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Total Compensation Competitive Assessment Administrative Professionals – Summary

April 2018 UPDATE

Colorado School of Mines

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Background

Sibson Consulting (“Sibson”) conducted an assessment of Mines’ total compensation competitiveness for Academic Faculty and Administrative Professionals.

Total compensation = salary and premiums paid by Mines for health and dental insurance.

Sibson worked with two Steering Committees, one for Academic Faculty and one for Administrative Professionals, and with an Oversight Committee to guide the approach taken and develop Compensation Philosophies.• Align the total compensation program to Mines’ mission, vision, and values

A custom Peer Group was established, with input from the Administrative Professional Steering Committee and the Oversight committee. The Peer Group for Administrative Professionals has 39 institutions based on: total expenses, endowment size, faculty FTE, staff FTE, and total student FTE.

----------------Administrative Professional Steering Committee: Becca Flintoft, Danielle Lowry, Tim Vanhaverbeke, Dixie Cirillo, Veronica Graves, Ryan McGuirk, and Andrea Morello

Oversight Committee: Kirsten Volpi, Peter Han, Tom Boyd, Dan Fox, Mike Kaufman, and Mike Dougherty

What questions are on your mind?

BURNING QUESTIONS

IMPORTANT CONCEPT

Survey data obtained only on "benchmarked" jobs

• Jobs that are used as reference points for making pay comparisons –externally and internally

• Characteristics:

- Have well known and consistent responsibilities

- Exist in the relevant labor market – multiple employers, multiple employees

- Data is available in valid and reliable salary surveys

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Mines’ aggregate total compensation is about 102% of median

Salaries alone, in aggregate, are about 97% of median

Sibson considers +/- 15% of target market to be competitive

Mines' salary data from November 2017

Survey data "aged" forward to July 2018

Adjusted for the Denver / Boulder "cost of labor"

Competitive Assessment -- Summary of Findings

Survey sources for salary data:

College and University Professional Association - Human Resources: Administrative and Professional positions Mountain States Employers Council - Denver / Boulder area CompAnalyst - national data Higher Education Information for Technology Services - I. T. salary data Willis Towers Watson - national data.

For Benchmarked Jobs -

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Benefits -- Relative Value

Mines General Industry Peer Group1

Benefits Monthly Per Employee

Annually Per Employee

Monthly Per Employee

Annually Per Employee

Monthly Per Employee

Annually Per Employee

Medical2 $1,406 $16,871 $978 $11,732 $1,034 $12,405 Dental2 $86 $1,038 $87 $1,048 $29 $353 Total $1,492 $17,909 $1,065 $12,780 $1,063 $12,757

Overview:

Mines-paid medical and dental premiums add about $5,100 to salary over our competitors.

Retirement was not included in calculations because it was not possible consistently to capture the mix of employee contributions and employer contributions levels - too many options and levels exist in plans of our peer group - Social Security participation not consistent as well.

Retirement very rough estimate of median peer group employer contributions is about 14%.

1 Peer Group for benefits is a combination of all Peer Groups, regardless of employee group (Academic Faculty vs. AdministrativeProfessionals)

2 Medical plans have been valued using the minimum value calculator provided by the Center for Medicare and Medicaid Services and dental plans were valued using Sibson’s internal actuarial tools

ADMINISTRATIVE FACULTY - BENCHMARKED

__________

Benchmarked approximately 65% of all jobs with 69% of all job holders

Typically, Sibson recommends 50-60% coverage to achieve an appropriate level of representation

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Average Percent to Market 50th

102%

Competitive Assessment - Total Compensation1

1%10%

35%38%

14%

2%

<70% 70-85% 85-100% 100-115% 115-130% >130%

% to

Mar

ket

Market Competitiveness by Benchmarked Position and Job Holder

Total Compensation Distribution at Market Median – All Positions2

1 Base Salary + Medical + Dental2 Percentages may not add to 100% due to rounding

Average Percent to Market 50th

103%0% 8%

33%

39%

16%

3%

<70% 70-85% 85-100% 100-115% 115-130% >130%

% to

Mar

ket

Market Competitiveness

Market Competitiveness

Total Compensation Distribution at Market Median – All Job Holders2

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Competitive Assessment - Total CompensationMarket Competitiveness by Job Holder

Total Compensation Distribution at Market Median – All Benchmark Job Holders

55%

70%

85%

100%

115%

130%

145%

160%

175%

$0 $30,000 $60,000 $90,000 $120,000 $150,000 $180,000 $210,000 $240,000 $270,000 $300,000 $330,000

% to

Mar

ket

Total Compensation

FIRST STEPS TO IMPLEMENT THE RESULTS

Concepts:

Benchmarked vs. non-Benchmarked

Job match

Total Compensation Philosophy

https://inside.mines.edu/UserFiles/File/hr/AdminCompPhilosophySUMMARY9-14-17.pdf

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Vision:

To be a top destination STEM university, known for: Technical excellence, leading-edge research, and innovation; Strong connections to applications, industry, and business; and Embracing and promoting context, impact, and passion; with the aspiration that our

graduates, ideas, actions and innovations have a transformative impact on society;solving the world’s most pressing needs, creating shared prosperity, and ensuringthe sustainable use of the earth’s resources.

Administrative Professionals—Total Compensation Philosophy SummaryAPPROACH

Communication Mines believes in transparency and providing on-going communication around the compensation program.

Work/Job ValuationThe compensation program emphasizes external market valuation while recognizing strong performance and contribution to the institution and the importance and value of internal equity. The program leverages competitive market data, and jobs will be assessed based on external, internal equity, and role within Mines where feasible.

Comparison MarketsMines attracts talent from local, regional, and national markets. External benchmarks are pulled from comparison markets based on role, job unit, and level, and may include higher education and general industry markets andorganizations.

Competitive Positioning Market targets are at or above market median; this may vary based on mission/criticality determined by institutional leadership.

Total Compensation MixBase Salary is the primary method of compensation. Benefit offerings are a key component of the total compensation package, including health, dental and other insurance benefits, leaves, tuition waivers, retirement, etc. Merit increases are determined by an individual’s performance and contribution. Opportunities for career growth andwork content are also key to Mines’ strong employee value proposition

Link to Performance Performance and level of contribution are important factors in determining salary along with additional recognition as funding permits.

Program Administration Clearly defined roles, responsibilities, and decision rights for the design, approval, and management of compensation programs are clearly outlined for Leadership, Human Resources, and Managers and Supervisors.

The compensation program will help support Mines’vision, aligning with the overall institutional strategy by: Focusing on ensuring that total compensation is

competitive and consistently applied Attracting and retaining high performing faculty to

emphasize quality and excellence in education,research, and services that Mines delivers

The compensation program is guided by the following guiding principles (detailed compensation philosophy available):

NEXT STEPS

Confirm internal job level relationships

Analyze non-benchmark jobs for best internal market match

Establish and confirm protocols

Provide guidance for managers:

Understanding concepts

Developing recommendations

Communicating

Questions?