4. Ontario (CDHO) 2. Alberta (CRDHA) 5. Nova Scotia (CDHNS) 3. Manitoba (CDHM)
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1 S A S K A T C H E W A N D E N T A L H Y G I E N I S T S A S S O C I A T I O N Taylor Street East Saskatoon, SK. S7H5H9 Tel (306) Fax (306) sdha@sasktel.net Total Rewards Compensation Survey Purpose: As requested by Council and in accordance with Policy CER 7, a compensation survey of other related regulatory organizations was performed. This report was prepared to assist Council in ensuring the Executive Director s compensation package (salary and benefits) is fair and competitive with other related organizations. The survey developed included questions regarding salary, vacation days, and other benefits offered by each organization. Research on compensation indicates that base salary is a very important piece of a total rewards package but other benefits offered are also critical components in making comparisons. Compensation/Total Rewards Packages would include salary, pension/retirement plans and health and insurance benefits. 1. GENERAL ORGANIZATION STATISTICS Industry data from Canadian dental hygiene regulatory bodies, as well as Saskatchewan health regulatory organizations was collected. In total, 33 organizations were invited to complete the survey, with 16 organizations agreeing to parcticipate: 6 dental hygiene organizations and 10 Saskatchewan health regulators. This is a very strong response rate (48%), and is a good representation of organizations of similar size and function. Specifically, the following organizations agreed to participate: Federation of Dental Hygiene Regulatory Authorities (FDHRA): 1. British Columbia (CDHBC) 4. Ontario (CDHO) 2. Alberta (CRDHA) 5. Nova Scotia (CDHNS) 3. Manitoba (CDHM) 6. New Brunswick (CDHNB) Network of Interprofessional Regulatory Organizations (NIRO): 1. Paramedics 7. Registered Nurses 2. Dental Assistants 8. Occupational Therapists 3. Licensed Practical Nurses 9. Social Workers 4. Medical Laboratory Technologists 10. Speech-Language Pathologists and 5. Medical Radiation Technologists Audiologists 6. Midwives The following health professions were not included in the data because they did not have comparable positions, did not respond or declined our invitation to participate. To note, if these organizations had responded, it likely would have skewed the data and increased the values/averages: College of Physicians and Surgeons of SK, College of Dental Surgeons of SK, SK College of Podiatrists, and SK Association of Optometrists.
2 Thousands 2. EXECUTIVE DIRECTOR SALARY FDHRA and NIRO organizations were asked to indicate salary either by hourly wage or annual salary. Appendix A defines the mean (average) and the median. Page 2 Key Findings: The average salary of Executive Directors in related organizations was $105,540.00, with a median of $86,910. When salary and pension are combined the average is $112, and median $90, When comparing the salaries of the Executive Director and the average wage of the health professionals they regulate, the Executive Director is paid on average 26.5% higher. The following table summarizes the Compensation amount inclusive and not inclusive of pension amounts: Number of Organizations Minimum Salary Maximum Salary Median Average Salary 16 $68,000 $175,000 $86,910 $105,540 Salary + Pension 16 $72,760 $183,750 $90,280 $112,000 The following chart summarizes salary comparatives of all related organizations (FDHRA & NIRO) Salary by Organization ($1,000s) $180 $160 $140 $120 $100 $80 $175 $160 $155 $135 $135 $122 $93 $85 $85 $85 $81 $79 $78 $76 $73 $68 $60 $40 $20 $0
3 Page 3 In addition to Executive Director/Registrar salary, the average wage of the professionals these organizations regulated was requested as well. This information helps to compare the salary of the health professionals versus the individuals that regulate and lead their respective organizations. Below, you will see a table that compares the salary of the health professionals/dental hygienists and their respective Executive Directors-Registrars that regulate them. The median % of salary of the Executive Director above the health professional is 126.5%. Number of Organizations Salary of Professional Current Salary of ED/Reg/CEO % of Salary of ED above Professional All organizations 15 $72,100 $97, % CDHO 1 $70,064 $160, % CDHBC 1 $82,485 $135, % CRDHA 1 $101,849 $155, % CDHNB 1 $59,514 $76, % CDHNS 1 $68,250 $85, % CDHM 1 $76,050 $ % SDHA 1 $78,215 $84, % Please note: Only 15 organizations were represented in this table because the average wage of the health professional was not available. The two (2) organizations that are not included had an ED salary of $175,000 and $135,000, thus the average salary for all the organizations is less than average of $105,300 listed above. 3. VACATION DAYS Below is a summary regarding vacation weeks provided. Number of Organizations Minimum Vacation Maximum Vacation Median Average Vacation Weeks Annual Vacation (days)
