Compensation Study

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WELCOME

The HR FACTS website is your primary source of information regarding West Virginia’s public higher education compensation study. On this site, you will find information and updates regarding the study and, ultimately, key findings and next steps, making this the central hub for tools and resources that can be accessed by all stakeholders.

This website will also be used as a source for other human resources and benefit-related information, so be sure to check back for updates.

ABOUT THE STUDY

The West Virginia Higher Education Policy Commission (Commission) and the Community and Technical College System of West Virginia (CTCS) have launched a compensation study of all classified jobs (non-faculty and non-classified jobs). The State Legislature passed a bill that requires us to have a job classification system with pay ranges that are tied to the market. This provides us with an opportunity to refresh our current system, which is outdated in both data and methodology.

Possible changes to the compensation and classification program may arise based on the results of the study; however, the main purpose is to ensure consistency and uniformity across the systems.

By better aligning with what other organizations are paying for similar jobs, we will be able to competitively attract, retain and reward our people. As we continue to grow and look toward the future, we will be better positioned to help our institutions understand how to use the dollars they have now by removing the restrictions from the current structure. Introduction Introduction

The West Virginia Higher Education Policy Commission (Commission) and the Council for Community and Technical College Education (Council) in August, 2017, approved the new market-based higher education compensation management program. The work began in July 2015 with a contract with Mercer, a globally recognized compensation management consultant.

Working with Mercer, the HEPC and CTCS analyzed the old system of classifying jobs using a point factor method and the years-of-service salary structure. The analysis resulted in a recommendation to abandon the existing, outdated methods in favor of a market-based compensation structure. Mercer worked with Human Resources staff from the campuses and the state central office in a team to complete a compensation market study.

After gathering feedback from classified staff representatives, the classification and compensation team developed a new higher education compensation philosophy AND designed a new market-based compensation structure for West Virginia public higher education employees. The team developed salary administration and job classification guidelines and assigned pay grades for the state’s nearly 4,700 classified employees.

The Commission and Council’s Division of Human Resources is providing to every state college and university two software programs that will help the schools create and maintain job descriptions and the market value of jobs in every employee category.

News and Updates

Updates to the State Legislature

October 16, 2017
February 4, 2016 

eNewsletters

November 2, 2017

The Compensation Management Program documents have been posted to this web page.  The West Virginia Higher Education Compensation Management Program comprises:

October 26, 2017

The Division of Human Resources sponsored Job Classification and Salary Administration Training for Chief Human Resources Officers (CHROs) and members of the Job Classification Committee (JCC) during the Annual Fall CHRO meeting at Stonewall Resort and Conference Center, Roanoke, WV.   The new program provides a market-based approach to job classification and compensation management.  Salary Administration Guidelines assist human resources officers and institutional administrators in making pay decisions.  Job classification guidelines assist classification specialists with determining the appropriate classification.   The program provides institutions greater flexibility to recruit the best talent and pay for performance.  Schools will be more readily able to promote a high caliber of work and improve employee morale and satisfaction, while controlling compensation costs. The new market-based pay structure is a positive advancement for employee compensation that replaces the antiquated, years-of-service step pay structure and point-factor job classification system that was unable to adapt to the market value of jobs.

September 1, 2017

On August 11, 2017, the West Virginia Higher Education Policy Commission approved implementation of the West Virginia Higher Education Compensation Management Program.  The West Virginia Council for Community and Technical College Education approved the program on August 17, 2017.  Both the Commission and Council approved an implementation date of September 1, 2017.

The program includes implementation of a new market-based salary schedule.  Upon implementation of the new compensation management program, institutions are encouraged to provide funding to bring all classified employee salaries to at least the minimum in the pay grade assigned by the end of the 2018 fiscal year.  Institutions unable to fund the minimum salaries by the end of the fiscal year must present an implementation plan to the Commission or Council for approval and report on progress in October each year, until the minimum salary levels are met.  The new market-based Compensation Management Program provides flexibility to enable institutions to pay competitive salaries that attract and retain highly qualified staff at all levels of experience.

