Compensation Project
Project Background
Our Current System
Our current system was established by the Tennessee Board of Regents in 2004.
There has been no change to this system since Tennessee empowered us and others to
be Locally Governed Institutions in 2016.
Our current system breaks our positions into two distinct categories: Administrative/Professional Staff and Clerical/Support Staff. Grade and skill levels for positions were determined based on a point-factor system. This method of classifying positions is well suited for maintaining internal equity for positions based on their total points but does not take into consideration the market value for positions. Our current system has over 800 job classifications; our new system will have around 300, representing a 63% reduction in the number of job classifications ETSU must manage.
Thus, not only does our current position classification and compensation system reflect a past that no longer exists, but it also perpetuates challenges in recruiting, retaining, and rewarding the best and brightest to serve our university, students, and community.
The Case for Change
Following the lead of many of our sister Tennessee universities, we have begun the
process of reviewing our classification and compensation toward a future realignment
guided by the following considerations:
- Adapting to changing roles and responsibilities
- Ensuring equity and fairness
- Complying with labor laws and regulations
- Attracting and retaining talent
- Supporting organizational strategy
- Better cost management and budget alignment
The Exploration Process
The HR staff spent significant time reviewing the classification and compensation structures at other universities. The model we have proposed is a combination of ideas from many different universities and represents what we believe is a best practice model. Our exploration process included the following:
- Meeting with subject matter experts (SMEs) for each proposed job family to ensure the qualifications and content of each job family accurately represents the work
- Crafting detailed position description questionnaires
- Incorporating an outside consultant review of our proposed job families to assist in setting market ranges
- A review of all employees in context of the new market ranges to determine where ETSU needs to invest in market equity
- A presentation of recommendations to university leadership
Our Goal
Upon completion of our work, we anticipate the following outcomes:
- A classification structure that groups positions based on uniform criteria (i.e., job duties and knowledge requirements)
- A compensation framework that allocates positions to market ranges that reflect their relative value to the organization and marketplace
- Market ranges aligned with both the private sector external labor market and peer higher education institutions
Project Timeline
- January 2024-June 2024
Preparation Phase:
Work with outside consultant
Review job families with subject-matter experts
- July 2024
Informational Launch Phase:
Launch informational website
Provide supervisor tools
- September 2024 - November 2024
Review and Alignment Phase:
Meet with ETSU supervisors to share new system
HR/supervisors align current roles with new system
- December 2024
Finalization Phase:
New compensation policy finalization
Leader Resources
This information is meant to provide you with helpful information regarding ETSU’s new compensation structure that will be implemented in January 2025. Please review the information to ensure you are prepared for questions your employees may have about the new structure. The Human Resources Business Partners and leadership team are available if you have additional questions. You may find a list of the Human Resources Business Partners and leadership team at https://www.etsu.edu/human-resources/hrbp.php.
Recommended Information to Communicate
-
What is ETSU's job family compensation project?
- Currently, the normal hiring salary range for support staff and administrative staff at ETSU is the minimum salary of each pay level up to 90% of each level’s midpoint (90% Rule).
- ETSU is transitioning to a market-based compensation structure. A market-based salary structure is a compensation system that determines employee pay based on external data, specifically what similar positions in the same industry and geographic location are paying. This method emphasizes attracting and retaining talent by offering competitive salaries that align with the market value of a particular skill set and experience level.
- As part of this project, new job families, roles, and levels have been created to better describe the work of employees. Job families are a set of jobs grouped together that perform similar functions.
- All staff/administrative roles will be placed into a new job family, role, and level as part of this project.
- ETSU partnered with Salary.com to establish new market-based ranges to replace the current pay grades of impacted staff/administrative roles.
- New compensation policies and procedures will go into effect with the project's implementation.
-
Why are we doing this?
Our current system has the following challenges:
- Vague Job Titles and Descriptions: The existing job titles and descriptions lack clarity, leading to inconsistencies in how positions are classified.
- Multiple Grades for Job Titles: With over 30 job titles having multiple grades, it becomes challenging to differentiate between roles.
- Ambiguity in Job Classifications: Ambiguous job classifications result in candidates being assigned roles based on general suitability rather than specific criteria.
Our new approach consists of :
- Job Families: The proposed structure introduces job families that group similar roles based on shared characteristics, skills, and responsibilities.
- Systematic Organization: This allows for a more consistent classification of positions across ETSU.
- Market-Based Structure: By assessing compensation competitiveness and addressing market gaps, leadership can make informed decisions about job design.
- Framework for Categorization: The new structure provides a framework to categorize jobs into families, levels, and market ranges.