4 Page 4 4. EXECUTIVE DIRECTOR BENEFITS FDHRA and NIRO organizations were asked to indicate what additional benefits were offered to the Executive Director-Registrars in addition to a base salary, including supplementary health benefits, pension, life insurance, disability insurance, professional license dues, professional development or other. The percentage/amount of employer pension contributions was also requested. Key Findings: 94% of organizations provide supplemental health plans, health spending accounts, or lump sum amounts annually for health expenditures. 81% of organizations provide retirement/pension plans. Of the organizations that offered a pension plan, the average percentage of employer contribution was 7.7% of the Executive Director s salary, or a median of 7%. The following charts/tables summarize the findings: % of Reg s/ceo s/ed s that are offered this benefit Supplementary Health Care 94% (15/16) Retirement Plan 81% (13/16) Life Insurance 69% (11/16) Disability Insurance 75% (12/16) Professional/license dues or Memberships 69% (11/16) Professional development allowance 81% (13/16) The following tables summarize the amount in dollars provided for pension/retirement plans. Value of Pension Benefits by Organization ($) $0 $0 $0 $960 $5,919 $5,100 $4,760 $4,070 $10,584 $9,747 $8,750 $7,778 $16,200 $14,926 $14,639
5 Page 5 The following table displays the percentage of salary that determines the dollar value of the pensionable amount. For example, if salary was $85,000, the pension amount would be 7% of that ($ ) added to the salary for a total rewards package of $90, % 0.0% 0.0% 1.0% Value of Pension Benefits by Organization (%) % % 6.0% 7.0% 7.0% 7.8% 10.5% 9.9% 9.6% 12.0% 12.0% 5. CHARACTERISTCS OF EXECUTIVE DIRECTORS Key Findings: Education: 37.5% of the Executive Directors have a graduate degree or higher (6/16) Tenure: 41% have been in their positions four years or less (7/17) Education Level of respondents High School 1 Undergraduate 9 Master s 5 Doctorate 1 Years in Current Position <
6 ESTABLISHING A SALARY RANGE Page 6 It is my understanding that Council would like to establish a salary range for the Registrar-Executive Director position. Not only does this ensure that total compensation for the current incumbent is fair and market based, but also assists in the case of a new hire. Through some online research and discussion with a Compensations Consultant, the following summarizes guidelines used in establishing such a range. Steps in Establishing a Salary Scale/Range: There are a couple options as to where to begin: i. Begin with market midpoint: A common approach is to start with the midpoint and build the range on either side. Based on the compensation survey/report, the midpoint/median of all organizations Registrar/Executive Director salaries was $86,910. In the research, a typical spread for executive positions is +/- 20%. If a range was built from the midpoint $86,910, it would look like this: Minimum of Range Midpoint Maximum of Range Salary $69,500 $86,910 $104,300 With the midpoint of $86,910 used, it creates a minimum point that is well below the average wage of a Registered Dental Hygienist ($78,215). This is due to the fact that many other health professionals in SK earn much less than dental hygienists. (RDH s rank second highest among respondents). NIRO Wage/hr Annual Salary SDAA $25.80 $50,310 SASW $32.00 $62,400 SALPN $33.00 $64,350 SAMRT $34.62 $67,500 SSOT $35.12 $68,484 SSMLT $36.00 $70,200 SCOM $40.02 $78,039 SDHA $40.11 $78,215 SASLPA $43.00 $83,850 If being an RDH is the minimum requirement for this position however, it would be very difficult to recruit someone with a base salary being significantly lower than what they would be earning in clinical practice. If we used the midpoint of just the dental hygiene regulatory bodies, $88,822 and built the range from there, it would look like this: Minimum of Range Midpoint Maximum of Range Salary $71,100 $88,822 $106,586 However, due to the fact that wages of dental hygienists differ significantly across Canada, and Saskatchewan is third highest, it again would be difficult to recruit a dental hygienist for a position starting well below the average. FDHRA Wage/hr Annual Salary CDHNB $30.52 $59,514 CDHNS $30 $68,250 CDHO $35.93 $70,064 CDHM $39.00 $76,050 SDHA $40.11 $78,215 CDHBC $42.30 $82,485 CRDHA $52.23 $101,849
