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© 2015 Texas Association of School Boards, Inc. All rights reserved.
January 29, 2015
Presented by:Ann R. Patton
Managing Compensation Consultant
Compensation Pay Plan Update
This information is provided for educational purposes only to facilitate a general understanding of the law or other regulatory matter. This information is neither an exhaustive treatment on the subject nor is this intended to substitute for the advice of an attorney or
other professional advisor. Consult with your attorney or professional advisor to apply these principles to specific fact situations.
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
PAY SYSTEM OBJECTIVES
• Recruit Employees– Competitive entry
rates– Competitive pay for
experienced new hires
• Retain Employees– Pay increases– Market competitive
• Pay for Job Value– Maintain fairness– Prevent overpayment
or underpayment
• Control Costs– Salary plan and
increases driven by budget
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
PROJECT ACTIVITIES AND TIMELINE
• Collect and analyze current district pay information, pay plans, and practices
• Determine district’s pay concerns
October 2014
• Collect and analyze job market data• Interview district administrators• Adjust pay structures as needed• Calculate cost of pay increase and adjustments
November 2014
• Review findings and recommendations with administration• Finalize changes
December 2014
• Final report to Board• Transfer data files • Review pay procedures
January 2015
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
MARKET COMPARISONOther Sources:• Economic Research Institute,
2014 (Dallas/Ft. Worth area)• IBM® Kenexa® CompAnalyst®
Salary Survey (Dallas/Ft. Worth area)
• All jobs benchmarked at the 75th percentile
District Enrollment
Aledo ISD 4,867Allen ISD 20,295Arlington ISD 64,494Birdville ISD 24,136Carroll ISD 7,800Carrollton-Farmers Branch ISD 26,325Coppell ISD 11,323Crowley ISD 15,064Denton ISD 26,667Eagle Mountain-Saginaw ISD 17,867Fort Worth ISD 84,566Frisco ISD 45,924Grapevine-Colleyville ISD 13,700Highland Park ISD-Dallas County 7,014Hurst-Euless-Bedford ISD 21,970Irving ISD 35,355Keller ISD 33,804Lewisville ISD 52,063Mansfield ISD 32,782McKinney ISD 24,449Plano ISD 54,667Richardson ISD 38,185
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
MARKET BASED PAY• A “target” rate is intentionally set
– Market value– District goals (75th Percent for
NISD)• Range parameters are set to limit
employee pay variance from the target rate
• The goal is that employees are paid near target rate
• Target rate is adjusted regularly
115%
85%
80%
98%
102%
120% Experienced
Special skills
Market Target
75th Percentile for NISD
100%
Minimum
Maximum
Newly Hired
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
HOW MARKET IS USED
Pay Grade 1
Pay Grade 3
Pay Grade 4
Pay Grade 2
Minimum Rate
Maximum Rate
Midpoint Rate
Market Target
Market Target
Market Target
Market Target
Set Range Parameters
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
PAY INCREASES
10 Years
$4,681
$3,745
$5,618
20 Years
$3.896
$5,845
$4,871
5 Years
$4,590
$5,508
$3,672
15 Years
$3,820
$5,730
$4,775
Pay Increases - 4% per year
Employee’s Pay
Structure Adjustment – 2% per year
Minimum Rate
Midpoint Rate
Maximum Rate
$3,600
$4,500
$5,400
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
TEACHER MARKETDistrict
Student Enrollment
Number Tch Staff
0-Year Salary
5-Year Salary
10-Year Salary
15-Year Salary
20-Year Salary
1 Hurst-Euless-Bedford ISD 21,970 1,336 $52,750 $52,803 $54,364 $55,748 $57,808
2 Irving ISD 35,355 2,481 $51,000 $53,280 $54,300 $55,750 $58,500
3 Mansfield ISD 32,782 2,117 $51,000 $52,452 $54,255 $55,481 $58,282
4 Coppell ISD 11,323 724 $50,200 $51,683 $52,501 $54,059 $57,625
5 Keller ISD 33,804 2,441 $50,000 $51,849 $54,519 $56,019 $58,069
6 Birdvil le ISD 24,136 1,537 $50,000 $51,830 $53,280 $54,680 $56,130
7 Grapevine-Colleyvil le ISD 13,700 868 $50,000 $51,000 $52,000 $53,000 $54,000
