HR director discusses staff role in compensation and classification redesign

The University of Iowa Department of Human Resources recently announced that it is moving into the design phase for a new system of compensation and classification for staff. fyi asked Susan Buckley, associate vice president for finance and operations and director of human resources, to respond to some questions regarding the project.

	Susan Buckley

Who is/isn’t included in the compensation/classification change?

The compensation and classification redesign project will involve nonorganized professional and scientific staff. It will not include any merit system staff represented by AFSCME or exempt, or the health care professionals represented by SEIU. 

What are the motivating factors for changing the University’s compensation and classification system?

The current system has become a focus of concern for both the staff and the administrators that use it. Staff Council has previously expressed concerns regarding the lack of market competitiveness, progression within salary ranges, and the overlap of merit system salary rates with some of the professional and scientific salary rates.

Campus administrators have also expressed concern about the market competitiveness, and their ability to recruit and retain talent. These concerns led to the Buck Consultants study of last year. This study served to confirm that our system could be improved, and we are now trying to implement those recommendations through a new system design.

How does the current system work? What’s wrong with the current system?

The current system evaluates University jobs in relation to each other on the basis of 36 factors. These factors have not changed over the 30 years the system has been in place, and are no longer responsive enough to how work is performed and valued today. The compensation levels under the current system do not have a strong relationship to market salary rates, which has led to an increasing need to make exceptions and “work arounds” to make the system work. These challenges lead us to believe it is time to change the system.

What will be the main benefit to current UI employees? What will prospective employees find appealing?

The main benefit for current employees will be in knowing that University salary rates will be guided by the market rates for similar jobs. This should help with the retention of current University staff as well as recruitment. The new classification system will also provide improvements related to individual career development, in having a better understanding of the relationship between jobs in a progression, and the skills that individuals would need to change their classification.

What is the role of a UI employee in the classification phase of this redesign? Will employees have a chance to provide input?

Individual employees will be given the opportunity to describe their work, so that their jobs can be placed appropriately into the new system. We will also involve some staff through participation on expert panels for each of approximately 22 job functions, and the development of job progressions within those functions. More information regarding this will be posted on the compensation and classification web site.

A lot is being said about an increased link to external markets. Some people seek jobs at the University because it was superior to the general market in terms of compensation. How much of a factor will the external marketplace play in the bottom line?

Through the redesign process, we will be evaluating the relationship we want to maintain with relevant market rate comparisons. We need to continue to pay salary rates that allow us to recruit and retain talent.

What markets will be considered?

No decisions have been made at this point about the specific markets that will be used for comparison to University jobs. In most cases, we expect to consider the markets in which we compete in recruiting staff. The relevant market will not be the same for all positions. For example, as one market factor, we will need to consider the salary rates of other University staff groups, such as those represented by AFSCME and SEIU, in relation to similar professional and scientific positions. For positions that are not similar to AFSCME and SEIU covered jobs, other markets will be more relevant, such as Big Ten, regional or national markets.

Will individual job performance be recognized/rewarded?

Yes, performance will continue to drive individual salary increases. The new system will provide a market-related salary structure, but individual performance will continue to be a key factor in making individual salary increase decisions.

One concern that might immediately come to mind: Will employees’ salaries be lowered by this change?

No individual salaries will be reduced when the system is implemented. The system will help guide future increases, but no one will have a pay decrease.

How might this change ease tensions across merit/P&S lines?

By looking at the merit system salary rates as a competitive market influence, we hope to be able to rebalance the relationship between merit and professional positions.

Please explain “comparable worth.” Can it coexist with market value?

“Comparable worth” is the provision in Iowa law that provides that men and women in female or male dominated occupations should be paid similar rates for jobs of similar value. The new system will continue to evaluate the relative value of jobs in relation to each other within the University system. What will be new is that the salary levels for a group of jobs will now have a relation to the market rates for those jobs. However, we will continue to maintain our commitment to comparable worth and equal pay principles.

Is it possible to simplify this system, given the University’s complex structure?

Our intent is to redesign the system to be more transparent and easier for staff and administrators to understand and use. No doubt there will be complexities, but we hope the fundamental components will be clear and understandable to all.

by Christopher Clair