Transcription
Winthrop UniversityClassification & Pay StudyTown Hall MeetingJanuary 2022 2022 by The Segal Group, Inc.
What are the objectives for today’s meeting?1Introduce the new faculty and staff pay programsProvide background information on programdevelopment32Provide resources for more information2
Why Change?What is new?What is not changing? New market definitions to accuratelydetermine competitive pay levels No one will receive a salary cut Market aligned approach tocalculating pay opportunity, includingpay increases to start to close marketgaps Exempt/non-exempt designation willnot change unless required by newregulations Updated pay policies to reflectmodern workplace and new programobjectives There will be no reduction to faculty orstaff as a result of this project Improved availability of information toall faculty and staff3
Project OverviewDiscoveryand InterviewsTotal PayPhilosophyMarketAssessmentPhase 1Phase 2Phase 3 Conduct stakeholderdiscussions Review data andmaterials Develop draft total payphilosophy Develop peer group(s)and comparisonmarket(s) Review and approvetotal pay philosophy,including peer groups/comparison markets Conduct initial salarymarket pricing Review and finalizematches with HR Conduct varianceanalysisJob Classification,Salary Structure andProgramDevelopmentPhase 4 Develop salarystructure/ranges Assign jobs tostructure/ranges Validate with leaders Identify incumbent andcost implications Finalize structure/ ranges Revise pay administrationguidelines Prepare and share reportof findingsImplementation andCommunication PlanDevelopment*Phase 5 Develop implementation &communications plan Develop total compensationstatements Create additional programrollout materials Roll out program toparticipants(e.g., town halls, FAQs,individual letters, etc.)* Implementation plan covers amulti-year period.4
Project policies endationsSalarystructuredevelopment5
Key Points from the Pay PhilosophyThe pay program: Values staff members and their role in supporting the institution on executing the Winthrop Plan Offers a competitive total rewards package1 above and beyond base salary Aims to maintain competitive total compensation levels when compared to the definedcomparison market(s) Maintains fair, equitable, and competitive compensation while also addressing relevantorganizational needs, as budget and finances allow Communicates clearly to all employees the importance of performance management and goalachievement Clarifies the responsibilities of the Board of Trustees, Winthrop leadership, Human Resources,and managersPlease see the Appendix for the full Pay Philosophy.1 Thetotal compensation program and offerings are subject to the University's financial resources.6
Pay BasicsHow is pay determined?What does not determine pay? Market-relevant and specific research A desire by the employee to makemore money Job duties and responsibilities An employee’s lifestyle or costof living Individual characteristics(e.g., experience, skills, etc.) Job titles Budget considerations Manager preferences Budget alone7
Market AssessmentMethodologyElementSurvey SourcesCUPA-HR Administrative, Faculty, Professional and Staff Salary SurveysCompAnalyst DatabaseWillis Towers Watson Compensation SurveysComparison MarketsSurvey comparison markets that align with the talent pool or labor market for thefaculty and staff jobs at Winthrop. The assessment incorporates several differenttalent markets, including higher education and general industry dataGeographic DifferentialNo geographic differential was used to adjust market data given analysis of costof labor and cost of living in Rock Hill, SC and the custom peer groupMatch SelectionSelected survey matches based on the content of the job, not the title. As there islittle likelihood of a perfect match, a survey match is considered appropriate ifapproximately 70% of the job content and requirements alignMarket DataObtained base salary market data from selected survey source at the 25th, 50th,and 75th percentiles, where availableData AgingData compiled from survey sources was aged from survey effective date toNovember 1, 2021. The annual aging percentage is 2.8%1Variance Analysis1DetailConducted an analysis comparing Winthrop pay against the market dataSource: Segal’s annual Compensation Planning Survey analyzing salary increase budgets by industry and job classification.8
Market AssessmentComparison MarketsMarket CharacteristicsRoleDirect Reports toPresident, Deans, FacultyExempt Staff(Directors and above)Exempt Staff(Managers andProfessional IndividualContributors)Non-Exempt StaffAthletics(Athletics Director,Administrators, Head andAssistant Coaches)For PositionsUnique to Higher EducationCustom national higher educationpeer group reflecting similarinstitutionsCustom regional higher educationpeer group reflecting similarinstitutionsAdditionally, for PositionsFound Outside of Higher EducationN/ANational general industry, non-profit, andhigher education employersNational general industry, non-profit, andhigher education employers1Custom national higher educationpeer group reflecting similar athleticdivisions and conferencesMarkets developed using characteristics that most commonly influence the salarylevels of faculty and staff (e.g., geography, Carnegie classification, size, etc.).1The cost of labor for Rock Hill, SC is almost equal to the United States average. We recommend using national data to ensure datavalidity and consistency.9
