Compensation Manual: Non-Represented Pay Practices

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1 SEATTLE PUBLIC SCHOOLS Table of Contents 1. Introduction 2. Compensation Philosophy 3. Roles and Responsibilities for Compensation The Classification and Compensation Work Group Executive Director of Talent Management Classification and Compensation Manager Department Director/Manager/Supervisor 4. Position Administration Guidelines Salary Ranges for Positions External Competitiveness Internal Comparison New Positions/Job Descriptions Changed Positions/Job Descriptions Vacant Positions Inactive Positions/Job Descriptions 5. Individual Salary Administration Guidelines New Hire Salary Placement Career Ladder Promotional Salary Placement Promotional Salary Placement Downward Reclassification Salary Placement In-Grade Salary Adjustments Interim or Temporary Salary Adjustments Employee above Maximum of Salary Range Change in Employee Work-Year Employee Transfers from Represented to Non-Represented Salary Schedules Hourly Employees Rehires/Retirees Exempt/Non-Exempt Page 1

2 Table of Contents (continued) 6. Group Salary Administration Guidelines Annual Salary Adjustments Criteria for Annual Salary Increases 7. Classification and Compensations Forms and Publications Available on the District s Web Site or by Request Manager Compensation Guidelines for Non-Represented Staff Salary Schedules for 260, 223, and 204 Work-Day Non-Represented Employees Compensation Bulletin for Management Staff Compensation Methodology and Terminology Reference Compensation Request Form available on-line Other Forms Form: Job Description Template or Existing Job Description Form: Salary Placement Worksheet (completed by Compensation Manager) Form: HR Presentation Summary to Ops Cabinet (completed by Compensation Manager) Form: Personnel Change Request (PCR) Form: Hiring Freeze Waiver Note: This manual is effective , and may be subject to change in accordance with the findings of the Non-Represented Compensation Study. Page 2

3 1. INTRODUCTION This Compensation Manual applies as appropriate to all Non-Represented employees of Seattle Public Schools (SPS). The purpose of this Manual is to provide an overview of the objectives and policies of the compensation system for non-represented staff who are employed in the Seattle Public Schools. This Compensation Manual serves as a guide and information source to help managers and employees understand the process and work effectively with the system through the Human Resources Department. This manual will be reviewed annually by Human Resources and the Classification and Compensation Work Group (hereinafter referred to as Compensation Work Group ) will be informed of any substantial changes. In addition to this Manual, Manager Compensation Guidelines explaining the process for position and employee changes are maintained on the District s website. The Compensation Department also has desk procedures to provide detailed processes to ensure consistent application of policies and procedures. The Assistant Superintendent of Human Resources or designee is responsible for administering these policies, procedures and guidelines; and consulting with Classification and Compensation prior to District-wide changes to policies and procedures. 2. COMPENSATION PHILOSOPHY Seattle Public Schools views its employees as its most valuable asset in providing efficient and effective services and support to schools and students. The District's compensation philosophy seeks to attract, develop and retain a high-performing workforce that can execute the mission and objectives of the School District. Specific components of the philosophy are to ensure: Seattle Public Schools are competitive with other school districts, public agencies and private industry in Seattle and the Puget Sound Region. Remaining competitive will help attract, hire and retain a talented and productive work force; The pay structure is data-driven, equitable and transparent in reflecting the actual requirements and responsibilities of the work in any position; The compensation program design aligns with the organization s strategy, mission and culture; The compensation program supports fiscal responsibility and stewardship of public funds; and The District is in compliance with all state and federal laws and regulations governing compensation practices. Page 3

