How does the district ensure the pay plan meets the intended goals on a long-term basis?
For any pay plan to meet its intended goals on a long‐term basis, it must be updated regularly and administered properly. Salary administration involves four primary activities requiring administrative decisions: adjusting pay ranges for job market changes and general economic inflation, budgeting for annual salary increases for employees, placing new employees in the system, and calculating special increases for promotions or other job changes.
How was the pay plan developed?
The HR Department is responsible for creating and maintaining the district’s compensation plan. It was developed using the following steps.
- Job Analysis
- Job Evaluation
- Market Pricing
- Pay Grade Assignment
The first step was to analyze each job to determine the level of responsibility. This is done by reading the job description, asking the incumbent to fill out a job analysis questionnaire, or conducting an interview with the manager.
Next, the job is evaluated using a common set of objective factors such as education, credentials, experience, supervisory responsibility, and others required for the job. Individual employee credentials are not considered in this evaluation. Jobs with similar skill, effort, and responsibility values are grouped into pay grades.
Then, the HR Department uses salary surveys to determine if there are valid market data for the position. This provides a job price that is used to determine the appropriate pay grade. Unfortunately, there is not market data for every single job; however, the HR Department has determined a market price for 95 percent of the district’s employees.
Based on the job evaluation results and the market price, the job is classified into a pay grade.
A policies and procedures manual has been developed to provide consistent guidelines for day-to-day administration to maintain the plan. The HR department uses this manual for the following:
- Determining salary offers for new employees
- Calculating promotional increases
- Documenting the reclassification process
- Determining the job exemption status under FLSA
- Demotion pay processes
- Break-in service pay
- Other compensation and pay issues
Will my pay grade ever change?
Pay grade classification can change if there is a significant and sustained increase in job responsibility or if the job is susceptible to market pressures. The pay policy and procedure manual, located in the HR Department, document the process and timelines for job reclassification.
Do my years of experience make any difference in the new pay plan?
Yes, experience counts in the new system but not to the same extent as a step schedule. There is a range of pay in this system rather than a single rate of pay based only on experience. The district now has the flexibility to value competencies other than years of experience, such as specific experience in and outside school districts, additional licenses or certifications, or the candidate's current salary.
Can I predict future pay increases in this system?
No, because the pay structures are reviewed and possibly adjusted annually. They are valid for one year only. Pay increases are granted annually by the board of trustees, based on the district’s available revenues, so there is no guarantee that you will get a pay increase every year.
Why did the district change to this pay system?
The district is committed to recruiting the most talented candidates and to retaining our current employees. To do that, we want to maintain a pay system that values job responsibility, is sensitive to the market, and provides a mechanism to distribute pay increases when possible.