Butler University

Compensation Study

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About Fox Lawson & Associates

Bought Practice From Ernst & YoungCompensation SpecialistsNationwide Practice23+ Years of ExperienceStrategically Focused

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University Clients Hamline University Macalester College University of Minnesota Olympic University Seattle University Loyola University University of Arizona Arizona State University Pennsylvania State University Houston Community College Central Wyoming College Salem International University

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Your Needs Two employee groups

Faculty Assessment of bias Assessment of compression Market analysis

Staff Pay strategy Classification and job analysis Job evaluation Market analysis

A need for communication A need for participation4

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Our Approach

Faculty Study1. Assessment of Bias2. Assessment of Compression3. Market Analysis

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Assessment of Bias• To determine if women or minorities are paid

equitably for substantially the same qualifications as white males.– Analyze pay rate based on the following independent

variables:• Race• Gender• Rank• Years of Service• Pay Rate at Hire• Prior years of Experience• Discipline

• The report will document the effect on pay and solutions available

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Assessment of Compression

• To determine what the “fair” rate of pay is based on the years of experience at Butler University (or total experience)

• Determine a corrective action and cost

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Market Analysis

• To determine the average market rate of pay among peer institutions

• Assess market pay by rank• Review minimum, average, maximum• Identify issues and solutions

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Our Approach

Staff Study1. Pay Strategy2. Classification and Job Analysis3. Job Evaluation4. Market Assessment5. Final Report

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Pay Strategy Review the current classification and

compensation systems to determine key issues

Confirm a philosophy that supports the University’s strategic goals and objectives including selecting an appropriate job leveling toolBroad vs. narrow classificationsDefinition of marketMovement through the rangesJob evaluation techniquesTotal compensation analysis

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Classification

Employees fill out Position Analysis Questionnaires

Interview employees to verify jobs Create new classifications as appropriate Determine FLSA status for all job classes Review and approval

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Job Evaluation

Apply selected job evaluation tool (e.g. Decision Band™ Method or other)

University review and approve hierarchy

Appeal processProvide materials and training

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Market Assessment

Define labor marketSelect benchmark jobsDetermine how the University compares to

marketUpdate structure/develop new structureReview options and costsDevelop transition plansProvide administrative guidelines

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Final Report

Steps and processes usedAdministrative guidelinesPresent findings and

recommendations to the UniversityTransition and implementation plan

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What the Study is Not

• Downsizing

• A way to reduce pay

• A reorganization

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What Might Happen

• New, consistent and logical job titles

• Consolidation of titles

• Fair and equitable salary ranges

• A process for maintaining the system