Overview of the FY06 Compensation Study · Web viewCompensation Study Overview Developing a...

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Final Report Office of Human Resources June 19, 2006 Presented to the ACC Board of Trustees

Transcript of Overview of the FY06 Compensation Study · Web viewCompensation Study Overview Developing a...

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Final Report● ● ●

Office of Human Resources

● ● ●June 19, 2006

Presented to the ACC Board of Trustees

Updated July 2006

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TABLE OF CONTENTS

EXECUTIVE SUMMARY

COMPENSATION STUDY OVERVIEWDeveloping a Compensation PlanIntroductionNeed for StudySelection of the ConsultantObjectiveSupport of Employee ContributionCompensation Study informationTimeline

CLASSIFICATION PHASEPAQ ProcessInterviewsAnalysis of JobTitlesTitle Protocols and Job FamiliesJob DescriptionsFLSA Exemption Status ChangesJob Grades and Internal StructureACC Title ProtocolsAdministrative and Clerical Support Group Title ConversionsAdministrative and Clerical Support Group Major Duties by Title

COMPENSATION PHASEDirect Market PricingThe Market StudySalary Ranges/Job GradesLiving WageMethodology for Conversion of Employee SalariesComparators

CONSULTANT RECOMMENDATIONS

APPENDIXProject Scope and MethodologyFrequently Asked Questions (FAQs)

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Executive Summary

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ACC CLASSIFICATION AND COMPENSATION STUDY EXECUTIVE SUMMARY

Public Sector Personnel Consultants was engaged to conduct a Classification and Compensation Study for all non-faculty positions in ACC. The study began October 21, 2005. The consultant was responsible for creating job descriptions, reviewing/recommending job titles, reviewing exempt/non-exempt status of positions, creating job families, collecting market data and using it to create external value of jobs, integrating internal equity and creating a new compensation system.

There were two parts of the study: a classification phase and compensation phase. The classification phase included identification, review and analysis of work being formed in various positions and using that data to create job titles, job descriptions and a new job family structure. The compensation phase included a market survey of comparative organizations, analysis of each position to the market and recommendations for conversion to a market based system.

Goals of the study were to create a classification and compensation plan that is:1. Externally competitive Salary alignment with market2. Internally equitable Job alignment within job family & college-

wide3. Readily updated Market sources and data available4. Easily understood Systems are not complex 5. Fiscally responsible Equitable salary adjustments

Compensation Methodology Market survey data aged to September 1st, adding 4% within market data Salaries moved to FY07 rate (4% annual increase added) Salaries analyzed for salary range Established 5 years as being at market (100%, or midpoint, of salary ranges) All salaries under range minimum moved to minimum All In-Range adjustments made, capped at market (range midpoint) Changes effective September 1, 2006

The decisions made in the compensation methodology were all made in favor of the employees. The annual 4% increase was given in addition to adjusted market data.

Market = employees with 5 years experience. Employees with less than 5 years will be at less than market.

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OutcomesExempt Non-Exempt Total

Incumbents in Study (Excludes vacancies)

298 606 904

Number at or above Market Average 233 (78.2%) 441 (72.8%) 674 (74.6%)Number receiving an adjustment (Min., Market, or Both)

146 (49.0%) 338 (55.8%) 484 (53.5%)

Number receiving Min adjustment only

19 98* 117

Number after receiving 4% ending at or over market

115 205 320

*Many Non-Exempt jobs are entry level or lower skill set jobs

Recommendations1. Use a Salary Range Table with equal in-range opportunity for all jobs.2. Adjust salaries identified as below minimum of salary range for their position.3. Adopt a one-time implementation plan to place employees within their respective

salary ranges closer to the prevailing rates on the basis of their current place within the salary range for their job class, years of service, Compa-ratio and fund availability.

4. An employee whose current salary exceeds the maximum of the new salary range for their job classification should remain fixed until the job class is reassigned to a new range based on updated surveys in future years. If the Board desires to provide cost of living increases, these payments can be made by supplemental paychecks rather than compounded into the employee’s annual salary.

5. Annually update the salary plan by reallocating job classes to different ranges reflecting individually varying prevailing rate movement of each class.

6. Develop and implement a comprehensive program and materials to communicate the College’s updated FY07 Compensation Plan to all employees.

7. Use the open salary schedule and hire new employees closer to the Living Wage of $11.12.

ISSUES FOR THE ACC BOARD OF TRUSTEES: Implementation of the Living Wage – Does the Board want to set the minimum

salary to be paid to employees at the Living Wage ($11.12 hr/$23,130.00)? Does the Board agree with meeting the market at 100% at the 5 years of experience

range? Does the Board support freezing the salaries of employees that fall above the

maximum rate of the appropriate salary range?If such salaries freeze, will employees receive future annual increases?

Budget impactEstimated cost to bring incumbents to minimum = $181,000Estimated cost of In-Range adjustments = $1.7 million

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Overview

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ACC CLASSIFICATION AND COMPENSATION STUDY REPORT

IntroductionIt is critical that ACC provide a compensation plan that has competitive salaries and benefits in order to attract and retain good employees. The traditional methods of compensation administration are no longer adequate and it is essential to incorporate more market data in the analysis of competitive salaries. In the mid 1990’s, ACC adopted the Decision Band Method™ of job Classification for staff positions. The internal relationship of positions and salary levels of job titles were determined by the level of decisions for which each job was responsible. Titles with the most complex and most impacting decision levels were at the highest salary Levels and titles with the lowest level of decision making were classified in the lower salary Levels.

Over the past decade it became evident that this system of job classification was not responsive to ACC’s growth or to the job market. In addition, the administration of the plan created several problems including:

The Levels were combined over the course of several years, and new salary tables were created to accommodate the need to respond to job market changes and pressures.

Separate salary scales were created for Information Technology and for Sign Language Interpreters.

Titles were slotted into Levels based on market pressures, without taking into account the internal relationships among the titles.

Additionally, increasingly higher Steps were added to the salary scales to accommodate employees whose salaries were at the top of the scale.

Salary compression was made by applying the Living Wage rates to some titles in the lowest salary Levels.

By 2002, the salary scales bore little resemblance to the original scales. A staff Compensation Study was conducted by Fox Lawson, the company that owned the rights to the Decision Band Method™ of job classification. Recommendations were made to change the salary scale ranges, but they were not implemented due to the severe budget constraints in FY03.

Need for the Classification and Compensation StudyThe Classified and Professional-Technical Associations supported the need to review the ACC Compensation Plan and review the compensation policies. The policies indicated market averages at 95% yet, only some benchmark positions were surveyed each year and the validity of the data was dependent upon the response of the other institutions. The administration and associations agreed it was time to overhaul the Compensation Plan.

In FY04, a Compensation Committee was formed to analyze the need for changes in the compensation structure at ACC. The Compensation Committee, Chaired by the Compensation Manager and comprised of representatives of the Classified and Professional-Technical employee groups and of Administrators, met frequently and

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researched different Classification and Compensation methodologies. The Committee met frequently in the fall to:

Study classification and compensation theory and methodologies; Identified issues that needed to be addressed and/or changed; Make recommendations; Review the RFP and read proposals; Recommend a consultant organization; Guide the PAQ process; Review and established priorities for interviews; Made suggestions for establishing market comparators; Review guidelines for the appeal processes and review forms used; Review the new job description format; and Assist with employee communication.

The administration supported the need for the study and on July 5, 2005 the Board of Trustees approved $300,000 in the FY06 budget to conduct the Classification and Compensation Study.

Selection of the Consultant During the summer of 2005, a RFP was issued for a Classification and Compensation Study. The Compensation Committee reviewed the proposals submitted proposals and voted after much deliberation to select Public Sector Personnel Consultants (PSPC) to conduct the Compensation Study.

The strengths of PSPC included: PSPC was expert in conducting compensation and classification studies in the public

sector, and had past experience with over 50 institutions of higher learning, including large and small universities, four-year colleges and with community colleges.

The PSPC staff had exceptional credentials and experience at the expert level. PSPC understood and recommended Market Value Pricing PSPC was willing to work in collaboration with ACC’s shared governance practices PSPC met all the requirements of the RFP and offered an additional end product of

EZComp, a computer program to assist ACC in future administration of market placement.

ObjectiveThe objective of the study was to create a classification and compensation plan that is externally competitive, internally equitable, readily updated, easily understood and fiscally responsible.

The study was designed in two phases: Classification and Compensation. Classification included the identification, review, and analysis of work being performed at ACC, and creating a new job structure. Compensation consisted of a market survey of comparators, analysis of each ACC staff position to market, and recommendations for conversion of our

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current compensation methodologies to a market based system. The Compensation phase of the study included conducting market surveys for Classified and Professional-Technical staff, and Adult Education Instructors. In addition, the consultant was expected to gather data on full-time faculty salaries for comparative purposes.

Support of Employee Contributions In view of the contributions made to the college by the Classified and Professional-Technical employees, the Administration assured employees that:

No employee’s base salary would be lowered as a result of the study; No employee would lose their job as a result of the study; and The entire process of the study would be transparent to the employees. HR

Compensation would communicate to employees about each phase and step of the study.

Compensation Study Information A special website, http://www.austincc.edu/hr/compensation/compstudy/index.php, was created for the study to ensure that all employees had access to information about the processes and progress of the study. The website was organized to reflect the current phase of the study and archive past information. Included on the site was:

The Compensation Study announcement letter from the President Streaming video and Power Point presentations of information and training sessions Frequently Asked Questions (FAQ’s) for each phase of the study Forms with instructions on how to use them Process explanations targeted at employees and supervisors Support data for the PAQ process, such as definitions of job titles and actions verbs Information updates as the study progressed over time FLSA information and resources Results of the study, such as job families

Once the budget is approved, the study website will also show the new salary ranges, job families and jog grades, and positions within departments. It will not include individual employee data.

