faculty: University leadership and the budget planning committee determined that the appointment rollover piece of reappointment would be processed in June without any salary adjustments or equity adjustments from the COMP 2014 project due to delays with state’s final budget for the year. Appointments were rolled over at the existing pay rates with the exception of faculty promotion and tenure increases, which were processed during the appointment rollover process.  A manual process was developed and implemented in September 2015, with raises being retroactive to July 1,

AFSCME, FOP, Classified 2% Annual Increase 4 Non-exempt hourly rates have been converted to annualized salaries based on 2080 hours per year. AFSCME employees received 2% as per contractual “me, too” clause.

Administrators – Annual Increase – 2% Pool 5  Due to differences in dollar amounts Planning Units used for budget planning purposes, and the dollar amounts pulled from actual salary data at the time of processing reappointment, some Planning Unit increases exceeded the 2% allotted pool.  Grand total for administrative employees:  1318 employees  $1,925,833  2.19% average increase

Administrators – Annual Increase – 2% Pool By Planning Unit 6

FY16 Equity Increases  A result of the project was unintentional pay compression and inversion caused by implementation of a new market based pay structure. Pay compression occurs when there is little to no difference in pay between employees regardless of their skills or experience. In addition, pay compression can occur between a subordinate and a supervisor. Pay Inversion exists when starting compensation for new employees is higher than compensation for existing employees.  Compensation developed and the Total Compensation Committee approved a Compa Ratio based equity adjustment methodology based on the length of time an employee is in a job (job entry date).  University leadership approved a 1% equity pay pool to be utilized for base pay increases for those employees. Working within the 1% funding allocation, employees eligible for an equity increase received a percentage of the salary increase.  The methodology for future year equity adjustments in underway subject funding availability. 7

FY16 Equity Increases 8  Equity adjustments for fiscal year ending 2016 for administrative and classified non bargaining unit staff information:  2397 total employees  446 employees received an equity adjustment  $1,134,993 total amount of equity adjustments  $2,545 – average amount received

FY16 Equity Increases By Planning Unit 9

Compensation Next Steps  Per the Department of Education’s Resolution Agreement, Ohio University intends to partner with a third party expert to conduct the required biennial review of compensation during FYE2017  Continue to monitor compensation in the market and recommend an equity and compensation strategy for administrative and classified staff  Monitor regulatory changes and their impact on compensation practices  Develop strategy to implement the new FLSA minimum exempt salary once the new rate is announced. 10