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Compensation Systems Initiatives


									                           Indiana University

December 6, 2005

Compensation System Initiative

Salary Administration Program Update
Recap of Last Meeting
Design Recommendation

   The adoption of broad grades were felt to best reflect the University’s
    compensation philosophy
     – An appropriate number of grades to recognize notable differences in jobs
     – Midpoints that carry meaning in capturing the market value of the jobs
     – Moderately wide ranges to allow the campuses and departments flexibility
       in managing pay within reasonable limits

    Traditional Structure                     Broad Grades                      Broad Bands
    Range Spread: 40%-60%           Range Spread: 60%-110%           Range Spread: 120%+
    Midpoint Differential: 8%-12%   Midpoint Differential: 15%-30%   Midpoint Differential: not a focus

Mercer Human Resource Consulting                                                                          2
Recap of Last Meeting
Design Recommendation

Broad grades have been created within a job family and career leveling framework
that may be linked to market
      10 Distinct Families Have Been Identified                                       6 Career Levels Have Been Defined

 1.     Administrative Services
 2.     Student Services
 3.     IT/Computing Services
 4.     Auxiliary Services (Housing, Transportation, Retail            Professional         Professional         Professional
                                                                             1                    2                    3
        Sales, Communication Services, Foods)
 5.     Health Services
 6.     Instructional Support Services
 7.     Safety & Security Services                                           Professional         Profession
                                                                                                      al                 Professional
                                                                                   4                    5                      6
 8.     Sciences Services                                                                              6

 9.     Communication & Marketing Services
 10. Facilities Services (Physical Properties, Operations
     and Storage and Inventory)                                             Levels have now been further refined to reflect
                                                                            the overlap that exists between subject area
 11. Other (a specific family will be created to
     accommodate this group)
                                                                            experts and management

Not every job family may utilize all of the career levels. Span of progression depends on nature and variety of work, complexity of
assignments, and the degree to which recognizable differences can be identified.
 Mercer Human Resource Consulting                                                                                                       3
   Recap of Last Meeting
   Job Family Categories

   The definitions have been further refined to capture the variety of positions
CSI Job Family                                                                              Job Categories
Administrative Services               Includes business managers, budget officers, bursars, accountants, payroll, purchasing, human resources, faculty/staff
                                      records, affirmative action, administrative assistants, compliance, staff development/training, grant and contract
                                      management, estimators/ customer services, and management analysts.

Student Services                      Includes academic advising, counseling, placement, scholarships and financial aid, student records, admissions, career
                                      services, recruitment and retention, student newspaper, pre-college student outreach, living learning centers, work
                                      related to student conduct and academic health, and on-the-job training as it relates to students majors such as Director
                                      of Opera.

IT/Computing Services                 Includes positions in computing, development, operations, systems analysis, data/reporting analysts, and services
                                      including managers over these functions.

Auxiliary Services (Housing,          Includes student housing, hotel operations, bookstores, bus, parking, motor pool, nutrition, dietetics and the serving or
Transportation Retail Stale, Foods)   catering of foods, child care and other auxiliary professional staff who don’t fit in another category including outdoor
                                      adventure programming, and club and intramural sports.

Health Services                       Includes positions directly involved in health care including therapists, nursing staff, clinical research, psychologists,
                                      optometry, fitness, wellness, and physical health professionals.

Instructional Support Services        Includes instructional, research and curriculum development support library professional staff, positions involved with
                                      the development and training of educational programs, tutoring, teacher certification, and student testing.

Safety and Security Services          Includes environmental health and safety and security and police.

Sciences Services                     Includes geologists, physicists, chemists, lab professionals, bench research, principal investigators of research
                                      projects/research, social scientists, economists, demographers, and statisticians.

Communication and Marketing           Includes positions in radio and television, film, graphics, photography, writers/editors, audio-visual, and others involved
Services                              with development and promotion of University relations, marketing, ceremonies/events and community outreach.

Facilities Services (Physical         Includes engineers, architects, drafting/AutoCAD, crafts, building and ground maintenance, custodial management,
Properties, Operations and Storage    central stores and warehouses, lab managers other than those that fit into a category above.
and Inventory)

Other                                 Includes athletic coaches, attorneys, and others few in number which do not fit in other job families such as family
                                      services, disability counseling; and accessibility.

   Mercer Human Resource Consulting                                                                                                                                 4
    Recap of Last Meeting
    Career Level Definitions
    Broad career level definitions have been defined that may be applied across job
    families to ensure rational treatment and consistency

                       Career levels have been defined based on
Professional           complexity, scope of impact, autonomy, and
                       knowledge required.                                                                Nature of work entails
                                                                                                          extensive subject area
                                                                                                        expertise which has broad
                                                                                                       impact or the management
                                                                                                       of a large program/project,
                                                                                                          department or multiple
                                                                                                        sub-units with substantial
                                                                                                        responsibility for business
     5                                                                                                   planning and managing
                                                                                                          multiple levels of staff

                                                                           Nature of work entails in
                                                                             depth knowledge of
                                                                             specialized area or
Professional                                                                  leading and/or the
     4                                                                        management of a
                                                                           department or large sub-
                                                                             unit with significant
                                                                               responsibility for
                                                                                managing staff

