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EARLY LEARNING COALITION OF BROWARD COUNTY JANUARY 11, 2019
CRI overviewPurpose of the study
– Objectives and deliverables
Total Rewards PhilosophyStudy methodology, findings, and recommendations
– Executive– Staff
Cost analyses recommendationsBonus research findingsBenefits assessment overviewQuestions and answersAppendices:
– A: Peer Groups– B: Included Positions– C: Published Survey List– D: Glossary
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Agenda
Our firm– National consulting firm established in 1989– Focus exclusively on compensation & HR
consulting– Represent numerous industries, 35% not-
for-profits– Direct involvement of Principals
Our differentiation– Collaborative, responsive– Breadth of experience, depth of knowledge– Integrated research, business, and
consulting expertise– Successful implementation and follow-up– Flexible approach to projects– Solutions based on what is right for client
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CRI Overview
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Purpose of Study
Review and update ELC’s Total Rewards Philosophy and Salary Administration Program with respect to
– New business needs– Rapid growth– Services brought in-house
Update ELC’s salary structure – Align with marketplace– Consider organizational changes and growth
Determine whether ELC’s existing salaries are competitive with the marketplace of its peers Identify any adjustments that may be needed
Study Objectives/Deliverables
Propose an updated Total Rewards PhilosophyConduct a market study to determine the market range for ELC staff positions
– 39 positions, including 5 ExecutivesConduct a benefits assessmentDevelop Administrative Support and Analytical Tools
– Formal salary structure for all positions– Analysis of existing staff salaries against position ranges– Salary Administration Program Manual
Recommend a Salary Adjustment Strategy
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Total Rewards Concepts
Additional consideration beyond Base Salary– Bonus– Benefits– Work-Life Balance– Recognition– Performance– Talent Development
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ELC’s Total Rewards Philosophy
ELC will provide a comprehensive Total Rewards Program in order to attract, reward, and retain qualified individuals
When funding is available, reward employees with Performance Bonus that is reflective of both Coalition and individual performance
Provide a comprehensive offering of competitive benefits programs to employees
Provide work environment that fosters professional growth, in order to increase retention and engagement
Flexible program to respond to changing conditions
Within ELC’s ability to pay
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Executive Compensation Study - Methodology
Data:– Utilized eleven (11) published surveys (Appendix C)– Two (2) peer groups (Appendix A)
• Peer Group A: Early Learning Coalitions– 8 organizations– Located in FL– Revenues 1/2x to 2x the revenue of ELC ($110 Million)
• Peer Group B: Other Child Service Organizations– 10 organizations– Located in FL, NC, SC, and GA– Revenues 1/2x to 2x the revenue of ELC ($110 Million)
– All data geographically adjusted to Fort Lauderdale, FL– Recognizes local marketplace
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Executive Compensation Study
Five positions included in Executive Study– CEO, CAO, CIO, COO, CPO
Examined all components of compensation package– Base Salary– Annual Bonus/Incentive– Deferred Compensation– Non-taxable Benefits
Evaluated competitiveness of Total Compensation Package (TCP)– Recognition of Federal HHS Salary Cap
Compared incumbents’ TCP to market TCPIncluded Executive Base Salary findings in salary structure development
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Executive Compensation Study Findings Overview
CEO
CAO, CIO, COO, CPO
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Position Title Base Salary TCC TCP
Chief Administrative Officer Below Below Below
Chief IT Officer Open Open Open
Chief Operating Officer Below Below Below
Chief Program Officer Open Open Open
Position Title Base Salary TCC TCP
Chief Executive Officer Below Below Below
Staff Market Study - Methodology
All current ELC staff positions included in study (Appendix B)Collected and reviewed job descriptionsConsidered various demographic factors for data collection
– Job content matched to published survey job content (no title matching)
– Geography– Industry– Revenue/budget
Market data used as a basis for building salary structure– Grades– Pay ranges
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Salary Structure Design
