Compensation that Reinforces & Enhances Culture

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Compensation that Reinforces & Enhances Culture CUPA-HR Eastern Region Conference Tuesday - May 3, 2005 Lisa A. Sanford, Associate Director of Human Resources Marcia K. Hoffman, Director of Human Resources Warren Kerper, Principal, Mercer Human Resources Consulting Session 5B

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Compensation that Reinforces & Enhances Culture. CUPA-HR Eastern Region Conference Tuesday - May 3, 2005. Lisa A. Sanford, Associate Director of Human Resources Marcia K. Hoffman, Director of Human Resources Warren Kerper, Principal, Mercer Human Resources Consulting. Session 5B. - PowerPoint PPT Presentation

Transcript of Compensation that Reinforces & Enhances Culture

Page 1: Compensation that Reinforces  & Enhances Culture

Compensation thatReinforces & Enhances Culture

CUPA-HR Eastern Region ConferenceTuesday - May 3, 2005

Lisa A. Sanford, Associate Director of Human ResourcesMarcia K. Hoffman, Director of Human ResourcesWarren Kerper, Principal, Mercer Human Resources Consulting

Session 5B

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No.14 Bucknell

beat

No.3 Kansas

64 to 63

By the way, have you heard???

NCAA First Round - March 18, 2005First-ever win by a Patriot League School!

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Session Objectives:

Provide an overview of the Staff Compensation Program (SCP) Implementation

Review Results & Outcomes

Highlight Unique Features of the Process

Build upon the SCP Foundation

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Overview of the Staff Compensation Program Implementation

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Staff Compensation Program Objectives

The primary program objectives are to develop a compensation program that:

Is simple to use, easy to understand, and viewed as credible by both managers and staff members;

Effectively combines the external market value of jobs with the internal contribution of staff members;

Recognizes the competencies and applied knowledge needed to be successful in a job;

Provides a foundation and roadmap for career development, promotions and continued learning; and

Is a uniform and consistently-applied process across departments.

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Our Program Development Process

• Broad strategic objectives & principles to guide program design

• Advisory Team• Pilot tested Job Profiles • Staff members completed

Job Profiles • Position placement

• Collect competitive data to build market pay ranges

Objectives & Guiding Principles

Staff Member Input Market Assessment

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Our Program Development Process

Staff Compensation Program Development Process

Reviewed job

classification alternatives

- by University- by Division

- by Function

Decided on a single

framework for the University

Considered competencies& job content

factors

Use staff member inputto ‘build’ the

program ratherthan use a predefined framework

Decided that competencies

are to be defined more ‘broadly’ as

core values that everyone is expected to demonstrate

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Our Program Development Process

Compensation Program Design

• Formed Career Bands highlighting key job content factors & broad levels of contribution across the University

• Assign market pay ranges for each career band

• Develop guidelines for managing pay and career movement

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Results & Outcomes

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Staff Compensation Program Design

Staff Compensation

Program

Relationships

Community Focus

Achievement

Leadership

Bucknell Core Competencies

Used in:- recruitment/career pathing- staff development/training- performance management- recognition

Commitment to ServiceCommitment to Quality

Stewardship

InitiativeAdaptabilityCreativity

Respect for the IndividualDiversityIntegrity

Reliability/Dependability

Empowering PeopleTeamwork

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Staff Compensation Program Design

Staff Compensation

Program

Relationships

Community Focus

Achievement

Leadership

Job Content Factors

Bucknell Core Competencies

Used in:- recruitment/ career pathing - staff development/training- performance management- recognition

Bucknell Job Content Factors

Foundation for the Program

– Broad levels of contribution across the University

Job ContentFactors

Commitment to ServiceCommitment to Quality

Stewardship

InitiativeAdaptabilityCreativity

Respect for the IndividualDiversityIntegrity

Reliability/Dependability

Empowering PeopleTeamwork

Core Competencies

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WHATWHAT(results)(results)WHATWHAT

(results)(results)HOWHOW

(behaviors)(behaviors)HOWHOW

(behaviors)(behaviors)

Job ContentJob Content(results)(results)

CompetenciesCompetencies(behaviors)(behaviors)

