1. Staff Compensation Open Forum Hosted by Compensation Committee October 28, 2005

2. Compensation Committee Agenda  Ground Rules  Assumptions  Compensation Committee’s Charge  The Process  Visioning Exercise  Input and Discussion – Seven Questions

3. Compensation Committee Ground Rules  We’re here to listen; not to present  Primary topic: Compensation System for Salaries (not benefits)  Not here to address the 1% reallocation  Look at the “big picture” first; specifics last  BE RESPECTFUL OF OTHERS  Turn off cell phones – Thank you

4. Compensation Committee Assumptions  Implementation in 2006-07 or beyond  New compensation system may address:  Cost of Living  Market Equity  Merit Pay  The salary pool is not going to greatly expand in the near future  Ongoing costs require ongoing sources

5. Compensation Committee Assumptions (cont.)  We’re dealing with classified and unclassified staff positions  This is a very complex issue  There will be a change in the system  Human nature is to fear the unknown  Current system is not perfect  No system is perfect

6. Compensation Committee Compensation Committee Charge  “Simply stated, your charge is to recommend a compensation system that includes merit and equity as primary considerations for salary increases. Specifically, I would like for the committee to consider these major questions:  To what degree should merit and equity be used in assigning salary increments?  What kind of evaluation system needs to be in place to accompany the move to a merit- and equity-based system?  What policy should be used for determining the salary for administrators' return to faculty?  How can the classified system (step and grade) be integrated into a move to a merit-based system? What would the process and timeline be for such a change?”

7. Compensation Committee The Process  Compensation Committee  Staff Compensation Subcommittee  Faculty Compensation Subcommittee  Review past analysis/recommendations  Consider input from open forums  Develop recommendations for...  Staff compensation system  Faculty compensation system

8. Compensation Committee Visioning Exercise  Relax... This won’t hurt a bit.

9. Compensation Committee Visioning Exercise  What did you see?  What did you hear?  What did you feel?  What are the characteristics of the compensation system you just imagined?

10. Compensation Committee Topic Question #1  What should our ultimate goal be?... To get and keep most staff at market, pay exceptional performers above market, and pay sub-par performers below market?

11. Compensation Committee Topic Question #2  Should the existing classified grade and step system be retained or eliminated?

12. Compensation Committee Topic Question #3  If the new system includes a “Cost of Living” component, should it be a percentage or a fixed amount?

13. Compensation Committee Topic Question #4  How should we address full-time staff who are barely earning a living wage?

14. Compensation Committee Topic Question #5  What are the benefits and concerns about merit pay?

15. Compensation Committee Topic Question #6  Who should evaluate your performance to determine merit pay?

16. Compensation Committee Topic Question #7  Should merit increases be one-time or permanent (added to the base)?