4 Total compensation is designed to attract, engage and retain high-performing human resources needed to accomplish the goals of Seattle Public Schools (SPS). The SPS total compensation plan includes salary structures as well as benefit programs. Salary ranges and step rate schedules are determined largely by the market rates paid for jobs that are comparable to the District s jobs. To ensure SPS salary ranges are competitive, market pricing studies are conducted to determine current compensation levels for similar positions. The actual grade is recommended by the Classification and Compensation Manager, and approved by the Executive Director of Talent Management taking into consideration both the market value of the position as well as internal equity among SPS positions. The Compensation Work Group will review all actions and recommendations outside of the normal pay setting processes requiring special consideration and approval such as Structure design and Plan changes. The District will conduct an independent review of its compensation structure every five (5] years. 3. ROLES & RESPONSIBILITIES FOR COMPENSATION The Classification and Compensation Work Group Includes all Assistant Superintendents, General Counsel, Executive Director of Talent Management, Chief Partnership Officer, and Chief Information Officer. Reviews and recommends Compensation Plan changes and increases, when applicable. Obtains School Board approval for Non-Represented Salary Structure changes and changes to the Management Bulletin. Reviews any changes to the Compensation Manual, as recommended by the Assistant Superintendent of Human Resources. Reviews newly created non-represented positions and changes to those positions at Salary Grade 27 or above. Discusses concerns related to the classification and compensation architecture and internal equity. Discusses procedures and practices of concern related to salary recommendations as an outcome of the hiring process. Executive Director of Talent Management Ensures that the Compensation Work Group and District management are adhering to District policies and procedures. Oversees the compensation process; involving the Assistant Superintendent of Human Resources, and/or the Deputy Superintendent, if/as needed. Brings forth policy/practice considerations for discussion among the Compensation Work Group (internal equity, policy/process exceptions, etc.) Page 4

5 Reviews and submits policy exceptions and job evaluation disputes to the Assistant Superintendent of Human Resources, as appropriate, and/or to the Compensation Work Group. Reviews and approves new positions and changes to existing positions. Reviews all employee salary and position changes. Reviews all new hire salary quotes, and new salaries of promoted or changed employees. Provides monthly reports to the Compensation Work Group on trends associated with salary recommendations. Classification and Compensation Manager Develops, recommends and maintains written desk procedures to ensure the fair and consistent administration of non-represented employee compensation. Reviews and recommends compensation-specific actions related to hiring rates, promotions, demotions, transfers and other actions where pay is affected as put forth by the Superintendent, Department Managers and/or the Compensation Work Group. Reviews reclassification requests submitted by the Compensation Work Group members to ensure that all requests are fully completed and approved by the immediate manager and a Compensation Work Group member. Collaborates with the requesting manager to review the grade and salary placement of his/her employee(s). If there is disagreement, presents the issue to the Executive Director of Talent Management for review and decision. Evaluates current job descriptions, based on information provided by managers, and performs job evaluations as needed to determine the appropriate salary grade for each position, in response to reclassification requests or development of new positions. Reviews recommendations of supervisors to ensure compliance with established policy and consistency between administrative divisions and District policies. Refers all policy exceptions to the Compensation Work Group. Reviews and recommends proper grade level for all new non-represented positions. Ensures that all requests have the required authorizations for approval including the reason for the request and any required and supporting documents. Department Manager/Director Refer to the Compensation Guidelines for Managers of Non-Represented Staff for specific actions pertaining to related positions and employees. It is the responsibility of the Department Manager/Director to ensure the funding exists, the procedures are followed, and all required documentation is completed. Page 5