CRI proposed new salary structure– Based on Base Salary market findings in Executive and Staff studies– Each position assigned to grade by CRI based on market value– Input from ELC based on review of job assignments against existing
hierarchyStructure typically yields a range of pay for each grade
– Minimum (0 %ile) – 30th %ile – Midpoint (50th %ile – the “Market Value”) – 70th %ile– Maximum (100th %ile)
Unique to ELC in order to provide flexibility– Provided additional %iles in 5% increments
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Salary Structure
Midpoints anchored by Base Salary market study results
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Grade Minimum30th
Percentile Midpoint70th
Percentile Maximum50 $152,727 $187,091 $210,000 $232,909 $267,273 0.75 0.1849 $129,981 $159,226 $178,723 $198,221 $227,466 0.75 0.1848 $117,004 $138,065 $152,105 $166,145 $187,206 0.60 0.1847 $99,578 $117,502 $129,451 $141,400 $159,324 0.60 0.1546 $88,287 $102,855 $112,566 $122,278 $136,845 0.55 0.1545 $76,771 $89,439 $97,884 $106,328 $118,996 0.55 0.1544 $66,758 $77,773 $85,116 $92,460 $103,475 0.55 0.1543 $59,211 $68,093 $74,014 $79,935 $88,817 0.50 0.1342 $52,632 $60,527 $65,790 $71,054 $78,948 0.50 0.1341 $47,739 $54,184 $58,480 $62,777 $69,222 0.45 0.1040 $43,399 $49,258 $53,164 $57,070 $62,929 0.45 0.1039 $39,454 $44,780 $48,331 $51,882 $57,208 0.45 0.1038 $35,867 $40,709 $43,937 $47,165 $52,007 0.45 0.1037 $32,606 $37,008 $39,943 $42,877 $47,279 0.45 0.1036 $29,642 $33,644 $36,312 $38,979 $42,981 0.45 0.1035 $26,408 $30,370 $33,011 $35,651 $39,613 0.50 0.10
Range Mid to Mid Percentage
Low Band Middle Band High Band
Example of Position-in-Range (PIR)
We will be discussing Position-in-Range (PIR)The following is a PIR example:
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Job TitleCurrent
Annual Salary
Base Salary Market
Consensus Grade PIR Band Min 30th %ile Mid 70th %ile MaxBring to
Min CostSenior Supervisor Family Services $39,250 $44,300 39 -1.1% Below $39,454 $44,780 $48,331 $51,882 $57,208 $204Senior Supervisor Family Services $39,250 $44,300 39 -1.1% Below $39,454 $44,780 $48,331 $51,882 $57,208 $204
Provider Reimbursement Specialist II $40,706 NB 38 30.0% Middle $35,867 $40,709 $43,937 $47,165 $52,007Provider Relations Specialist II $40,816 NB 38 30.7% Middle $35,867 $40,709 $43,937 $47,165 $52,007
Provider Reimbursement Specialist I $35,547 $39,600 37 20.0% Low $32,606 $37,008 $39,943 $42,877 $47,279Provider Reimbursement Specialist I $35,734 $39,600 37 21.3% Low $32,606 $37,008 $39,943 $42,877 $47,279Provider Relations Specialist I $38,872 $38,800 37 42.7% Middle $32,606 $37,008 $39,943 $42,877 $47,279Provider Relations Specialist I $42,037 $38,800 37 64.3% Middle $32,606 $37,008 $39,943 $42,877 $47,279
Typical Placement Distribution Within Grade
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Grade range provides full opportunity of payBest practice is to place actual individual salaries using the following guidelines:
Entry level new hires Long-servicedNew promotions Experienced new hires Highly-qualified
Performance issues Effective performers Subject Matter Experts
Below
0%-29.9% 70%-100%30%-69.9%
Above
MaximumMinimum
Position Slotting Theory
Align market value between 30th percentile and midpointAverage market value of all positions within a grade also aligns
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Grade Min 30th %ile Mid 70th %ile Max37 $32,606 $37,008 $39,943 $42,877 $47,279
JobMarket
Consensus
Accounts Payable Specialist $37,900Administrative Assistant $42,200Family Services Specialist I $38,800Provider Reimbursement Specialist I $39,600Provider Relations Specialist I $38,800
Average MC: $39,460
Factors to Consider in Setting Individual Salaries within the Range
Many factors influence actual compensation:– Length of service/starting salary– Merit increases– Special skills, expertise, certifications– Career-paths/levels– Size of organization (budget, revenue, employees, etc.)– Location of organization– Ability to pay
Special considerations for ELC:– Federal Salary Cap– Base Salary and Performance Bonus mix
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Job Content
Industry
RevenueGeography
Analytical Findings and Recommendations for all Current ELC Staff (105 employees)
10 incumbents were Below Minimum (less than the 0 %ile) of theirsalary range, including all C-level staff
– Recommendation: Bring these incumbents to the minimum of therange
17 incumbents were in the Middle or High Band – Recommendation: Freeze salaries
78 incumbents were in the Low Band of their salary range– Recommendation: Increase salary of staff with at least 1 year of
