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New Salary Scales Recommendation

Board of Trustees

October 10, 2016 / 6:00 p.m.

Results of 2015-16 Classification & Compensation Study Presented to the Personnel Committee of Alamance Community College’s Board of Trustees

October 4, 2016

Introduction Initiative 4.1 of the 2014 – 2016 Alamance Community College (ACC or the College) Strategic Plan called

for a review of the College’s organizational and salary structures. To support this initiative, in June 2015,

the Board of Trustees (BOT) commissioned a classification/compensation study to evaluate the job

classifications and salary levels of all full-time positions (faculty and staff). The College issued a request

for proposal and, after thorough evaluation by an internal ad hoc committee, contracted with Arthur J.

Gallagher & Company (AJG), a firm with experience in higher education classification and compensation

studies (including North Carolina community colleges).

Recommendation The College requests that the Board of Trustees (BOT) approve the proposed salary scales/ranges as

outlined below.

Process Over a period of one year, AJG lead college employees through the following comprehensive process.

1. All staff completed position description questionnaires (PDQs) inclusive of the following:

position summary; supervisory responsibilities (when applicable); essential duties; required

knowledge, skills and education; breadth/depth of decision-making required. This was a

collaborative process between staff members and their supervisors. In addition, the Director of

Human Resources reviewed each PDQ prior to submitting to AJG. In cases where additional

information was needed (e.g. clarification of duties), AJG communicated directly with the

Director of Human Resources and the appropriate supervisor for any positions in question.

2. AJG benchmarked the PDQs submitted by the College against similar positions in local, regional,

state and national labor markets.

3. AJG delivered a draft position classification model defining salary grades based on essential

duties, supervisory responsibilities, required skills/knowledge, etc.

4. AJG conducted two training webinars for the President’s Cabinet. These webinars focused on

the methodology used for the classification of positions.

5. Based on local, regional, state and national labor market data, AJG delivered drafts of salary

scales/ranges for all full-time faculty and staff positions (See Attachments 1 and 2).

6. College leadership benchmarked the proposed salary scales/ranges against peer institutions

within the College’s labor market.

7. Based on the training provided by AJG, college leadership developed a methodology to place

new employees within the appropriate salary scale/range.

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8. The Executive Committee of the President’s Cabinet vetted the scales/ranges and the

methodologies for faculty and staff placement.

Proposed Strategies for Implementation After extensive collaboration with college leadership, AJG delivered a new classification model and

salary scale for full-time staff based on labor market data at the local, regional, state and national levels.

From that, AJG proposed three strategies for implementation regarding adjustments to faculty and staff

salaries.

Strategy 1: Align faculty and staff salaries to the proposed salary range minimums

This strategy will ensure that all full-time faculty and staff salaries are aligned to (at least) the minimum

of their respective scales/ranges. Note that the majority of faculty and staff (due largely to years of

experience) will fall above the newly established minimums.

The (recurring) cost to implement Strategy 1 is $70,422.

Strategy 2: Align faculty and staff salaries to reflect years in their current position

This more aggressive strategy would ensure that all full-time faculty and staff salaries are aligned with

the years of experience gained in their respective positions.

The (recurring) cost to implement Strategy 1 would be $345,457.

Strategy 3: Align faculty and staff salaries to reflect years in the position (10% max. salary increase)

This strategy, identical to Strategy 2 with the exception of a 10% cap on individual salary increases,

would ensure that all full-time faculty and staff salaries are more closely aligned with the years of

experience gained in their respective positions.

The (recurring) cost to implement Strategy 3 would be $142,845.

Required Resources by Strategy

Strategy Cost (Recurring) Total Cost (Recurring)

Faculty Staff

Strategy 1 $00025,574 $00044,848 $00070,422

Strategy 2 $00208,303 $00137,154 $00345,457

Strategy 3 $00060,697 $00082,148 $00142,845

Approved Salary Adjustments At its September 12, 2016 meeting, the ACC BOT approved the following regarding salary adjustments

for faculty and staff.

A 1.5 percent recurring salary increase to all benefitted faculty and staff.