Market AssessmentInterpreting Market Data Results Many institutions target the market median in the aggregate in order to remain “competitive” However it is important to keep in mind that market data should be used as a guide whenmaking compensation decisions Individual relationships to the market may also vary based on the characteristics of theindividual such as skills, knowledge, experience, and performance In addition, requirements in the State of South Carolina may impact pay for certain positionsWHAT MARKET DATA TELL US Indicate a range for the value ofa job in the identified market Represent the cost to hirean employee in the market fromwhich the organization recruits talent Illustrate trends in compensationyear-over-year Are not a precise number Do not represent changes tothe cost of living within a market Do not represent the appropriatepay rate for every individual ina job10
Summary Assessment ResultsFaculty and Staff Study identified employee salary gaps compared to the external market Five-year implementation plan was developed to adjust impacted employees to amore competitive salary level For FY 2021-2022, Winthrop’s administration and Board of Trustees allotted fundsto begin to address market gaps In total, the study estimated that Winthrop will need to identify approximately 2.5million (or 6.2% of the total FY22 budgeted salaries) over the next five years to bringemployees to the minimum of the structure or the minimum of the competitivemarket range for their positionsAdditional information can be found in the FAQ document and the followingslides.11
Summary Assessment ResultsClassified StaffMarket Assessment99%Salary Structure/RangesDistribution of IncumbentsWithin Rangeof Band96%Benchmarked Incumbents(% of Total Population)Below Minimum4%Above Maximum0%of New Band85%Aggregate Competitivenessto Market Medianof Band12
Summary Assessment ResultsUnclassified StaffMarket Assessment96%Salary Structure/RangesDistribution of IncumbentsWithin Range77%Below Minimum12%Above Maximum11%of BandBenchmarked Incumbents(% of Total Population)of Band92%Aggregate Competitivenessto Market Medianof Band13
Summary Assessment ResultsFacultyMarket Assessment99%Salary Structure/RangesDistribution of IncumbentsWithin Rangeof New Band94%Benchmarked Incumbents(% of Total Population)Below Minimum1%Above Maximum5%of New Band98%Aggregate Competitivenessto Market Medianof New Band14
Salary Structure DesignEffective Salary StructuresEnsurecompliancewith statelawsIncreaseunderstanding ofcompensationIncreasetransparencyof paydecisionsServe as a tool tomanage paythroughguidelinesMaintainand paycompetitivenessrangeswith theexternal marketEffectiveSalaryStructuresSimplify andstreamlineEnsureinternal equityAllow for flexibilityto adjust pay15
Salary Structure DesignFinal Structure DesignsClassified Staff State pay bandclassifications(required by the Stateof SC)Unclassified Staff Similar to thestructure of the statepay bandsFaculty Bands by rank anddiscipline,symmetricalthroughout 10 pay bands,symmetricalthroughout 10 pay bands,narrower at the lowerbands and wider atthe higher bands 3 discipline groupingswith a rank, based onmarket data Market data ranges toassist with managingthe pay band Market data ranges toassist with managingthe pay band Market data ranges toassist with managingthe pay bandStructures are designed in alignment with market data, or in the case of ClassifiedStaff, market data is used to supplement the state pay bands.16
Salary Structure DesignClassified StaffBandMin/Mid/Max Salary*BandMin/Mid/Max Salary*Band 01Band 06Minimum 15,080Minimum 41,777Midpoint 22,025Midpoint 59,537Maximum 28,970Maximum 77,298Band 02Band 07Minimum 19,057Minimum 50,833Midpoint 27,159Midpoint 72,440Maximum 35,262Maximum 94,048Band 03Band 08Minimum 23,190Minimum 61,852Midpoint 33,051Midpoint 88,144Maximum 42,912Maximum 114,437Band 04Band 09Minimum 28,215Minimum 72,256Midpoint 40,209Midpoint 107,247Maximum 52,203Maximum 139,238Band 05Band 10Minimum 34,331Minimum 91,568Midpoint 48,927Midpoint 130,490Maximum 63,524Maximum 169,413* Starting salaries over band midpoint will require additional justification.17
Salary Structure DesignUnclassified StaffPay BandAnnual Base PayRange 1 32,700 40,000 47,40045%N/A2 37,600 46,000 54,50045%15.0%3 43,200 52,900 62,60045%15.0%4 47,700 60,800 73,90055%15.0%5 56,000 71,400 86,80055%17.5%6 65,800 83,900 102,00055%17.5%7 75,800 98,600 121,30060%17.5%8 91,000 118,300 145,60060%20.0%9 105,200 142,000 178,80070%20.0%10 124,600 177,500 230,50085%25.0%1Rangespread is the percent distance from band minimum to band maximum, defining the range of pay opportunity per band.progression is the percent increase from one band’s midpoint to the next band’s midpoint.2Midpoint18
