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Inside Iowa State, a newspaper for faculty and staff, is published by the Office of University Relations.

Aug. 9, 2007

Consultant to eye P&S compensation

by Erin Rosacker

Iowa State has hired Towers Perrin, a consulting firm, to take a look at the compensation structure for Professional and Scientific positions. The firm has been charged with the task of analyzing ISU's current system and making recommendations for changes, if needed.

"For some time now, the P&S Council has been requesting a review of the compensation structure at Iowa State," said Carla Espinoza, associate vice president for human resource services.

She said the council was "instrumental" in getting an outside group (HR Audit, Inc.) to examine compensation processes recently. Among HR Audit's findings was a concern about the span between pay grade minimums and mid-points. That generated the need for closer scrutiny of a structure that hasn't been adjusted since its implementation in 1991-92.

Like most of its peer institutions, ISU's structure is based on the value of the job and the market for that job.

"Pricing the job for Iowa State University and Iowa is critical to our success in recruiting and retaining the best," Espinoza said.

She said a third element to consider, although it is separate from the compensation structure itself, is what the person brings to the job -- in terms of knowledge, skills and abilities.

"A compensation policy really does allow for greater consistency and equity," Espinoza said. "We have so many decisions made at the local level that it's important to provide good guidance to the decision makers."

Another issue Espinoza expects to be considered is movement of the positions through the paygrades, including the question of appropriate -- and timely -- market adjustments.

"We're asking the question, 'If there is a better comp structure for Iowa State University, what is it and how much will it cost to implement' -- not just in dollars and cents, but also in pain and suffering," Espinoza said.

That's where Towers Perrin will start. Different scenarios could come back from the consultant's review, Espinoza said. Iowa State could already have the right structure in place and just need a few changes in its operation; both the structure and the operation could be appropriate, with a few "tweaks" here and there; or, the structure itself could be insufficient.

Towers Perrin will compile data, conduct focus groups and interview stakeholders as it reviews ISU's current structure.

"There are some tweaks and adjustments that probably do need to be made," Espinoza said. "We probably do need to articulate a compensation philosophy and place a foundation for it with a strong compensation policy."

The consultant will report to an advisory committee headed by Espinoza (see list of members at right). The process is anticipated to take six to eight months, and should start in September.

Summary

A consultant will analyze Iowa State's compensation structure for Professional and Scientific positions. The current system has been in place since 1991-92.

Classification and Compensation Feasibility Study Committee

  • Carla Espinoza, associate vice president for human resources
  • Dan Woodin, information systems leader, IT Services
  • Jackie Blount, associate dean, College of Human Sciences
  • Nancy Brooks, director of purchasing
  • Adreliz Calzada-Rivera, classification and compensation manager, human resources
  • Luke Alberts, classification and compensation specialist, human resources
  • Todd Holcomb, associate vice president of student affairs
  • Kathey Schuckert, program coordinator, College of Agriculture and Life Sciences

Quote

"We're asking the question, 'If there is a better comp structure for Iowa State University, what is it and how much will it cost to implement' -- not just in dollars and cents, but also in pain and suffering,"

Carla Espinoza