TimelineThe Compensation Study was conducted in these phases:

Phase 1 – Implementation and administrationPhase 2 – Classification StudyPhase 3 – Labor Market Data Collection and AnalysisPhase 4 – Compensation AnalysisPhase 5 - Budget impact report and consultant recommendations

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ACC Classification and Compensation StudyTimeline and Status

Implementation and Administration Responsibility Party Status

1. Consultant awarded contract Contract signed

HR Compensation Completed – Sept. 2005October 21, 2005

2. Consultant met w/HR to review project and timetable

HR Compensation Completed – October 27, 2005

3. Consultant met with Compensation Committee

Compensation Consultant

Completed October 27, 2005

4. Employee communication HR Compensation November 10, 2005 –project end

Classification Study Responsibility Party Status

1. Write draft job descriptions Consultant February –April, 20062. PAQ process Employee interviews

EE/supervisor/consultant

11/28/05 – 1/13/06January 23-26, 2006

3. Create job families Consultant Completed February 28, 20064. ACC review and appeal of job titles

Consultant Completed May 8 – 12, 20065. Establish internal structure of job families ACC Leadership Team Completed 6/6/066. Advise employees of final decisions on title appeals and exempt changes

HR Compensation Completed 6/10/06

7. Provide administrators with final Classification information

HR Compensation Completed 6/10/06

8. Finalization of job descriptions PSPC/HR Compensation 06/8/060-07/28/06Compensation Study Responsible Party Status

1. Identification of benchmarks and collection of market data

PSPC Completed – 6/06

2. Application of market data and creation of a proposed pay structure

PSPC Completed – 6/06

3. Conduct Living Wage analysis; analysis of cost of living

PSPC Competed 6/06

4. Consideration of options and budget impact

PSPC, Budget and HR Compensation

Completed 6/06

5. Recommendations and budget considerations to the ACC Board of Trustees

PSPC and HR Compensation

Scheduled June 19, 2006

6. Communication to employees and campus meetings

HR Compensation 7/06

7. Budget approval Business Services 7/5/066. Implementation HR Department 9/01/06

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Developing a Compensation Plan

Classification

Compensation

Job descriptions/Job Titles

Structure and Relationships(Job Families)

Market Data Comparables Size of Organization Reporting

Relationships No. EES Supervised Experience req.

varied Not scientific Not exacting

Grade/Pay Ranges

Internal Equity Comparables Level of

responsibility Experience required Reporting

Relationships

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Classification Phase

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CLASSIFICATION PHASE

The Classification Phase of the study included: the Position Analysis Questionnaire process; the creation of job families; determination of FLSA exemption status; creation of job descriptions; and setting the internal relationship in job families and throughout the college.

The PAQ Process Every employee was asked to complete a Position Analysis Questionnaire (PAQ)

form to provide detailed information about the work they perform. Training sessions were held at all campus locations and posted to the Compensation

Study website for both employees and supervisors. Each PAQ form was reviewed by the immediate supervisor and additional

supervisory levels based on the department structure. Each level of supervisor was asked to review the employees’ PAQ forms and agree,

disagree, add to, or clarify information in it, and keep employees informed. Once completed, the PAQ forms were all copied and sent to PSPC where they were

read three or more times each, analyzed, and classified into new job families and job titles.

Job descriptions were written from the PAQ forms, and they, and the PAQs, were used as the basis of comparison in the market survey.

Employees who completed a PAQ form were given the right to appeal the results. PSPC conducted analysis of the PAQs

InterviewsDuring January 2006, the consultant conducted 115 comprehensive job interviews with ACC employees. The purpose of the interviews was to verify the data on the PAQ forms obtain additional insight into the scope and complexity of the job duties and discuss job duties and technical processes.

The interviews were conducted primarily on non-benchmark positions or positions that were difficult to match in the salary survey. In addition, departments with many titles that met the criteria were asked for recommendations for interviews. Requests for reclassification (upgrade) were included in the PAQ process.

Analysis of Job TitlesReducing the number of titles was a goal of the Compensation Study. Prior to the study, there were 328 titles at ACC – 232 Professional-Technical titles and 96 Classified titles. The majority of the Prof-Tech titles (84%) were unique to one incumbent and 42% of Classified titles were unique to one incumbent. Through the interview process, 55% of the Classified positions and 34% of the Professional-Technical positions were represented. There were group interviews which were limited to five employees. For group interviews, the selection criteria included campus location, type of job duty, and length of time in the position.

At the conclusion of the study, there were 161 Professional-Technical titles and 127 Classified titles for a total of 288.

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Title Protocols and Job FamiliesTitles protocols were created by the consultant to help define certain titles:

The titles of Director, Manager, and Supervisor maintained their current hierarchical relationship.

Coordinators, Specialists and Technicians were defined, but became lateral titles rather than hierarchical. These titles could now be both exempt and non-exempt under FLSA guidelines.

Titles were grouped together by function into job families. The job families were grouped into job series, which are somewhat aligned within

departments. Jobs within each job family progress and create career ladders in most case The formation of titles had two appeal process; one by Administrators and one by

employees. The Leadership Team reviewed the titles and appealed some of them. Some changes, primarily for consistency, were made. Later, the employee could appeal their title as well, and add to or clarify information included in their PAQ form.

Job DescriptionsJob descriptions were written from the PAQ forms and to meet the deadline in April, PSPC hired additional writers. The result was that they were written in several voices and contained some errors. To correct this, PSPC agreed to rewrite them using only one writer. The draft job descriptions were shared with the employees who reviewed them with their. All suggestions were forwarded to PSPC for review. Some of the suggestions may be included in the new job descriptions, however, some may not. The current ACC job descriptions are inconsistent and tend to list every duty performed. The new job descriptions will be more of a summary format that focuses on essential duties.

FLSA Exemption Status ChangesThe Fair Labor Standards Act (FLSA), a federal regulation that establishes the exemption from overtime status. Workers in non-exempt jobs earn overtime for all hours worked over 40 in a workweek. Exempt workers do not. FLSA was updated in August 2004. ACC is using the compensation study to implement changes to ensure compliance with that law.

The PSPC consultant recommended 91 FLSA exemption status changes: 80 positions changing from exempt to non-exempt 11 positions moving from non-exempt to exempt In ACC’s culture, non-exempt staff employees are called Classified and exempt

staff employees are called Professional-Technical. Each has its own employee group to represent its employees to Administration. Due to the nature of the existing ACC method of classifying jobs, all the lower paid

positions, requiring high school level or Associates degrees were non-exempt and Classified. All the higher paid jobs, primarily requiring Bachelors degrees, were exempt and Professional-Technical.

Since the staff groups were separate in salary structure and in name, certain status issues developed over time regarding them.

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When PSPC made the recommendations that 91 employees change their exemption statuses many employees and supervisors became upset and began to challenge the PSPC recommendations. ACC provided a third party review process and hired an Austin-based labor attorney to conduct an analysis of all the 91 positions in relation to FLSA regulations and tests. PAQ forms, old and new job descriptions, and any appeals already made (such as title appeals) were provided to the attorney. This resulted in only seven exemption status changes differing from what was recommended by PSPC.

The Administration has decided to continue the pay cycles for employees impacted by the FLSA changes. Therefore, although the category will change, employees will continue to be paid bi-weekly or monthly as in the past.

Job Grades and Internal StructurePSPC created new salary ranges for ACC based on best practices in compensation with the following considerations:

Recommendations were made based on market data for placement of each job and each incumbent in the new salary ranges.

Both market and internal relationship within the job family, and college-wide, are considered to create an internal job structure.

The administrators, and Human Resources met over the course of two weeks, with the consultant, with direct reports, and finally with the president to establish a fair and equitable internal relationship among all jobs at ACC.

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ACC Title Protocols

Director: is limited to titles Primarily engaged in the formal management process with total responsibility

for a major and distinct function Have college-wide responsibilities Are the primary and exclusive member of management responsible for an area Are normally at the department head level Reporting directly to an Vice President, Associate Vice President, or other

Administrator

Manager: is limited to titles that Primarily are engaged in the formal management process, including the

integration and harmonizing of diverse functions and a combination of the areas of planning, executing, controlling and evaluation of human & financial resources.

Have direct people reports – not just “manage a process”.

Supervisor: is limited to titles Primarily engaged in planning, organizing, directing, evaluation and personal

leadership of a group of subordinate employees (normally more than 2 FTE staffing table employees)

Are categorized as Exempt under the FLSA (i.e. more than a lead function) Have responsibility for hiring, discipline, termination, professional development,

approval of timesheets and leave requests, work assignments for their direct reports

Engineer: is limited to titles Primarily engaged in professional level engineering work, normally requiring a

BS or Masters degree in an engineering discipline such as Civil, Electrical, Hydraulic Mechanical, Nuclear Engineering.

Analyst: is limited to titles Primarily engaged in support roles, at the professional level, gathering,

tabulating, analyzing data and deriving conclusions form their statistical or behavioral observations; such as Systems Analyst, Financial Analyst, Budget Analyst, etc.

Coordinator: is limited to titles Primarily engaged in facilitating the communication process and/or activities

between the parent and outside organizations May also include among departments within the same organization.

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Technician: is generally limited to titles Primarily engaged in specialized duties requiring knowledge of a mechanical or

scientific discipline, such as Engineering Technician, Telecommunications Equipment Repair Technician etc.

Specialist: is generally limited to classes of work Primarily engaged in duties of a non-technical nature, specific to an occupational

specialization, often within a subdivision of a broad field of work, such as Safety Training Specialist, Records Specialist, Property Assessment Specialist etc.

Administrator: is generally limited to titles Primarily responsible for a single specialized organization-wide non-technical

program or function, of limited scope, requiring specialized program knowledge, without policy-making authority over the program or function, such as Insurance Administrator.

All such titles are IT related. This title does not apply to the classification of Administrators

Assistant: This is not a defined title since assistants range from a clerical support function to more specific within a specialized department to a high level administrative support function.

Lead: This is not a defined title but a Lead is more than a Senior and less than a Supervisor. It is the level that usually has training and scheduling responsibilities of the new employees within the same job family.

Senior: Sr. Level should reflect advanced skills and competencies. This is not a defined title since this level can overlap somewhat with a “Lead”. You cannot have a Senior Level as the beginning level within a job family. For

example, you can’t have a Senior payroll Clerk if you don’t have a Payroll Clerk.

Also, a Senior Level is not defined by years of experience if that is the only difference between two levels.

Longevity does not define a new level within a job family. Only actually duties and responsibilities can make up the different levels of work being performed within a job family.

Not every job family has a career path. There may be only so many levels of actual work being done within that job family.