Use the remainder of recurring salary increase funds ($93,035) above the 1.5 percent to

1) ensure that all employees are brought to (at least) the minimum of their respective

scales/ranges and 2) to make equity and market rate adjustments identified in the

compensation and salary study.

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Pursuant to these BOT approvals, the College will implement Strategy 1 as its first step in better aligning

faculty and staff salaries to local, regional, state and national labor markets. In addition, the President

will consider the use of other college funds to address any equity and market rate adjustments

identified in the compensation and salary study. Moving forward, the College will develop a plan to

implement Strategy 2 or 3 should funds be available.

Methodologies for New Employee Classifications

Faculty

At the time of hire, faculty salaries will be determined based on market demand (i.e. positions for which

recruiting is more challenging due to competition from industry), education level, years of applicable

experience and internal equity (See Attachment 1).

Staff

At the time of hire, staff salaries will be determined based on the position, years of applicable

experience and internal equity.

To classify staff positions, AJG developed a decision band methodology (DBM). The DBM places

individual positions into specific bands (based on duties performed and degree of decision making

required) and sub bands (based on responsibility and accountability). Each band (represented with a

letter A - F where A is the lowest and F if the highest) includes two sub bands (represented with the

numbers 0 – 92 where 0 is the lowest and 92 is the highest).

For example, a position classified as E81 is at a higher level than a position classified as B25 (See

Attachment 2).

In addition to the methodologies developed by AJG, the College plans to evaluate all full-time faculty

and staff at a minimum of every five-years (triggered by anniversary dates). This evaluation will take

into consideration years of service and labor market comparisons. Five-year salary adjustments will be

dependent on employee performance, availability of funds and internal equity.

Note that for all new hires, the President has the discretion to deviate from the standard salary

scales/ranges in order to ensure acquisition of the highest quality faculty and staff (e.g. recruiting

competition from the four-year institutions as well as the private sector).

Employee Notification Upon BOT approval of the proposed salary scales/ranges, the President will work with the Director of

Human Resources to draft a letter to each full-time employee describing the classification and

compensation study and, more specifically, how he or she has been classified. In addition to written

correspondence, the pay scales for faculty and staff will be made available via the Human Resources

departmental page on the College website. Finally, the results of the classification/compensation study

will be presented at a faculty/staff meeting.

Minimum Midpoint Maximum

Points* 0-4 5-9 10-14 15-19 20-24 25-29 30+

Market Demand

Base 4,122$ 4,339$ 4,917$ 5,496$ 6,074$ 6,653$ 7,231$

MD1 4,534$ 4,773$ 5,409$ 6,045$ 6,682$ 7,318$ 7,954$

MD2 4,988$ 5,250$ 5,950$ 6,650$ 7,349$ 8,049$ 8,749$

EQUAL Base - 5% Base Base + 13.33% Base + 26.66% Base + 39.99% Base + 53.32% Base + 66.65%

Points

Minimum requirements for position = 0 points

Ratio

1:1

NA

Full-time Applicable Work Experience: 2:1

Part-time Applicable Work Experience: 4:1

Full-time Teaching Experience:

Application

1 year of FT teaching experience = 1 additional point

2 years of applicable work experience = 1 additional point

4 years of applicable work experience = 1 additional point

Evaluated case by case

Attachment 1

Part-time Teaching Experience:

Faculty Pay Scale

Effective January 1, 2017

Addditional Points for Education

One point per additional applicable degree above that required for the position

Additional Points for Experience

*Point System to Address Advanced Degrees and Teaching/Applicable Work Experience

