new salary scales recommendation
TRANSCRIPT
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New Salary Scales Recommendation
Board of Trustees
October 10, 2016 / 6:00 p.m.
Results of 2015-16 Classification & Compensation Study Presented to the Personnel Committee of Alamance Community College’s Board of Trustees
October 4, 2016
Introduction Initiative 4.1 of the 2014 – 2016 Alamance Community College (ACC or the College) Strategic Plan called
for a review of the College’s organizational and salary structures. To support this initiative, in June 2015,
the Board of Trustees (BOT) commissioned a classification/compensation study to evaluate the job
classifications and salary levels of all full-time positions (faculty and staff). The College issued a request
for proposal and, after thorough evaluation by an internal ad hoc committee, contracted with Arthur J.
Gallagher & Company (AJG), a firm with experience in higher education classification and compensation
studies (including North Carolina community colleges).
Recommendation The College requests that the Board of Trustees (BOT) approve the proposed salary scales/ranges as
outlined below.
Process Over a period of one year, AJG lead college employees through the following comprehensive process.
1. All staff completed position description questionnaires (PDQs) inclusive of the following:
position summary; supervisory responsibilities (when applicable); essential duties; required
knowledge, skills and education; breadth/depth of decision-making required. This was a
collaborative process between staff members and their supervisors. In addition, the Director of
Human Resources reviewed each PDQ prior to submitting to AJG. In cases where additional
information was needed (e.g. clarification of duties), AJG communicated directly with the
Director of Human Resources and the appropriate supervisor for any positions in question.
2. AJG benchmarked the PDQs submitted by the College against similar positions in local, regional,
state and national labor markets.
3. AJG delivered a draft position classification model defining salary grades based on essential
duties, supervisory responsibilities, required skills/knowledge, etc.
4. AJG conducted two training webinars for the President’s Cabinet. These webinars focused on
the methodology used for the classification of positions.
5. Based on local, regional, state and national labor market data, AJG delivered drafts of salary
scales/ranges for all full-time faculty and staff positions (See Attachments 1 and 2).
6. College leadership benchmarked the proposed salary scales/ranges against peer institutions
within the College’s labor market.
7. Based on the training provided by AJG, college leadership developed a methodology to place
new employees within the appropriate salary scale/range.
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8. The Executive Committee of the President’s Cabinet vetted the scales/ranges and the
methodologies for faculty and staff placement.
Proposed Strategies for Implementation After extensive collaboration with college leadership, AJG delivered a new classification model and
salary scale for full-time staff based on labor market data at the local, regional, state and national levels.
From that, AJG proposed three strategies for implementation regarding adjustments to faculty and staff
salaries.
Strategy 1: Align faculty and staff salaries to the proposed salary range minimums
This strategy will ensure that all full-time faculty and staff salaries are aligned to (at least) the minimum
of their respective scales/ranges. Note that the majority of faculty and staff (due largely to years of
experience) will fall above the newly established minimums.
The (recurring) cost to implement Strategy 1 is $70,422.
Strategy 2: Align faculty and staff salaries to reflect years in their current position
This more aggressive strategy would ensure that all full-time faculty and staff salaries are aligned with
the years of experience gained in their respective positions.
The (recurring) cost to implement Strategy 1 would be $345,457.
Strategy 3: Align faculty and staff salaries to reflect years in the position (10% max. salary increase)
This strategy, identical to Strategy 2 with the exception of a 10% cap on individual salary increases,
would ensure that all full-time faculty and staff salaries are more closely aligned with the years of
experience gained in their respective positions.
The (recurring) cost to implement Strategy 3 would be $142,845.
Required Resources by Strategy
Strategy Cost (Recurring) Total Cost (Recurring)
Faculty Staff
Strategy 1 $00025,574 $00044,848 $00070,422
Strategy 2 $00208,303 $00137,154 $00345,457
Strategy 3 $00060,697 $00082,148 $00142,845
Approved Salary Adjustments At its September 12, 2016 meeting, the ACC BOT approved the following regarding salary adjustments
for faculty and staff.