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Administrative & Clerical Support GroupTitle Conversions

Recommendation Current ACC Title Reporting OrderExecutive Assistant to President/Board

Assistant to the PresidentAssistant to the Board

Reports to President

Executive Assistant Executive Assistant Reports to VP, AVP, ProvostSr. Administrative Assistant Sr. Administrative Assistant

Administrative Assistant IIIReports to Academic Dean, Executive Dean, Executive Director

Administrative Assistant III Administrative Assistant III Technical Office Assistant IIITechnical Office Assistant IIAdministrative Assistant II

Reports to Dean, Director, Department Chair, Manager, Supervisor, Campus Student Dean, Campus Manager

Administrative Assistant II Technical Office Assistant IAdministrative Assistant ISr. Clerk

Reports to Director, Manager, or Supervisor

Administrative Assistant I Clerk Reports to Director, Manager, or Supervisor

Based on the job duties, the intent of the organization structure is to have one Sr. Administrative Assistant in a division and to have Administrative Assistant III’s supporting a department.

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Administrative & Clerical Support GroupMajor Duties by Title/Job Description

A B C D E F G H I J K LGeneral Admin. Duties

Complex Admin. Support

Coordinates Department

Activities

Compiles Reports

Maintains Schedules

Problem Solving

Computer Skills

Technical Resource

Coordinates Purchasing

Analyzes Operations/

Creates New

Systems

Coordinates Work of Others

Special Projects

Executive Assistant

x x x x x x x x x x x x

Senior Admin.

Assistant

x x x x x x x x x x x x

Admin. Assistant

III

x x x x x x x x

Admin. Assistant

II

x x x

Admin. Assistant

I

x x

A – Administrative duties including correspondence, answering phones, arranging conference calls, maintaining supervisor’s schedule.B – Administrative support of a highly responsible and confidential nature and assisting multiple departments. Uses autonomy and initiative.C – Coordinates departmental activities.D – Gathers and compiles data, produces specialized reports, maintains files, tracking systems, etc.E – Maintains schedules, calendars, agendas. Prepares agendas, minutes, equipment and coordinates follow up action items.F – Works with staff to resolve issues with students, employees, and the public.G – Performs computer operations including word processing and other PC software applications.H – Technical resource for computer hardware and software.I – Coordinates purchasing equipment and supplies, processes requisitions, monitors department budgets, maintains asset inventories.J – Analyzes operating practices, forms control, personnel and budget processes and creates new systems and processes.K – Coordinates and reviews work of other office or department personnel.L – Assigned special projects that impact college-wide operations.

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Compensation Phase

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COMPENSATION PHASE

Direct Market PricingThe direct market pricing compensation method is based on data published externally to the organization. The midpoints of salary ranges are closely set to the prevailing rates. The collection of all the prevailing rates is what we refer to as market. Direct market pricing:

Complies with and supports ACC’s compensation policies Is directly linked to the market of prevailing rates Is a precise method to establish salaries and salary ranges Is not a complex system, allowing ease of communication and understanding Is objective, not subjective, and therefore highly defensible as not being biased

towards any individual or group of employees Is flexible, and can be adjusted as the market moves Supports internal equity Is simple to administer and maintain though annual market surveys and adjustments

The consultant conducted a market study based on prevailing rates. They recommend that each year ACC should review the alignment of jobs within the job grades to adapt to any needed internal changes as well as market fluctuations.

The Market StudyThe compensation phase of the study included a comprehensive market survey for all Classified, Professional-Technical titles, Adult Education Instructors, and full-time Faculty. Administrators, College Associates, Instructional Associates, Adjunct faculty, and hourly titles were not included as part of the study.

Market comparators were selected with suggestions from the Compensation Committee and included:

The eight metropolitan Texas community colleges, The local Austin Area Salary and Benefits survey (conducted by Aon) The College and University Personnel Association (CUPA) national data Texas Workforce Commission Travis County City of Austin Other sources for certain titles (such as Sign language Interpreters)

Market data was selected through a process of an 80%-120% matching process of job duties for benchmark jobs. That means that 80-120% of the job duties must match those of the ACC job. Any job that did not meet those standards was not included in the market survey as a source for market data.

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Compensation methodology for the market survey included: Benchmark jobs were established for each job family whenever possible. A

benchmark job is one for which salary data may be collected consistently and is about the same job in all organizations. An Accountant is an example of a common benchmark title.

There had to be five (5) comparators or more to be considered a benchmark. All jobs in a job family were linked in a measurable relationship to the benchmark

job for that family. This provides equity within the job family and for jobs throughout the college.

Salary adjustments may now be made for every job, in every year the survey data is collected, instead of the title rotation basis currently used.

The prevailing rate (market) was determined in the market study to be based on (weighted) 50% private sector data and 50% public date, unless CUPA data was available. For those positions, the CUPA, public and private data each counted as a third. Market data was aged to August 31, 2006.

Salary Ranges/Job GradesSeveral considerations are factored in when converting to the new compensation system:

ACC will be changing from job Level and pay Step system to a market based system of ranges replacing the current Levels, and salary ranges replacing Steps.

PSPC followed Best Practices in higher education compensation when creating the salary ranges for the job grades.

The salary ranges are 50% wide with a 5% midpoint-to-midpoint difference between the pay grades. Being 50% wide means having 50% minimum to maximum ratio within any given salary range.

Each salary range is 80% below market at the Minimum, 100% at market at 5 years of experience, and 120% of market at the Maximum of the range.

The 5% spread allows benchmark jobs to be placed at market rather than too high or too low.

Living WageThe Universal Living Wage is the minimum wage required to afford an efficiency apartment adhering to the guideline that dictates that no more than 30% of a person’s gross monthly income should be spent on housing.

The hourly rate of the lowest ACC current annual salary is $11.10 or $23,080 annually, which is almost the same as the Living Wage of $11.12.

The recommendation of the consultant is to use the salary ranges they set up for ACC and not hire under the annual rate of $23,130 to ensure we were paying a minimum of the Living Wage $11.12.

Since all employee salaries are being adjusted to market alignment, the compression that currently exists due to past adjustments to Living Wage will be resolved.

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Methodology for Conversion of Employee SalariesAnnual Increases – The salaries for all staff were increased by the Board approved 4% annual increase before any market adjustments were made. All salary adjustments are effective September 1, 2006.

Below Minimum – Once new ranges were assigned, employees whose current salary was below the recommended range Minimum would be adjusted to range Minimum, effective September 1, 2006.

In-Range Adjustments – Based on years of ACC service and position in range after any below Minimum and/or compression adjustments, employee salaries were adjusted based on targeting a specific percentage of Midpoint (Compa-ratio) desired for their individual years of service, according to the following scale:

Years of Experience Percent of Market Targets

0-1 Year 80%1-2 Years 84%2-3 Years 88%3-4 Years 92%4-5 Years + Less than 5 Years in Position 96%5 Years and Over + 5 Years in Position 100%

Compa-ratios are used to identify where a salary of an incumbent is in relation to the midpoint. The midpoint is considered 100% of market. Compa-ratios are calculated as the ratio of the amount actually paid to an individual, divided by the midpoint. This ratio is expressed as a percentage.

The compa-ratio, therefore, gives a measure of how an individual is paid relative to a similar position in the market. If the compa-ratio is 100% then the individual is being paid at market. If the compa-ratio is greater than 100% then the individual is being paid greater than the market for that job.

To calculate a compa-ratio for an incumbent whose salary range is $24,552 minimum, $30,690 midpoint, $36,828 maximum, and whose current salary is $29,313; divide the current salary by the midpoint of the salary range ($29,313 ÷ $30,690 = 95.51% compa-ratio).

Other conversion considerations:

The years of ACC experience is the sole source for employees who have only worked at ACC.

External work experience was included in initial placement for employees who worked elsewhere before joining ACC.

Internal equity based upon initial placement and years of service to ACC. The placement results in 75% of all ACC employees being at or above market on

September 1, 2006.

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Those employees (25%) who will not be at market in September are either new to ACC or do not have 5 years experience. However, the majority of them did receive a salary adjustment to get to the minimum salary rate.

The number of employees above the maximum of the salary range is 45. The market data was aged to August 31, 2006 rates and included a 4% inflation

adjustment in that aging process. PSPC applied a 4% increase to current salary rates and calculated market distance

for each employee. Therefore, each employee received the annual increase for FY07 of 4% in addition to the inflation adjustment to the market data.

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Consultant Recommendations

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CONSULTANT RECOMMENDATIONS

IntroductionPSPC recommended three options, with the primary option being the one closest to actual market. The other options move the salary range midpoints further from the actual market definition. The recommendation that most closely aligns with market is:

Market is defined at the level of an employee with 5 years of experience for job price matching, which is an “industry standard”.

An employee with 5 years of experience would be at 100% of market, or be at or very near to the salary range midpoint.

Employees with less than five years of experience in the job should fall below the salary range midpoint.

Employees with more than eight years of experience in the job should fall above the midpoint, but not above the maximum.

Impact on Non-ACC Funded EmployeesEmployees funded from sources other than the operating budget were included in the compensation study and will be aligned with the new classification and compensation structures. Such funding sources include:

Grants and external agreements Continuing Education (self funded) Positions funded from other ACC sources such as Student Life

The administrators of each of the impacted funding sources will work with Ben Ferrell, VP Business Services to resolve funding issues.

Recommendations1. Use a Salary Range Table with equal in-range opportunity for all job classifications.2. Adjust salaries identified as below minimum of salary range for their position.3. Adopt an appropriate one-time implementation plan to place employees within their

respective salary ranges closer to the prevailing rates on the basis of their current place within the salary range for their job class, years of service, Compa-ratio and fund availability.

4. An employee whose current salary exceeds the maximum of the new salary range for their job classification should remain fixed until the job class is reassigned to a new range based on updated surveys in future years.

5. If the Board desires to provide cost of living increases, these payments can be made by supplemental paychecks rather than compounded into the employee’s annual salary.

6. Annually update the salary plan by reallocating job classes to different ranges reflecting individually varying prevailing rate movement of each class.

7. Develop and implement a comprehensive program and materials to communicate the College’s updated FY07 Compensation Plan to all employees.

8. Use the open salary schedule and hire new employees closer to the Living Wage of $11.12.

Budget ImpactEstimated cost to bring incumbents to minimum = $181,000Estimated cost of In-Range adjustments = $1.7 million

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Appendix

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PROJECT SCOPE AND METHODOLOGY

Following is our workplan for achieving Austin Community College’s (College) objectives for the conduct of comprehensive position classification and compensation studies for its exempt (Professional-Technical) and non-exempt (Classified) staff.