Steps

DBM Rating Min 2 3 4 5 Mid 7 8 9 10 Max

A11 $18,964 $19,912 $20,860 $21,808 $22,757 $23,705 $24,653 $25,601 $26,549 $27,498 $28,446

A12 $22,810 $23,950 $25,090 $26,231 $27,371 $28,512 $29,652 $30,793 $31,933 $33,074 $34,214

A13 $26,655 $27,988 $29,321 $30,653 $31,986 $33,319 $34,652 $35,984 $37,317 $38,650 $39,983

B21 $30,512 $32,038 $33,564 $35,089 $36,615 $38,140 $39,666 $41,192 $42,717 $44,243 $45,769

B22 $34,358 $36,076 $37,794 $39,512 $41,230 $42,948 $44,665 $46,383 $48,101 $49,819 $51,537

B23 $38,204 $40,114 $42,024 $43,934 $45,844 $47,755 $49,665 $51,575 $53,485 $55,395 $57,306

B24 $43,019 $45,170 $47,321 $49,472 $51,623 $53,774 $55,925 $58,076 $60,227 $62,378 $64,529

B25 $48,794 $51,233 $53,673 $56,113 $58,552 $60,992 $63,432 $65,872 $68,311 $70,751 $73,191

B31 $43,019 $45,170 $47,321 $49,472 $51,623 $53,774 $55,925 $58,076 $60,227 $62,378 $64,529

B32 $48,794 $51,233 $53,673 $56,113 $58,552 $60,992 $63,432 $65,872 $68,311 $70,751 $73,191

C41 $51,548 $54,640 $57,733 $60,826 $63,919 $67,012 $70,105 $73,198 $76,290 $79,383 $82,476

C42 $55,245 $58,560 $61,875 $65,189 $68,504 $71,819 $75,134 $78,448 $81,763 $85,078 $88,393

C43 $58,943 $62,480 $66,016 $69,553 $73,089 $76,626 $80,163 $83,699 $87,236 $90,772 $94,309

C44 $63,574 $67,388 $71,202 $75,017 $78,831 $82,646 $86,460 $90,274 $94,089 $97,903 $101,718

C45 $69,126 $73,273 $77,421 $81,568 $85,716 $89,863 $94,011 $98,159 $102,306 $106,454 $110,601

C51 $63,574 $67,388 $71,202 $75,017 $78,831 $82,646 $86,460 $90,274 $94,089 $97,903 $101,718

C52 $69,126 $73,273 $77,421 $81,568 $85,716 $89,863 $94,011 $98,159 $102,306 $106,454 $110,601

D61 $73,756 $78,182 $82,607 $87,032 $91,458 $95,883 $100,309 $104,734 $109,159 $113,585 $118,010

D62 $77,454 $82,101 $86,749 $91,396 $96,043 $100,690 $105,337 $109,985 $114,632 $119,279 $123,926

D63 $81,152 $86,021 $90,890 $95,759 $100,628 $105,497 $110,366 $115,236 $120,105 $124,974 $129,843

D71 $85,782 $90,929 $96,076 $101,223 $106,370 $111,517 $116,664 $121,811 $126,958 $132,105 $137,252

D72 $91,334 $96,815 $102,295 $107,775 $113,255 $118,735 $124,215 $129,695 $135,175 $140,655 $146,135

E81 $95,965 $101,723 $107,481 $113,239 $118,997 $124,755 $130,512 $136,270 $142,028 $147,786 $153,544

E82 $99,663 $105,643 $111,622 $117,602 $123,582 $129,562 $135,541 $141,521 $147,501 $153,481 $159,460

E83 $103,361 $109,562 $115,764 $121,965 $128,167 $134,369 $140,570 $146,772 $152,974 $159,175 $165,377

E91 $107,991 $114,470 $120,950 $127,429 $133,909 $140,388 $146,868 $153,347 $159,827 $166,306 $172,786

E92 $113,543 $120,356 $127,168 $133,981 $140,794 $147,606 $154,419 $161,231 $168,044 $174,857 $181,669

Years of exp. 0-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-28 29-31 32+

Percentage Increase Between Steps

DBM Rating 2 3 4 5 Mid 7 8 9 10 Max

A & B 5.0% 4.8% 4.5% 4.3% 4.2% 4.0% 3.8% 3.7% 3.6% 3.4%

C,D, & E 6.0% 5.7% 5.4% 5.1% 4.8% 4.6% 4.4% 4.2% 4.1% 3.9%

Staff Pay Scale

Attachment 2

Effective January 1, 2017