Performance & Compensation

Derek Hughes
November/December 2012
Staff
 Total Rewards

Martocchio, J. J. (2013). Strategic Compensation: A Human Resource Management Approach. Upper Saddle River, NJ: Pearson.
Shared Perception
Performance & Compensation

Compensation Model
 VCSU Staff Model
Comp Factor Percent Example (3%)
Across the Board (ATB) 50% 1.50%

Market/Equity 15% 0.45%

Merit 35% 1.05%

TOTAL 100% 3.00%

 Across the Board (ATB)
ATB is indiscriminate
Employees get 50% of the legislative
increase
Market/Equity
 Market/Equity
CUPA HR & Job Service ND salary data
CUPA HR primary for higher education, industry specific positions
Job Service ND for local hire positions common to all industries

Compare all positions basis the duties in job

description, and education required
Not title, not person

Compare all positions to the market median

Not mean
 Merit
Pay for performance
Incentive Pay
Links employee pay to measures of performance
 Additional Values
No employee below an 80% floor.
No ceilings

Years of Service (1%/yr.)

Credit not given for low performing year

Years merit pay earned performance (3%)

Performance & Compensation

Individual &
Performance Model
Performance Goals
Measure Performance
Performance & Compensation

Timeline
 Timeline
January-March begin a new review year
Everyone on same timeline (may be some overlap)
One-year from start date
Set goals

July 1, 2014
Merit model takes effect
 Questions
What is the risk of not changing? If I wait long enough, will
the change just go away?

What are my choices during the change process? What are

the potential consequences to me of not changing?

What are the benefits of supporting the change?