6 4. POSITION ADMINISTRATION GUIDELINES The goal of the compensation guidelines is to appropriately align salary ranges with competitive benchmarks, market valuation, and to consistently value positions based on required responsibilities, scope, experience, and skills. The SPS salary schedule for non-represented employees consists of pay grades and salary ranges that are assigned based on the position's job classification. The salary schedules are typically updated annually with cost of living adjustments recommended by the Assistant Superintendent of Human Resources and approved by the Compensation Work Group and subsequently, the School Board of Directors. Salary Ranges for Positions Salary ranges act as a guide to where positions are placed on the non-represented salary scale. Salary ranges reflect the relative value of each position based on market analysis and internal equity and consist of a minimum, maximum, and in-between steps of base pay for each position. Salaries are adjusted based on the work-year calendars for different employee groups, using the annual number of days worked as the factor for pro-rating the pay schedule of an employee. External Competitiveness Salary ranges are assigned for a body of work performed based on local, state, regional, and sometimes national rates of pay for school districts, public agencies and in some cases private sector industries. The District also participates in salary surveys, analyzes prevailing current market pay rates, and adjusts salary ranges as appropriate based on available budget resources. The SPS midpoint of a position should be near the comparative average of market data for the position. Survey sources include Milliman published surveys as well as specific comparable school district rates, as available. The surveys and school district salary grades will be local, regional, or national in scope based on SPS s recruiting area. Data may be adjusted for geographic differences as appropriate. Internal Comparison Where there is no external competitive data available (non-benchmark positions), the Manager of Classification and Compensation will propose a grade placement, discuss the rationale with the hiring manager, and recommend the grade to the Compensation Work Group. Factors influencing this placement include: an analysis of similar job descriptions in SPS; relative complexity of the position as stated in the job description; analysis of peer positions and the respective job descriptions; reporting structure (both higher and lower); placement within the functional area as well as in the organization Page 6

7 (org chart); and recommendation of the appropriate Assistant Superintendent. If there is disagreement regarding the placement of the position, the matter will be referred to the Executive Director of Talent Management for resolution and/or the Compensation Work Group, as needed. New Positions/Job Descriptions New positions are ones that have not previously existed and are being created to fill a need of the District. New positions will be initiated by completion of a Position Description Questionnaire and/or through creation of a Job Description. The Classification and Compensation Manager will determine if the position has similar characteristics to other jobs in the structure and whether the similarities or differences necessitate a new job creation or assignment of a title to the position that already exists. Job descriptions should be broad enough to encompass jobs of similar nature. Changed Positions/Job Descriptions Positions may change for several reasons, for example, as a result of new technology, new processes not previously needed, new duties/responsibilities not previously required of the position(s). If the change results from movement of duties from one position to another, the position no longer performing those duties must also be re-evaluated. New job responsibilities and descriptions that raise the compensation to Grade 27 or above must be reviewed by the Compensation Work Group. Staff may not work out of class without approval. Failure to adhere to this policy may result in disciplinary action. An employee may not submit a promotional request; it must come from the Classification and Compensation Work Group. However, an employee who believes that he/she is working outside the scope of the job description should notify his/her manager who should notify the appropriate Classification and Compensation Work Group member. Vacant Positions Vacant positions may exist as a result of an employee retiring/terminating, or due to additional budget resources. While it may be desirable to move an existing employee into a vacant position, the position must go through the posting process. This allows SPS to hire the best qualified person for the position, whether internal or external, and also remain open and transparent in our hiring process. Hiring managers filling a vacancy created due to retirement are encouraged to request permission to post a position when the retiring employee has submitted the appropriate paper work to confirm their retirement. Similarly, a hiring manager who is interested in exploring the market to determine what talent is available can request permission to post a request for resumes for future positions. Page 7

8 Inactive Positions/Job Descriptions On an annual basis, the Manager of Classification and Compensation will conduct or oversee an audit of the non-represented positions in the HR database, SAP and NeoGov then delimit or archive those no longer being used after consulting with the respective hiring managers. During the audit, s/he will ensure consistency between active position descriptions/job codes in the HR database, in SAP and NeoGov. 5. INDIVIDUAL SALARY ADMINISTRATION GUIDELINES The Classification and Compensation Manager is responsible for determining an appropriate salary for newly hired employees, promotions, changes in an employee s position, and any other circumstances requiring a change of salary. See also the Compensation Guidelines for Managers of Non-Represented Staff. No hiring managers are authorized to make commitments to employees regarding promotions, reclassifications, or salary without approval from the Classification and Compensation Manager and Executive Director of Talent Management. New Hire Salary Placement A new employee will be placed on the salary scale in the designated range for the position. The salary step placement will be based on the qualifications of the individual as compared to the requirements of the position. Additional comparisons will be made to the salaries of other incumbents, if any, in the position, peers, direct reports and the supervisor, and the date of hire [taking into consideration that if the employee is hired within three (3) months (on or after June 1) of the annual salary step increase (September 1), he/she will not be eligible for the annual step increase]. Market data, if available, will also be referenced. When an employee is hired from another organization, the employee's past salary may be a factor in salary placement at SPS. However, recognizing that different organizations are not equal in their application of compensation models, making a salary offer based only on an individual's salary history with a previous employer may jeopardize SPS s ability to sustain a fair internal system of compensation. All salary quotes to potential new hires, in addition to the above guidelines, will be reviewed with the new employee s manager prior to an offer being made. Career Ladder Promotional Salary Placement A career progression promotion is defined as a position with similar, but much higher level of skills, levels of responsibility, technical analysis, scope of influence, autonomy, fiscal responsibility, leading/mentoring/supervising other employees and more varied and complex assignments. A career Page 8

