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The 4 P’s of Compensation(Pay, Points, Performance & Policy)
Presented by
Christi Tenter
Supervisor, Classification & Compensation
May 19cpshr.us
Agenda
About CPS HR Consulting
Pay Ranges and Structure
Points (Min/Max or Mid)
Performance Management
Policy
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About CPS: History, Mission & Board
Mission of CPS HR is topromote human resourceexcellence in the public sector
We are a Joint Powers Authority
Self-supporting public agencywith significant years ofexperience» CPS HR - 31 years
» Ewing Consulting - 38 years in education market (September 2017)
» Combined we’ve worked with all levels of government
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This is a slide title
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Salary Tools
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Pay Structures
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Salary Setting Guidelines
Be consistent with pay philosophy and applying across salaries
Be flexible in response to internal and external pressures
considering market rate and skills shortages
Be consistent with internal relationships & standards
Salary stetting guidelines » 20% and above between department head and highest level subordinate
» 15% between supervisors and highest level supervised
» 10% between levels in a series (i.e Custodian I/II and Senior)
» Whatever differentials are used, be consistent in their application
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Question #1
What types of pay practices
and salary structures does your
agency use?
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Types of Salary Structures
•A salary structure with standard progression rates established within a pay range for a job.
•Typically has range spreads of 20-40 percent and midpoint progressions of 5-10 percent with defined points (steps) within the ranges.
Step & Grade
•A salary structure based on data obtained from the job market about pay ranges for similar jobs. Range for each distinct type of job.
•Typically has range spreads of 30-80 percent and midpoint progressions of 10-15 percent.
Market-Based
•Traditional salary structures usually have many narrow salary ranges and multiple grades, with separate structures for each type of employee,
•Typically has range spreads of 20-40 percent and midpoint progressions of 5-10 percent.
Traditional
WorldatWork and Deloitte, 2012 Survey of Salary Structure Policies and Practices.
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Salary Ranges & Spread
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Midpoints 101
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Midpoint = Control Point
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Midpoint Example
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Midpoint Differentials
Midpoint differentials are the jumps between salary range midpoints as you work your wayup a traditional salary range structure.
Salary range spread and mid-point to mid-point differentials can vary significantly byjob level.
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Question #2
What are some of the
roadblocks you see in your
agency’s current
compensation program?
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Performance
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Classification Drives Compensation
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Adjust Ranges to Reward
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Question #3
How does your District move
employees within salary ranges?
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Performance & Rewards
Annual increases based
on guaranteed movement
Annual increases based on
performance
Elements of effective
performance management
Value of employee
engagement surveys
Other ways to handle pay
for performance?
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Case Study SOCAL
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Question #4
What are some creative
ways your District is rewarding
performance?
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Reward Beyond Pay
Performance Evaluations
Flexible Schedules
Telecommuting
Workplace Culture
New/Creative Benefits
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“Classification
Drives
Compensation”
But Policy is the
Best Support!
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Policy 101
Absent policy salary can be incorrectly applied
New hires can be placed inconsistently
Ranges become ineffective as no one is brought in at the
minimum of range
Run the risk of “ghost ranges” or creation of levels to
reward
Other operational impacts
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Implementation
Policy Considerations » Blanket Increases vs. Targeted Approach
» Implementation Year One vs. Phased
» Ranges vs. Step Plan
» Placement within Ranges based on Study Results
» Annual Reclassification Period
Internal Equity
Compaction Issues
System Maintenance
Future Studies
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Got Questions?
Jennifer Ramos
CPS HR Manager
(916) 471-3125
Christi Tenter
CPS HR Supervisor
(916) 471-3387