OBJECTIVES OF THE PROJECT

We will assist the College to maintain its classification and compensation plan to be:

– Internally equitable – Externally competitive – Easily understood– Financially responsible – Statutorily compliant – Readily updated

A. SCOPE OF THE PROJECT

Project communication plan; occupational and organizational familiarization; job analysis; job information interviews; position classification; FLSA status determination; employee appeal resolution; ADA/EEO-compliant job descriptions; job evaluation; compensation survey; competitiveness analysis; compensation plan structure; fiscal impact estimates; implementation plan; EZ COMP™, administrative procedures; HR staff training; and one year of classification and compensation plan implementation support for a system for approximately 1,040 employees in 322 job classifications titles.

B. PROJECT METHODOLOGY

1. Quality Assurance

We utilize procedural and statistical controls, in addition to those in EZ COMP™, which are reviewed by our Project Director. We request that the College’s Compensation Manager, Compensation Committee, and senior administrators review our work to minimize the chance of errors and to ensure that it reflects the College’s organizational values.

2. Becoming Familiar With Austin Community College

We will become familiar with the College’s standard and unique occupations by a thorough review of its job descriptions. We will obtain organizational familiarity by a review of the organization charts, budgets, and reports, and interviews with the senior administrators. This is to ensure that all of our internal and external job comparisons are made on the basis of actual job content and not merely job title.

3. Project Communication Plan and Orientation Meetings

We will consult with the Compensation Manager on a communication strategy, plan, and materials, beginning prior to the project and extending to the post-project information meetings. We plan to conduct group pre-project meetings for all non-faculty employees where we will discuss the scope of the project, answer questions, and distribute and explain the Position Analysis Questionnaire (PAQ).

See “Communicating the Project to the Employees” in the Appendices for additional information regarding our approach to employee inclusion and communication.

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C. JOB ANALYSIS AND POSITION CLASSIFICATION

1. Review of Essential Tasks – Position Analysis Questionnaire

We will review and analyze the current essential tasks, duties and responsibilities, and minimum qualifications of every non-faculty position through the Position Analysis Questionnaire (PAQ) to be completed by each employee in print or electronic format. If the information on the PAQ does not clearly delineate the position’s scope of responsibilities, or is unique to the College we may include that position’s incumbent in the requested worksite job information interviews.

2. Job Information Interviews

We will conduct a comprehensive job information interview with representative incumbents of various College job classifications. The purpose of these interviews is to verify the data on the PAQ, obtain additional insight into the scope and complexity of the job duties, observe technical processes and working conditions, and to provide the employees with an additional method of participation in the project.

3. Position Classification

Each of the College’s 1,040 Classified and Professional-Technical positions will be analyzed and evaluated to determine their primary characteristics, including:

Is there a current College occupational job group comprised of job classes with essential functions similar to the subject position; if so:

To which of the group’s job classes, and at what level, are the subject position’s essential functions most comparable, and

Are they sufficiently comparable (+/- 20% guideline) to be allocated to that job class, utilize the same job title, require the same minimum qualifications, and be assigned to the same salary range.

If the College currently does not have a sufficiently comparable job class, what should be the subject position’s occupational job class and title.

Should the recommended occupational classification action be: (N) no change, (T) title change only, (R) reclassification to another job class, or (M) merger.

4. FLSA Status Determination

We will utilize the new job duties tests to determine if a position is exempt or non-exempt from the overtime compensation provisions of the Fair Labor Standards Act (FLSA). We will review our determinations with the Compensation Manager and respective administrators.

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5. ADA/EEO–Compliant Job Descriptions

We will prepare an ADA/EEO-compliant job description in the College’s standard or other selected format for each occupational job class. We will provide the Compensation Committee with a number of job description formats to select or modify the one best suited for the College. Focus will be on the Essential Functions to conform with ADA guidelines. They may include the following components:

Class Title Desired Knowledges and Skills SupervisionDistinguishing Features Minimum Training and Experience Essential FunctionsNon-Essential Functions FLSA Exempt/Non-Exempt Status Other RequirementsPhysical Requirements Licenses and Certifications Working Conditions

6. Electronic Job Description Library

We will provide the College with all of the final updated and new job descriptions in hard copy and electronic formats. We will work with the College’s information technology staff to establish the electronic file with two tiers of access.

for Human Resources to edit, amend, or include new job descriptions for employees to view, but not amend, the job descriptions

7. Review of Draft Recommendations and Job Descriptions

We will conduct a review of our initial position classification recommendations and draft job descriptions with the Compensation Committee and respective administrators to identify possible errors, obtain critiques, and solicit suggestions for clarifications.

8. Resolution of Employees’ Classification Appeals

We will provide the College with a process for employees to appeal our initial occupational job classification of their position, and provide a form for them to complete if they feel that an error has been made or to provide significant additional job content information.

Depending upon the action recommended by the respective administrators, we may conduct a second job analysis and will inform the Compensation Committee of our final recommendation.

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ANALYSIS OF THE COLLEGE’S CURRENT JOB EVALUATION METHOD

We will conduct an assessment of the College’s modified Decision Band Method of job classification (job evaluation), in conjunction with the Compensation Committee, from the following perspectives:

9. Content Validity – does the system:

reflect the job content complexity of occupations in higher education provide sensitivity to the College’s values within its compensable factors require additional or modified factors to make it more College-responsive weight its compensable factors towards the College important job values proportionately distinguish between occupations of different complexities contain sufficient levels within each compensable factor for accuracy contain internal quality control features to minimize evaluation errors provide consistency of job content evaluations conducted by multiple raters link job evaluation results to the competitive external prevailing rates

10. Method of Application – is the system:

designed specifically to evaluate higher education’s unique occupations regarded as valid, objective, and fair by all of the College’s stakeholders applied by sufficiently trained individuals with adequate job knowledge applied by individuals whom College staff members regard as objective capable of manipulation to achieve pre-determined salary band results understood by Classified, Professional-Technical, and Administrator staff adequately documented to explain and support job evaluation results disregarded when it does not meet the employment market realities considered biased and/or discriminatory towards protected classes

11. Recommended Development On the basis of the preceding analysis, we will provide the Compensation Committee with our assessment of the current job evaluation system, which could range from a recommendation to retain, modify, or replace it. We will discuss with the Compensation Committee the pros and cons of other “off-the-shelf” methods or one custom-developed for the College.

12. Optional Approaches for Job Evaluation for the College a. Utilize Current Method – the analysis may determine to retain the modified DBM

method as is, or recalibrate it to eliminate the inequities between job bands.

b. Utilize Another Standard Method – such as the Hay Guide Chart-Profile Method or the Factor Evaluation System (FES).

c. Custom Developed Method – we will train/guide a task force of representative College employees in the construction and utilization of a point-factor evaluation method totally reflective of the College’s job worth values.

d. Utilize Direct Market Pricing Method – which assigns job classes to salary ranges primarily on the basis of their competitive prevailing rates.

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D. EXTERNALLY COMPETITIVE COMPENSATION PLAN

1. Comprehensive Compensation Survey

a. Data Collection Protocol will be developed in consultation with the Compensation Committee to determine which compensation data elements to include such as:

Salary grade/step or open range salary plan structureBroadbanded structure, number of zones within bandsSalary range structure Minimum, Midpoint and MaximumAverage actual salary of all incumbents in the job classMethod of salary administration – longevity, merit, or skillSupplemental pay items for special qualifications/certificationsIndividual or group incentive plans, bonus, awards, stipendsPay for time not worked, i.e.: vacation, holidays, sick leaveOvertime policy, shift differentials, standby and/or recall pay

b. Benchmark Position Selection will be made by identifying College positions common to its employment-competitive and comparable institutions of higher education in Texas, and Austin metro area public and private employers, clearly identifiable, representative of relevant exempt and non-exempt occupations.

c. Comparator Employers Identification will be made in consultation with the Compensation Committee and senior administrators. Criteria include their degree of competitiveness to the College in obtaining and retaining its high quality staff, their location in its traditional recruitment areas, and their organizational size and complexity.

d. Data Collection will be made by one or more of the following methods:

Pre-survey contact with the selected comparator employers to solicit participation in the College’s compensation survey.

Customized salary survey questionnaires for institutions of higher education, and other public and private employers, distributed by mail, fax, and Email.

Data extraction from the PSPC Texas higher education and public and private sectors compensation database.

Data extraction from the compensation surveys and data provided by organizations such as the College and University Personnel Association, Texas Association of Community Colleges, Texas Education Agency, Texas Workforce Commission, BLS, and commercial survey sources s/a: Hay, Mercer, and Waters.

Data extraction from the compensation plans of peer institutions and public employers.

e. Quality Control includes editing data for accuracy and proper matching to the College’s survey benchmark positions, and phone/fax/E-mail follow-ups for clarification and to obtain the comparators’ benchmark job descriptions.

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2. Prevailing Rates Computation

We will consolidate the compensation data from all sources, enter the data into the EZ COMP™ program, and compute the prevailing rates as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date of collection to a common date relating to the College’s salary plan year by the annual Prevailing Rate Increase Factor (PRI) applicable at that time.

3. Salary Competitiveness Comparison

We will provide the College with charts comparing its current salary structure to those of the selected Texas peer institutions and Austin metro area employers. We will calculate the extent that the College’s salary structure varies from the prevailing rates for each survey benchmark job classification.

4. Benefits Survey and Competitiveness Analysis (optional)

We will expand the compensation survey into a total compensation survey, and evaluate the College’s benefit programs for competitiveness in relation to the prevailing practices of other Texas public employers, and for content sufficiency in relation to the College’s overall benefits objectives and cost sharing responsibilities. We will provide recommendations for improvements and/or changes in the College’s benefit programs if warranted from these analyses.

5. Salary Plan Structure Development

We will prepare alternative pay rates and salary range schedules for the Compensation Committee to select the best fit for the College’s compensation strategy, with these optional criteria.

Method of administration, i.e.: measured job performance, longevity, or skill Width of salary ranges, grades, or broadbands, from Minimum to Maximum Varying salary range widths for FLSA non-exempt or exempt positions Open salary ranges for pay-for-performance or variable compensation plan If steps within the salary ranges, number of steps, percentage separation Number of salary ranges, grades, or broadbands in the salary schedule Percentage separation between salary ranges, grades, or broadbands Recognition for longevity, unique assignments, and special skill requirements Remuneration for required special licenses, certifications, and registrations Linkage of performance evaluations to merit increase opportunities

6. Balancing Internal Equity With External Competitiveness

For precision in salary range assignment, we may utilize one of the previously mentioned point-factor job evaluation methods, or the direct market pricing method, to determine each job classification’s relative job worth to the College. These approaches permits balancing internal equity (job content) with external competitiveness (market data).