July 19, 2017

Chief Human Resources Officers and support staff attended a full day of training on the state’s new job information software, JDXpert.  The training focused on advanced workflow for maintaining job descriptions at the institution.   JDXpert by HRTMS is web-based job information and description management software provided as a shared service for institutions of the West Virginia Higher Education Policy Commission and the Community and Technical College Council.  JDXpert helps West Virginia higher education institutions construct, manage and store job information. With this software, human resources officers will better manage and maintain reliable job information, which will help support an effective classification and compensation system.

May 16, 2016

The compensation study for West Virginia Higher Education classified employees continues to progress. As we have shared, our ultimate goal throughout the life of this study is to be completely transparent, providing you with new information and updates as soon as they are made available.

We have recently refreshed a list of basic questions for your reference on our HR FACTS website. We have also posted a new list of FAQs that we have received over the past few weeks.

Please be sure to view these updates (under “Tools & Resources”). As always, we will continue to provide you with more information via this eNewsletter, which will be archived on the website post-distribution.

March 16, 2016

West Virginia higher education chief human resources officers participated in a JDXpert job information software webinar.  The webinar provided training on adding and editing job descriptions.

JDXpert by HRTMS is web-based job information and description management software provided as a shared service for institutions of the West Virginia Higher Education Policy Commission and the Community and Technical College Council.  JDXpert helps West Virginia higher education institutions construct, manage and store job information. With this software, human resources officers will better manage and maintain reliable job information, which will help support an effective classification and compensation system.

February 4, 2016 

As you know, the State Legislature in 2015 passed Senate Bill 439, which requires us to create and maintain a new job classification system with pay ranges that are tied to the job market.

This new law has provided us an opportunity to update our current pay structure and job classification system for classified employees with new market information and methodology. The Legislature has asked us today to provide a preliminary update on the status of the classified employee salary market study, which was required with the new law. Let us emphasize that while the initial portion of the market study is complete, the results are still preliminary.

We will provide that brief update to the Legislative Oversight Commission on Education Accountability today, Thursday, February 4 at 5 p.m. Technology willing, you may visit http://www.legis.state.wv.us/live.cfm and choose the Senate Finance (451M) “LISTEN LIVE” link to listen to a live stream of this meeting.

As the market study and the implementation of Senate Bill 439 continue, we will continue to work with the human resources staff at all of our colleges and universities to review the study recommendations and make decisions regarding our classification and compensation process.

As additional information and updates become available, we will post those on this webpage. We will also continue to provide you with updates via our electronic newsletter, which will be archived on that website, as well.

We appreciate your interest and look forward to sharing more information soon.

November 17, 2015

This is the first in a series of communications regarding the compensation study for West Virginia higher education classified employees. Given the personal importance of jobs and pay, we want to ensure that all stakeholders are provided consistent and clear information so you can understand the study and process.

Over the next few months, we will share information through different communication channels on progress, expectations, learnings and timing around the study. Our intent is to be thorough and transparent in our approach. You can expect to see:

  • These updates will include information on the compensation study for classified employees, next steps and timing.
  • A new website is scheduled to go live in the coming weeks and will serve as the primary vehicle of communication throughout the life of this project. All updates will be archived on the site, along with background information about the study.
  • The website will eventually house the final results, serving as the central hub for tools and resources that can be accessed by all stakeholders.

Mercer, a global human capital consulting firm, is evaluating our current classification system and reviewing pay structures relative to the market. Mercer is working with us to develop recommendations based on best practices and internal collaboration in order to address current conditions as mandated by the State Legislature. Tools and Resources

Basic Questions

Senate Bill 439 (signed 4/1/15) requires, among several actions, that for classified employees, a uniform system of classification be maintained and a compensation study be conducted. The bill requires us to have a job classification system with pay ranges that are tied to the market.

This bill provides us with an opportunity to update our current job classification and pay system, which is outdated in both data and methodology.

We are conducting this study in order to create a more equitable structure both within and across our institutions. This will also help us to better align with what other institutions are paying for similar jobs so that we can attract, retain and reward our people.

The study has been divided into three phases.