Professional                                   Nature of work entails
     3                                         strong knowledge of a
                                              particular subject area or
                                                the management of a
                                                  project, program,
                                                 function, or section
                                               which may include staff
Professional                                          supervisory
     2                                              responsibilities
                      Nature of work is
                                                                           Career levels are based on job attributes, not
                      programmatic, or
                    logistical in providing
                                                                           personal attributes.
 Professional         key support to a
      1             department, function
                      or operating unit

    Mercer Human Resource Consulting                                                                                                  5
Recently Completed Activities
Market Benchmarking Update

   The market data gathered in 2004 has now been refreshed to include
     – 2005 salary data from this year’s survey publications
     – The incorporation of additional market data, where appropriate, to capture
         New benchmark jobs for certain job families and career levels that had
          limited or no market representation
         New survey data that was not previously available

   The survey data has also been time adjusted forward so that it is current with
    the market as of July 2006
   Market data for the benchmark jobs organized by job family and within job
    family by career level is provided under separate cover

Mercer Human Resource Consulting                                                     6
Recently Completed Activities
Benefits Review

   Recognizing that the University’s pay philosophy is to be competitive from a
    total compensation standpoint, it is important to be aware of the impact of
   A high level review of the University’s benefits was therefore conducted by
    Mercer to assess market competitiveness
   A broad peer group of general industry and higher education employers from
    Mercer’s benefit database was identified to compare against
   As a whole, the University’s benefits exceed the median of the peer group
   The competitive positioning was driven by favorable comparisons in the
    Retirement/Savings and Time Loss areas, offset by slightly below median
    comparisons in the Health/Group area

Mercer Human Resource Consulting                                                   7
Recently Completed Activities
Review and Placement of Jobs within Families and Levels

The Administrative job family has largely been completed while career level guides
for the other families are continuing to be developed

Career level guides for the Human Resources subfamily have been now been
created and are provided for your information. Additional level guides for this
family are in the process of being finalized for the subfamilies of: (1) Compliance,
(2) Finance/Administration, and (3) Purchasing

  The Project Team is               Jobs are being         The slotting of
  currently developing              reviewed for           employees to jobs
  career level guides               placement within       and levels will
  tailored that is tailored         the career level       require input from
  to each job family. In            that most              Responsibility Center
  most instances,                   appropriately          Managers to ensure
  multiple level guides             captures the           accuracy and
  are being developed               nature of work         fairness.
  to address sub-                   performed.

Mercer Human Resource Consulting                                                       8
Recently Completed Activities
Pay Structure Design—Administrative Job Family

The following broad grades and ranges have been developed to reflect the market
for the Administrative job family with jobs having been mapped to the career level
that best captures their market
         Professional   Purchasing Director… $102,674
              6                                            $72,706    $98,880   $138,141
                        HR Director… $98,142

         Professional   Training Manager… $76,217
              5                                            $56,937    $75,840   $104,195
                        Bursar… $83,504

                        Compliance Specialist 2… $57,469
                        Purchasing Supervisor… $57,292     $44,037              $77,945
              4                                                       $57,600
                        Budget Analyst, Senior… $64,431

                         Budget Analyst… $49,094
              3          Financial Analyst… $50,533
                                                           $37,267    $48,000   $64,099
                         Purchasing Agent… $45,797

         Professional    Accountant… $42,799
              2                                             $31,698   $40,320    $53,253
                         Contract & Grant Admin… $44,117

                        Accounting Specialist… $38,590     $27,429    $34,560   $45,257

 Mercer Human Resource Consulting                                                         9
Recently Completed Activities
Pay Structure Design—Administrative Job Family

Bilateral pay ranges have been developed for those career levels where the
market recognizes differences in job scope based on campus size

                                                           Bursar – Bloomington / Indianapolis
          Professional                                     Bursar – Regional Campus


          Professional                                                                       Regional Campus
               3                                                                             Bloomington and Indianapolis



                                   $20k   $50k   $80k   $110k              $140k                 $170k
Mercer Human Resource Consulting                                                                                    10
Recently Completed Activities
Mapping of Benchmarks—Administrative Job Family

The benchmark jobs within the Administrative job family have been
mapped to the career levels along with their market rates and proposed
salary ranges

This information is being provided under separate cover for your

Mercer Human Resource Consulting                                         11
                Recently Completed Activities
                Pay Policy Guidelines

                Pay policies have been drafted to address how vertical and horizontal salary
                movement would occur as well as how other pay actions would be handled

                The draft pay policies have been provided under separate cover

                        Job Attributes
Vertical Movement

                                        Professional 3 Development            Market            Expert

                              Professional 2           Development       Market        Expert

                        Professional 1 Development                   Market        Expert

                                                          Horizontal Movement

                                                             Personal Attributes

                    Mercer Human Resource Consulting                                                     12
Communications Plan

   A strategy for communicating and implementing the results is in the process of
    being developed
   Key factors being considered include:
     – Identifying the audiences
     – Formulating the key messages
      – Determining the mode of communication
      – Establishing a schedule for communicating and educating IU stakeholders

Mercer Human Resource Consulting                                                 13

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