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7. Compensation Competitiveness Policy

We will assist the College to select the competitiveness policy which best fits its total compensation strategy and financial resources, by providing fiscal impact estimates at various percentage relationships to the prevailing rates.

8. Salary Band/Range Assignments

Every job classification will initially be assigned to a salary band or range on the basis of factors including:

external competitive prevailing rate for the benchmark job classifications linkage of non-benchmarks to benchmarks by their occupational relationships quantitative evaluated job content values of the various job classifications current salary grade relationships among the various College job classifications the College’s salary competitiveness policy expressed as a market relationship guideline for 15% dollar separation between sequential job classifications guideline for 25% dollar separation of a department head from next subordinate

9. Draft Report Preparation and Review ’

We will provide the Compensation Committee with a draft of our findings and recommendations for review and critique, including the compensation survey data, salary competitiveness analysis, internal equity analysis, salary band/range recommendations, fiscal impact estimates, implementation plan, and administrative procedures.

10. Implementation Plan Development

We will consult with the Compensation Committee on a strategy and plan for transition to the updated plan, including a timetable for the principal activities and estimates of the financial requirements. We will identify the revisions and/or additions to the College’s compensation policies that may be needed for effective implementation.

11. Final Report Presentations

We will conduct workshop or formal presentations of our report for the Board of Trustees, President, senior administrators, and other parties designated by the College.

12. EZ COMP™ Program Installation

We will install our EZ COMP™ program and project files on one of the HR Compensation computers, provide a users manual, and conduct training in the system’s use. Please see the illustrative EZ COMP™ applications CD-ROM on the inside front cover of this proposal, and the program description booklet in the Appendices.

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E. ENSURING THE COLLEGE’S SELF-SUFFICIENCY

Austin Community College will be self-sufficient in all aspects of maintenance of the updated classification and compensation plan through these services.

1. Procedure Manals PSPC Position Classification Procedure Guide PSPC Salary Administration Procedure Guide PSPC Job Evaluation Procedure Guide ACC EZ Comp™ Procedure Guide

2. Training Workshop – for Human Resources and other staff in position classification, compensation surveys, and compensation plan design and administration.

3. Electronic Job Description Library We will provide the College with all of the final ADA/EEO-compliant job descriptions in hard copy and electronic library format for internal maintenance.

4. EZ Comp™ - program and project files on one of the HR Compensation computers, a users manual, and system training.

5. Initial Year’s Implementation Warranty Support – we will analyze, evaluate, classify, and provide a salary range recommendation for any new or changed position or job classification, at no charge to the College for one year.

F. EXTENSIVE EMPLOYEE INCLUSION AND COMMUNICATION

Very important factors for successful implementation of new or updated classification and compensation plans are (1) extensive employee inclusion, and (2) extensive employee communication. College administrators and non-faculty employees will participate in one or more of the following activities.

Attending pre-project briefings and question and answer sessions Completing a Position Analysis Questionnaire (PAQ) describing their position Elaborating on their jobs in individual or group job information interviews Requesting a second review of their position’s occupational job classification Receiving information through employee newsletter or project progress bulletins Attending post-project briefings for all administrators and non-faculty employees Receiving information pamphlet/booklet describing the updated salary plan Participating in a technical plan maintenance and administration workshop

G. MINIMAL COLLEGE SUPPORT REQUIRED

We are completely self-sufficient in projects of this nature and do not require any substantive staff support from the College other than payroll data, comparator employer contact information, and arrangements for group and individual meetings.

We appreciate, but do not require, any office space, telephone, clerical assistance, computers, or office equipment. We will provide all data entry, data processing, duplicating, and related report preparation functions.

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H. MAINTENANCE OF CONFIDENTIALITY

We guarantee the confidentiality of any protected information provided to us by the College, with the following principal controls, which we apply to all client data.

Our consultants do not, and do not have a need to, disclose any confidential, sensitive, or privileged information to anyone other than other project consultants on a need-to-know basis, and authorized client personnel.

All documents, computer files, questionnaires, and audit notes are maintained by us off-site at one of our locations.

We do not store, process, or duplicate any project material at the client’s premises.

Our offices are secure and are located in major office buildings with 24 hour security staff.

Our computer systems have extensive security features to prevent any access by unauthorized individuals.

All documents, computer files, questionnaires, and audit notes are destroyed at the completion of every project.

I. ADDITIONAL PROJECT SERVICES

Following are services mentioned in the RFP that may be requested by the College at a future date, and which we would be pleased to provide. A cost quotation for any and all of these services will be provided upon request.

Performance planning and review system Succession planning program Classification and compensation plan for the Administrators Faculty compensation system review and recommendations

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The ACC FY06 Compensation Study

Frequently Asked Questions from Employees

SECTION 1What is the FY06 Compensation Study? ACC has hired Public Sector Personnel Consultants to conduct a comprehensive compensation study. This study is in two parts.

The first part is the Classification Study to “classify” or define ACC jobs and re-write the job descriptions. This is the part in which ACC staff will participate through the Position Analysis Questionnaire process.

The second part of the study is the Compensation Study. In this part the Consultant will conduct a customized market survey and after the analysis of that data, will recommend new compensation methodologies for ACC.

Who is included in the Compensation Study? The Classification study includes all Classified, Professional/Technical employees, and Adult Education Instructors. The Compensation part (Market Survey) includes those groups of employees as well as full-time Faculty.

Why are we conducting a Compensation Study? Over time our current job descriptions and compensation scales and methodologies have gotten out of alignment. This Consultant will conduct an analysis of the work performed at ACC for each position, and create new job descriptions that reflect the updated level and scope of work performed. The Consultant will also conduct an analysis of the market for each job and place each job according to its market reference.

Will we be getting big raises? It’s too early to anticipate that! If some positions are determined to be under market the Board will have to approve any proposal for adjustments. However, no employee will have their salary reduced.

Where can I get more information? Check the Human resources web site http://www.austincc.edu/hr/ for information on the study and updates on the progress being made by the consultant.

SECTION 2FLSA What is the FLSA? The Fair Labor Standards Act (FLSA) is a federal law that defines the job requirements of overtime compensation for time worked over 40 hours in a week. More complete information on the FLSA regulations may be found at the Department of Labor website, http://dol.gov .

What does “Non-Exempt” mean? At ACC, Non-Exempt employees are Classified employees. They are covered by the FLSA provisions (that means they are not exempt from it) and receive overtime pay for work performed over 40 hours in a week. Non-Exempt employees must record hours worked each week.

What does “Exempt” mean? At ACC, Exempt employees are Professional/Technical employees, as well as Administrators, AE Instructors, Faculty and Adjunct faculty. The

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provisions of the FLSA do not apply to such employees (they are exempt from it). They are paid on a salary basis, regardless of how long it takes to perform the work. At ACC, Professional/Technical employees receive hour-for-hour compensatory time for hours worked over 45 in a week.

I’m going from non-exempt (Classified) to exempt (Prof-Tech). Will my new salary be based on my current annual salary, or my take-home rate of annual salary plus overtime pay? Annual salaries are based upon the “base” salary and overtime is not included since it is not guaranteed. This means the employee will lose the opportunity to receive overtime in the new fiscal year.

How will a FLSA exemption change affect my work?

From Non-Exempt (Classified) to Exempt (Prof-Tech) You will no longer be paid overtime when you work over 40 hours in a week. When you work over 45 hours in a week, you will earn comp time on a straight hour per hour basis, in accordance with ACC’s policy. Comp time must be approved by your supervisor in advance.

From Exempt (Prof-Tech) to Non-Exempt (Classified) You will be required to be paid overtime for all hours worked over 40 in a week. Overtime must be approved by your supervisor in advance.

Are all FLSA exemption status change recommendations being reviewed by the labor lawyer? Yes.

My FLSA exemption status is changing. How will I learn about different pay dates, timesheets, etc.? The employee and supervisor will be notified of the change and its impact. HR will be holding workshops providing budgeting experts to review each employee’s actual financial situation, and give advice on how to budget and adapt to being paid monthly or bi-weekly. Additionally, classes will be held on completing eTime timesheets, and explaining overtime regulations and the Prof-Tech compensatory time policy.

Will a change in my FLSA exemption status affect my benefits? No. Your benefits will remain the same.

Will a FLSA exemption change affect my vacation or sick leave accrual? Your leave will accrue with each bi-weekly or monthly per pay period. Effective 09/01/2006 the leave accruals for full-time non-exempt (classified) employees will be:

Less than 5 YearsLeave Type 5 Years or moreSick 3.70 hours 3.70 hoursVacation 4.62 hours 6.16 hours

Leave accruals for full-time exempt (monthly) employees will be:

Less than 5 YearsLeave Type 5 Years or moreSick 8.00 hours 8.00 hoursVacation 10.00 hours 13.34 hours

Part-time leave will accrue proportionate to each employee’s percentage of work.

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If I become Non-Exempt (Classified) and am asked to work more than 40 hours in a week by my supervisor, and there is no overtime money in our department’s budget, will I still be paid overtime? Yes. It is federal law that you be paid overtime in that situation. Your supervisor will have to make arrangements with a next level supervisor or Administrator to find the funds to pay overtime. That is why HR will be providing training for the supervisors of employees who are undergoing FLSA exemption status changes.

SECTION 3The PAQ Process

What is the PAQ? The Position Analysis Questionnaire (PAQ) is a form that asks detailed questions about the work performed for each position. Remember, the PAQ is about a position and the work that the position is responsible for, not about job performance. If you complete the PAQ, focus on what you do, not how well you do it.

Who completes the PAQ? Each employee Staffing Table Classified, and Professional/Technical employee and AE Instructor is to complete a PAQ form describing the work that is performed.

What is the PAQ Process Timeline?

November 14-18 Information Sessions held for Supervisors

November 28, 29 & 30 Employee Project Briefing Sessions held by Consultant

November 28-December 9 All Classified and Professional/Technical employees, and Adult Education Instructors complete the PAQ forms and submit them to immediate supervisor

December 9- January 4 All supervisory levels review the PAQ forms in their department, add comments, sign them, and forward to next supervisory level or to HR, as appropriate

January 5 All PAQ forms are due in HR Compensation

January & February Consultant reviews and conducts analysis of all PAQs for Classification

March Appeal process opens after employees are notified of Classification results

When do we complete the PAQ form? Employees may complete the PAQ form November 28th - December 9th. Please give your completed PAQ to your immediate supervisor as soon as you have finished working on it.

