2. Stephenville ISD Pay Study Design August 20, 2012 Ann R. Patton CCP Sr. Compensation Consultant

3. Pay System Objectives and Strategies Pay for job value Pay for the job responsibility level Pay compared to other employers Recruit and hire skilled employees Starting pay is competitive and pay determination practices defined Retain good employees Provide regular pay increases that match competitors Manage costs Stay within resources limits, pay range maximums, and total payroll cost amount

4. How the Pay Plan was Developed Pay Structure Job Analysis Job Pricing Policies and Procedures Job Evaluation

5. Step 1: Job Analysis Data was collected on job duties and responsibilities –Job Descriptions –Organizational Charts –Supervisor Interviews 15 completed

6. Step 2: Job Evaluation Knowledge  Education  Experience  Expertise Effort  Decision Making  Complexity  Communications Responsibility  Financial  Organizational  Employee Responsibility  Number of Employees Supervised Working Conditions  Clean or Dirty  Safe or Hazardous Jobs were analyzed and grouped in to pay grades using the factors listed below.

7. Step 3: Job Market Pricing School District Sources Abilene ISD Aledo ISD Azle ISD Brownwood ISD Burkburnett ISD Castleberry ISD Cleburne ISD Gatesville ISD Glen Rose ISD Granbury ISD Hico ISD Joshua ISD Kennedale ISD Lake Worth ISD Lampasas ISD Mineral Wells ISD Springtown ISD Weatherford ISD Other Sources Tarleton State University Texas Workforce Commission Market data for benchmark jobs was collected.

8. How Market is Used Pay Grade 1 Pay Grade 3 Pay Grade 4 Pay Grade 2 Minimum Rate Maximum Rate Midpoint Rate Market Target Market data is used two ways: Compare district pay to market Create competitive pay ranges

9. Step 4 – Pay Procedures Pay procedures were developed for ongoing plan administration. –Pay plan definition and maintenance –Pay actions New hire pay determination Promotions Demotions Break in service

10. New Pay Structures

11. Job Families New Job Families Teachers, Registered Nurses, Librarians Administrators and Professionals Clerical and Paraprofessional Auxiliary

12. Job Families Common characteristics –Nature of work –Exempt/Non-Exempt –Job market Clarifies and respects different career paths

13. Teachers, RN’s, Librarians Starting Salary up to $38,000. Teacher salary schedule no longer connected to state minimum schedule. It’s much higher! Teachers received a general pay increase of at least $1,400. This takes the place of a “step” increase Additional increases were given to those whose pay, after the general increase is below the teacher hiring schedule. Stipends for master’s and doctorate degrees remain the same

14. Administrators and Professionals Campus and Central Office Professionals –Counselors, diagnosticians, speech pathologist –Assistant Principals –Principals –Department Directors –9 Pay Grades

15. Clerical and Paraprofessionals Instructional assistance and support –Classroom Aides –Special education Aides Clerical –Campus and central office secretaries –Office clerks –Accounting clerks 9 Pay Grades

16. Auxiliary Skilled and unskilled crafts and trades –HVAC, Electricians, Mechanics –Grounds and Custodial –Construction/Maintenance Workers –Food Service Workers –Bus Drivers 6 pay grades

17. Frequently Asked Questions

18. What is a pay range structure? – It is a hierarchy of job levels with minimum and maximum rates. – There are different structures for different employee groups. – Pay range structures help the district hire and keep employees by paying more competitively and keeping pay levels fair.

19. Frequently Asked Questions How was my pay grade determined? – Jobs are grouped into pay levels or pay grades based on the types of duties assigned, skill requirements, responsibility, and market value. – Pay grade assignments are based solely on the job - not the credentials or performance of the person in the job.

20. Frequently Asked Questions Will my pay grade ever change? – Pay grades are changed only if there is a significant and sustained change in duties and responsibilities. – The district will review job classifications periodically to ensure that pay grade assignments are kept up-to-date with changing job descriptions.

21. Frequently Asked Questions Did the board grant a pay increase this year? – Yes. The board granted a 2% of midpoint pay increase to all those whose pay is within their respective pay range. – The board granted a 1% of midpoint pay increase to those whose pay is above the maximum of the range. – The board approved equity adjustments to those whose pay is below the pay range minimum.

22. Frequently Asked Questions How does my experience count? – Experience counts in a pay range system but to a lesser extent. – You will receive pay increases, or not, based on the amount approved, or not, by the Board each year.

23. Frequently Asked Questions Did anyone lose money as a result of the study? – No. No one’s base pay was reduced as a result of this study  Changes benefit deductions or taxes may have an impact on your take home pay.

24. Movement Through the Range 10 Years $5,346 $4,277 $6,415 20 Years $5,175 $7,763 $6,469 5 Years $4,860 $5,832 $3,888 15 Years $4,704 $7,057 $5,881 Range Adjustment - 2% per year Pay Increases - 4% per year Employee’s Pay Minimum Rate Midpoint Rate Maximum Rate $3,600 $4,500 $5,400 Example

25. Frequently Asked Questions How do I get a pay increase? – Every year, during the budget process, the school board will determine the amount that can be spent for employee pay increases. – That percent factor is applied to the midpoint rate of each pay range to calculate the pay raise at each grade level. – This means that everyone in the same pay grade will receive the same dollar amount of increase.

26. Frequently Asked Questions If you were an hourly employee in pay grade 3 earning $13.00/hour and your pay range had a midpoint of $13.36/hour, that rate would be the basis for your pay raise. If the board approved a pay raise budget of 2 percent, your pay raise would look like this: Your current hourly rate=$13.00 Your pay raise ($13.36 x 2 percent) =+.27 Your new hourly rate$13.27 Pay Increase Calculation Example:

27. Frequently Asked Questions Can I predict what I will make in the future? – These structures are only valid for the 2012-13 year. The district will review and revise them annually.

28. Frequently Asked Questions What if my pay was below the minimum of the pay range? What if my pay was above the maximum of the pay range? –Each employee will be given the general pay increase. If that amount is not enough to take their pay to the minimum of the range, they will be given an increase up to the minimum of the range. –The board granted a pay increase of 1% of midpoint to those whose pay is above the maximum of the range.

29. Frequently Asked Questions How will hiring salaries be communicated to applicants and new employees? – The Human Resources department is responsible for communicating pay to applicants and new employees.

30. Frequently Asked Questions When will I get my pay increase? – Pay increases will be reflected in the September 2012 pay check. You should have already received a salary letter in the mail. If you didn’t, please contact the Human Resources Department. When will I see the new pay structures – The new teacher hiring schedule and pay ranges will be on the district’s website in the next few weeks.

31. FAQ’s Who do I call if I have questions? – Human Resources Department