New Classification System Presentation by Dr. Marie DeWalt, Tammy - - PowerPoint PPT Presentation

Shepherd University

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.

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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.

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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.

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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!

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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.

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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.

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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

• utcome contributions.

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New Salary Schedule

Please note that this chart is supposed to be updated periodically.

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 Prospective West Virginia Higher Education Classified Salary Schedule

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25th % 75th % Min 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Meets minimum qualifications Previous related experience Meets preferred qualifications Expert or has demonstrated capability to perform as expert based on prior experience in all job criteria Has little or no direct related prior experience Demonstrated ability to perform duties Demonstrated ability to perform duties independently Exhibits broad and deep knowledge of own area as well as related areas May be new to field or job May still be learning some aspects of job or developing expertise to handle them more independently and effectively Experienced in the job and possesses required knowledge and skills Requires additional training to build knowledge and skills to handle full job responsibilities May need additional training to perform duties independently Senior-level job expertise

OR

Consistently exhibits many or most desired competencies to perform job successfully Consistently exhibits core competencies to perform job successfully Entry level skills and experience Intermediate skills and experience Seasoned professional / mid- career Expert skills and experience Less experienced; learning the job Consistently exceeds performance requirements Lower performance level Demonstrated mastery of job skills and expertise Limited knowledge or skill level May be a "hot job" with a competitive external market

Source: West Virginia Higher Education Policy Commission; May 2017

50th %

Managing Pay Within a Grade Tool

Paying for the job (based on external market) A salary that falls within 10% above or below the market median is considered competitive for experienced staff members. Paying for the individual (based on performance and skills) Experienced Consistently effective performance level Has required knowledge, skills and expertise and handles job responsibilities capably

Minimum of Pay Range Market Median-Midpoint of Pay Range Maximum of Pay Range

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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.)

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• 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.

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• 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.

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Salary Increases

• At its June 22nd 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.

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• 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
• f their salary increase, if they are getting
• ne, and their new pay grade.
• Those who are not getting a salary increase

will get letters confirming their employment status.

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• 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.

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