Why do we have to complete a form? Can’t we just use the Job Description? No, many of our job descriptions have not been updated in a long time. In some positions, the work currently performed may not be accurately reflected in the current job description. The PAQ process will assist the Consultant to write new job descriptions.

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Where do I find a PAQ form? The electronic form is available on the HR web site http://www.austincc.edu/hr/ as a Word document that you can download to your computer and work on at your desk.

How do I download the PAQ form to my computer? Click on the PAQ form on the web and it will open. Just “Save As” to the desktop or a file in your computer. Once saved to your computer you can work on it and save your work.

But I don’t have a computer because I don’t work at a desk. What do I do? Your supervisor will make a computer available to you to ensure that you have the opportunity to participate in completing a PAQ form.

But I can’t type very well. What do I do? You have some choices. You can try to type it yourself.

You can get help from a co-worker, but not your supervisor, who knows how to type. If you get someone to help you type your answers, they must be very careful not to change or add to your answers. Also, they must state that they helped you type your answers and sign the first page of the PAQ when it is printed.

Or you can print, or write neatly on a paper PAQ form, adding additional pages if needed. (If you add pages, be sure to put your name and title on them, along with the question you are answering, and staple them to the PAQ form!)

English is not my primary language. I may not understand the questions. What do I do? Your supervisor can get you someone to translate and assist you in understanding the PAQ questions; the person may translate your answers into English. The translator must state that they translated for you and sign the first page of the PAQ form when it is printed. The translator may not change or add to your answers.

What are all these sections? It looks complicated! Here is a summary of the PAQ Sections:Section I – all employees complete this section. The questions are about the work you perform.

Section II – all employees who are also a supervisor completes this section. These are questions about supervising.

Section III- your immediate supervisor completes this section. This is a review of your PAQ, additional comments form your supervisor, and their approval/signature of the PAQ.

Section IV – any next level supervisors who are neither you immediate supervisor not the final level of supervision completes this section. This is a separate Word document on the web. It is a review of the PAQ, adding comments, and approval/signature. Completion of this section depends on the organizational structure of your department.

Section V – this is the final level of approval of the PAQ, by an Administrator or AVP or VP. It also is a separate Word document on the web.

What if I have questions while completing my PAQ form? Each campus has a PAQ Representative, listed below. You can ask your PAQ Representative any question about the

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PAQ process. He or she can assist you with questions, but may not give you answers to the questions on your PAQ.

PAQ Process Campus Representatives

CYP: Linda Haywood, [email protected] or 3-2002

EVC: Kathy Judge, [email protected] or 3-5015

HBC: Vicki West, [email protected] or 3-7502

NRG: Tobin Wiegand, [email protected] or 3-4882

PIN: Judy Van Cleve, [email protected], 3-8103

RGC: Julie Todaro, [email protected] or 3-3071

RVS: Sue Bloodsworth, [email protected] or 3-6230

SVC: Theresa Harkins, [email protected] or 3-1164

I’m new at ACC, what do I do? Discuss your job description and what you already know about your job with your supervisor. Answer only the questions on the PAQ for which you have had experience. Your supervisor will fill in the gaps when he/she completes Section III. Can we complete a PAQ as a group? Yes, but only if you share the exact same title and exact same immediate supervisor. If you complete a PAQ as a group, all employees in that group must list their names, titles, and contact information on the first page of the PAQ, and each employee in the group must sign the end of Section I. If any employee in the group performs different duties than the others, then that employee should complete a separate PAQ.

Some of us share the same exact title and supervisor, but a few do not want to complete a PAQ as a group, is that OK? Sure, just because coworkers have the same title and supervisor, it is not required that they complete a group PAQ.

If I type this PAQ as a Word document, can’t others change my answers later on? No. No supervisor can change your answers. To ensure this, you will not forward the PAQ to your supervisor electronically. When you have completed your PAQ, print it, then sign it, and give the paper form to your supervisor. Be sure all pages are securely fastened together. And be sure to save a copy for your files.

What happens if my supervisor does not agree with my answer? Your supervisor does not have to agree with your answer. Your supervisor may see something that you have overlooked and add it in Section III. Your supervisor has been asked to show you what they have added or show you the areas with which they disagree. You do not have to defend your answers. The Consultant is an impartial party and is very experienced in job analysis. They may contact your or your supervisor, or department head, if they need additional information.

What role does HR have in the PAQ process? The Human Resources Compensation Section is responsible for employee communication about the PAQ process. They will also receive all PAQ forms when they are completed by the final level of supervision. Each PAQ will be reviewed for completeness, logged in and tracked in a database. HR Compensation will ensure that each PAQ is in departmental order with an organizational chart, has a current job description attached, and given to the Consultant.

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What if a position is vacant or is on leave? If a position is vacant, the immediate supervisor will complete a PAQ based on the job description and what is known about the position. If an employee is on leave and expects to return before the PAQ process is completed in January, the immediate supervisor should work with the Compensation Manager to allow the employee the opportunity to complete the PAQ outside the timeline. If the employee is on extended leave, and is not expected to return, the immediate supervisor should contact the Compensation Manager to discuss options.

Will positions be frozen? If the Consultant finds that a position is above the market, it may be necessary to freeze the salaries. The Board will make those decisions based on the recommendations from the Administration.

What is expected at the end of the study? The consultant will be recommending new titles, new salary scales, and new job descriptions.

Frequently Asked Questions on the Position Analysis Questionnaire (PAQ) Process

What is a Position Analysis Questionnaire (PAQ)? The PAQ is a form that each Classified, Professional/Technical, and Adult Education Instructor will complete to provide the Consultants with detailed information regarding each ACC staff position.

Why should I attend an Employee Project Briefing session? At the Project Briefing Session the Consultant will explain the scope of the project, provide a summary of the process, explain their roles in the process, and respond to your questions. Additionally, the PAQ process and form will be reviewed.

How do I sign up for a Project Briefing Session? You can use the Professional Development web site to choose the session you wish to attend. The link is: http://irt.austincc.edu/profdev/ , just click on “Available Workshops” under Professional Development opportunities to sign up.

Will I receive Professional Development credit for my participation in the PAQ process? Yes. You will receive one hour Professional Development credit for attending the Project Briefing Session.

The PAQ form is long and looks complicated, I am not sure I know how to answer all the questions. What should I do? Complete the PAQ form as best you can. If you have questions or concerns on how to answer any question, discuss it with your supervisor.

Do I have to participate in the PAQ process? While it is strongly requested that you participate in the PAQ process, you will not be forced to participate. However, if you do not complete the form, the Consultant will only have your current job description from which to make their Classification determination. Employees who do not participate in the PAQ process are not eligible for the Appeal Process.

Several ACC employees hold the same title I do, and we have the same supervisor. Can we complete one PAQ as a group? Yes, if employees who share the same title and report to the same supervisor wish to do so, they may work together complete a single PAQ form. All the employees who submit the PAQ as a group, must ensure that all their names and signatures are on the PAQ form before submission to their supervisor. HR will make rooms available at HBC for the purpose group completion of PAQ forms. The supervisor of the group wishing to

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do so should contact Shari Rodriquez at 223-7563 to coordinate the room and time. At the campuses, the supervisor can request a room to accommodate the group activity.

Once I complete and sign the PAQ form, I have to give it to my supervisor for review. How do I know that my supervisor will not change what I put on the form? Your supervisor will review your PAQ form to ensure that you are defining all the aspects of your job in a realistic manner. If your supervisor disagrees with your answers, he/she should discuss it with you for clarification. You supervisor is not allowed to change your answers, but should make comments to indicate agreement and/or disagreement with your answers. You may complete the PAQ form electronically by downloading it to your computer. However, when you are finished with it, you must print it, sign the printed forms, and submit only that printed form to your supervisor. Of course, you may keep a copy of r your records.

Can I complete the PAQ form during work time? Yes. Your supervisor has been instructed to work with you to allow the time you need to complete the PAQ form.How long does it take to complete the PAQ form? The answer to that will vary with the complexity of your job. Most PAQ forms can be completed in two to three hours. Some will take much less time, and some may take more.

How long do I have to complete the PAQ form? The employee involvement in the PAQ process will begin on Monday November 28th, with the first Employee Project Briefing. You should complete and submit your PAQ form to your immediate supervisor no later than Friday December 9th.

What happens to the PAQ form after I complete it? Your PAQ form will be reviewed by your immediate supervisor, and by as many next level supervisors required by your department, until it reaches the final level of approval at the Dean, AVP, or VP level.

What happens to the PAQ form after it is reviewed and approved by the final supervisory level? Upon final departmental approval, all the PAQ forms will be sent to Human Resources Compensation Section to ensure completeness. There, the PAQ forms will be logged in, and prepared for the consultant.

What does the Consultant do with the PAQ forms? The Consultant has a team of employees who will ensure each PAQ forms is reviewed at least three times to ensure their understanding of your job. The Consultant may contact HR, department heads, or your supervisor for additional information if needed.

How else will the Consultant gather information about ACC jobs? The Consultant will conduct up to 100 one-on-one or small group interviews with ACC employees to ensure they have a complete understanding of ACC jobs. Most likely the employees to be interviewed will be incumbents of unique jobs, that only they hold.

What is Human Resources role in the PAQ process? HR is responsible for communication about the PAQ process, arranging the Employee Project Briefings, ensuring every eligible employee has a PAQ form, logging and tracking the PAQ forms, and preparing them for the consultant. HR will not change anything on your PAQ. The PAQ forms will be reviewed for completeness, a position identification label will be attached, and the forms will be sorted according to the organizational chart.

Compensation Study Update:Classification Phase, April 10, 2006

Frequently Asked Questions

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Consultant Recommendations and Appeal ProcessesWhat kind of appeal processes are there? There are two appeal processes for the Classification phase of the Study. First, after the initial recommendations are received from the Compensation Consultant, the Administrators and members of the management team review them and may appeal job titles, FLSA status, and job description content. Second, once those appeals have been considered by the Compensation Consultant, the employees will be informed of the results. The employee appeal is an appeal for the job title and may include information missing from the PAQ, or clarify information on the PAQ.

