Compensation. Today’s Agenda Explore Compensation Issues for NESA Schools What is working and what...

Compensation

Today’s Agenda

• Explore Compensation Issues for NESA Schools•What is working and what is not?•Are there new trends or issues for which you should

be preparing?•Discuss Compensation Philosophy Process

Components of Compensation – Overseas Faculty Hire

• Salary• Tuition assistance•Health Insurance•Housing•Retirement

•Airfare to home of record• Shipping• Transportation•What else?

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Human Resource Management

• HR• Personnel• Salary• Housing• Recruitment• Transportation• Tuition for Kids• Handbook

Key Common Challenges - Background

•Knowledge driven economy• Increasing demand for high quality International

education• Increasing number of schools (China)• Expanding schools

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Key Common Challenges - HR

•Critical to the success of a school is your ability to reach, engage, attract and retain best global talent•Develop best practices in talent management

and employee services

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Best Practices

•Planning for needs•Recruitment•Hiring / contracting•On board – orientation• Employment / retention• Termination / separation

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Needs – HR planning

•Project School growth, student enrollment, revenue expectations•Assess internal needs – placement, current updates,

new jobs•Develop HR plan for recruitment and management•Number of overseas vs. local hires• Expectation levels

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Recruitment

•Develop strategy – compensation benefits•Coordination between Director and HR/BO•Detail the plan•Marketing materials•Use staff to sell school, country•Recruitment fairs, on-line options•Referrals•Bonus plan

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Bonus Plan?

• Should schools consider a retention or early signing bonus for faculty whose contracts are expiring?

• What about something to motivate faculty to inform the school if they are planning to leave?

• Should there be something different for local hire employees?

• Are there attendance issues? If so, are the policies and procedures in place adequate to handle these situations?

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Hiring / Contracting

•Offer letter / letter of intent• Standard contract•Addendum – specific•Contract signing

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On boarding / Orienting

• Stay in touch often / Establish a buddy• Support travel / relocation plans, housing – end

to end•Welcome committee, Campus tour•Help settle in – furnishing, banking, phones,

net, utilities•Orientation to operations•Assign teacher mentor

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Termination /Separation

• Exit interview•Review•No surprises

Compensation Questions

•Do we have to pay more for some teachers? - Math, Science, Computer•Do we pay less for Lower School?•What about collegiality issues with differentiated

pay – traditions of equity on campus?•Does everyone deserve a raise every year?• Is compensation the thing that motivates teachers?

Compensation and Benefits Strategies

•Market Position•Cost per Employee• Internal vs. External equity• Lead vs. Lag•Attraction vs. Retention• Seniority vs. Performance• Education vs. Skills

Compensation Philosophy

Compensation Philosophy

Budget

Salary & Benefits

Organization Mission and Vision

•Developed by Board and Superintendent

•Drives Decisions

•Supports Mission

Why is philosophy important?

•Operational framework: Leads to compensation and benefits strategy•Provides consistency over time•Guides decision making•Communicates reason for decisions•Demonstrates what is important to the school

The philosophy statement is not:

• Static document• The answer to all compensation and benefits questions

Determining Philosophy

•Classify employee needs.• Identify categories of protected persons.•What should be rewarded or valued in regard to

human capital?•What are the school’s employment and

retention goals for the next 5 years?

Develop Philosophy Statement

• What role does compensation and benefits play in the achievement of the school’s strategic plans (financial goals)?

Benefits

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Shipping

•What are the standard arrangements for shipping of personal items for exiting employees?•What help is available to the business manager

for the logistics? • Is there a way for schools to work together to

reduce costs?

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Benefits• Health and Dental insurance – what is offered?

Is there a cost to the employee? Does it matter if the employee is single / married / family?

• Retirement plans – end of service benefits.• Professional development – what is offered?

How is this determined? Is anything required?• Travel allowance / summer / holiday /

emergencies / bereavement / sick family member / etc.

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Benefits

• Tuition remission – is this 100 % / for all children / for all faculty and staff / local and ex-pat?

• Long Term Disability (LTD)• Unemployment insurance – what are the local

requirements?• Who handles the visas and immigration issues

and paperwork?

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Benefits

• Is housing provided for all ex-pat employees and families? What is included in this – furnishing / utilities / cleaning / maintenance / etc.• Is a vehicle provided for ex-pat employees?

What about transportation to / from school / other requirements?•Are laptop computers provided for faculty –

both local and ex-pat?

Mission &21st Century Education

Financial ConstraintsInnovation

Your Challenge

Sunday morning topics

Cracker Barrell

• Used text books• Reporting to Faculty• Software systems• Administrative structure• Facility/Security Structure• Procurement• Non-profit• Tuition Collection and discounts