1. Butler University Compensation Study

2. b a c kn e x t h o m e About Fox Lawson & Associates  Bought Practice From Ernst & Young  Compensation Specialists  Nationwide Practice  23+ Years of Experience  Strategically Focused 2

3. b a c kn e x t h o m e University Clients  Hamline University  Macalester College  University of Minnesota  Olympic University  Seattle University  Loyola University  University of Arizona  Arizona State University  Pennsylvania State University  Houston Community College  Central Wyoming College  Salem International University 3

4. b a c kn e x t h o m e Your Needs  Two employee groups  Faculty  Assessment of bias  Assessment of compression  Market analysis  Staff  Pay strategy  Classification and job analysis  Job evaluation  Market analysis  A need for communication  A need for participation 4

5. b a c kn e x t h o m e Our Approach Faculty Study 1.Assessment of Bias 2.Assessment of Compression 3.Market Analysis 5

6. b a c kn e x t h o m e Assessment of Bias To determine if women or minorities are paid equitably for substantially the same qualifications as white males. –Analyze pay rate based on the following independent variables: Race Gender Rank Years of Service Pay Rate at Hire Prior years of Experience Discipline The report will document the effect on pay and solutions available

7. b a c kn e x t h o m e Assessment of Compression To determine what the “fair” rate of pay is based on the years of experience at Butler University (or total experience) Determine a corrective action and cost 7

8. b a c kn e x t h o m e Market Analysis To determine the average market rate of pay among peer institutions Assess market pay by rank Review minimum, average, maximum Identify issues and solutions 8

9. b a c kn e x t h o m e Our Approach Staff Study 1.Pay Strategy 2.Classification and Job Analysis 3.Job Evaluation 4.Market Assessment 5.Final Report 9

10. b a c kn e x t h o m e Pay Strategy  Review the current classification and compensation systems to determine key issues  Confirm a philosophy that supports the University’s strategic goals and objectives including selecting an appropriate job leveling tool  Broad vs. narrow classifications  Definition of market  Movement through the ranges  Job evaluation techniques  Total compensation analysis 10

11. b a c kn e x t h o m e Classification  Employees fill out Position Analysis Questionnaires  Interview employees to verify jobs  Create new classifications as appropriate  Determine FLSA status for all job classes  Review and approval 11

12. b a c kn e x t h o m e Job Evaluation  Apply selected job evaluation tool (e.g. Decision Band™ Method or other)  University review and approve hierarchy  Appeal process  Provide materials and training 12

13. b a c kn e x t h o m e Market Assessment  Define labor market  Select benchmark jobs  Determine how the University compares to market  Update structure/develop new structure  Review options and costs  Develop transition plans  Provide administrative guidelines 13

14. b a c kn e x t h o m e Final Report  Steps and processes used  Administrative guidelines  Present findings and recommendations to the University  Transition and implementation plan 14

15. b a c kn e x t h o m e What the Study is Not Downsizing A way to reduce pay A reorganization

16. b a c kn e x t h o m e What Might Happen New, consistent and logical job titles Consolidation of titles Fair and equitable salary ranges A process for maintaining the system