PUSD Compensation Committee Process OverviewGoverning Board Study Session January 7, 2013

Overview

Board and Council’s Priority for 2012-13 We are committed to designing and

implementing a creative, modern, competitive, fair and equitable plan to attract, retain, reward and return to our organization the highest quality staff available in order to ensure that every student, every day is prepared to meet tomorrow.

Deep look at Compensation and How it Aligns to Our Goals to Attract, Retain and Reward

Getting Started: Compensation Committee

Administration developed a committee of a cross section of our district Classified: transportation, food service, instructional assistants,

clerical and administrative support (both school and district level), information technology, human resources, payroll, maintenance and grounds, etc.

Certified: high school, elementary, special education, reading specialist, speech therapist, etc.

Administrators: high school, elementary, district level support Committee’s purpose: Develop the Components and

Expectations of PUSD’s Compensation System that will Facilitate Attracting, Retaining and Rewarding Highly Effective Staff

From the work of the Compensation Committee, smaller committee will do the analysis and develop the compensation programs

Initial Compensation Program Development Timelines

November: 3 Large Committee Meetings Administrator Meeting

December Small group Certified Committee Executive Council and Advisory Council

Holiday Break January

Governing Board Retreat Governing Board Approval(?)

February–April: Communicate, Develop Implementation Plan (set up system, issue contracts, etc.)

Perspective: PUSD 1980-2005

Massive growth in student population and the number of employees needed/hired to support that growth 1982-2002 the District opened at least one school

per year Adequate supply of good employees who

sought us out Starting compensation at or above market rate Raises year over year for all employee groups “P” in “Peoria” is for People

PUSD 2005-Present: Changes in Hiring and Compensation

Stagnant student population growth + massive reduction in funding= no step increases

Employee population remained relatively steady and most reductions occurred primarily through attrition

More accountability: new teacher and site administrator evaluations More competition for supply of highly qualified and talented staff

Growth of charter schools Surrounding districts gained status

Hard to Fill Positions-more demand and less supply for candidates highly qualified in math, science, special education, early childhood and junior high

Our Compensation Below market in many classified, administrative, and certified positions Cost of benefits continues to rise (ASRS; EBT) Unsustainable because frozen for 5 years

Increasing numbers of trained employees leaving for higher salaries

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Current Trends in Compensation

Other Districts/ Employers Movement away from salary

schedules based on steps for tenure

Bigger variance in administrator compensation packages

Competing with municipalities for classified staff (same retirement benefits, higher hourly wages)

Less reliance on benefits to attract employees Education benefit packages

reduced due to rising costs and reduction of funding, i.e. retiree medical benefits

Legislature/Political Accountability increasing:

more focus on individual performance for teachers and site administrators

HB 2823 requirement to include performance pay for teachers

Career Ladder compensation will phase out in 2 years Affects long-term staff Compensation as high as

$7,000 at one time Federal funding reductions

Moving Forward

How do we meet the ongoing challenge of “Every student, Every Day, Prepared to Meet Tomorrow”? Market forces making it challenging to retain

students Impact of quality staff on student retention and

performance Considerations for new compensation

discussions Change in culture

Salary step schedule synonymous with Education Complex transition*

PUSD- How we compensate today

Salary schedules Certified:

Steps for Professional Growth and “Longevity” 301 Performance Pay

Classified: Steps across for “longevity” Non-exempt staff eligible for professional growth stipends

Administrators: Steps across for “Longevity” Performance pay

Other compensation available for full-time employees: Medical and Dental Insurance- same for all employee groups Accrued time off:

Certified: Discretionary Classified: Discretionary/Vacation Administrators: Discretionary/Vacation

High Level Committee Recommendations

Overall structural changes Separate cost of living increases from other

types of annual increases Merit: increase to base salary dependent on

employee evaluation score Performance Pay: pay determined by meeting

criteria above and beyond evaluation requirements. Performance could be District or School

performance. Performance criteria could change each year based

on District goals.

Initial Recommendations by Group

Administrators: Eliminate current schedule and give merit increases based

on employee evaluation Set base salary below market* Increase performance pay portion of the total compensation

from less than 2% to over 10% Classified:

Eliminate current schedule and give merit increases based on employee evaluation

Establish pay levels to market Establishment of a performance pay system needs more

work Concerns regarding appropriate criteria Cost of program if given to all staff

Certified Initial Proposal

Salary Schedule Eliminate schedule as it currently exists To help maintain competitive advantage,

establish salary benchmarks and develop path for employee to reach those benchmarks

Performance Pay will be addressed through 301 Committee as a result of the HB 2823 changes for 2014-15 school year

Professional Growth

Administration recommended and small group supported eliminating the steps and paying each year in smaller increments to be added to base salary

Pay out each year (maximum credits will be established)

Include classified exempt in program Reduction of administrative support to

track and pay hours

Next Steps

Move forward with developing plans Continue to involve committee and

leadership in discussions/recommendations

Develop recommendation including impact on budget Interim for 2013-14 New structures for 2014-15