9 progression or ladder should be identified by the indications such as I, II, III, or by base level, Intermediate, senior, lead, for example. The Manager must define that the employee meets the qualifications of the next career ladder level. The Classification and Compensation Manager will determine a salary step based on a review of the employee s qualifications as compared to the requirements of the position. Additional comparisons will be made to the salaries of other incumbents, if any, in the position, peers, direct reports and the supervisor. Promotional Salary Placement A promotion is defined as a change affecting an individual resulting from advancement to a different position that requires activities of significantly increased job complexity and/or responsibility. All promotional increases granted to employees must be accommodated within the department s existing budget. The Manager of Classification and Compensation will review the individual s present salary and compare it to the salaries of other incumbent(s) in the same title and grade, the supervisor of the position, the peers of the position, the positions and incumbents of those positions which report to it, the past experience and education of all incumbents. The increase amount varies between 4% and 8% and depends largely on internal equity. Downward Reclassification Salary Placement A downward reclassification occurs when an employee moves (voluntarily or involuntarily) to a position in a lower grade. The impact of a downward reclassification on an employee's salary is dependent on the circumstances of the reclassification. Restructuring - A Manager, in consultation with Classification and Compensation, may consider and recommend to the Human Resources team a department restructure that may include a direct lateral transfer (same grade) or a downward transfer (to a lower grade) of an employee. The Classification and Compensation Manager must review all implications associated with positions and pay as an outcome of the proposed restructure, giving consideration to equity and will make resulting recommendations to the Manager and Deputy Superintendent. The Deputy Superintendent approves all restructuring requests. In a downward change resulting from restructuring, the employee will be placed in the new grade at a step closest to (but above) what he/she is presently making. If the employee is making an amount greater than the maximum of the new salary range, his/her salary will be frozen for a period not to exceed three (3) months. It will then be slotted into the correct range. During this time, no increases will be given, including cost-of-living, salary structure changes, or other general increase. Page 9

10 Performance - If the downward reclassification results from performance-related issues and these issues are adequately reflected in performance evaluations, the employee's placement on the new salary range will be consistent with the grade of the position to which they are newly assigned. The step will be determined by internal equity taking into consideration the present step of the employee s salary. The Assistant Superintendent of Human Resources or designee must approve exceptions to this guideline. The Assistant Superintendent of Human Resources will prepare a weekly report of these changes for the Deputy Superintendent. Voluntary - if the downward reclassification results from a voluntary application for and transfer into a lower level position, the employee's salary may not be greater than the maximum of the new grade and the step will be decided based upon internal equity. If there are no other incumbents in the same job title, the salary will be calculated as for a new hire with additional consideration given to past SPS employment or placed at the step nearest to but above his/her present salary. In-Grade Salary Adjustments In-grade salary adjustments, or lateral transfers, can be due to a movement to another job in the same salary grade. Lateral transfers do not necessitate a corresponding change in salary, except for adjustments required to reflect the work calendar days of the new position, if applicable, and adjustments to maintain salary equity within the department. A Manager may request the Manager of Classification and Compensation to evaluate a non-represented employee for a salary adjustment within a range, in the absence of a change in classification. Such adjustments shall only be considered if the employee's salary placement is below that of a majority of his/her peers who are performing a job with the identical grade, comparable duties, and responsibilities and is performing at an equal or greater performance level, and factors indicate that the salary was not initially placed correctly with regard to internal comparison of education, experience and time in position. Interim or Temporary Salary Adjustments The following guidelines apply to interim appointments for employees, both for filling vacancies and interim upgrade appointments: The expectation is that the job posting for a position filled by an interim or temporary appointment will be posted within the first 14 days of the interim s appointment. The Deputy Superintendent must grant permission for an interim or temporary appointment to last longer than six (6) months. It is the responsibility of the immediate supervisor to justify in writing, the reasons for an interim/temporary appointment as well as the expected assignment end date. The Classification and Compensation Manager will determine the appropriate salary placement. The date will be Page 10

