Compensation Plan

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• Compensation Plan
• Compression Longevity
• Alamo Community College District
• Employee Services Department

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Compensation Plan Compression

• The compression analysis was completed by Fox
  Lawson Associates (FLA)
• FLA recommended a method for addressing
  compression (i.e., placing employees in the pay
  range)
• FLA also recommended a method for addressing
  longevity

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Compensation Plan Compression

• How it Works
• Calculations are based on employees years in
  their current position and base salary as of
  September 1, 2007
• This is an adjustment to the base salary to place
  regular benefited employees in to the salary
  range, based on the FLA model
• Approved on June 28, 2008, by the Board of
  Trustees, it will be effective July 1, 2008, for
  non-contracted employees and September 1, 2008,
  for contracted employees

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Compensation Plan Compression

• How it Works
• The plan is spread into equal increments,
  spanning 18 years of service
• The first 6 increments (in one year intervals)
  represent the pay range from minimum to midpoint
  of any given pay grade
• The remaining 6 increments (in two year
  intervals) represent the pay range from midpoint
  to maximum of any given pay grade
• How does it look?

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Compression Model
Note This model is to be used for the
compression analysis only.
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Compensation Plan Compression

• Below are three examples that help you understand
  how the
• Compression Model is applied
• Example 1
• Employee A
• Base Salary 23,350
• Grade 3
• Years in current title 4.35 yrs

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Employee A
Based on compression method Employee As salary
is adjusted from 23,350 to 26,410. This is a
gross annual salary adjustment of 3,060
effective July 1, 2008
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Compensation Plan Compression

• Example 2
• Employee B
• Base Salary 75,650
• Grade 12
• Years in current title 13.70 yr

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Employee B
Based on compression method Employee Bs salary
is adjusted from 75,650 to 80,296. This is a
gross annual salary adjustment of 4,646
effective July 1, 2008
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Compensation Plan Compression

• Example 3
• Employee C
• Base Salary 54,525
• Grade 8
• Years in current title 6.25 yrs

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Employee C
Based on compression method Employee C s
current salary of 54,525 is above the pay for
the corresponding increment, therefore no salary
adjustment.
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Compensation Plan Longevity

• FLA also analyzed longevity providing
  recommendations on
• service groupings. This will recognize employees
  that have
• made a long-term commitment to the District. The
  plan
• starts at 19 years, the point where the
  Compression Model
• ends.

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Compensation Plan Longevity

• LONGEVITY
• Compensates an employee with a lump sum dollar
  amount (one time payment) based on total years of
  benefited service with the District as of
  September 1, 2007
• Years of service Lump sum
• 19 23 yrs 1.5
• 24 28 yrs 2.5
• 29 33 yrs 3.5
• 34 years 4.5

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Compensation Plan Longevity

• 
  EXAMPLE
• Employee D
• Base Salary 44,613
• Years of total service w/ District 24 yrs
• 44,613 X 2.5 1,115
• Based on the longevity methodology, Employee D
  would receive a one-time payment of 1,115
• Amount is not added to the employees base salary

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Compensation Plan Compression Longevity

• Though not all employees are affected, the
  compression and longevity components positively
  affect over 900 employees
• On June 28, 2008, the Board of Trustees approved
  implementation effective July 1, 2008, for
  regular non-contracted employees with the first
  changes in pay being reflected in July
• Employees will be notified regarding the impact
  of the compression and longevity component and
  how it effects them specifically

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Compensation Plan Compression Longevity

• With the implementation of Phase 1 on September
  1, 2007, along with the approved compression and
  longevity components, this plan supports a strong
  foundation for ACCDs administration of
  compensation for our current and future employees
  in todays competitive market.

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Compensation Plan Whats Next?

• General Wage Increase consideration
• PDQ/Job Description updating, writing and review
  based on the FLA job evaluation and analysis work
• Job Title review
• Appeals process
• Compensation Plan administration and maintenance