Overview of the Classification and Compensation Plan Review

Presented by:CBIZ Human Capital Services

December 9, 2014

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Introduction

Edward Rataj• Managing Director, Compensation Consulting• Certified Compensation Professional (CCP)• Certified Executive Compensation Professional

(CECP)• Frequently quoted in national news publications

such as the Wall Street Journal and Smartmoney.com

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Introduction

What we want to accomplish today:• Kick-off the classification and compensation

plan review• Maintain expectations• Provide an overview of classification and

compensation plan design• Communicate next steps• Answer your questions

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Introduction

Pittsburg State University has asked CBIZ to review current practices and recommend improvements related to:

• Job classifications and descriptions• Current pay compared to market• Internal equity• Salary structures• Compensation policies and procedures• Hourly and salaried classifications

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Expectations

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Expectations

• Change the way we pay, not necessarily pay itself.

• A few employees may receive pay increases as a result of the study.

• No employee salaries will be decreased.

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Expectations

“Thank goodness we are conducting this compensation evaluation. I have been over-worked and under-paid for 30 years

now.”

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Expectations

Office SpaceUp in the Air

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Classification & Compensation Plan Design

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Project Planning

Tasks Completed to Date:• Engaged CBIZ• Planning meeting• Data collection underway• Job analysis questionnaire (JAQ) is ready for

distribution to employees

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Job Evaluation

• Employees complete JAQs• Evaluate job descriptions and JAQs• Revise classification families

– Common professions/vocations– Market influences– Career paths

JAQ Questions and Misconceptions

• What if I am not a good writer?• The more comprehensive my description, the more pay I

can expect.• Does it really matter what I write/if I complete the JAQ?• How much time does it take to complete?

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Job Evaluation

• Help consultants better understand the duties & responsibilities of each job

• Develop titling structure• Determine exempt/non-exempt status• Update job descriptions

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Market Pricing MethodologyWhat is market pricing?• Valuation of pay for the University’s jobs in the external

labor markets.• Key considerations when determining labor markets:

– Locationo Localo Statewideo Regiono Nation

– Industryo Higher Educationo Broad spectrum of employers

– Sizeo Revenue/Operating budgeto Number of employees

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Market Pricing Methodology

• Reliable Data– Published survey data

o Major consulting and surveying firmso Statistically validatedo Standard deviation analysis of data

• Unreliable data examples:– Self-reported– DOL– Most free internet data

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Market Pricing Methodology

Salary Structure Development

Title: Job XYZMarket Price: $35,455

Grade Minimum Midpoint Maximum

1 $24,778 $30,972 $37,166

2 $27,398 $35,618 $43,837

3 $31,508 $40,960 $50,413

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Next Steps

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Next Steps

1. Distribute JAQ for employees to complete2. Supervisors review and approve JAQs3. Once reviewed, supervisors return completed form to

HR4. HR will coordinate sending all data to CBIZ

Questions?