The HCC Compensation Study: Questions & Answers
February 2008
Page 1The HCC Compensation Study: Questions & Answers
February 2008
Why was a compensation study needed?
HCC believes that the quality of the college comes from the excellence of its employees. To attract and retain excellent employees, HCC must offer pay scales that are competitive with other employers. A compensation study is done periodically to see how we compare to community colleges, government, non-profit organizations, and private companies in the region. While the office of human resources regularly conducts targeted job studies, the last college-wide comprehensive study was done in 1998.
What jobs were studied?
The study covered all of our budgeted faculty and staff. Every staff job description was reviewed by the consultants. The office of human resources worked with the results to identify improvements for temporary workers and our temporary wage scale; those recommendations include improvements to the temporary wage scale July 1, 2008 and July 1, 2009.
What did the study find?
The study produced three major findings:
- Viewed as a whole, the college salary ranges were found to be nearly on par with other community colleges, but had fallen behind local employers, especially at higher administrative grade levels.
- While the salary ranges are at market rates, some individual salaries are low.
- The college has grown in function and complexity and job responsibilities have changed for many staff. The current staff grade structure and classification of some staff jobs needs adjustment.
What did the study recommend?
The consultant’s recommendations include:
- Reclassification of certain staff positions
- A 20 grade staff structure
- Lengthening HCC’s salary ranges with larger increases to faculty and staff range maximumsto provide additional opportunities for salary advancement based on performance
- Analysis of salary ranges should continue to occur annually to remain competitivewith thejob market
Why are salary midpoints significant?
Most companies offer salary ranges for various categories of jobs. The midpoint of a particular range – halfway between the minimum and maximum -- is considered the “going market rate” for that type of position. The compensation study compared the midpoints of HCC’s salary ranges with the midpoints of other employers. The closer our midpoints come to theirs, the more competitive HCC can be in the marketplace.
How will salary schedules change?
The current staff schedule has 19 grades and the new system will have 20 grades. The new schedules provide more opportunity for pay growth for faculty and staff based on performance. They are posted for your review at (link here).
Will this cause a change to which constituency group I am in?
Possibly, since staff constituency group membership is guided by position grade; there is no change to faculty. The Support group will continue to be grades 1-7. The Professional/Technical group will be grades 8-14. The Administrator group will be grades 15-20.
Can I add one to my current grade to determine my new grade?
No, it is not possible to make assumptions. While we are going from 19 grades to 20 on the staff system, not everyone is changing and some job classifications are changing more than one grade. As a result, the study will mean different things to different people.
Is my new job description available?
Yes, all FY09 staff job descriptions have been posted on the intranet. We encourage you to review it for accuracy and discuss any questions with your supervisor. The FY09 grade and job title will be updated in May.
How will I know what my grade will be?
In a few days, Human Resources will send each staff employee a personal notification detailing FY09 grade and title.
What if I do not agree with my new grade?
There have been several checkpoints during the entire study to ensure the accuracy of the individual job evaluations/pay grade. It is the expectation that the study is 99% accurate. However, 100% accuracy is the goal. Therefore, there are three more checkpoints remaining. First, all supervisors should re-verify the job descriptions posted on the Intranet for employees reporting to them. Employees also are welcome to check on the job description for their position and discuss it with their supervisors if they have any questions. The second checkpoint will be the appeal process which will take place throughApril 14. Appeals will require extensive justification. Area vice presidents in consultation with Charles Hendricks will review any appeals and make final decisions by May. Finally, we will resume our annual reclassification process during the FY10 budget cycle.
How do I file an appeal?
If appropriate, please request the appeal form from the office of human resources, complete the form with detailed justification and submit to your supervisor for comments prior to April 14. The supervisor must sign and submit the form to the office of human resources no later than April 14.
How would the job classification (grading) process change?
There will be no change in how jobs are evaluated. The current system looks at seven factors: job complexity; education and experience; scope and impact; supervision received; working relationships; working environment; and physical demands.
How would performance evaluations change?
There will be no change in the performance management system. The current performance appraisal procedures will remain.
Will anyone get a cut in pay?
No.
Will everyone get a raise?
Since recommendations will be implemented on July 1, 2008, all budgeted employees will receive the approved FY08 annual merit award consistent with our past practice (our average merit is still pending county approval). Faculty and staff positions that fall below the new salary range minimums following FY08 merit will get moved to the new salary range minimum for employees meeting or exceeding job expectations.
Some staff positions are getting reclassified. Staff positions getting reclassified one grade will not get any additional salary since that was the result of moving from a 19 to 20 grade system. Staff positions getting reclassified two or more grades will get 5% per grade consistent with past practice for reclassification. Faculty promotions continue consistent with past practice.
How will merit raises be calculated this year?
We will continue to use our current merit formulas. The exact average merit can not be determined until after the budget is approved. As in past years, the amount of funding available, the average merit increases, and the formula for each merit level will be sent to all employees via e-mail.
How will we hire while the study is being implemented?
Starting salaries for new employees will be based on official budgeted employee start date. New staff with start dates before July 1will get placed using the current salary schedules then moved up to the new salary schedules on July 1, if necessary and appropriate. Faculty and staff with start dates after July 1 will be placed using the new salary schedules (new FY09 faculty start in August and will use the new salary schedules even if their offer is made before July 1, 2008).
How much will these recommendations cost?
The actual cost to raise employee salaries to the new salary range minimums will vary depending on our final approved average merit since average merit increases salaries. A greater merit will create a smaller cost and a smaller merit would mean a greater cost. We expect this to be affordable. The college administration has made funding these recommendations,estimated at $205,641, a priority. The collegewill continue to seek the highest level of average merit award possible to be approved by the county.
What happens next?
At the January 30 meeting, the HCC Board of Trustees decided to pursue full funding of the compensation study’s recommendations. Our budget is being submitted to the Howard County Executive this month and we remain optimistic that it will be supported. The County Executive will decide how much of the budget request he is willing to incorporate into his budget, which he will pass along to the County Council in April. The County Council adopts the final budget in May.
College administrators will be presenting at constituency meetings about the study and keep you informed of our budget process.
What if the county does not approve full funding?
HCC will make adjustments to the extent funding will allow. Then, in keeping with the Board of Trustees’ commitment, we’ll explore longer-term strategies for attaining the goal.
Who did the study, and how was the research firm chosen?
At the February 2007 board meeting, the board of trustees approved the hire of the Washington, D.C. firm,Hendricks and Associates, based on their experience and expertise. They have led major compensation studies for seven other Maryland community colleges. Mr. Hendricks, President, has over thirty years of experience. He has performed hundreds of compensation related consulting engagements for major corporations, international organizations and school systems. This firm developed our salary plans in 1998 and continued to assist us with market based studies every other year, including our average merit and salary ranges for July 1, 2007.
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