Peoria Unified’s Employee Compensation Structure Proposal 2014

Overview

Reason for change Recap of last year’s work Guiding principles How will District fund compensation moving forward District Philosophy Priorities for new monies Present new plans:

Basic Structure By employee group:

Initial placement criteria/process (by employee group) Professional growth

Next Steps

Our Purpose for the Committee

Council Priority: Attract, Retain and Reward We are committed to designing and implementing a creative, modern, competitive, fair and equitable plan to attract, retain, and reward the highest quality staff available in order to ensure that every student, every day is prepared to shape tomorrow.

The Process

Committees All groups represented: Certified, Classified, Administrative and Classified

Exempt (supervisory) Worked together as a whole group and then broke out by employee group

Meetings Fall 2012: 3 meetings in large group with break out by classification Fall 2013: 1-2 meetings per employee group

Work of Committee Review compensation budgeting process Make recommendations for the structure

Priorities for next year How set ranges Starting pay Professional Growth

Recap of Last Year’s Meetings

Determined the District’s philosophy regarding employment strategy Who do we want to attract? Who do we want to retain?

Built understanding of strategic compensation Analyzed other compensation programs, both

private and public, to develop PUSD components

Compensation: Guiding Principles

All Employee Groups agreed that PUSD compensation should be: Equitable Fair Should help to increase achievement Give employees the ability to control outcomes Objective Tied to effective evaluation instrument Understandable-not too complex Fundable-no freezing

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Funding for Compensation

Salary & Benefits

Administrative 7.1 %

Certified 66.35 %

New Staff;

Increased benefit Costs; New

Program Costs

13/14 Total M&O

14/15 M & O

Classified 26.55 %

Compensation Budgeting: Distribution of Funds

Priority for all groups 2014: Compression

First Priority: Begin to eliminate compression: All employees prioritized using new funds to distinguish individuals

who have been with the District through the salary freezes to receive compensation

Second Priority: Market rate adjustments Determine Market Placement: Core of compensation structure is

determining benchmark against which to compare total compensation as a value add to our employees

Market Defined: similarly situated school districts and governmental entities in Maricopa County

Determine whether goal is to be: below, at or above market rate for employee group

Emphasis on pay, benefits or both?

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Certified Pay Comparison

2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012Average Teacher Salary $44,474 $43,611 $44,417 $43,928 $51,928 $54,361 $59,547 $55,566 $47,290 $44,480 $45,368 $44,343 $49,545 $47,979Average Years of Service 9.1 9.6 6.2 6.6 13.3 13.3 12.2 12.5 12.9 13.1 11.8 11.9 11.3 11.5Change in Teacher Salary ($863) ($489) $2,433 ($3,981) ($2,810) ($1,025) ($1,566)

AveragePeoria Unified Dysart Unified Paradise Valley ScottsdalePhoenix Union Deer Valley Unified

Components of New Salary Structure

Base Pay Each position will have entry level pay and maximum pay

Only Certified recommended no max pay

Cannot exceed maximum pay for the position range Base pay to be established following market analysis

Ranges will be periodically reviewed to determine relation to market and any adjustments will follow that analysis

Hard to Fill (certified only)- stipends while in that position

Increases: to be determined each year once budget established by compensation committee members Merit Cost of Living Flat and Percent Performance Pay (Certified 301)

Professional Growth Returning retiree base pay would be calculated the same as any other new hire (less the

ACR split) All Employee

Groups

Certified: New Hire

From base pay of a brand new teacher with only a Bachelor’s Degree (currently $34,884): 1% per year of teaching experience, not to exceed 5

years; HTF get up to 10 years experience 1% per 15 credit hours over minimum requirement .5% for each additional certification/endorsement/

approved area beyond what is required for the position

Certified

Certified: Hard To Fill

Stipend for new hires and current staff (amount to be determined by committee)

