Xavier University STAFF CLASSIFICATION/ COMPENSATION REDESIGN PROGRAM Information Session

1. Xavier UniversitySTAFF CLASSIFICATION/ COMPENSATION REDESIGN PROGRAMInformation Session February 2011

2. Today’s Agenda Today’s open forum will focus on the following: Purpose of this Initiative About Sibson Consulting Initial Project Timeline Overview of Compensation Program Design Process Next Steps

3. Purpose of this Initiative The ultimate purpose of this initiative is to ensure Xavier has a compensation program in place which will allow it to recruit and retain key staff talent. To this end, over the coming months, we will: Define a clear compensation philosophy statement Review and update job descriptions Conduct an objective competitive assessment of Xavier’s compensation relative to the market Develop compensation structures for the exempt and non-exempt populations At the conclusion of this work, our goal is to: Increase transparency on compensation policies and processes Provide employees with a clearer picture of career growth/trajectory opportunities at the University Have a compensation structure in place which will allow us to strengthen the pay-for-performance linkage

4. Steering Committee Members Audrey Calloway, Office of University Communications—Member Niké Cline-Bailey, Office of Human Resources—Project Manager David Davis, Physical Plant—Member Pati Haney, College of Social Sciences, Health, and Education—Member Kathy Henry, O’Connor Sports Center—Member Tom Merrill, Music Department—Member Mary Alyce Orahood, Registrar’s Office—Co-Chair Kathy Riga, Office of Human Resources—Co-Chair Donna Salak, Undergraduate Admission Office—Member Shawn Schuler, Budget Office—Member Daun Seitz, Williams College of Business—Member Joe Shadle, Mission and Identity—Member Suzanne Wright, Athletics—Member

5. About Sibson’s Higher Education Experience Extensive expertise in higher education Team members focus predominantly on working with colleges and universities Draw upon the experiences of colleagues working with corporations as appropriate Actively participate in key national and local conferences as sponsors and speakers Consult in all areas of HR Work with both public and private institutions throughout the United States

6. Sibson Project Team Overview Sibson has staffed this project with the following team: Karen Hutcheson: Senior Vice President and Sibson’s National Higher Education Performance and Rewards Practice Leader Elyse Lyons: Senior Consultant, Project Manager Elyse Rinaldi: Senior Associate, Market Analytics Manager

7. Sibson’s Objectives for On-Campus Meetings Sibson will be on-site at Xavier for two days. In addition to this meeting, the focus will be: Meeting with the HR, a subset of employees, and key leaders to gather insight on compensation at the Institution Working with the HR project team to prepare for the next steps in the project Topics to be discussed in interviews and focus groups include: Opinions on compensation at Xavier today How compensation is determined and what impact benefits have relative to total compensation The link between pay and performance Xavier’s market for talent, peer institutions, and recruitment issues/challenges The alignment between the University’s strategic direction and compensation

8. Overview of Compensation Project Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 • Conduct interviews and focus groups • Develop Compensation & Classification Philosophy Statement • Review draft with Steering Team, HR, and Leadership • Review job descriptions and titling • Identify benchmark jobs for market assessment • Conduct competitive assessment of benchmark jobs • Review market matches with leaders as needed to ensure accuracy • Review results with HR and Steering Team • Develop recommended salary structure • Design job classification methodology • Level all jobs in new structure • Define pay guidelines for management within new structure • Develop implementation plan • Communicate structure and implications to employees • Ongoing maintenance of structure Ongoing revision of position descriptions February – March March – April April – May June – August September 2011 – September 2013 The purpose of this initiative is to develop and implement an up-to-date, market-based compensation system for Xavier University.

9. Our Study Will Focus on Compensation But Take Into Account Other EVP Elements The feeling of belonging to an institution that shares your values Affiliation All the direct rewards you receive WorkContent Compensation The satisfaction that comes from the work you do Employment Value Proposition Long-term opportunities for progression and advancement Career All the indirect rewards you receive Benefits

10. Our Focus In This Project Is On Compensation Base Salary Other Cash Rewards Pay Administration Guidelines Compensation

11. Compensation Program Design Will Focus on Two Broad Issues Payingfor the Job Payingfor the Individual • Salary band structure • Market definition • Pay position relative to market • Balance between job’s market value and internal value • Pay guidelines/policies • Role of skills, knowledge, and experience • Role of supervisors in pay decisions • Performance versus longevity • Internal equity The first step is to define a compensationand classification philosophy statement.

12. We Will Complete These Steps to Develop a Compensation Program  $ $$$     10  9  8  7 6  5  4 3 2 1 Obtain Position Descriptions Competitive Assessment Salary Structure Pay Policies Survey Survey Survey Survey Survey Note: Salary structure is illustrative and not representative of structure to be used at Xavier.

13. The Ultimate Compensation Program Will Ensure Competitive Pay Versus the Market and Recognition of Individual Differences The ultimate output will be a compensation program which allows linkage to the market and recognition of individual performance, skill, and experience differences Job Role, Responsibilities, and Skill Requirements Knowledge, Skills, Experience, and Performance Total Base Pay Opportunity + = Range within SalaryStructure Positioningin Range Pay Competitiveness and Link to Performance + = “A job’s pay opportunityas defined by the market” “A person’s actual pay”

14. Next Steps As an output of this meeting, Sibson will develop a compensation philosophy statement Compensation philosophy statement will be reviewed and refined by HR and Leadership Statement will be shared publicly later in the spring After a thorough review of position descriptions, market competitiveness will be analyzed Note another important way for your to be involved is in reviewing or updating your position description in partnership with your supervisor 13

15. Questions 14 14

16. Higher Education Clients Select Private Higher Education Clients Institutions shown inblue are current or recent compensation clients. 15

17. Higher Education Clients continued Select Public Higher Education Clients 16 Institutions shown inblue are current or recent compensation clients.