Salary Structure DesignFacultyMinimum1/4 MarkMidpoint3/4 MarkMaximumRangeMinimumRangeMaximumProfessor 3 104,900 110,700 116,500 128,150 139,80090%120%Professor 2 80,500 84,950 89,400 98,350 107,30090%120%Professor 1 77,900 82,200 86,500 95,150 103,80090%120%Associate Professor 3 93,700 98,900 104,100 114,500 124,90090%120%Associate Professor 2 64,400 68,000 71,600 78,750 85,90090%120%Associate Professor 1 62,100 65,550 69,000 75,900 82,80090%120%Assistant Professor 3 88,000 92,900 97,800 107,600 117,40090%120%Assistant Professor 2 57,200 60,400 63,600 69,950 76,30090%120%Assistant Professor 1 53,700 56,700 59,700 65,650 71,60090%120%Instructor 3 60,200 63,550 66,900 73,600 80,30090%120%Instructor 2 46,200 48,750 51,300 56,450 61,60090%120%Instructor 1 45,000 47,500 50,000 55,000 60,00090%120%Rank /Salary Tier19
Pay Guidelines Winthrop’s pay philosophy is to provide competitive, fair, and equitablecompensation in order to attract, retain, and reward highly qualified, diverse, andtalented employees The pay administration guidelines supports that philosophy in the following ways:SupportCareer GrowthEnsure Fair and EquitableCompensationAdministrationMaintainPay Program Job reclassification Market pricing guidelines Staff jobdescriptions Promotion Hiring rates Salary rangeadjustments Transfers Equity and marketincreases Temporaryassignments/interimappointments Structure and range details In-grade adjustments20
Implementation Approach Most institutions cannot afford to make all salary adjustments at one time. It iscommon for new program implementation to span 3 to 5 years. Some institutionsmix approaches and others are flexible on the way they approach adjustments fromyear to year. The implementation approach varies among institutions and depends on multiplefactorssuch as: Impact on individuals Desired market pay positioning Available financial resources Institutional culture and readiness Desired timeframe for making changes for change Total compensation cost including Expectations set for studybenefitsImplementation methodology may differ from ongoing pay administrationmethodology.21
Implementation Approach continuedGeneral implementation guidelinesFirst priority: Employees currently below their band minimumSecond priority: Employees with largest gaps to target salary/quartile Target salary/quartile is determined based on salary band and factors such as timein job and time in rankOngoing implementation: Over time, the University will work to move individuals closer to their targetsalary/quartile in the band as funding allows Salary program implementation increases will be processed after any applicableannual campus salary program is applied (if offered in a given year)All increases are subject to the funds available to the University each year.22
Next Steps Develop total compensation statements (Spring 2022) Refresh faculty and staff census and market data annually Implementation adjustments in October 1 paychecks annually, depending onavailability of budget and Board of Trustees approval Ongoing review of staff position descriptions, updating as necessary Ongoing review and update of faculty and staff pay administration guidelines, asappropriate Ongoing review of the faculty and staff salary structures to ensure market alignment Ongoing review of time in rank and tier interface impact on competitive pay levelsfor faculty promotions23
Questions and Answers24
Appendix25
Pay PhilosophyRole of Pay In support of the Winthrop Plan, Winthrop University’s pay programs provide pay levels that are fair and competitive withinstitutions and organizations with which the University competes for talent in order to attract, retain, and engage qualifiedindividuals We seek to attract, develop, and sustain a dedicated, skilled, diverse, inclusive workforce to meet our strategic objectives. Thisgoes beyond a simple employment arrangement that emphasizes the intangible elements of the University’s total rewards such asaffiliation to our mission, work content, and positive work environment and provides a balanced mix of financial and nonfinancialrewards The University also offers a full package of health and retirement benefits that encourage health and wellness, provide time offprograms and income protection for illness, and provide protection in the event of long or short-term disability or death as well asintangibles such as work environmentInternal/External Value The pay program balances external competitiveness with the University’s needs, financial resources, and relative value within theUniversity among similar positions. In general, Winthrop strives to achieve aggregate salaries at competitive levels of itscomparison markets Competitive market data are used as a reference for creating salary ranges and determining appropriate salary levels for each job Certain jobs and/or individuals may be positioned above or below the University’s target based on the value of the job to theUniversity and the unique incumbent qualifications, experience, time in position, and performance against agreed upon roleexpectationsComparison Markets The University benchmarks faculty and staff salaries against the markets within which it competes for talent, which may varyacross the institution See the following pages for more detail on the comparison markets26