++WHATWHATwe dowe doWHATWHATwe dowe do

HOWwe do itHOW

we do it

A Broader Definition of Success

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The SCP Position Framework

B U C K N E LL

Broad descriptions were categorized for each career bandbased on the same Job Content Factors:

Typical Role

Accountability & Impact

Judgment & Problem-Solving

Typical Education & Experience (Knowledge, Skills, Abilities)

Leadership/Mentorship

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An example of 3 of our career bands

B K ETypical Role Semi-skilled and skilled staff exercising some

independent judgment in following instructions and established policies and procedures to perform a variety of routine and some non-routine tasks in office or non-office settings

Support to more technical level jobs Requires direction but works autonomously with

superior available to answer questions or handle unusual situations

Interprets and applies University policies, manages resources and initiates actions to achieve broadly defined objectives

Individual contributors apply or impart their own experiences and the advanced concepts, practices and procedures of their specialty field to achieve objectives

Provides input into the budget planning process and is responsible for controlling and recommending budget expenditures within a scope of authority

May oversee day-to-day operations of a segment of a department

Responsible for managing resources and/or a major department as a senior level manager

In-depth knowledge of the profession– Understanding of the broader University operations– Deploy department resources to achieve objectives– Responsible for managing a budget and controlling expenditures

Accountability and Impact

Makes decisions on a day-to-day basis based on clear instructions that typically impact the immediate work group or area

Consults with others on difficult situations and shares responsibility for decisions

Provides final approval on policy decisions that affect the department or multiple departments

Judgment and Problem Solving

Work is assigned and performed under occasional direction

Work is reviewed for accuracy and adequacy, and measured against established standards

Unusual problems are referred to supervisors or more experienced staff

Work is done independently Plans own workload prioritizing key tasks and ensures

the appropriate allocation of time and effort to achieve the required results

Results are reviewed by others to ensure compliance with Bucknell’s processes

Encounters difficult problems Researches and analyzes alternatives involving many

factors to arrive at solutions

Works with little guidance under the University’s policies Acts with considerable latitude in the scope of work activities Encounters problems where the facts may be insufficient or misleading Anticipates problems that incorporate the University areas or

departments

Typical Education and Experience

A High School degree or equivalent Some experience preferred but less than 1

year is required

A Bachelor’s degree or possibly a Master’s degree At least 4 years of comprehensive experience related to

the job

A Bachelor’s or Master’s degree At least 7 years of comprehensive experience related to the job

Leadership/ Mentorship

Works collaboratively with others in the completion of work

Willingly helps others who need additional support and information

Assigns work, trains or advises other staff in developing their skills

Actively encourages others to make decisions and take action

Actively participates in group projects and encourages others to work collaboratively

Provides information and advice to those who have decision making responsibility

Leads, mentors and motivates others to integrate the objectives of the University

Facilitates the alignment of goals across the University Leads staffing decisions, setting work objectives and training and

coaching of staff Supports a team culture that promotes collaboration across departments

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Distribution within the SCP Position Framework

Career Band0

50

100

150

200

250

B U C K N E LL

Non-Benchmarked BenchmarkedCareer Band

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Proposed New Staff Salary Structure Based Upon the Market Analysis

Band Minimum Maximum Range Spread

B 14,600 23,400 60.00%

U 16,400 29,500 80.00%

C 19,300 34,700 80.00%

K 23,500 50,500 115.00%

N 33,700 72,500 115.00%

E 46,200 104,000 125.00%

LL 61,500 138,400 125.00%

Note: Based upon market data, not actual Bucknell salaries.