  • Collect and review relevant organization data, information and documentation.
  • Conduct interviews with organization leaders and key stakeholders to understand perspectives, concerns and expectations for the program.
  • Identify key benchmark jobs.
  • Identify positioning of each element of pay vs. market, and positioning of total pay vs. market.
  • Develop salary structure using results of market pricing.
  • Assign jobs to the salary structure, review and finalize.
  • Develop salary administration guidelines to ensure consistent approach to pay.
  • Prepare overview of recommended philosophy, program, structure and guidelines for review and endorsement by key stakeholders.
  • Present recommendations to higher education organization leaders and to key stakeholders for feedback, revising as necessary.
  • Finalize philosophy and program details based on stakeholder input.

Results of the market study and recommendations for a new salary structure with pay ranges were presented to the Legislative Oversight Commission on Education Accountability (LOCEA) in January 2016. Recommendations for policies and the implementation of these policies will be made in 2016.

The State Legislature requires that an external professional review the classification methodology and compensation program every five years. WVHEPC and CTCS are partnering with Mercer, a global human capital consulting firm to conduct this study. Mercer is evaluating our current classification system and reviewing pay structures relative to the market, and the recommendations will be presented to LOCEA.

Possible changes to the compensation and classification program may arise based on results of the study; however, the main purpose of the study is to ensure consistency and uniformity across the systems. We will have a more accurate picture of how classified employees are paid and enable our institutions to use the dollars they have now by removing the restrictions from the current compensation program.

The salary structure provides the framework for the program, and pay guidelines outline how the program will be managed.

Examples of guidelines to be developed include:

  • Using a salary range appropriately
  • Starting salaries
  • Impact of performance on compensation
  • Promotions, transfers and demotions
  • Titling standards
  • Part-time compensation
  • Temporary assignments
  • Taking on permanent additional duties
  • Salary increase guidelines/matrix
  • Program maintenance, including:
    • Benchmark methodology
    • Monitoring market changes
    • Updating the salary structure

Legislation requires that we review our pay structures every five years, based on available funding.

It is best practice to review your compensation program periodically. The State Legislature also requires that an external (or third party) professional services firm review the classification methodology and compensation program every five years. The current point-factor methodology in place is no longer the best practice in compensation management as more effective methodologies have been developed in recent years.

Our current system encourages artificial levels of jobs that are not aligned to the market. Misalignment to market prevents accurate representation of competitiveness. This, in turn, affects recruitment and retention efforts.

When comparing jobs in the systems to the market, it is important to understand the scope of the job responsibilities and that the competitive landscape for each job may differ. Mercer conducted stakeholder meetings with representatives from each of the 23 organizations in the HEPC CTCS systems, as well as with ACCE leadership in order to build an understanding of the competitive landscape for the jobs in each organization. This was done prior to determining the jobs for benchmarking.

Some jobs:

  • Compete locally with other local employers
  • Are higher education specific
  • Are more regional or even national
  • Differ among institutions within the systems

There is an acceptable level of transparency relative to pay structures, which is available as a public institution. Once the study has been completed, all employees will have equal access to information that can be disclosed, such as job structure, your position within a pay range, class specifics and salary administration guidelines. Our goal is to remain transparent throughout this entire process. We will continue to share information and updates with you as they become available.

The preliminary findings of the market study have resulted in a recommendation for a new salary structure by Mercer consultants and have been vetted by the Commission and Council. The new pay structure consists of 12 pay grades with a range spread of 60 percent from the range minimum to range maximum. The midpoints of the new pay grade were set at the market rates found in this study.

  • Job classification process: How we determine the classification of a job may change as a result of the mandated review. We will look at job responsibilities, reporting relationships and other key factors and develop guidelines to determine how any jobs that need to be added will fit into the structure. Tools will help determine levels, and there will be clearer governance on managing positions.
  • Pay structure relative to market: With the addition of market pricing software, we will be able to provide greater consistency when making compensation decisions.

Of the 4,988 classified staff in the higher education system, 904 were found to be below the new range minimums, and 571 were found to be above the new range maximums.

The total cost to bring these employees up to the new minimum is approximately $1.77 million. Best practice suggests that this does not have to happen immediately but can be rolled out incrementally over a period of three to five years as budgetary restrictions allow.

SB 439 specifically states that no employee will lose any compensation as a result of this study. The way that employees are compensated going forward may change as we move to the concept of ‘pay within range’ as an institution.

