PRINCIPLES FOR EMPLOYEE COMPENSATION (6/29/99 COMPOSITE DRAFT)

--- Suggested alternative provisions are listed [A], [B], [C], etc., in each section ---

Each alternative is labeled with the initials of the trustee who provided the basis for the language shown here; suggestions for modifying that language should be directed to them. Note that in several cases alternatives have been developed simply to ensure that a full range of options are available for consideration, or in response to ideas provided by other trustees. Authorship of a provision in this composite draft thus does not necessarily mean that the trustee will end up supporting it after hearing the discussion at Board meetings and from the public.

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PRINCIPLES:

[A] ACC will compensate employees so as to (1) attract and retain a highly-qualified, highly motivated, high-performance workforce and (2) act as an ethical and responsible employer. [JW]

[B] ACC intends to compensate employees so as to (1) attract and retain a workforce with sustained high effectiveness in meeting student learning needs, (2) act as an ethical and responsible employer, and (3) make efficient use of student and public higher-education expenditures. [HE]

[C] ACC's compensation program will be designed to support the College's recruiting, retention, and excellence goals. The portion of the budget spent on compensation will be balanced in conjunction with all College needs and will be affordable. As an institution dedicated to fair treatment of its employees, the College will act as an ethical and responsible employer. [LD]

[D] ACC will seek to attract and retain a workforce of high effectiveness in meeting student learning needs and to make efficient use of student and public financial contributions to the operation of the College. ACC desires to act as an ethical and responsible employer, assisting its own employees to reach the goal of sustainable self-sufficient incomes articulated for its students. [CN]

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The President shall accordingly, consistent with fiscal constraints and meeting the College's other needs, develop plans and proposals to meet the following goals:

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[1A] Provide employment on stable professional terms with an adequate level of regular staff to achieve excellence goals. However, the College shall use hourly, part-time, and temporary staffing when appropriate to match variations in work load. [CN]

[1B] Provide employment primarily on stable professional terms, with an adequate level of regular staff. While ACC shall use part-time jobs when appropriate to match variations in demand, it should not try to avoid paying benefits to employees who do substantial work for it. [HE]

[1C] Provide employment primarily on stable professional terms, with an adequate level of regular staff. ACC shall not hire hourly, temporary, or contract employees for positions that are or should be regular in nature primarily in order to pay a lower wage or to avoid paying benefits. ACC shall not hire employees part-time rather than full-time or reduce or limit an employee's workload primarily in order to pay a lower wage or to avoid paying benefits. However, the College shall use hourly, part-time, and temporary staffing when appropriate to match variations in demand and work load. [JW]

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[2A] -- omit this provision --

[2B] Have all employees receive fair pay for their contributions to the College mission, with no employee paid less than the accepted level of a "living wage". [LD]

[2C] Structure its jobs and professional development so as to produce a level of productivity that enables all career employees to earn and be paid adequate compensation. [HE]

[2D] Ensure that no ACC employee, including hourly, temporary, contract, and part-time employees, will be paid less than an hourly living wage based on: (1) the fair market rent for a one-bedroom apartment in the Austin metropolitan area established by the federal Department of Housing and Urban Development and (2) the assumption that a low-income family having one wage-earner should spend no more than one-third of its income on housing. [JW]

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[3A] Provide a compensation package (including salary, benefits, time off, stipends, and awards) that is market-competitive. [LD]

[3B] Compensate each employee position at least at the average of the relevant market for that position, giving due consideration to the value of benefits and time off for vacations and holidays. [JW]

[3C] Provide total compensation package (including the value of insurance benefits, retirement benefits, and time off for vacation, holidays, maternity leave, sick leave, bereavement leave, etc.) for all categories of employees that is competitive with the relevant category market as determined by Board action annually or biannually. Priority for increasing compensation rates will be for those salaries determined to be 95% or less of the compra-ratio. [CN]

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[4A] --- omit specific comparison-group designations ---

[4B] For each type of position, compare compensation to that at the main institutions with which the College competes for that type of employee. For adjunct faculty, provide that the minimum and maximum amounts paid at least match the amounts paid by the closest institution of higher learning that uses adjunct faculty in a manner similar to ACC. The primary relevant comparison markets for other employee classifications shall be: for non-faculty staff, similar local or regional positions; for full-time faculty, full-time faculty with equivalent experience and education in community colleges in Texas metropolitan areas for full-time faculty. [JW]

[4C] For each type of position, compare compensation to that at the main institutions with which the College competes for that type of employee. The primary relevant comparison markets for employee classifications shall be as follows:

Non-faculty staff -- Similar local or regional positions.

Full-time faculty -- Full-time faculty with equivalent experience and education in community colleges in Texas metropolitan areas.

Adjunct faculty -- Non-tenure-track part-time faculty with similar experience and education teaching courses like those taught at ACC in institutions of higher education in the Austin metropolitan area. [HE]

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[5A] --- omit this provision ---

[5B] Provide adjunct-faculty compensation at the fraction of full-time faulty compensation corresponding to the difference in expected work between adjunct and full-time faculty positions of comparable relevant qualifications and experience. In determining the difference in expected work, the following assumptions will be made: (1) a 15-hour load and 40-hour work week for full-time faculty, (2) on the average over a semester, one hour of preparation and grading time for each hour of class time, and (3) one office hour per week per class. [JW]

[5C] Place MSTAs (adjunct faculty with multi-semester appointments) on the full-time faculty scale and pay them the percentage of the full-time salary that is consistent with their workload, if they agree to perform non-teaching duties at least proportional to their courseload. Upon achievement of this goal, MSTAs who agreed to perform non-teaching duties would receive 50% of the corresponding full-time salary if they carried a semester courseload of 8 LEH. A greater courseload or greater commitment to non-teaching duties would result in payment of a higher percentage of the full-time salary. MSTAs who agree to perform non-teaching duties at least proportional to their courseload shall hold the same rank as their full-time equivalents in education and experience. [JW]

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[6] Arrange workloads of employees so that there is an equitable and reasonable assignment of responsibilities generally based on objective factors, and provide appropriate extra compensation or release time to employees who are asked to work significantly more than normal or during vacation/holiday times.