11 entered into SAP and will automatically convert the person s salary, at the conclusion of the interim assignment, to what it was before the interim/temporary salary adjustment. If it is expected to last longer, up to an additional six (6) months may be allowed, however the reasons for the additional length must be presented to the Deputy Superintendent or his/her designee for approval before the first interim or temporary period has expired. Employees receiving interim appointments will have their salary placed at the level and appropriate step for the position they are filling. This will entail a review of salary as outlined in the new hire salary process. If the assignment becomes regular for the incumbent, the interim term will be removed from the title and the salary will remain as it was during the interim period. When an interim appointment is being considered for permanent (regular) conversion, the position should be posted externally, or individuals who would otherwise supervise the interim employee may request an exception and will be given the opportunity to discuss the interim candidate s fit and performance to inform and make a recommendation to the Superintendent/Deputy Superintendent about removing the interim title without posting the position. If the current interimappointed employee is a retiree or rehire, the job must be posted. The posting/interviewing/selection process may happen at the beginning of the interim period. If this is the case, then the successful candidate will be given the interim title, appropriate salary based on education, experience and internal equity, and at the end of the interim period, the interim title will be removed without any further action needed. If the position was not initially posted, as part of the process for removing the interim title, the supervisor of the interim employee must provide immediate supervised staff and peers of the employee an opportunity to complete a survey. The immediate supervisor will work with the Executive Director for Talent Management and the Deputy Superintendent for assistance with the survey and identify a list of staff to be surveyed. The survey results and reason for conversion from interim status to a regular title will be reviewed and discussed with the Superintendent/Deputy Superintendent. The Superintendent/Deputy Superintendent will review for final approval. Employee above Maximum of Salary Range Paying an employee above the maximum of the salary range is inconsistent with the District's overall compensation approach. It causes internal equity problems and inflates the organization's compensation expenses. By design, employees who reach the maximum of their salary range are consistently meeting employee performance expectations for the position. These employees may be encouraged to pursue job promotions that elevate their salary range and provide renewed opportunities for salary growth. Page 11

12 Any salaries above the maximum of the appropriate salary range must be reviewed and approved by the Compensation Work Group. If approved, the employee s SAP record should show the correct grade and level with a code 999 salary override along with a memo indicating when the override will end. Change in Employee Work-Year An employee whose work-year is changed in the same pay grade shall have his/her annual salary adjusted according to the compensation scale for each pay grade and shall retain his/her current step. Employee Transfers from Represented to Non-Represented Salary Schedules Pay grade and salary placement for employees who transfer from a represented position to a nonrepresented position will be determined solely in relation to the position to be filled and its associated work-year, and must adhere to the compensation policies for non-represented employees, regardless of differences in pay scales and work-year between represented and non-represented groups, in order to maintain internal equity among non-represented staff. The education and previous experience of the employee will be considered in the initial placement as it would for external hires. It is expected that the open position has gone through the hiring process of posting, interviewing, and selection of the transferred employee. Hourly Employees The District occasionally hires Non-Represented hourly employees to perform extra work for the District. The pay for these hourly employees is based on the work to be performed. If the position is one that is currently on the Non-Represented Salary Schedule, the hourly employee will be paid at Step 1 of the position s grade. If the hourly employee will be performing duties not contained in a current job description, the salary will be determined based on the hourly rates contained in the Hourly Rate schedule found on the SPS website. Rehires/Retirees If a terminated or retired employee is rehired as an hourly employee in the same position they left, they will be paid at their last rate of pay. If they are returning to a different position, the current rate schedule for hourly rates will apply. The hourly compensation is for base rate only; there will be no additional benefits bestowed upon or accrued while the employee is hired in an hourly status, nor additional consideration of salary in lieu of benefits. Rehired employees will be hired and compensated based on the policies and procedures for new employee hires in accordance with the rules and laws of the State of Washington. Retirees may be used only if no other candidate meets the qualifications of the position. Rehired employees and retirees will Page 12