Job responsibilities and reporting relationships will not change. The study is looking at jobs, not people. Daily responsibilities of individual employees, as well as reporting relationships, will not be affected.

As we work through this study, we may find that the same job across multiple organizations has been given multiple titles. We will be working to clean up job titles across organization, and titles may change as a result of this.

  • Allow institutions time to vet the slotting of their employees.
  • Provide regular updates about the project to employees and constituents through this website.
  • Create a formal compensation philosophy.
  • Approve a salary structure based on compensation philosophy and finalize with HR leaders from all institutions.
  • Analyze classification methodology and ensure evaluated jobs align with their respective labor markets.
  • Implement JDExperts job description management software as the repository for job information for all state higher education organizations.
  • Review job descriptions and develop overarching WVHEPC job descriptions for institutions to use. If these overarching descriptions need to be altered at the institution level, institutions will be able to create their own descriptions and upload them to JDExperts.
  • Review benchmark and non-benchmark jobs slotted to the structure, making adjustments as needed.
  • Develop guidelines and train institutional human resources officers and managers who may administer pay.
  • Implement ePRISM, labor market pricing software, to update the statewide salary structure. This software will be available to institutions for market pricing jobs for faculty and non-classified employee categories.
  • Revise system classification and compensation rules.

Please contact your local CHRO with any questions that you may have.

FAQs

The structure is designed with a 60 percent range width and a 16 percent progression between grade midpoints.

No adjustments were made to the midpoint. We used the market rates.

The midpoints for the salary structure were developed based on the market 50th percentile. The market varies and cannot be ‘set’.

Midpoints do not vary by exemption status, job families or segmentation.

This will be determined by the salary administration guidelines that are developed. A standard process for placing new hires in a range will also be addressed in the guidelines.

It is anticipated that the spread will be 60 percent within each pay grade.

No, the minimums were set based on the market data and overall compensation levels. The market was determined by size of institution and student enrollment, types of degrees offered, location of school, level of research, etc.

There will be guidelines in place that will assist CHROs and managers in determining how employees will progress through the range.

The total cost to bring these employees up to the new minimum is approximately $1.77 million.

Of the 4,988 classified staff in the higher education system, 571 were found to be above the new range maximums.

Of the 4,988 classified staff in the higher education system, 904 were found to be below the new range minimums. Once all employees are brought to the minimum, they will be within the market range, and their pay will be considered to be market competitive. As we review the job descriptions and assignment to new pay grades, these numbers may fluctuate slightly.

The preliminary findings of the market study have resulted in a recommendation for a new salary structure by Mercer consultants. Vetted by the Commission and Council, the new pay structure consists of 12 pay grades with a range spread of 60 percent from the range minimum to range maximum. The midpoints of the new pay grade are set at the market rates found in this study. There is no correlation between the new pay grades and what we currently have. The new grades are based on market information.

As we work through this study, we may find that the same job across multiple organizations has been given multiple titles. We will be working to clean up job titles across organizations, and titles may change as a result of this.

A job’s initial placement in a grade is based on the job’s responsibilities and job description. The job is then placed in a range within that grade. This placement is based on the job’s current salary. The salary guidelines will determine the pay grade for new jobs moving forward (i.e. new hires, promotions, etc.).

This work will take place next year.

We are currently working to develop new rules and policies which will be outlined in the salary administration guidelines. They will be communicated once finalized.

CHROs are currently working to review the proposed structures for accuracy. They will also be working to review job descriptions, ensuring that they are updated and consistent across the organizations. Additionally, they are meeting with HEPC to discuss individual institutions’ specific jobs and their placement within the structure.

CHROs will also receive training on the new market pricing software, ePRISM, so that they will be able to identify market ranges within their specific institutions.

With the new system, the temptation to reclassify jobs as a way to give pay increases should be eliminated. Individual employee compensation can be managed within the pay range without creating unnecessary levels of job titles. This will help ensure the system remains uniform and that job titles are used consistently across higher education institutions.

Surveys from Mercer, Towers Watson and the Bureau of Labor Statistics (BLS) were used in the market study. College and University Professional Association (CUPA) surveys were used for jobs specific and exclusive to higher education (i.e. Admissions Officer). All industries are represented in the surveys.