tenure, with a cap at the nearest next 5th percentile, up to the 30th
percentile effective January 1, 2019
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Minimum5th
Percentile10th
Percentile15th
Percentile20th
Percentile25th
Percentile30th
Percentile45 $76,771 $78,883 $80,994 $83,105 $85,216 $87,328 $89,43944 $66,758 $68,594 $70,429 $72,265 $74,101 $75,937 $77,77343 $59,211 $60,692 $62,172 $63,652 $65,132 $66,613 $68,09342 $52,632 $53,948 $55,264 $56,580 $57,895 $59,211 $60,527
ExampleGrade
Proposed Cost Analysis Summary
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Maximum potential total cost, up to the 25th percentile, as per ELC
Position Band # of EmployeesIncrease to Minimum Total $ Increase
CEO Below 1 14.0% $18,776CAO Below 1 41.6% $38,181COO Below 1 20.7% $20,104
Overall Exec Total 3 25.5% $77,061
PIR Band # of EmployeesAverage %
Increase Total $ Increase<0% Below 7 6.7% $24,6290%-4.9% Low 2 1.5% $9735%-9.9% Low 3 1.2% $1,49810%-14.9% Low 7 0.8% $1,95515%-19.9% Low 18 1.9% $11,77420%-24.9% Low 7 1.4% $3,386
Total Below 7 6.7% $24,629Total Low 37 1.3% $19,587
Overall Staff Total 44 2.2% $44,216Overall ELC Total 47 10.0% $121,276
Staff
Executives
Analytical Findings and Recommendations for all Current ELC Staff (105 employees)
Implement a Merit Increase Matrix effective July 1, 2019, whereby salaries are increased based on Band and individual performance
Adopt Total Rewards Philosophy
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Performance Rating Low Middle High Above
3 5.00% 4.00% 3.00% 0.00%2 4.00% 3.00% 2.00% 0.00%1 0.00% 0.00% 0.00% 0.00%
Sample Merit Increase Matrix
Annual Bonuses
No bonuses were reported among the ELC and other not-for-profit peer groups surveyed in this studyUse of bonuses in not-for-profits gaining in popularityDefining the appropriate metrics continue to be a challenge
– Measurable– Private Inurement sensitivity
Published surveys reported bonus information ranging from .5%-12%
– Wider landscape of respondents– Higher level roles have high bonus rates
Salary structure does not account for annual bonuses and/or incentives
– Base Salary only
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Benefits Assessment Findings Overview
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Benefit Not Offered Not Competitive Competitive Very CompetitiveMedical Coverage Dental Coverage Vision Insurance Holidays Vacation Time Sick Days Personal Time Jury Duty Bereavement Days Military Leave FSA Health & Wellness Benefits Retirement Benefits Disability Benefits Life and AD&D Insurance Education Assistance Employee Assistance Program
ELC Recommendations
ELC has taken these analyses and applied our methodology, research, and findings in order to develop their specific compensation strategy
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Questions & Answers
Open Discussion Wrap-up
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Appendix A: Peer Groups (Executive Positions Only)
Peer Group A (Early Learning Coalitions)
Peer Group B (Other Child Service Organizations)
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Organization Location Revenue Early Learning Coalition of Duval Inc. Jacksonville, FL $55,779,925 Early Learning Coalition of Miami Dade Monroe Inc. Coral Gables, FL $189,081,223 Early Learning Coalition of Palm Beach County Inc. Boynton Beach, FL $99,597,901 Early Learning Coalition of Pinellas County Inc. Clearwater, FL $49,543,347 Hillsborough County School Readiness Coalition Tampa, FL $78,107,624 Orange County School Readiness Coalition, Inc. Orlando, FL $69,673,173 Redlands Christian Migrant Association (RCMA) Immokalee, FL $67,173,272 The Early Learning Coalition of Southwest Florida Inc. Fort Myers, FL $42,568,000
Organization Location Revenue ChildNet Inc. Fort Lauderdale, FL $126,056,855 Child Care Resources Inc. Charlotte, NC $60,213,663 Community Coordinated Care for Children Inc. Orlando, FL $98,822,129 Episcopal Children's Services Inc. Jacksonville, FL $61,682,202 North Carolina Partnership for Children Inc. Raleigh, NC $103,173,407 Our Kids of Miami-Dade Monroe Inc. Miami, FL $104,848,234 South Carolina First Steps to School Readiness Columbia, SC $44,256,571 YMCA of Greater Charlotte Charlotte, NC $87,818,898 YMCA of Metropolitan Atlanta Atlanta, GA $113,805,944 YMCA of the Triangle Area Inc. Raleigh, NC $85,080,386
Appendix B: Positions Included in Study
1. Accountant/Payroll Manager2. Accounting Manager3. Accounts Payable Specialist4. Administrative Assistant5. Chief Administrative Officer6. Chief Executive Officer7. Chief IT Officer8. Chief Operating Officer9. Chief Program Officer10. Compliance Director11. Controller12. Customer Service & Provider