A 1.5 percent recurring salary increase to all benefitted faculty and staff.
Use the remainder of recurring salary increase funds ($93,035) above the 1.5 percent to
1) ensure that all employees are brought to (at least) the minimum of their respective
scales/ranges and 2) to make equity and market rate adjustments identified in the
compensation and salary study.
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Pursuant to these BOT approvals, the College will implement Strategy 1 as its first step in better aligning
faculty and staff salaries to local, regional, state and national labor markets. In addition, the President
will consider the use of other college funds to address any equity and market rate adjustments
identified in the compensation and salary study. Moving forward, the College will develop a plan to
implement Strategy 2 or 3 should funds be available.
Methodologies for New Employee Classifications
Faculty
At the time of hire, faculty salaries will be determined based on market demand (i.e. positions for which
recruiting is more challenging due to competition from industry), education level, years of applicable
experience and internal equity (See Attachment 1).
Staff
At the time of hire, staff salaries will be determined based on the position, years of applicable
experience and internal equity.
To classify staff positions, AJG developed a decision band methodology (DBM). The DBM places
individual positions into specific bands (based on duties performed and degree of decision making
required) and sub bands (based on responsibility and accountability). Each band (represented with a
letter A - F where A is the lowest and F if the highest) includes two sub bands (represented with the
numbers 0 – 92 where 0 is the lowest and 92 is the highest).
For example, a position classified as E81 is at a higher level than a position classified as B25 (See
Attachment 2).
In addition to the methodologies developed by AJG, the College plans to evaluate all full-time faculty
and staff at a minimum of every five-years (triggered by anniversary dates). This evaluation will take
into consideration years of service and labor market comparisons. Five-year salary adjustments will be
dependent on employee performance, availability of funds and internal equity.
Note that for all new hires, the President has the discretion to deviate from the standard salary
scales/ranges in order to ensure acquisition of the highest quality faculty and staff (e.g. recruiting
competition from the four-year institutions as well as the private sector).
Employee Notification Upon BOT approval of the proposed salary scales/ranges, the President will work with the Director of
Human Resources to draft a letter to each full-time employee describing the classification and
compensation study and, more specifically, how he or she has been classified. In addition to written
correspondence, the pay scales for faculty and staff will be made available via the Human Resources
departmental page on the College website. Finally, the results of the classification/compensation study
will be presented at a faculty/staff meeting.
Minimum Midpoint Maximum
Points* 0-4 5-9 10-14 15-19 20-24 25-29 30+
Market Demand
Base 4,122$ 4,339$ 4,917$ 5,496$ 6,074$ 6,653$ 7,231$
MD1 4,534$ 4,773$ 5,409$ 6,045$ 6,682$ 7,318$ 7,954$
MD2 4,988$ 5,250$ 5,950$ 6,650$ 7,349$ 8,049$ 8,749$
EQUAL Base - 5% Base Base + 13.33% Base + 26.66% Base + 39.99% Base + 53.32% Base + 66.65%
Points
Minimum requirements for position = 0 points
Ratio
1:1
NA
Full-time Applicable Work Experience: 2:1