Will the information regarding the initial recommendations from the consultant, the Administrator appeals, and those outcomes be shared with the employees? Yes. To ensure the transparency of the Classification phase of the Compensation Study, a complete history of all the consultant recommendations, ACC appeals, and final results will be posted, listed by title, upon completion of the study.

I did not submit a PAQ, can I appeal the outcome? No, only employees who submitted a PAQ during the PAQ process in December or during the extension of the PAQ process in January have the ability to appeal.

Who can appeal the FLSA exemption status? The Administration of ACC is responsible for ensuring compliance with federal law, so only the Administrators may appeal the FLSA exemption status.

Why can’t I appeal my job description? The appeal process is limited to one week. Job description review takes longer than that, so it is being excluded from the appeal process. However, an employee may request a change to the job description through our normal job description upkeep process: discuss it with your supervisor, and they will discuss it with HR Compensation, then any changes become official.

Draft Job Descriptions

Where are the new draft job descriptions located? All draft job descriptions will be located on the FY06 Compensation Study website until they become official in September 2006.

Why are the new job descriptions in draft format? Usually, studies like this one require 18 months or more to complete. Ours has a much shorter timeline. The Compensation Consultant had seven different job description writers working at one time. The result was that they were written in seven different “voices”. The Consultant will rewrite them with our revisions in one “voice” so they are all consistent. That will take a few months, so the job descriptions will remain in draft format until that goal is reached.

How can my job description be changed? You can discuss changes to your job description to your supervisor, who will follow the regular job description update process that ends in HR Compensation.

Job Families

What’s wrong with the current Level system? Because the levels do not respond to market changes, many titles have been “forced” into higher or lower levels than defined by level of decision. Over time, due to growth, market and other factors, several levels have been

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combined, and new salary scales had to be added. Because of that the “benchmark” titles are not aligned with the titles in the Levels any longer.

Do we know what the consultant will recommend? No. The consultant has indicated that position will be placed into job families rather than group position s by levels of decisions made.

How is a Job Family different from what we have now? Our current classification system groups jobs by level of decisions made by the employees in the positions.

What is a Job Family? A job family is a set of jobs, or titles, that are grouped together by function.

What is the advantage to Job Families? Within each Job Family, there is an internal relationship that links the jobs together. Job Families are also linked to other Job Families to form a network of relationships. So each Job Family has at least one “benchmark” job which is connected to the market pricing process.

What is a “benchmark” job? A job that is defined by the job description as being essentially the same in most organizations or institutions is a benchmark job. Since most organizations define the same function in the same way, the salary data is both accurate and up to date.

Frequently Asked Questions

Update: May 10, 2006

Employee Letters/Appeals/Job Description Review

I did not receive a letter this week. What do I do? If you have not received your letter in the May 10 mail delivery, contact Dana Tucker, Compensation Specialist, at 223-7565 or via email at [email protected] to have one emailed to you.

Who do I ask if I have questions about the content of my employee letter? Your supervisor is your first point of contact.

I want to appeal my title, how do I do that? The appeal process is described in your letter. Go to the Compensation Study Website and download the Title Appeal Form. To download the form to your computer, click on the “Save a Copy” button and save the document to your computer. Fill in the form, save it, and print a copy for your supervisor to review. Just as with the PAQ form process, supervisors at different levels will have to approve the information on your appeal, and may add information to it. However, no one can change what you write.

My employee letter says there is no change to my title, can I appeal that? Yes. If you expected your title to change (or you expected your position to be reclassified), and it did not, you may provide additional updated information regarding your position to add to the information you submitted on your PAQ form.

My employee letter says my title changed. I don’t like the new title, can I appeal it? No, an appeal should not be submitted just because an employee does not like the new title. The

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titles all meet certain title definitions. Appeals should be based on work performed, not personal preference.

My employee letter says that my FLSA exemption status is changing. Can I appeal that? No. ACC must comply with the federal law. However, some FLSA exemption changes are being reviewed by a labor lawyer to ensure compliance. If that is the case for your position, your supervisor will inform you when the review is completed.

I wanted to review my draft job description, how do I find it? The draft job descriptions are on the Compensation Study Website. They are listed alphabetically by the first word in the title. Example: Look under “S” for Senior Administrative Assistant, or under “C” for Computer Lab Support Technician.

What if I have suggestions to change or add to the content of my job description? Discuss your suggestions with your supervisor, who will forward your suggestions to HR Compensation. The Compensation Consultant will review all reasonable suggestions and decide if they are to be included in the job description.

When should job description suggestions be complete? All suggestions to revise job descriptions should be discussed with your supervisor and submitted to HR Compensation by the end of May.

When do the changes become effective? All changes to titles, FLSA status, and/or job descriptions will become effective on September 1, 2006 after the Board approves the FY07 budget.

Frequently Asked QuestionsEMPLOYEE CONCERNS AT CAMPUS MEETINGS

HR Compensation visited the campuses on May 11 and 12 to meet with employees and answer questions regarding the FY06 Compensation Study. Here is a summary of the most Frequently Asked Questions addressing employees’ concerns.

Did the consultant read my PAQ? The job duties in my draft job description are not what I wrote on my PAQ. The consultant read each PAQ 2, 4 or more times. Often other job classification experts at Public Sector Personnel Consultants (PSPC) read them as well. When you read the draft job description, remember, the new job descriptions are designed to be more generic and summarize duties more. This actually helps match jobs when we conduct salary surveys.

For shared titles (those with more than one employee in the title), the consultant’s goal was to combine all the job duties on all the PAQs and summarize them on the job description.For unique titles (those with only one employee in the title), not every job duty listed on a PAQ was included on the job description. Often individual PAQ duties have been combined in a summary statement.

We all did a lot of work on our PAQ. Why do we have to do more work and review our job descriptions? A Compensation Study is a lot of work for everyone. The consultant, in order to meet the timeline, hired additional writers to write the job descriptions. As a result, they were not written in one “voice”. And, some of those writers did a more thorough job when creating the job descriptions. The consultant has agreed to have one person rewrite them, after ACC employees have had an opportunity to review them. Your review will ensure that the description matches your position responsibilities.

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How will we know the job descriptions will be any better when they come back to us? HR Compensation will audit each job description before it is accepted as final. It must meet or surpass the current standard of quality and completeness of the current official ACC job descriptions.

How long will it take before the consultant returns the final job descriptions? We are allowing two months for them to complete them all. They are due back in July. If more time is needed, it will be given.

My supervisor and next level supervisors never told me what they put on my PAQ. All supervisors were asked to communicate with their employees any comments, agreement or disagreement concerning the employee’s PAQ. If the supervisor failed to do this, the employee should ask to see their supervisor’s comments. If the employee is unable to secure a copy, the employee can email [email protected] to receive a copy.

What is a benchmark job? A benchmark job is a job for which we can consistently get market data on through a comparison of job scope and duties.

What is a job grade? A job grade is very much like a current level. Each job grade is a way of labeling a salary range.

What are job families? Job families are a group of jobs that are grouped together by function. They may not be specific to one department. Usually, when there is more than one title in a job family, there is a hierarchy, or a career ladder, within the job family.

There is a lot of change going on. What is so great about this new system? The new classification system of job families creates a measurable internal relationship among all titles within the family. Each family has at least one benchmark job, for which we can consistently get market salary data. Because of that measurable internal relationship, each job has a relationship to the benchmark job. This means that every year we survey the job market, we can get salary comparison data for every single job! This is very fair and consistent for every staff employee.

How is that different from what we do now? Over time, we have lost the internal relationships with our benchmark jobs. So we rotate job titles to be included in the survey each year. That rotation allows only a few titles to be compared to market each year. Several years may pass before a particular title is compared to market again.

There is a lot of change going on. Should we slow down? No. Things may seem like they are rushed, but the Study is right on schedule with the original timeline. The most difficult work has almost been completed. The Classification Phase of the Compensation Study includes analysis and definition of each job performed by staff at ACC and each title. New titles are assigned to each family. Then, job descriptions are written. A relationship to a benchmark in each family is established for each job by assigned a job grade. All of that has taken about seven months. Once all that is completed, the next step of doing the market salary research for the Compensation Phase of the Study should take about 3-4 weeks.

Don’t job descriptions have to be finalized before we do the market study? No, because it is the job scope, purpose, and general duties that are compared to create a job match in a market survey. Almost never do two job descriptions from two different organizations for the same job match duty for duty. The consultant matches at a ratio to ensure a good match in the market or if not, the data will not be used.

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I’ve heard talk that the employee associations are being dissolved. No, that is not true. The consultant has suggested that all staff jobs will be on the same pay scale. The distinction of FLSA exemption status based on job title is dissolving. There will be both exempt and non-exempt employees in jobs with titles like Coordinator, Technician, and Specialist. So the basis of FLSA status and separate pay scales are being removed that support separate employee associations. There is no reason to dissolve the employee associations since they are a critical part of the shared governance philosophy.

If the employee associations merge, when will they merge, who will be president, which by-laws will be used? Questions like that must be answered by the associations and employees involved in the shared governance process.

If the employee associations merge, won’t the employee voice diminish? This must be considered by the associations.

The educational level for my job has been lowered. Won’t that affect who we hire for vacancies? No. The consultant has recommended that to be in compliance with federal law, the required educational level or a job is that level of education of the employee with the lowest educational level that is actually performing the work. When we post a vacancy we will consider applicants who meet the required and preferred levels of education. We can hire at either the required of the preferred level.

Will the Living Wage be part of the Compensation Study? Yes. The consultant will conduct a market analysis with and without application of the Living Wage. When applying the Living Wage to the salary ranges, it will be applied to the entire range to avoid salary compression.

I’ve heard other employees say they did not trust the Administrators’ role in the Study and HR is not releasing information provided by the consultant. What’s up with that? The role of HR is to facilitate the process and decisions made by the administration. It is understandable that employees may be frustrated because they are not involved in the entire process of the study, only parts of it. The administration receives information from the consultant and then it is determined what decisions need to be made; the administration is the body responsible for making the final decisions on all recommendations. It is unfortunate that our culture has a long history of internal lack of trust however, we can all be sensitive to how and when we communicate and we can embrace and practice the principles of Servant-Leadership.

