Performance & Compensation

Performance & Compensation

Derek HughesNovember/December 2012Staff

Total Rewards

Martocchio, J. J. (2013). Strategic Compensation: A Human Resource Management Approach. Upper Saddle River, NJ: Pearson.

Shared Perception

What color would your Lamborghini be?

If you had a choice between Bill Gates’

fortune and world peace…

Performance & Compensation

Compensation Model

VCSU Staff ModelComp Factor Percent Example

(3%)

TOTAL 100% 3.00%

Across the Board (ATB) 50% 1.50%

0.45%15%

35% 1.05%Merit

Market/Equity

Across the Board (ATB)• ATB is indiscriminate• Employees get 50% of the legislative

increase

Market/Equity

Market/Equity• CUPA HR & Job Service ND salary data

– CUPA HR primary for higher education, industry specific positions

– Job Service ND for local hire positions common to all industries

• Compare all positions basis the duties in job description, and education required– Not title, not person

• Compare all positions to the market median– Not mean

Merit• Pay for performance• Incentive Pay• Links employee pay to measures of

performance

Additional Values• No employee below an 80% floor.

– No ceilings

• Years of Service (1%/yr.) – Credit not given for low performing year

• Years merit pay earned performance (3%)

Performance & Compensation

Individual & Performance Model

Performance Goals

Measure Performance

Performance & Compensation

Timeline

Timeline• January-March begin a new review year

– Everyone on same timeline (may be some overlap)– One-year from start date– Set goals

• July 1, 2014– Merit model takes effect

Questions• What is the risk of not changing? If I wait long

enough, will the change just go away?

• What are my choices during the change process? What are the potential consequences to me of not changing?

• What are the benefits of supporting the change?