13 be placed no higher than their former rate based on step and grade. Appropriate documentation must be kept in the HR department that confirms and documents the reason for hiring a retired candidate. Exempt/Non-Exempt All of SPS s Non-Represented positions are governed by the Fair Labor Standards Act (FLSA) and are either exempt or non-exempt. Non-exempt employees are required to be paid a premium rate for all hours which exceed forty (40) productive hours in a workweek. At SPS this rate is defined as one and one/half (1-1/2) time the hourly rate of pay. Exempt employees are paid a pre-determined salary regardless of quality or quantity of work, and are not entitled to additional compensation for additional hours or duties. The determination of which category the position falls into is decided by specific requirements as outlined in the FLSA Regulations (promulgated by the U.S. Department of Labor). All SPS non-exempt employees must be paid for all hours worked in excess of forty (40) in one week, at time and one-half (1-1/2). SPS policy indicates extra hours must be preapproved; however, FLSA law requires that if they work, they must be paid, even though the work was not preapproved. If the nonexempt employee continues to work without pre-approval, the disciplinary process should be followed for the employee and for the direct supervisor, if the behavior is not addressed in a timely manner. Exempt employees are paid to accomplish a body of work, regardless of the extra time or effort, and are not entitled to additional or overtime compensation. Under certain limited circumstances exempt employees may be allowed to receive additional compensation, for temporary upgrades, if work differs significantly from primary exempt duties, or for other extraordinary situations. For work differing substantially from their primary exempt duties (i.e. an accountant also working as a football coach), and other extraordinary situations, the case must be reviewed and approved by the Assistant Superintendent of Human Resources prior to setting an expectation of payment. If the employee has a temporary upgrade or if the extra work is outside the primary function of, and separate and distinct from, the employee s regular position, additional compensation may be considered and the temporary upgrade process followed. 6. GROUP SALARY ADMINISTRATION GUIDELINES Annual Salary Adjustments During the planning for the next school year the Assistant Superintendent of Human Resources, Assistant Superintendent of Finance, Executive Director of Talent Management and the Manager of Classification and Compensation will develop an Annual Compensation Plan that will include a schedule for calculating the salary budget for Non-Represented employees. The Annual Compensation Plan will specify the criteria by which individual employees will qualify for salary increases and the total proposed pool of funds to be used. The Annual Compensation Plan must be approved by the Deputy Page 13

14 Superintendent and Superintendent and will be included in the budget projections for the next fiscal year. Criteria for Annual Salary Increases In reference to step progressions during the annual salary adjustments, only employees who have been in their position for three (3) months or more as of the effective date of the increase will be eligible for an annual increase. Any exceptions must have the approval of the Deputy Superintendent. 7. COMPENSATION FORMS/PUBLICATIONS Available on the District s Web Site or by Request Manager Compensation Guidelines for Non-Represented Staff Salary Schedules for 260, 223, and 204 Work-Day Non-Represented Employees Compensation Bulletin for Management Staff Compensation Methodology and Terminology Reference Compensation Request Form available on-line Other Forms Form: Job Description Template or Existing Job Description Form: Salary Placement Worksheet (completed by Compensation Manager) Form: HR Presentation Summary to Ops Cabinet (completed by Compensation Manager) Form: Personnel Change Request (PCR) Form: Hiring Freeze Waiver Page 14

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