Definition: Look at graduation rates for specific majors for last

three years from college to determine trend District trend on open positions Applies for teachers who are teaching in that area, not

just on their certificate Paid Annually- lump sum at end of year if

evaluation score is at least Performing Certified

Certified: Professional Growth

Components – related to job duties Credit hours: any level beyond requirement for the position

Increments Try to match current rate of approximately $75 per credit hour Max 18 per year

Timing Credits turned in by January Paid out annually on the next year’s salary

Certified

Certified: How This Will Work

Example (Sample Only – These numbers are NOT the actual numbers)

13/14 Math Teacher is at BA30 step 2 $38,395.98. Teacher completed 5 credit hours and district committee established 1.0% increase. Hard to Fill stipend was determined to be $1,000.00. 301 Performance Pay (fund 12) remained at $1,700.00.

New Contract for 14/15 – 13/14 Amount $38,395.98 Add new Prof. Growth (5 credits @ $75/hr ) $375.00 Flat Amount N/A Percent Increase (1.0%) $575.94 HTF Stipend $1,000.00 301 Performance Pay $1,700.00* Other N/A

14/15 Salary $ 40,346.92

Total compensation for 14/15 $ 42,046.92

Base for 15/16 $ 40,346.92

*does not get added to the base salaryCertified

Administrative and Classified Exempt: New Hires

Start at base pay for each position Increments to be added for:

Years of experience, no more than 5 Education (above that required for the position):

Only degrees recognized- not credit hours Certification(s) (above those required for position)

Administrative and Classified Exempt

Administrative and Classified Exempt: Professional Growth

Components – related to job duties Certifications (non-educational) National Board Certifications Credit hours: graduate level (Administrators) or any level beyond

requirement for the position (Classified Exempt) Increments

$100 per credit hour; max 9 credit hours per year Added to base for the following year Lifetime max: cannot exceed maximum pay for the position

Timing Each year employee gets credit for last calendar year’s completed

components Must turn in credits within 18 months of completionAdministrative

and Classified Exempt

How This Will Work

Example (Sample Only – These numbers are NOT the actual numbers)

13/14 Salary for a Principal is $70,000. Principal completed 5 credit hours of professional growth and the District committee determined to give 1.0% to everyone.

New Contract for 14/15 – 13/14 Amount $70,000.00 Add new Prof. Growth (5 credits @ $100/ch) $500.00 Flat Amount n/a Percent Increase (1.0%) $700.00 Other

14/15 Salary $71,200.00

Base for 15/16 $71,200.00

Administrative and Classified Exempt

Classified: New Hires

From the starting pay for each position add: Experience:

5% cap percentage 1% for 2-4 years of experience 3% for 4-5 years of experience 5% for 5+ years of experience

Education: 1% per degree level; an additional .5% if relevant to the position

Certification: 1% for each certification above requirement that is relevant to position

Retirees: treated like new hire Classified

Classified: Professional Growth

Components – related to job duties Certifications (non-educational) Credit hours: any level beyond requirement

Increments $.15 per 3 credit hours added to base Max 15 credits per year Lifetime maximum: cannot exceed maximum pay for the position

Timing Each year employee gets credit for last calendar year’s completed

components Must turn in credits within 18 months of completion

Classified

Classified: How This Will Work

Example (Sample Only – These numbers are NOT the actual numbers)

13/14 Classified Employee’s pay is in Range 12 and employee makes $13.30 and receives receive .10 for Professional Growth and for a total amount of $13.65 per hour. Committee voted for 1.0% overall in addition to a .25 flat increase for all hourly staff.

New Contract for 14/15 – The range for this position: $10.75 to $17.20 13/14 Amount $13.65 Add new Prof. Growth .10 Flat Amount .25 Percent Increase (1.0%) .14 Other

14/15 Salary $14.14

Base for 15/16 $14.14

Classified

Retention- staying competitive

Ongoing market analysis Periodic adjustments to pay ranges

Next Steps

January 2014: Governing Board Adoption February- End of Year: Communicate, Implement

(set up system, issue contracts, etc.)