The Compensation Initiative September 2017 Chuck
Description: The Compensation Initiative September 2017 Chuck L. Pizzano Joanna Tieu 2 What is the Compensation Initiative? The Compensation Initiative will establish a compensation foundation and the practices that enable MIT to effectively attract,
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slide1. The Compensation Initiative September 2017
Chuck L. Pizzano
Joanna Tieu<br>
slide2. 2 What is the Compensation Initiative?
The Compensation Initiative will establish a compensation foundation and the practices that enable MIT to effectively attract, develop, reward, and retain staff. The scope includes Admin Staff, Sponsored Research Admin Staff, and Support Staff.
What are some of the objectives?
Develop consistent and transparent job descriptions
Create consistent and current job titles
Modernize compensation salary structures
Increase transparency of pay decisions
Simplify administration
Ensure market competitive compensation to attract, reward and retain key talent
Who has been involved?
Sponsors: VPHR, Deputy EVP, Assistant Provost
Advisory Group consisting of 25 members from across MIT – see Appendix for list
Human Resources
Mercer Consulting The Compensation Initiative — Overview<br>
slide3. Pay Philosophy
A pay philosophy was drafted and reviewed as the first phase of the project.
Job Catalog / Job Structure
An on-line tool was created to house job descriptions. Jobs have been grouped by Job Family, Subfamily, Track (Support, Individual Contributor or Management) and Level (1-6) to ensure consistency in level of work performed.
Job guides and descriptions
650 job descriptions have been written and are available for viewing within the Job Catalog.
Job titles
New job titles have been assigned and are in the Job Catalog.
Market Pricing
Market pricing of 370 benchmark jobs has been completed and results used to develop the pay structure.
Pay Structure
A new pay grade structure is being established which will replace what we have today. Compensation Initiative Phases — Current 3<br>
slide4. Job Families/Sub Families 4<br>
slide5. Job Track Definitions Support
Performs diverse duties (e.g., administrative, technical, or production) using knowledge and skills in support of the Institute’s daily operations
Individual Contributor
Achieves objectives through his/her own work and is accountable for the outcomes AND
Performs specialized work using knowledge and skills in area of expertise OR
Coordinates the development and/or implementation of programs, projects, or processes
Management
People Managers:
Directly supervise at least 1 full-time MIT employee
Achieve objectives through, and is accountable for, the work of his/her direct reports
Responsible for conducting and completing the performance evaluation and development plan for his/her direct reports
Make recommendations on pay and hiring decisions (which may be subject to review and approval) OR
Functional Managers:
Accountable for project/program/function outcomes
Manage a project/program/function and achieves objectives through the work of others
Influence and direct the work required to achieve the project/program/function’s goals
May provide input into pay and hiring decisions and/or provide input into performance evaluations and development plans for others 5<br>
slide6. Job Structure Example Job Family A grouping of jobs with a similar function and purpose across the Institute (e.g., Finance, Human Resources, Library Services, etc.). Note: Not a department or organization. Sub-Family A grouping of jobs within a specific segment of a job family with similar function and purpose (e.g., within Finance job family – Accounting, Audit, Procurement). Job A segment within a Family or Sub-Family that groups positions with a similar level of core job duties and responsibilities. Job family level guides define generic responsibilities and requirements. Position The finest level of segmentation, representing position-specific responsibilities and requirements. Position descriptions specify responsibilities and day-to-day tasks for that role.
Note: Position titles are not within the scope of this project and are not being changed as a result of this effort. Finance Accounting Accountant 1 Staff
Accountant Utilities Cost Accountant Job Track Job Level Support – Individual Contributor – Management
Provides a consistent framework for organizing roles across the Institute for pay, benchmarking and job progression. Articulates vertical progression opportunities within a job track. There are currently six levels in each job track (e.g., S1 - S6 in the Support track). The levels do not correspond to current pay grades. Individual Contributor 6<br>
slide7. Job Titles
Job titles appear on HR reports, typically seen by HR staff
Job titles are more generic than position titles
Position Titles
Position titles appear in the MIT directory, available to all
Position titles are more specific than job titles to reflect more accurately the role of the position within an organization
Position titles will NOT be changed as a result of this effort; they will continue to be managed by DLCs
General Principles
Job titles align with the category of job (Support, Individual Contributor, Management)
Job titles are consistent
Job titles are succinct and reflect the level and focus of the job being performed
The same jobs in Administrative and SRS Administrative are given the same title, with ‘SRS’ added to distinguish between the two Job Titles — Background 7<br>
slide8. Job Titles — Standards and Examples Support and Individual Contributor Tracks
The job title consists of a function plus a common term associated with jobs in the function, and use numbers (1,2,3) to indicate progression. Management Track
The job title consists of the word ‘Management’, followed by the job level, followed by the sub family or job family (if no sub family exists) name 8<br>
slide9. Job Catalog — Demo 9<br>
slide10. Compensation Initiative Phases — What’s Coming Employee Mappings Each employee will be preliminarily assigned to a combination of a job family, sub family (if applicable), job track and level in the new structure. Each employee will have a generic job description and be assigned a new salary grade/range. We will be working with A Deans to determine best approach to have DLCs review their employee mappings.
Policies and Procedures A policies and procedures document has been drafted containing guidelines related to pay decisions, pay practices, etc. This will be reviewed by project sponsors, the advisory group, and others before finalizing as key decisions still need to be made.
Implementation New job titles and pay grades will be established in SAP and our Applicant Tracking System (old job titles will no longer be available). Employee transactions will be created and input into SAP for all employees whose job is within scope of the project.
