WV Higher Ed Policy Commission New Classification System Presentation by Dr. Marie DeWalt, Tammy Gill, and Donna Shipley Human Resources Office Shepherd University July 2017 Shepherd University
Problems with old classification and compensation system, created in early 90’s • Lowest pay grades on old salary chart are below minimum wage. • Shepherd has not had the funds to keep up-to-date with pay step funding despite creating 2008 institutional salary schedule. • Each pay step correlates with years of service with any WV state agency regardless of relevance to current position. 2 Shepherd University
Problems with old classification and compensation system (continued) • Does not recognize prior related work experience from other employers. • Does not incentivize high level of performance. • Fails to align with how jobs are valued in the market. • Has caused “classification creep” since upgrades were the only path to salary increases. 3 Shepherd University
Legislative and policy changes related to personnel • HEPC was authorized in 2011 to establish a new classified salary structure and pay grades and the staff has been working on this for the past few years. • HEPC contracted with Mercer, a large HR consulting company. • New system is market based, not seniority based. • Pay will not be reduced due to new system. 4 Shepherd University
More recent legislative and policy changes • Limit on number of non-classified employees has been removed. • Non-classified positions were redefined to include all IT Services jobs and, going forward, all positions that meet the “duties test” of the Fair Labor Standards Act. • Institutions are permitted to incorporate merit pay into their classified staff salaries. • Supervisors: Annual performance evaluations are more important than ever! 5 Shepherd University
Benefits of Market Based Approach in New Compensation System • Greater flexibility to use salary dollars to recruit best talent and pay for performance. • Move away from pay step (years of service) salary increases. • Fair pay based on job responsibilities and market rates. • Will be able to consider all prior related job experience rather than only WV state agency job experience. 6 Shepherd University
General Market Pay Philosophy • Provide flexibility to manage base pay. • Base comparisons on appropriate external labor markets while also considering relative internal worth. • Administer compensation strategically, consistently, effectively, efficiently, fairly and equitably. • Establish framework for career progression and recognition of high performance. 7 Shepherd University
New HEPC Compensation Philosophy • Achieve fair competitive compensation to attract and retain competent, qualified and diverse employees. • Salary patterns can vary by credentials and performance of individuals occupying positions. • Does not include pay steps, across-the-board, longevity, or cost-of-living requirements. • Goal of transitioning to rewards model to compensate employees’ skill, effort and outcome contributions. 8 Shepherd University
New Salary Schedule Prospective West Virginia Higher Education Classified Salary Schedule Pay Grade Minimum Midpoint Maximum 1 19,200 24,900 30,600 2 22,200 28,800 35,400 3 25,600 33,300 41,000 4 29,500 38,400 47,300 5 34,200 44,400 54,600 6 39,500 51,400 63,300 7 45,700 59,400 73,100 8 52,800 68,600 84,400 9 61,000 79,300 97,600 10 70,500 91,700 112,900 11 81,500 106,000 130,500 12 94,300 122,600 150,900 Please note that this chart is supposed to be updated periodically. 9 Shepherd University
Managing Pay Within a Grade Tool A salary that falls within 10% above or below the market median is considered competitive for experienced staff members. 25th % 50th % 75th % Min 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Minimum of Pay Range Maximum of Pay Range Market Median-Midpoint of Pay Range Expert or has demonstrated capability to perform as expert Meets minimum qualifications Previous related experience Meets preferred qualifications based on prior experience in all job criteria Exhibits broad and deep Has little or no direct related prior Demonstrated ability to perform Demonstrated ability to perform Paying for knowledge of own area as well experience duties duties independently the job as related areas (based on May still be learning some Experienced in the job and external aspects of job or developing May be new to field or job possesses required knowledge market) expertise to handle them more and skills independently and effectively Requires additional training to May need additional training to build knowledge and skills to Senior-level job expertise perform duties independently handle full job responsibilities Consistently exhibits many or Consistently exhibits core OR most desired competencies to competencies to perform job perform job successfully successfully Intermediate skills and Seasoned professional / mid- Entry level skills and experience Expert skills and experience experience career Paying for Less experienced; learning the Consistently exceeds Experienced the job performance requirements individual Demonstrated mastery of job Lower performance level Consistently effective performance level (based on skills and expertise performance Has required knowledge, skills and expertise and handles job May be a "hot job" with a Limited knowledge or skill level and skills) responsibilities capably competitive external market Source: West Virginia Higher Education Policy Commission; May 2017 10 Shepherd University
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New State System • HEPC has not yet determined the timeline. • New pay grades have been tentatively assigned by Mercer to existing classified positions. • New pay grades are based on job duties, not titles. (For example, HR Assistant I, II, and III all are in the same pay grade now.) 19 Shepherd University
• Job and title clean-up and fine-tuning will continue. Institutions have been using job titles inconsistently because of the inflexibility of the old system. • Job families and job titles will not be changed. • New job descriptions will be based on HEPC master classification specifications. 20 Shepherd University
• New software systems (JDExpert) will be implemented by HEPC. Each job description will be developed from the master class specs. • We will develop an on-campus process for job description and salary reviews, which will include a compensation committee. • More to come following the HEPC’s August meeting at which it will consider the new classification system. 21 Shepherd University
Salary Increases • At its June 22 nd meeting, the Board of Governors voted to allocate $500,000 for salary equity increases to some faculty and staff. • Classified staff increases will go to employees below the prospective minimum pay and to lower earning staff whose salaries are substantially below compared to national data. • The funding for the gap will be phased in. 22 Shepherd University
• Generally, employees in the lowest pay grades with the least amount of service are more likely to get salary increases based on this plan in this first round of increases. • Classified staff will get letters notifying them of their salary increase, if they are getting one, and their new pay grade. • Those who are not getting a salary increase will get letters confirming their employment status. 23 Shepherd University
• We intend for the implementation of the new classification system to be transparent and fair. • We are uncertain about the compensation system timeline. • Public comments will be welcomed as rules are developed to implement the new classification system. • As this process rolls out, please let us know of your ideas, concerns, and questions. 24 Shepherd University
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