It’s Not Just About the Money: Getting creative with School Compensation

1. It’s Not Just About the Money:Getting creative with School Compensation CCSA Conference 2019

2. Objectives At the end of this session, you should: Understand how to Conduct a Market Based Study Be able to Avoid Common Pitfalls Leave with New Ideas

3. Common Mistakes(i.e. What NOT to do)

4. Common Mistakes: What NOT to Do Keep it all a Secret Break your own rules Forget that fit matters Build on a shaky foundation Forget that it’s not all about the money

5. The How To’s of Compensation Design

6. The Secret Sauce Credibility & Trust Transparency Equity Relevance

7. Use a Market Based Structure Market data is an objective standard Ensures external competitiveness Provides for simple and easily administered program Leads to data-driven decisions about compensation Credible to employees and managers Ensures internal equity

8. Factors in Selecting a Data Source When selecting data sources, there are three factors that we consider: Age of the data Validity of source Relevance to your organization There is no one size fits all approach. It is common to use different sources for different roles.

9. Data Sources Local districts and charters Transparent California 990 Research Online compensation database: Kenexa, CompAnalyst, or Payscale

10. Factors in Selecting Peer Organizations The goal is to select as similar a group as possible in terms of mission, budget size, and staff size. As your organization grows, core functions become more complex and require greater levels of experience and expertise to navigate. Thus, you should select a peer group based on your current size, taking growth plans into consideration.

11. Communication & Roll-Out • Share findings and recommendations with your Finance/HR Committee(s) • Make the appropriate market adjustments to ensure everyone is paid within range or on the appropriate step • Formalize set of compensation policies with input from the leadership team, including salary schedule, benefits, bonuses, and other rewards • Train everyone in your organization on the program • Revisit the plan at the end each year to make adjustments and improvements

12. Suggested Frequency Current research recommends that you re-benchmark roles at least every 2-3 years. Exceptions to this rule are as follows: • Organizational growth (if your organizational budget/staff size grows by 33% or more) • Reorganization (if you restructure and current positions experience dramatic changes in scope of responsibilities such that comps we used in this study would no longer be valid) • New positions (if you create new positions not included in this study you would need to benchmark those)

13. Examples of Innovation

14. Performance Based Pay Considerations Must have a credible, objective, and fair performance evaluation program that staff trust and view as credible Engage staff in the design process Typically blended with traditional teacher step structure that includes years of experience and level of proficiency It’s not a silver bullet

15. Performance Based Pay - Salary

16. Performance Based Pay - Bonus

17. Case Study

18. Case Study: High School in Los Angeles Multi-site charter with three schools (two elementary, one high school). Curriculum: College Prep with a focus on International Business and Maritime Studies. Teaching staff is very talented and many have been with the school since its founding 10 years ago. Local district is negotiating a 4.5% across the board raise. Compensation structure is currently 2% below the local district until teachers hit their fifth year, at which point the gap widens to 10% below the local district. Overall, the benefits program is competitive. A traditional salary scale exists. Junior teachers like the current program, more experienced teachers have voiced a desire to transition to a more performance based system. The school implemented a new performance evaluation process two years ago and is still working to perfect it.

19. Focus Group & Survey Insights

20. Your Assignment The Principal of the school is concerned that the upcoming 4.5% increase at the local district is going to cause some of the more experienced teachers to consider transferring to the district. You have been asked to advise the school on the following: Should they consider any changes to their current structure which is based on years of experience and educational obtainment? If so, what design features would you recommend? Should they consider increasing teacher salaries? If so, how? Should they consider addressing any other issues surfaced during their internal research? Which ones and how? You will have ten minutes as a small group to design your solutions and then we will share out as a larger group.

21. Where is Your School?

22. Your Assignment Take five minutes to write a response to the following questions: What do you think needs to be addressed in your current compensation program? How can it be improved? What are your action items coming out of this session? Share your responses with the person next to you

23. Thank You! Allison WyattKevin Bryant Co-Founding Partner Principalawyatt@edgilityconsulting.comkbryant@edgilityconsulting.com Christina Greenberg Serena Moy Co-Founding Partner Recruitment Director cgreenberg@edgilityconsulting.comsmoy@edgilityconsulting.com Ron Rapatalo Principal rrapatalo@edgilityconsulting.com