Communications A communications plan is being developed, for various audiences e.g. hiring managers, HR contacts, AOs, employees, etc., regarding project.<br>
slide11. Appendix — Advisory Group 11<br>
Chuck L. Pizzano
Joanna Tieu<br>
slide2. 2 What is the Compensation Initiative?
The Compensation Initiative will establish a compensation foundation and the practices that enable MIT to effectively attract, develop, reward, and retain staff. The scope includes Admin Staff, Sponsored Research Admin Staff, and Support Staff.
What are some of the objectives?
Develop consistent and transparent job descriptions
Create consistent and current job titles
Modernize compensation salary structures
Increase transparency of pay decisions
Simplify administration
Ensure market competitive compensation to attract, reward and retain key talent
Who has been involved?
Sponsors: VPHR, Deputy EVP, Assistant Provost
Advisory Group consisting of 25 members from across MIT – see Appendix for list
Human Resources
Mercer Consulting The Compensation Initiative — Overview<br>
slide3. Pay Philosophy
A pay philosophy was drafted and reviewed as the first phase of the project.
Job Catalog / Job Structure
An on-line tool was created to house job descriptions. Jobs have been grouped by Job Family, Subfamily, Track (Support, Individual Contributor or Management) and Level (1-6) to ensure consistency in level of work performed.
Job guides and descriptions
650 job descriptions have been written and are available for viewing within the Job Catalog.
Job titles
New job titles have been assigned and are in the Job Catalog.
Market Pricing
Market pricing of 370 benchmark jobs has been completed and results used to develop the pay structure.
Pay Structure
A new pay grade structure is being established which will replace what we have today. Compensation Initiative Phases — Current 3<br>
slide4. Job Families/Sub Families 4<br>
slide5. Job Track Definitions Support
Performs diverse duties (e.g., administrative, technical, or production) using knowledge and skills in support of the Institute’s daily operations
Individual Contributor
Achieves objectives through his/her own work and is accountable for the outcomes AND
Performs specialized work using knowledge and skills in area of expertise OR
Coordinates the development and/or implementation of programs, projects, or processes
Management
People Managers:
Directly supervise at least 1 full-time MIT employee
Achieve objectives through, and is accountable for, the work of his/her direct reports
Responsible for conducting and completing the performance evaluation and development plan for his/her direct reports
Make recommendations on pay and hiring decisions (which may be subject to review and approval) OR
Functional Managers:
Accountable for project/program/function outcomes
Manage a project/program/function and achieves objectives through the work of others
Influence and direct the work required to achieve the project/program/function’s goals
May provide input into pay and hiring decisions and/or provide input into performance evaluations and development plans for others 5<br>
slide6. Job Structure Example Job Family A grouping of jobs with a similar function and purpose across the Institute (e.g., Finance, Human Resources, Library Services, etc.). Note: Not a department or organization. Sub-Family A grouping of jobs within a specific segment of a job family with similar function and purpose (e.g., within Finance job family – Accounting, Audit, Procurement). Job A segment within a Family or Sub-Family that groups positions with a similar level of core job duties and responsibilities. Job family level guides define generic responsibilities and requirements. Position The finest level of segmentation, representing position-specific responsibilities and requirements. Position descriptions specify responsibilities and day-to-day tasks for that role.
Note: Position titles are not within the scope of this project and are not being changed as a result of this effort. Finance Accounting Accountant 1 Staff
Accountant Utilities Cost Accountant Job Track Job Level Support – Individual Contributor – Management
Provides a consistent framework for organizing roles across the Institute for pay, benchmarking and job progression. Articulates vertical progression opportunities within a job track. There are currently six levels in each job track (e.g., S1 - S6 in the Support track). The levels do not correspond to current pay grades. Individual Contributor 6<br>
slide7. Job Titles
Job titles appear on HR reports, typically seen by HR staff
Job titles are more generic than position titles
Position Titles
Position titles appear in the MIT directory, available to all
Position titles are more specific than job titles to reflect more accurately the role of the position within an organization
Position titles will NOT be changed as a result of this effort; they will continue to be managed by DLCs
General Principles
Job titles align with the category of job (Support, Individual Contributor, Management)
Job titles are consistent
Job titles are succinct and reflect the level and focus of the job being performed
The same jobs in Administrative and SRS Administrative are given the same title, with ‘SRS’ added to distinguish between the two Job Titles — Background 7<br>
slide8. Job Titles — Standards and Examples Support and Individual Contributor Tracks
The job title consists of a function plus a common term associated with jobs in the function, and use numbers (1,2,3) to indicate progression. Management Track
The job title consists of the word ‘Management’, followed by the job level, followed by the sub family or job family (if no sub family exists) name 8<br>
slide9. Job Catalog — Demo 9<br>
slide10. Compensation Initiative Phases — What’s Coming Employee Mappings Each employee will be preliminarily assigned to a combination of a job family, sub family (if applicable), job track and level in the new structure. Each employee will have a generic job description and be assigned a new salary grade/range. We will be working with A Deans to determine best approach to have DLCs review their employee mappings.
Policies and Procedures A policies and procedures document has been drafted containing guidelines related to pay decisions, pay practices, etc. This will be reviewed by project sponsors, the advisory group, and others before finalizing as key decisions still need to be made.
Implementation New job titles and pay grades will be established in SAP and our Applicant Tracking System (old job titles will no longer be available). Employee transactions will be created and input into SAP for all employees whose job is within scope of the project.
Communications A communications plan is being developed, for various audiences e.g. hiring managers, HR contacts, AOs, employees, etc., regarding project.<br>
slide11. Appendix — Advisory Group 11<br>