Relations Manager13. Customer Service Specialist14. Customer Service Supervisor15. Data Analyst16. Director of Communications
17. Director of Education and Quality Initiatives
18. Director of Family Serv & Provider Relations
19. Executive Assistant20. Family and Provider
Engagement Specialist21. Family Services Manager22. Family Services Specialist I23. Financial Analyst24. Human Resources Manager25. Inclusion Specialist26. IT Specialist27. Provider Reimbursement
Manager28. Provider Reimbursement
Specialist I
29. Provider Relations Specialist I30. Purchasing & Procurement
Specialist31. Quality and Education
Coaching Specialist32. Quality and Education
Manager-Inclusion33. Quality Assurance Specialist34. Quality Education Manager35. Quality Monitoring Specialist36. Senior Director of
Development and Community Engagement
37. Senior Supervisor Family Services
38. Senior Supervisor Provider Reimbursement
39. System Administrator
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Appendix C: Published Surveys
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Survey Title Publisher Year Compensation Data Not-For-Profit National
CompData Surveys 2018
Salary Assessor/Executive Salary Assessor Economic Research Institute (ERI) 2018 Nonprofit Organizations Salary and Benefits Report
NonProfit Times, The 2017
CompAnalyst Salary.com Subscription Service 2018 Not For Profit Compensation Survey Total Compensation Solutions (TCS) 2017 General Industry Human Resources Compensation Survey
Willis Towers Watson 2018
General Industry Office & Business Support Compensation Survey
Willis Towers Watson 2018
General Industry Professional (Administrative & Sales) Survey
Willis Towers Watson 2018
General Industry Professional (Technical & Operations) Compensation Survey
Willis Towers Watson 2018
General Industry Supervisory & Middle Management Compensation Survey
Willis Towers Watson 2018
Salary Budget Survey WorldatWork 2018-2019
Appendix D: Glossary
Base Salary: The fixed component of the compensation package that tends to be relatively constant by position and hierarchy acrossthe organization's industry. Base Salary is the value that the organization attributes to a position. Base Salary is typically determinedby competitive levels within the relevant labor market, and may vary within a set range. It is a major component of the TotalCompensation Package in the not-for-profit industry and is typically used as the basis for calculating bonus amounts and benefits.Bonus/Incentive: Bonuses and/or incentives make up a variable element of the Total Compensation Package. Annualbonuses/incentives are typically awarded based on the employee's contributions, in conjunction with the organization's financial andoperational performance.Market Consensus (MC): The best estimate of the value of the position within the competitive marketplace that takes into accountpublished surveys and peer data (where applicable), matched by job content, organizational profile, and geography. The MarketConsensus is calculated based on an examination of both not-for-profit and for-profit compensation data (to the extent that sufficientdata is available), which recognizes the realities of the marketplace and is consistent with Intermediate Sanctions.Position-in-Range (PIR): Indicates the extent to which an incumbent's salary actually penetrates within the salary range. Therefore,the "within grade" range is shown as 0% to 100%. A negative PIR (e.g., -5.2%) indicates that an incumbent's salary is below the rangeminimum, while a PIR above 100% indicates that the incumbent's salary is above range maximumSalary Structure Band: Subsections of the salary structure, defined as follows:
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Band Definition Below Incumbent's salary falls below the minimum of the grade (less than 0%). Low Incumbent's salary falls in approximately the first third or low band (PIR of 0%-29.9%) of
the salary range. Typically represents new incumbents or those with lower experience levels.
Middle Incumbent's salary falls in the middle portion of the salary range (PIR of 30%-69.9%). Typically represents the competitive market for the position.
High Incumbent's salary falls in the upper third of the salary range (PIR of 70%-100%). May include long-service incumbents or those with high experience levels.
Above Incumbent's salary is above the grade maximum (exceeds 100%). Typical arrangements call for salary freezing until the range is adjusted upward.
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Contacts
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Sara D. Schmidt, CCP, PHR, SHRM-CP
Senior Consultant
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