21. compensation and wages

Human Resources Administration in Education

Compensation

Variables Affecting Compensation Performance

“The evaluation of performance is concerned with a basic question: ‘Did you get the job done?’ ”

Variables Affecting Compensation Continued

• Effort• Merit Pay

• A merit pay system will be ineffective unless it has the following components:

1.Effective teacher evaluation procedures.

2.Training programs for management and supervisory personnel who will implement the plan.

3.School board and management commitment to the plan in time and resources.

4.Staff involvement in developing the program.


• Merit Pay cont.

1. Teacher acceptance and satisfaction

2. Adequate financing

3. Merit pay for all who meet the criteria

4. Plausible, fair, and equitable performance criteria

5. Valid and verifiable measures of results

6. Objectivity and consistency in applying assessment measures

7. Increased student learning promoted


• Seniority• Skills• Job Requirements

Types of Compensation

• Intrinsic– Participation in Policy Making– Discretion– Responsibility– Professional Development

Types of Compensation Continued

• Extrinsic and Direct– Salary – Merit Pay– Overtime and Sick Leave

Types of Compensation Continued

• Extrinsic and Indirect– Holiday and Vacation Leave– Services– Insurance Programs

Direct Compensation: Salary and Wage Administration

• Equitable salary system• Comparability• Position Evaluation• Performance Incentive• Salary Review

The Effects of Salary on Motivation:

“Money increases intrinsic motivation”

Direct Compensation: Salary and Wage Administration Continued

Public Disclosure of Salaries

Compensation Packaging

Equity of Pay and Performance

Employee Relations in Salary Management

Collecting Community Wage Data


Salary and Wage ReviewSalary Schedule Construction

Multiple Salary ranges

Establishing Base Salaries


• Payroll Deductions“The board of education should have a comprehensive

payroll deduction policy covering such areas as the minimum and maximum amounts that may be deducted; the number and types of deductions authorized; deduction procedures; the opening and closing dates for entering deductions on the payroll records”.

• Pay Periods


Principles for Presenting Recommendations to the School Board

The Fiscal Condition of the School District

The Administrative Organization of the School District

Employee Unions and Associations

Salary Recommendation Procedures


Small Business Job Protection Act of 1996:

• Commonly referred to as “Minimum Wage Law”

• Budgets must be adjusted to compensate for the required increase in wages.

Indirect Compensation: Fringe Benefits Administration

Types of Fringe BenefitsBenefits Required by Law: social security premiums, state

retirement insurance, unemployment compensation, and workers’ compensation

Voluntary Fringe Benefits: insurance programs, time away from job, and services

Managed Health Care: school districts must employ case management specialist or contract with a company specializing in third party health care administration

Indirect Compensation: Fringe Benefits Administration Continued

Health Insurance Portability Act of 1996“The law addresses the needs of approximately 25

million Americans who are denied health insurance coverage because of an illness or who cannot change jobs because they, their spouse, or their dependents would be denied insurance coverage because of a preexisting medical condition such as diabetes.”

Medical Savings Accounts: employees choose the physician, hospitals, and treatments. Major illnesses are paid by the districts’ insurance while money withdrawn from MSA pays for minor costs.


Procuring Health Care and Related Insurance

The Insurance Agent and Broker: While the broker is not under contract to any specific agency, the agent acts on behalf of the company

Selecting Insurance Companies: It is essential to check their performance and financial solvency with well-established rating firms


Health Risks in the WorkplaceThree categories of health risks for school

employees:

1. Facility environmental risks

2. Violence

3. Risk of contracting infectious disease


Crisis Event Management• Crisis occur because of a variety of situations:

• Accidents• Misconduct• Natural disasters• Technology malevolence• Violence