Compensation Plan - Part Two

Last week I wrote a blog about how we evaluate the credentials you bring to the job above the minimum requirements. So, what comes next? Here's a partial repost of last year's blog on the topic.

The method for calculating what we call the "target salary" is the same for every job family. We subtract the minimum salary from the midpoint salary for each pay grade. This number is divided by 10. The result gives us the value of each point. Your total points are multiplied by the value of each point. This number is then added to the minimum salary for the pay grade and voila - we have your target salary.

Every employee should understand how your points are calculated and thus how we arrive at your target salary. Our goal is to get 100% of our employees to their target salary. We started this process about a decade ago. We've had some good budget years and some lean budget years. We've made progress, but we still have a ways to go. We were hundreds of thousands of dollars below market in 2000 with virtually no employee at his/her target. We are working on a new salary schedule and an update to our plan, so it will be several months before we have new projections.

We are anticipating the legislature will approve the governor's proposal for an across the board increase. In addition, we are evaluating the possibility of awarding market and merit increases. More to come on this as the budget unfolds.