Pay Philosophy continuedPay Systems Base salary is the primary method of rewarding faculty and staff at Winthrop University. An individual's basesalary reflects the value of the job in the market, the value of the job to the institution, and the capabilities of theindividual Appropriate base salaries will be maintained through regular updating of job descriptions, monitoring of themarket to ensure continued competitiveness, and periodic updates of the salary programs to ensure theyprovide competitive salary opportunities. In addition, periodic reviews of incumbent salaries will be conducted toensure internal equity The pay program and offerings are aligned with the policies and guidelines set by the Department ofAdministration's Division of State Human Resources and are subject to the University’s financial resourcesFaculty Base salary reflects competitive market rates for each faculty member's rank and discipline (as mapped to theappropriate Classification of Instructional Programs); in addition, the base salary reflects an individual's time inrank, capabilities, contributions, tenure, and performance In addition to base salary, faculty may receive stipends and/or course release for responsibilities above andbeyond their core responsibilitiesStaff Competitive market data are used as a reference for creating the salary structure and salary ranges. Jobs areevaluated based on job content (including responsibilities, scope and experience/education requirements), nottitle, and are assigned to salary ranges based on the assessment of competitiveness and role within theUniversity Base salaries for individuals within the salary range will be determined by considering the skills, knowledge,experience, and performance of the individual27
Pay Philosophy continuedPerformance Management The annual performance review process provides a process for performance evaluation, ongoingcommunication, and development The University encourages regular feedback and development conversations between supervisors and theirdirect report(s) to discuss progress against job expectations, development opportunities, job challenges, and/orperformance issues The process is expected to serve as a means to enhance the working relationship between the employee andthe supervisor, to provide a report of performance for the employee and supervisor, and to provide supervisorswith information concerning performance when considering employees for promotions or transferPay Communication The University is committed to openness and transparency and will communicate the pay philosophy to allstakeholders to ensure that the principles that guide salary decisions are clearly understood While regular program updates will be communicated to faculty and staff (e.g., relationship to the market), allresults will be shared in the aggregate and individual information will be protected The University is also committed to ensuring understanding of the salary programs and how pay decisions aremade and will conduct training on a regular basis (through multiple vehicles)28
Pay Philosophy continuedPay Governance Winthrop University’s pay philosophy and salary programs are developed through input from the University’sleadership and select stakeholders Legislated salary increases are determined by the South Carolina General Assembly (Legislature). The SouthCarolina Department of Administration's Executive Budget Office determines the state’s funding of thoseincreases, with the Division of State Human Resources determining how agencies administer the increases.The Division of State Human Resources also provides additional guidelines and polices on pay andclassification for covered positions The Board of Trustees approves the University’s annual budget The Board of Trustees approves pay philosophy and the resulting salary programs Human Resources administers and maintains the salary programs, which includes initial program developmentand regular, ongoing review, and maintenance Human Resources, in consultation with the Senior Leadership Group, communicates with Deans and staffmanagers on appropriate pay-related matters. Deans and staff managers communicate these messages to theirdirect reports and answer questions as appropriate29
Salary StructureFaculty Market TiersCIP DisciplineTierCIP DisciplineTierAnthropologyChemistryCommunication And Media StudiesDanceDrama/Theatre Arts And StagecraftEnglish Language And Literature, GeneralFine And Studio ArtFoods, Nutrition, And Related ServicesHistoryLinguistic, Comparative, And Related LanguageStudies And ServicesMathematics111111111Student Counseling And Personnel ServicesBiology, GeneralClinical, Counseling, And Applied PsychologyDesign And Applied ArtsEducation, GeneralEducational Administration And SupervisionGeological And Earth Sciences/GeosciencesMulti-/Interdisciplinary StudiesPsychology, General1222222221Social Sciences, Other212Music1Philosophy1Physics1Political Science And GovernmentReligion/Religious StudiesSociology111Social WorkSports, Kinesiology, and PhysicalEducation/FitnessAccounting And Related ServicesBusiness Administration, Management AndOperationsBusiness/Managerial EconomicsComputer And Information Sciences, GeneralMarketing23333330
Willis Towers Watson Compensation Surveys. Comparison Markets. Survey comparison markets that align with the talent pool or labor market for the faculty and staff jobs at Winthrop. The assessment incorporates several different talent markets, including higher education and general industry data.