Our new approach also ensures that ETSU continues to:
- Adapt to changing roles and responsibilities
- Ensure equity and fairness
- Comply with labor laws and regulations
- Attract and retain talent
- Support its organizational strategy
- Manage costs and budget allocations more effectively
Overall, this shift aims to create clarity, improve consistency, and empower decision-making related to job roles.
-
How is the new market-based structure being developed?
ETSU has been following these steps:
Review of Classification and Compensation Structures at Other Universities:
- The HR staff thoroughly examined how other universities handle classification and compensation.
- The proposed model combines ideas from various institutions, aiming for a best practice approach.
Consultation with Subject Matter Experts (SMEs):
- HR engaged with SMEs for each job family to ensure accurate representation of qualifications and job content.
- This step ensures alignment between the proposed families and the actual work performed.
Collaboration with an Outside Compensation Consultant (Salary.com):
- ETSU partnered with Salary.com to review the proposed job families.
- The goal is to establish market ranges that better match industry standards.
Assessment of ETSU Employees:
- HR is currently assessing all affected employees within the context of the new market ranges.
- This evaluation helps identify areas where ETSU needs to address market equity.
Presentation of Recommendations:
- Once our work is finalized and employees are correctly assigned to their new job families, HR will present their findings and recommendations to university leadership.
Supporting Your Employees During the Transition
Navigating change in the workplace can be stressful for employees. To ease the transition, we suggest the following:
Communicate Effectively:
- Trust and Transparency: Establishing trust and effective communication is crucial for a positive work environment.
- Active Listening: When employees feel heard and valued, they become more engaged and productive.
- Mutual Respect: Practice honesty, transparency, and active listening to foster an atmosphere of mutual respect and trust.
- Open Communication: Encourage open dialogue where employees feel comfortable sharing ideas and concerns.
Demonstrate Empathy:
- Understanding Perspectives: Show empathy by actively trying to understand employees’ viewpoints and experiences.
- Regular Check-Ins: Regularly check in with employees to address their concerns and well-being.
- Stronger Connections: Demonstrating care fosters stronger connections, leading to increased trust, loyalty, and motivation.
Lead by Example:
- Model Desired Behaviors: Leaders play a crucial role in modeling the behaviors associated with the change.
- Clear Roadmap: By actively demonstrating new behaviors, leaders provide a clear roadmap for success.
Job Families
FAQs
-
Who is impacted by the new compensation structure?
- All employees in regular staff positions across the university will be moved to the new compensation program.
- Not included: Faculty, students, postdocs, and temporary employees
-
What is the difference between the working (position) title and the classification (job) title?
- The working (position) title is more descriptive of the function or responsibilities
of an individual position and should be easily recognized and understood by internal
and external constituencies.
- Working titles are typically used in emails, business cards, and directories.
- The classification (job) title corresponds to the position classification and is recorded in the Human Resources system.
- The working (position) title is more descriptive of the function or responsibilities
of an individual position and should be easily recognized and understood by internal
and external constituencies.
-
Will my working title, classification title, or both change once the new compensation plan is implemented?
Once the new compensation plan is implemented, only your classification title will change. Your working title will not change. -
Will employees receive information on their new job family classifications and assigned market ranges?
Yes, each division and department will disseminate information to employees. -
How do I get a copy of my position description?
You may work with your supervisor to request a copy of your position description, or visit the Position Description Library. -
What if I believe my position description needs to be updated?
You may work with your supervisor to determine if your position description needs to be updated, or you may contact Human Resources for additional information. -
Are there currently pay increases associated with the project? How will this change affect my pay going forward?
The newly implemented compensation structure represents the initial step in establishing a robust foundation for future compensation decisions. This framework equips leadership with essential tools to develop a comprehensive compensation strategy, ensuring equitable and predictable pay practices. It is important to note that budget availability varies across colleges and divisions, so each leadership team can tailor their approach accordingly. While addressing pay gaps requires a long-term commitment, this assessment positions the institution to enhance its market competitiveness. -
In the new system, will new hires come in at a higher rate of pay than current ETSU staff?
Aside from rare circumstances, new hires will not come in at a higher rate of pay than internal employees. An example rare circumstance would be a potential hire with extraordinarily exceptional skills and experience beyond what is currently in the department. -
What does it mean that this compensation project is “budget neutral”?
When we say that ETSU’s new compensation project is “budget neutral,” we mean that we are redesigning our employee pay system without incurring significant changes to the institution’s overall compensation budget or affecting the institution’s overall spending. This means the total amount of money allocated for employee compensation remains constant.
Additional Resources
October 30, 2024 Leadership Town Hall Meeting