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[6A] --- leave provison [6] as shown above --- [HE]

[6B] add: Incorporate sufficient flexibility in leave rules to allow tradeoffs between salary and time off, whenever appropriate. [LD]

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[7A] Adjust pay scales annually to reflect cost-of-living changes (including inflation), with cost-of-living adjustments applied on the same basis to all pay scales. [HE]

[7B] Adjust each employee's compensation annually to reflect increases in the cost of living. Such increases shall be made on a per-employee, not per-position basis. The cost of living increase for an executive or administrative employee shall not exceed, in dollar amounts, one and one-half times the highest dollar amount increase given to an employee in another classification. If an employee receives an increase in a year because the salary for his or her position has been adjusted to raise it to the median market level, the employee's cost of living increase will be what he or she would have ordinarily received for cost of living less the increase resulting from the market level adjustment. [JW]

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[8A] -- omit this provision (leave this area to administrative discretion or a later policy) --

[8B] Provide incentives for the development of professional skills using a merit pay system for employees in all classifications that will fairly and objectively reward excellent performance. [JW]

[8C] Conduct an annual employee recognition program with monetary rewards to recognize individual outstanding service to the College, fairly and objectively rewarding excellent performance evidenced by evaluations and peer recommendations. [CN]

[8D] Provide incentives for professional skill development which results in performance improvements; additionally, the College should offer financial recognition via an awards program to employees whose contributions significantly exceed expectations. [LD]

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[9A] Ensure that pay scales take due account of relevant education and experience, with a general correlation between compensation and expected effectiveness. [HE]

[9B] Provide salary ranges that reflect appropriate adjustments for changes in effectiveness due to applicable education/experience and completion of any mandatory professional development. [CN]

[9C] Ensure that pay scales take due account of relevant education and experience, with a general correlation between compensation and expected effectiveness. Initial placement on pay scales shall be in the range of 50% to 150% of relevant experience beyond the minimum required. Employees shall advance by one step for each year of satisfactory performance (including any required professional development). [HE - would replace policies F-5 & F-6]

[9D] Ensure that compensation for each employee takes due account of relevant education and experience. Experience shall include relevant verifiable experience outside ACC. Consistent with fiscal constraints and meeting the other needs of the College, the College will strive to annually grant an increase in pay for experience to employees in all classifications who have satisfactory evaluations and complete any mandatory professional development requirements. These annual experience step increases will be limited to 15. [JW]

------------------------------------------------------------------------------------------DECISION PROCESS

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[10] The Board will, in response to Presidential recommendations based on this policy, adopt specific compensation goals as part of its biennial update of the College's strategic plan. During that review, the Board shall be provided information comparing College compensation rates to those typical of both the primary comparison groups and various other groups of employers that might be considered relevant.

[10A] -- leave [10] as shown above --

[10B] add: Information shall also be provided comparing the workloads and compensation of full-time and adjunct faculty at the College. [HE]

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[11A] Compensation levels and proposed changes in them are to be publicly announced in advance, and shall (except in emergencies) be considered by the Board as part of the annual budget-approval process. [HE]

[11B] Compensation levels and proposed changes in them are to be publicly announced and shall normally be implemented as part of the budget process. Compensation changes at other times require specific Board approval if the amount to be expended exceeds the budgeted amount for salaries for that fiscal year. [CN]

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[12] As part of the budget process, the President shall recommend pay scales and stipends that, in his or her judgment, reflect the above principles to the extent feasible given other Board directives. Projections shall be provided with the planning/budget proposals of the funds needed for cost-of-living adjustment, market adjustments, changes in staffing levels, and the net cost of any experience increments. Board approval of pay scales and rules shall be based primarily on the extent to which the President's recommendation is consistent with the provisions of Board policy and planning directives.

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[13A] -- omit this provision -- (leave prioritization, if needed, to biennial/annual decisions)

[13B] Transfer not less than 4% or more than 6% of projected annual revenues into a fund to be used for professional development, market-level adjustments, cost-of-living increases, experience adjustments, stipends, and awards (in that order of priority) in the following budget year. [LD]

[13C] Transfer not less than 4% or more than 6% of projected annual revenues into a fund to be used for professional development, market-level adjustments, cost-of-living increases, experience adjustments, and merit-pay increases (in that order of priority) in the following budget year. [JW]

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[14A] --- omit this provision ---

[14B] An appropriate relationship shall be maintained between the compensation packages of executives and senior administrators and the compensation for other classes of employees. [LD]

[14C] An appropriate relationship shall be maintained between the compensation packages of executives and senior administrators and the compensation for other classes of employees. Any compensation increase in excess of the average increase for other employees for an employee serving as a College administrative officer requires specific Board approval. [HE]

[14D] The cost of living increase for an executive or administrative employee shall not exceed, in dollar amounts, one and one-half times the highest dollar amount increase given to an employee in another classification. The annual increase in the compensation of the President shall not exceed the total of (a) a percentage increase equal to the highest percentage merit pay increase given to any employee, plus the greater of (b) the highest dollar amount cost of living increase given to an administrative/executive employee, or (c) the adjustment (if any) needed to place the President's salary in the median compared to the salaries of other presidents of community colleges in the major metropolitan areas in Texas. [JW]

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