Part-time Applicable Work Experience: 4:1
Full-time Teaching Experience:
Application
1 year of FT teaching experience = 1 additional point
2 years of applicable work experience = 1 additional point
4 years of applicable work experience = 1 additional point
Evaluated case by case
Attachment 1
Part-time Teaching Experience:
Faculty Pay Scale
Effective January 1, 2017
Addditional Points for Education
One point per additional applicable degree above that required for the position
Additional Points for Experience
*Point System to Address Advanced Degrees and Teaching/Applicable Work Experience
Steps
DBM Rating Min 2 3 4 5 Mid 7 8 9 10 Max
A11 $18,964 $19,912 $20,860 $21,808 $22,757 $23,705 $24,653 $25,601 $26,549 $27,498 $28,446
A12 $22,810 $23,950 $25,090 $26,231 $27,371 $28,512 $29,652 $30,793 $31,933 $33,074 $34,214
A13 $26,655 $27,988 $29,321 $30,653 $31,986 $33,319 $34,652 $35,984 $37,317 $38,650 $39,983
B21 $30,512 $32,038 $33,564 $35,089 $36,615 $38,140 $39,666 $41,192 $42,717 $44,243 $45,769
B22 $34,358 $36,076 $37,794 $39,512 $41,230 $42,948 $44,665 $46,383 $48,101 $49,819 $51,537
B23 $38,204 $40,114 $42,024 $43,934 $45,844 $47,755 $49,665 $51,575 $53,485 $55,395 $57,306
B24 $43,019 $45,170 $47,321 $49,472 $51,623 $53,774 $55,925 $58,076 $60,227 $62,378 $64,529
B25 $48,794 $51,233 $53,673 $56,113 $58,552 $60,992 $63,432 $65,872 $68,311 $70,751 $73,191
B31 $43,019 $45,170 $47,321 $49,472 $51,623 $53,774 $55,925 $58,076 $60,227 $62,378 $64,529
B32 $48,794 $51,233 $53,673 $56,113 $58,552 $60,992 $63,432 $65,872 $68,311 $70,751 $73,191
C41 $51,548 $54,640 $57,733 $60,826 $63,919 $67,012 $70,105 $73,198 $76,290 $79,383 $82,476
C42 $55,245 $58,560 $61,875 $65,189 $68,504 $71,819 $75,134 $78,448 $81,763 $85,078 $88,393
C43 $58,943 $62,480 $66,016 $69,553 $73,089 $76,626 $80,163 $83,699 $87,236 $90,772 $94,309
C44 $63,574 $67,388 $71,202 $75,017 $78,831 $82,646 $86,460 $90,274 $94,089 $97,903 $101,718
C45 $69,126 $73,273 $77,421 $81,568 $85,716 $89,863 $94,011 $98,159 $102,306 $106,454 $110,601
C51 $63,574 $67,388 $71,202 $75,017 $78,831 $82,646 $86,460 $90,274 $94,089 $97,903 $101,718
C52 $69,126 $73,273 $77,421 $81,568 $85,716 $89,863 $94,011 $98,159 $102,306 $106,454 $110,601
D61 $73,756 $78,182 $82,607 $87,032 $91,458 $95,883 $100,309 $104,734 $109,159 $113,585 $118,010
D62 $77,454 $82,101 $86,749 $91,396 $96,043 $100,690 $105,337 $109,985 $114,632 $119,279 $123,926
D63 $81,152 $86,021 $90,890 $95,759 $100,628 $105,497 $110,366 $115,236 $120,105 $124,974 $129,843
D71 $85,782 $90,929 $96,076 $101,223 $106,370 $111,517 $116,664 $121,811 $126,958 $132,105 $137,252
D72 $91,334 $96,815 $102,295 $107,775 $113,255 $118,735 $124,215 $129,695 $135,175 $140,655 $146,135
E81 $95,965 $101,723 $107,481 $113,239 $118,997 $124,755 $130,512 $136,270 $142,028 $147,786 $153,544
E82 $99,663 $105,643 $111,622 $117,602 $123,582 $129,562 $135,541 $141,521 $147,501 $153,481 $159,460
E83 $103,361 $109,562 $115,764 $121,965 $128,167 $134,369 $140,570 $146,772 $152,974 $159,175 $165,377
E91 $107,991 $114,470 $120,950 $127,429 $133,909 $140,388 $146,868 $153,347 $159,827 $166,306 $172,786
E92 $113,543 $120,356 $127,168 $133,981 $140,794 $147,606 $154,419 $161,231 $168,044 $174,857 $181,669
Years of exp. 0-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-28 29-31 32+
Percentage Increase Between Steps
DBM Rating 2 3 4 5 Mid 7 8 9 10 Max
A & B 5.0% 4.8% 4.5% 4.3% 4.2% 4.0% 3.8% 3.7% 3.6% 3.4%
C,D, & E 6.0% 5.7% 5.4% 5.1% 4.8% 4.6% 4.4% 4.2% 4.1% 3.9%
Staff Pay Scale
Attachment 2
Effective January 1, 2017