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Positioning & Managing Pay Within the Career BandsC

are

er

Ba

nd

Maximum

Minimum

• The low end of the market range for jobs within the career band

• The lowest base salary to be attained in the career band

• The high end of the market range for jobs within the career band

• The highest base salary to be attained in the band, but not necessarily for each job in the band

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An outdated hourly structure & no salaried structure

Unrelated across campus

1 compensation framework encompassing

salaried & hourly jobs

Multiple salary grades Narrow ranges

7 career bands with wider rangesMore flexibility in managing pay

No common definition of jobsBetter understanding of jobs,

grouped into career bands around similar job content factors

Before July 2004 beyond

Structure focused on pay Structure focused on pay and staff member’s performance

What we have achieved

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Unique Features of the Process

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Unique Features of the SCP Process

1. Extensive Staff Involvement

2. Transparent Communication

3. The Bucknell Culture

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1. Extensive Staff Involvement

The Campus Advisory Group guided the process

Staff pilot-tested the Job Profile

All staff did Job Profiles (even multiple incumbents)

Staff teams created Core Competency stories

Advisory Group members presented at Open Forum sessions

Staff placed their own positions in the Framework

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Position Placement Process

Staff

Dept &/orDivision

Head

Supervisor

HumanResources/Mercer HR

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2. Transparent Communication

Buy-in from the President’s Staff & Trustee Compensation Committee

Ongoing messages from the VPF&A to the staff SCP Website with all communications and FAQs Numerous Open Forum Sessions One-to-one sessions with Division Heads Published framework, placements, salary structure,

& SCP Guidelines

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For More Information About Bucknell’s Staff Compensation Program

Consult the SCP website, dedicated to providing up-to-date information about the Staff Compensation Program

The web address is: http://www.bucknell.edu/StaffCompensation/

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3. The Bucknell Culture

Strong leadership at the mid-level

High sensitivity to “being at the bottom of the barrel”with an acknowledgment of common core competencies

Tremendous pride and work ethic – Bucknell Stories

Expectation of openness and information sharing

Understanding that it takes all of us to make BUCKNELL

Campus-wide, weighted equity approach, allocatingmore to less-highly compensated who are farthest from their target salaries

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Why are we doing this?

Staff input & ownership in this University-wide Program is important.

Staff members & their supervisors are most knowledgeable about the jobs.

Active involvement will help staff members better understand and be engaged.

We need to recognize, value, and respect every level of contribution.

It takes all of us, in each of our roles, to make Bucknell successful.

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Taking theCore Competencies into the Future

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Building Upon the SCP FoundationIncorporating the Core Competencies

Recruitment & Career Pathing– How can we identify and attract candidates who can and will

exhibit the Core Competencies?

Staff Development & Training– How can we assist staff in mastering the Core Competencies?

Performance Management– How can we reinforce staff commitment to the Core Competencies?

Recognition– How can we recognize and reward staff who consistently demonstrate the

Core Competencies in their work at Bucknell?

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Building Upon the SCP FoundationIncorporating the Core Competencies

Recruitment & Career Pathing

Jobs at Bucknell online recruiting site features the Core Competencies https://jobs.bucknell.edu

Interview questions incorporate the Core Competencies Example: Tell me about a time when you went the extra mile to help a customer.

Distribute Core Competency wallet cards to all current staff & new hires

Published SCP Framework outlines career path opportunities

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Building Upon the SCP FoundationIncorporating the Core Competencies

Staff Development & Training

Incorporating Core Competencies

Highlighting Core Competencies in University newsletters and other communications

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Building Upon the SCP FoundationIncorporating the Core Competencies

Performance Management

Incorporating Core Competencies into Job Descriptions

Revised Merit Categories to reflect both job responsibilities & core competencies|

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Bucknell Merit Categories, FY 05-06

Consistently exceeds job requirementsConsistently serves as a role model for demonstration of competencies leading

to outstanding results

Meets and often exceeds job requirementsFrequently demonstrates an advanced ability in competencies to achieve and

exceed results

Successfully meets job requirementsFrequently demonstrates

competencies to achieve expected levels of performance

Meets some but not all job requirementsSometimes demonstrates

competencies to achieve expected levels of performance

Frequently does not meet job requirements Has significant gaps in demonstration of competencies

CE

ME

SM

MS

FM

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Building Upon the SCP FoundationIncorporating the Core Competencies

Recognition

Incorporated Core Competencies into Criteria for University staff awards

Acknowledge staff contributions in termsof the core competencies|

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In Review . . .

Provided an overview of the Staff Compensation Program (SCP) Implementation

Reviewed Results & Outcomes

Highlighted Unique Features of the Process

Built upon the SCP Foundation

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Compensation thatReinforces & Enhances Culture

Session 5B

Thank You!