8 Arlington ISD 64,494 4,288 $50,000 $50,560 $52,250 $54,050 $56,850
9 Crowley ISD 15,064 967 $50,000 $50,508 $52,403 $54,383 $56,738
10 Denton ISD 26,667 1,915 $48,750 $50,825 $51,825 $53,175 $55,845
11 Highland Park ISD-Dallas County 7,014 439 $48,639 $49,974 $51,752 $53,308 $57,040
12 Richardson ISD 38,185 2,603 $48,522 $50,022 $51,422 $52,797 $54,172
13 Plano ISD 54,667 3,998 $48,500
14 Lewisvil le ISD 52,063 3,577 $48,325
15 Fort Worth ISD 84,566 5,348 $48,300 $51,245 $53,479 $55,187 $58,567
16 Carrollton-Farmers Branch ISD 26,325 1,684 $48,300 $49,235 $51,105 $52,975 $54,845
17 Carroll ISD 7,800 527 $48,200 $49,553 $51,495 $53,217 $54,939
18 McKinney ISD 24,449 1,685 $47,650 $49,150 $50,750 $52,850 $55,450
19 Allen ISD 20,295 1,286 $47,500 $50,024 $51,726 $53,304 $55,963
20 Frisco ISD 45,924 2,995 $47,500 $49,624 $50,654 $52,508 $54,877
21 Aledo ISD 4,867 296 $47,475 $48,475 $49,475 $50,475 $53,305
22 Eagle Mountain-Saginaw ISD 17,867 1,082 $47,080 $49,241 $51,699 $53,608 $56,501
Northwest ISD 19,001 1,225 $50,150 $51,400 $53,150 $55,150 $58,650
75th Percentile $50,000 $51,720 $53,330 $54,807 $57,671
Comparison to 75th Percentile 100% 99% 100% 101% 102%Dollar Difference $1,570 $866 $1,238 $1,692 $2,335
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
OTHER JOB MARKET COMPARISON
Job FamilyNumber of Benchmark
Jobs
Overall Salary Comparison
(75th Percentile)
Current Range to Market
(75th Percentile)
Administrator 17 100% 95%
Professional 24 101% 97%
Campus Leadership 7 101% 107%
Information Technology 13 91% 88%
Clerical 17 99% 99%
Instructional Support 4 98% 97%
Auxiliary 18 94% 90%
Other Job Comparisons
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
RECOMMENDATIONS• Implement proposed pay structures and classifications
based on the level of skill, effort, responsibility and market value of the job.• Administrative and Professional (professionals, directors, principals)
• 9 pay grades• Information Technology (technology support, programmers)
• 6 pay grades• Paraprofessional ( aides, clerks, campus secretaries, administrative
secretary)
• 7 pay grades• Auxiliary (custodians, bus drivers, skilled trades, food service)
• 6 pay grades
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
• Provide a general pay increase to employees whose pay is below the pay grade maximum.• 3% was included in cost estimate
• Ensure all employees are paid at least the minimum of their pay grade.
• Consider paying additional equity adjustments to alleviate pay compression at the bottom of the pay grade for paraprofessionals and auxiliary employees.
RECOMMENDATIONS
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
COST ESTIMATE FOR 3% GPITotalStaff
Count of Increases
CostIncrease
Percent ofCurrent
Costs
2014-15Current
Costs
Teachers, Librarians, Nurses - $51,500 starting salary 1,354 $74,904,4611 3.0% general pay increase ($1,625) 1,346 $2,184,884 2.9%2 Adjustments for equity with teacher pay 2 $256 0.0%
Professional 218 $17,613,0261 3.0% of pay range midpoint increase 217 $563,289 3.2%3 Adjustments to 0.5% above pay range minimum 14 $28,167 0.2%
Technology 31 $1,616,1741 3.0% of pay range midpoint increase 30 $52,633 3.3%3 Adjustments to 0.5% above pay range minimum 12 $52,990 3.3%
Paraprofessional 313 $8,392,2441 3.0% of pay range midpoint increase 309 $262,950 3.1%4 Targeted adjustments 30 $29,858 0.4%
Auxiliary 31 $1,427,3361 3.0% of pay range midpoint increase 30 $46,374 3.2%3 Adjustments to 0.5% above pay range minimum 7 $16,098 1.1%4 Targeted adjustments 12 $30,547 2.1%
Subtotal - General Pay Increase 1,947 1,932 $3,110,131 3.0%
Subtotal - Implementation/Equity Adjustments 77 $157,918 0.2%
Total Cost Estimate $3,268,049 3.1% $103,953,241
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© 2015 Texas Association of School Boards, Inc. All rights reserved.
Ann R. PattonSr. Compensation ConsultantTexas Association of School [email protected]
CONTACT INFORMATION
Questions?