No, benefits were not included in this study.

Mercer used a regional data cut to represent the region within which these institutions compete for talent. Where national data was utilized (due to data availability), a geographic differential was applied to reflect variation relative to national figures as found in the Economic Research Institute’s Geographic Assessor. While there were a handful of instances/specific jobs where one area (namely Southern WV) was lower than others, there was no consistent theme to justify different geographical differentials in addition to or different from the state differential of negative eight percent. The salary administration guidelines will address internal equity.

The current system allows for the creation of more levels within the same job than what is reflected in the market. For example, the current system includes three different levels of an HR Assistant. Meanwhile, the market provides one level of an HR Assistant because it does not distinguish to this granular degree. In situations such as this, an organization can distinguish levels by differentiating pay and utilizing the full range of the set pay grade.

Generic titles were matched to the market based on actual job responsibilities.

Experience equivalencies are not uniform for all job titles. Additionally, the determination of experience equivalencies is determined at the institution level. There are currently no plans to develop a uniform guideline that sets equivalencies at the systems level.

Human resources employees and managerial/leadership level positions involved in compensation management at each institution will be trained. Classification and compensation committee members will also be trained. HEPC will provide classification and compensation specific courses suitable for obtaining and renewing certifications for individuals working in Human Resources at HEPC and CTCS institutions. HEPC will always be available for support, and technology providers will also be available for questions.

  • Allow institutions time to vet the slotting of their employees.
  • Provide regular updates about the project to employees and constituents through this website.
  • Create a formal compensation philosophy.
  • Approve a salary structure based on compensation philosophy and finalize with HR leaders from all institutions.
  • Analyze classification methodology and ensure evaluated jobs align with their respective labor markets.
  • Implement JDExperts job description management software as the repository for job information for all state higher education organizations.
  • Review job descriptions and develop overarching WVHEPC job descriptions for institutions to use. If these overarching descriptions need to be altered at the institution level, institutions will be able to create their own descriptions and upload them to JDExperts.
  • Review benchmark and non-benchmark jobs slotted to the structure, making adjustments as needed.
  • Develop guidelines and train institutional human resources officers and managers who may administer pay.
  • Implement ePRISM, a labor market pricing software, to update the statewide salary structure. This software will be available to institutions for market pricing jobs for faculty and non-classified employee categories.
  • Revise system classification and compensation rules.

The Vice Chancellor and HEPC/CTCS leadership are working with the legislative representatives to plan for approval and implementation of the new system. Currently, implementation will depend on a modification of WV Code. The actual date for implementation will depend on completion of the steps listed above, the State of West Virginia’s budget situation, and passage of legislation. At this time, it is anticipated that implementation may be as early as July 2017.

Definitions

Best practices: A set of guidelines or ideas that represent the most effective course of action

Classified employee: For purposes of this study, classified employees can include non-faculty and non-executive employees.

Job Classification system: A job classification system is developed to create a fair and consistent method of determining a job’s position within all jobs in the system.

Compensation program: A philosophy that drives and governs an organization’s decisions regarding how they pay their employees

ePRISM: A comprehensive compensation management, modeling and planning tool that enables organizations to evaluate data, develop strategies and execute compensation programs

HRTMS: A job description management tool that acts as both a hub and source for all compensation-related data

Job title: The name for an individual’s job or position, as recognized by the organization

Market: The competitive market for benchmarking includes higher education and similarly situated companies, institution and organization comparisons, depending upon the specific job responsibilities. Similarly situated companies take into consideration geography, organization size and complexity, recognizing that the job responsibilities for certain jobs is affected by these factors.

Market pricing: Market pricing provides a range of values to inform about current market practice. As part of this study, we will be market pricing jobs and not the skills of the people currently in the jobs. Individual performance, experience, and background can impact pay position.

Pay range: Pay is managed through pay ranges, which are defined for each grade in each job family. The pay range reflects the pay that is expected for the full range of proficiency.

Salary/pay structure: An important component of a compensation program that helps to ensure consistent and competitive pay both within the organization and in the external market

Salary progression: An individual’s pay will progress with reference to their proficiency (relative to the requirements of their job) and the competitiveness of their pay.

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