7 Page 7 ii. Begin with minimum: An alternative in building a range is to establish the minimum criteria for the position and subsequently the entry level salary, and work up from that point. a. Details to consider: i. Average wage of dental hygienists in SK from CDHA Salary Survey 2013: $40.11 = $78, ii. Average wage of dental hygienists in SK from RK House Survey: 0-5 years experience = $38.50 ($75,075) 6-10 years experience = $39.96 ($77,922) 11+ years experience = $41.78 ($81,471.00) Saskatoon average = $41.90 ($81,705) b. Midpoint of that range or higher should equate to a fully productive and qualified employee c. Typical pay range is 40% around the midpoint (i.e 20% higher and lower than the midpoint) iii. Determine placement of employee within the pay range Details to consider: a. Based on the compensation survey/report, the median percentage of Executive Director salary compared to the health professional they regulate was 26.5%. Which means that if the average salary of the professional is $78,214.50, then 26.5% above that would be $98, b. Other factors to consider: i. Is the employee fully productive? ii. Education level of the employee iii. Advanced skills/knowledge/attributes required above clinical knowledge and skills iv. Is the employee appropriately qualified? v. Experience of the employee vi. Other non-salary total rewards offered: Pension plan Benefits plan Flexible hours and irregular work demands Career opportunities Life insurance and disability coverage Career development The table below demonstrates hypothetical ranges built upon the average wage of health professionals:
8 Page 8 In the first column is the average salary of the respective health professionals. Dental Hygienists/SDHA are highlighted in purple. In the second column, the current salary of the Executive Director/Registrar/CEO is stated for organizations surveyed. In the third column, the percentage indicates the amount the CEO s salary is above (below) the health professional. In the last three columns, a salary range has been built for the Executive Director/Registrar/CEO with the assumption that the minimum point should be at least the average wage of the health professional they regulate. o The minimum point of the range is the same as the first column (rounded to the nearest 100). o The midpoint of the range is calculated by multiplying the minimum by 20% (industry best practice for executive positions). o The maximum of the range is calculated by multiplying the midpoint by 20%. Est. Annual Salary - Health Professional Current Annual Salary - CEO % CEO above health professional Salary Range CEO Minimum Salary Range CEO Midpoint Salary Range CEO Maximum $50,310 $78, % $50,300 $60,400 $72,500 $59,514 $76, % $59,500 $71,400 $85,700 $62,400 $92, % $62,400 $74,900 $89,900 $64,350 $121, % $64,400 $77,300 $92,800 $67,500 $68, % $67,500 $81,000 $97,200 $68,250 $85, % $68,300 $82,000 $98,400 $68,484 $81, % $68,500 $82,200 $98,600 $70,064 $160, % $70,100 $84,100 $100,900 $70,200 $78, % $70,200 $84,200 $101,000 $76,050 $85, % $76,100 $91,300 $109,600 $78,039 $84, % $78,000 $93,600 $112,300 $78,215 $84, % $78,200 $93,800 $112,600 $82,485 $135, % $82,500 $99,000 $118,800 $83,850 $73,418 88% $83,900 $100,700 $120,800 $101,849 $155, % $101,800 $122,200 $146,600 References:
9 APPENDIX A MEAN VS MEDIAN Page 9 The Mean is the same thing as the average. It is the result of dividing the sum of two or more values by the number of values. So (a+b+c)/3 = the mean or average. The Median, otherwise known as the midpoint, is a very common term used in compensation and preferred to the mean. In its absolute simplest terms, the median is the middle value of a series of values laid out in numerical order. It s the middle point of the data set. Half of the values will be less than the median, and half will be higher than the median. Let s use the same example of the accounting department above to determine the median. Mean vs. Median Best practice in compensation is to primarily consider the median/midpoint and the reason is quite simple. The mean or average is very sensitive to outliers, or abnormally low or high values, while medians are much less affected by outliers.
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