HR Compensation has maintained that this Study is transparent. There are no secrets. There are no hidden agendas. However, when recommendations from the consultant are in draft form, it is not appropriate to share that information, at that time, with the employee population. Once the recommendations are finalized, of course, they will be shared with all employees. And once we have a final system with which to work, HR Compensation will make available the draft information if employees so desire. However, to release draft, unapproved information because it is finalized would only cause confusion.

Why did so many employees not get their classification letters? Letters were mailed from HR on Thursday and Friday, May 4 and 5. A few were as late as Monday, May 8 leaving ACC. The Post Office did not deliver all mail the next day. Many employees got their letters on Saturday, Monday, Tuesday or Wednesday of the following week. There were a number of misdirected letters and HR Compensation apologizes for the confusion that resulted. Some of the letters were sent to old addresses. Misdirected mail is being researched to determine the source of the problem and find a solution for future mailings. All affected employees will have a full two week period to appeal should they wish to do so. Email copies of employee letters

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were sent to all employees requesting them the same day the request was received by HR Compensation.

Draft job descriptions were posted to the Compensation Study website http://www.austincc.edu/hr/compensation/compstudy/index.php on Friday, May 5. There were some missing. What happened? We did not receive 23 draft job descriptions from the consultant. Those job descriptions were written and sent to us by Thursday, May 11. They are currently listed as the fifth group of draft job descriptions on the website at http://www.austincc.edu/hr/compensation/compstudy/JobDescription.php.

The draft job descriptions are in PDF format. I cannot copy or type on them. How can I make my suggestions in RED type to change the job description in the Job Description Review Process if I can’t type on it? IT burned 70 CDs with the draft job descriptions in Word format. HR Compensation burned 50 3.5 floppy disks with the “Missing 23” draft job descriptions. They were put in campus mail on Friday, May 12 for immediate delivery to all Campus Managers and Administrators. The Administrators are requested to email the draft job descriptions to Direct Reports and each Direct Report should send appropriate draft job descriptions to the supervisors and supervisors to the employees as needed. The Campus Managers Office is requested to send any draft job description to any employee requesting it. The whole distribution process should not take more than a day or two, and every employee will have access to a Word version of their draft job description so they can participate in the Job Description Review Process.

My draft job description was one of the “Missing 23” and I did not see it until Friday, May 12. While the due date for Job Description Review is May 31, I have a week less than other employees to conduct that review! Is that fair? No, it’s not. And that is why we are extending the review deadline for employees with the “Missing 23” job descriptions to allow them the same amount of time as other employees for the Job Description Review Process.

How did HR handle the distribution of the “Missing 23” job descriptions? First, HR Compensation notified the employees that could be identified as impacted by the missing job descriptions that they would be emailed a copy of the appropriate job description as soon as we received it from the consultant. Upon receipt of the “Missing 23” job descriptions, it was made a priority in HR Compensation to send them immediately, and we did so.

My title was merged with another title (i.e., the I’s and II’s were merged together), am I getting demoted? Will I earn less money being merged with a I title? When the consultant found that the levels of work being performed by a title with a current sequence (i.e. Science Lab Tech I, Science Lab Tech II, etc.) were close in function and scope, they combined them into one title. The assignment to job grade (like our current job levels) is made at the higher title.

My draft job description title does not match the title in my letter. What’s going on? The draft job descriptions were posted to the web on May 5 and the letters were sent May 4 and 5. On Monday through Wednesday, May 8-10, the Administrators received titles and job grade assignments. Some titles were changed. Employees who are affected by such changes will be sent a letter indicating the new title. For these employees, the title appeal process will be extended to allow them a full two weeks to appeal like other employees.

Some employees got draft job descriptions late. Some employees got letters late. How can they meet the deadlines for Title Appeal and Job Description Review, not having the same amount of time as other employees? It is only fair that all employees have the same amount

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of time to appeal a title or review a draft job description. The deadlines for such employees will be extended two weeks to allow them the same amount of time as all other employees.

I have an extended deadline for Title Appeal and Job Description Review. The Compensation part of the Study is being presented to the Board on June 5. My deadline may go past that time. How will I be included? Enough money will be included in the initial estimate of approval of the Study to go back later and make “late” adjustments. Your Title Appeal and Job Description Review will be included in the final version of the Study results.

How were the internal relationships and pay grades established for jobs within job families? The consultant did a preliminary placement in job grade based on the content of the PAQ and on initial market data. The Administrators received the recommendations and made recommendations based on internal ACC structure and equity. The current levels were used as a general guideline. The results will be reviewed against full market data and may have to be revised again to establish a final, market driven relationship among jobs.

What criteria were used to establish the internal relationship among jobs in a job family and job grades? The first job grade started at $5.15 per hour, the Federal Minimum Wage. A 5% differential was applied to the next grade from that, and so on. That is not 5% of $5.15/hour, but a 5% increment of measure, which will later tie into salary range midpoints in the Compensation Phase of the Study. ACC’s lowest pay grade was 13. Each pay grade has the same 5% differential between jobs. .

I’m a new employee. No one told me my title would change. Hiring supervisors have been asked to explain the Compensation Study to each candidate during the interview. Evidently this is not happening 100% of the time. HR Compensation will begin explaining this at the time of the job offer, as well, to ensure the new employee is aware of the Compensation Study. And, we will add a brief statement to the offer letter until September 1st, when the Compensation Study results become effective.

My title changed and I feel like I have been demoted! HR has instituted a policy that the Compensation Study will not result in any employee being demoted. A demotion is a result of lowering salary and job classification level, not a title change.

My supervisor doesn’t agree with my title appeal, what do I do? The supervisor has ultimate responsibility for a job title and job duties therefore, if the supervisor and next level supervisor do not agree, the title may not be appealed.

When will we get results of the study? The preliminary results will be presented to the Board on June 5th. Employees will receive information about the progress of the study before that time.

FY06 Compensation StudyCompensation Phase

Frequently Asked Questions

What is the compensation market survey? The market survey was the primary part of compensation phase of the Study. The consultant, the Compensation Committee and ACC agreed upon which organizations were to be included in the survey. The consultant gathered salary information on each benchmark job. The data was then applied to the ACC jobs maintaining the internal relationship established in the classification phase of the Study.

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Why are salary surveys conducted? Wages change with supply and demand for different occupations. This salary survey was needed to ensure that ACC jobs will be in proper relationship to the prevailing wage rates in the market.

What classifications were included in the survey? The consultant conducted a salary survey including all Classified and Professional-Technical titles, AE Instructors, and full-time Faculty.

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What organizations were surveyed? ACC and the Consultant agreed on what organizations would be included in the survey. These included:The Metro-8 community colleges; Alamo, Collin, Dallas, Houston, Lee, North Harris Montgomery, San Jacinto, and TarrantLocal public sector; City of Austin, Travis County, AISDOther published surveys; Austin Area Pay & Benefits Survey, Texas Workforce Commission, College & University Professional Association (CUPA), Higher Education Information for Technology Services (HEITS) Other organizations for certain titles; like Communication by Hand for Sign Language Interpreters; the local ISD’s for AE Instructors

What methodology was used for the survey? The consultant used an 80%-120% job matching methodology to establish benchmark jobs. That means when the scope, purpose, and job duties were compared to the ACC job, there had to be a minimum match of 80% and not over 120 % maximum match. Methodology included:Benchmark jobs were established for each job family whenever possible. A benchmark job is one for which salary data may be collected consistently and is about the same job in all organizations. An Accountant is an example of a common benchmark title. All jobs in a job family were linked in a measurable relationship to the benchmark job for that family. This provides equity within the job family and for jobs throughout the college.Salary adjustments may now be made for every job, in every year the survey data is collected, instead of the title rotation basis currently used.

The prevailing rate (market) was determined in the market study to be based on (weighted) 50% private sector data and 50% public data, unless CUPA data was available. For those positions, the CUPA, public and private data each counted as a third. Market data was aged to August 31, 2006.

What is Direct Market Pricing? Direct market pricing ensures that ACC’s midpoints are set at the prevailing market rate. This method ensures that we are hiring and paying employees based on a market system. Direct market pricing:

Complies with and supports ACC’s compensation policies Is directly linked to the market of prevailing rates Is a precise method to establish salaries and salary ranges Is not a complex system, allowing ease of communication and understanding Is objective, not subjective, and therefore highly defensible as not being biased towards

any individual or group of employees Is flexible, and can be adjusted as the market moves Supports internal equity Is simple to administer and maintain though annual market surveys and adjustments

When will we know more information? When the Board approves the budget, they will also be approving about $2 million for the market adjustments. Within a few weeks, each employee will receive a letter that explains to them any salary adjustments made for FY07, including the proposed 4% across the board cost of living adjustment.

Will all staff employees receive the 4% annual increase? The administration has recommended 4% for all employees, including staff members. The annual increase will be approved by the board when the FY07 budget is approved.

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Will all staff employees receive a market adjustment? No. Some staff members’ salaries are already at or above market. They will not receive a market adjustment. Some staff members will receive an adjustment to the new minimum of the salary range and a market adjustment, others may receive only a market adjustment, and still others may only receive the annual increase.

Will all staff employee salaries be at market in September? The majority (approximately 75%) of employee salaries will be at or above the prevailing rate, or market for their jobs. The remaining 25% of employee salaries will be at a proper relationship to market, based on their work experience and/or time at ACC.

What about the Living Wage? The Universal Living Wage is the minimum wage required to afford an efficiency apartment adhering to the guideline that dictates that no more that 30% of a person’s gross monthly income should be spent on housing.

The hourly rate of the lowest ACC current annual salary is $11.10, or $23,080 annually, which is very close to the current Living Wage of $11.12, or $23,130 annually.

The recommendation of the consultant is to use the salary ranges they set up for ACC and not hire under the annual rate of $23,130 to ensure we were paying a minimum of the Living Wage $11.12).

Since all employee salaries are being adjusted to market alignment, the compression that currently exists due to past adjustments to Living Wage will be resolved.

What about the Educational Incentive Administrative Rule that gives a Step for getting a degree? Once the Board approves the budget, all rules impacted by the Compensation Study will be reviewed by the Administrative Services Council.

How will my educational incentive be shown in the new salary? The educational incentive that was granted in the past is now included in the employee’s annual salary. When the employee’s salary is converted in FY07, it may help to get the employee closer or above midpoint and thus, is an advantage to those employees. When the position is converted, the entire salary is used to determine placement on the new salary scale. Salaries in FY07 are market based and new rules apply to the conversion. The administration will review the Educational Incentive policy and recommend changes for FY07.