Town Hall Presentation January 9-10, 2002

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Town Hall PresentationJanuary 9-10, 2002
The Division of Human Resources and William M.
Mercer, Incorporated
Curtis Powell Vice President for Human Resources
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Todays Town Hall Objectives

1. Meet the Project Team
2. Discuss why Rensselaer launched this initiative
3. Discuss why Mercer was selected
4. Review the Project Plan
5. Show our progress to date
6. Discuss what this means to you
7. Answer questions

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• Objective 1
• Meet the Project Team

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The Project Team

• Curtis Powell Rensselaer
• VP, Division of Human Resources
• Anne Bilynsky Rensselaer
• Manager, Compensation
• Kathy McNamara Rensselaer
• HR Specialist
• Kimberly Keating Mercer
• Senior Consultant
• Dr. Andrew Klein Mercer
• Higher Education Practice Leader

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• Objective 2
• Discuss why Rensselaer launched this initiative

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Where We Want to Be

• Develop a total compensation system that will
  guide the design, implementation, and
  administration of your compensation program(s).
  It will ensure that job performance, compensation
  levels, and training programs are aligned with
  the Rensselaer Plan and your Divisions/Schools
  Performance Plan.

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Developing the Total Compensation System

• In partnership with Mercer, Rensselaer will
  develop the following

The Rensselaer Plan
Compensation Philosophy Strategy
Staff Compensation Program
Faculty Compensation Program
Variable Pay Program
Implementation Process Supporting Communication
Training Materials
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• Objective 3
• Discuss why Mercer was selected

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William M. Mercer, Incorporated

• Mercer consultants
• Offer years of experience and have developed and
  implemented compensation systems in higher
  education.
• Have access to vast data resources
• Worlds largest human resource consulting firm,
  with annual revenue of approximately 2.0 billion
• More than 13,000 employees
• 136 cities
• 40 countries
• Will work as a team with the Division of HR to
  design the best program for Rensselaer

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• Objective 4
• Review our Project Plan

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Project Plan
STEP 1 - Compensation Philosophy and Strategy
Development
Develop compensation philosophy and strategy and
communication strategy identify benchmark jobs
Interviews leadership to understand expectations,
gain perspective, ascertain desired outcomes
Begin project start to learn issues, philosophy,
business and strategic plan
STEP 2a - Faculty and Staff Base Pay and
Compensation Program Design
Develop, test and finalize slotting methodology
for non-benchmark staff jobs
Develop base pay structure scenarios for staff
jobs and competitive ranges for faculty jobs
Conduct competitive market assessment of base and
total cash compensation for 250 benchmark staff
and faculty jobs
STEP 2b - Variable Plan Design
Build plan documents for program review costing
to ensure affordability
Develop plan design straw model rewrite
reaction models
Develop variable pay program goals, culture
issues, and funding limits
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Project Plan
STEP 3 - Program Costing
Place non-benchmark faculty and staff in grades
based on job evaluation and career ladder
structure
Identify internal adjustments and finalize
titling standards
Cost program alternatives, finalize approved
designs
STEP 4 - Recommendations for Implementation

Present recommendations to the President and
Members of the Presidents Cabinet
Obtain Presidents approval to proceed
STEP 5 - Training STEP 6 -
Implementation - July 2002

• Begin Implementation
• Structure
• Titles
• Career ladders

Develop and implement compensation policies and
procedures and administrative guidelines
Begin training supervisors and informing faculty
and staff of new program
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• Objective 5
• Show our progress to date
• Research
• What we learned
• Status

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Research

• Findings are based on information gathered
  through
• Meetings with President Jackson, key leadership,
  faculty and staff
• Analysis of faculty and staff compensation data
  and the external marketplace
• Review of Rensselaers communications, internal
  published materials, and manuals

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Research

• Review of individual performance management tools
  and/or job descriptions across the Institute
• Working sessions and focus groups with staff and
  faculty representatives at Troy and Hartford
• Division presentations
• Analysis of best practices in higher education,
  not-for-profit, and for-profit organizations

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What we learned. . .
Study Finding 2
Study Finding 1

• There are inconsistent messages about what is
  important.

• There is no Institute-wide, systematic approach
  for administering staff compensation. A number of
  systems have been developed across the campus
  on an ad-hoc basis.

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What we learned. . .
Study Finding 4
Study Finding 3

• The faculty have established titles and career
  movement criteria that correspond to pay. A
  benchmarking study will assess current practices.

• Career paths are not well defined for most staff
  job families.

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What we learned. . .
Study Finding 6
Study Finding 5

• The performance standards for faculty and
  performance management tools for staff are still
  being integrated into the total compensation
  system.

• Inconsistent job titling is creating internal
  equity issues.

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What we learned. . .
Study Finding 7
Study Finding 8
There is a prevailing view that most people are
underpaid. Based on a preliminary staff
assessment, 80 of staff are within the
competitive range of their position.
Rensselaer does not have a systematic way to
attract and retain world-class faculty.
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Status
We have preliminarily defined our target markets
as follows
Geographic differentials calibrate the data for
Troy and Hartford
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Status

• We are in the process of finalizing the following
  ladders
• Management Career Ladder
• Professional Career Ladder
• Information Technology Career Ladder
• Administrative Support Career Ladder
• Research/Scientific Career Ladder

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Status
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Immediate Next Steps

• Finalize staff career ladders
• Complete the development of staff pay structures
• Refine staff titles
• Continue/complete faculty external market analysis

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• Objective 6
• Discuss what this means to you

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The New Rensselaer Total Compensation System
Fairness

• Salaries are going to be managed within a system.
  Every position will be placed in a salary grade
  with a defined minimum and maximum.
• The salary system will be based on analysis of
  the external marketplace and an assessment of the
  unique value system at Rensselaer.
• Defined career paths will help staff map out
  their career strategies.

Competitiveness
Career Opportunities
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The New Rensselaer Total Compensation System
Title Consistency

• Titles will be revised to reflect the new system
  and to ensure that they are consistent across the
  Institute.
• Regulatory Compliance
• Labor regulations require that with a new/revised
  program of pay and rewards we conduct an audit to
  ensure continued compliance.

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• Objective 7
• Answer questions

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Questions Answers