The Compensation Initiative Overview - Establishing Effective Staff Compensation Practices at MIT

The Compensation Initiative at MIT aims to create a compensation foundation to attract, develop, reward, and retain staff effectively. It involves developing transparent job descriptions, modernizing salary structures, and ensuring market-competitive compensation. The project has progressed through phases such as drafting a pay philosophy, creating a job catalog with new titles, conducting market pricing, and establishing a new pay grade structure.

• Compensation Initiative
• MIT
• Staff
• Job Descriptions
• Market-Competitive

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1. The Compensation Initiative September 2017 Chuck L. Pizzano Joanna Tieu

2. The Compensation Initiative Overview What is the Compensation Initiative? The Compensation Initiative will establish a compensation foundation and the practices that enable MIT to effectively attract, develop, reward, and retain staff. The scope includes Admin Staff, Sponsored Research Admin Staff, and Support Staff. What are some of the objectives? Develop consistent and transparent job descriptions Create consistent and current job titles Modernize compensation salary structures Increase transparency of pay decisions Simplify administration Ensure market competitive compensation to attract, reward and retain key talent Who has been involved? Sponsors: VPHR, Deputy EVP, Assistant Provost Advisory Group consisting of 25 members from across MIT see Appendix for list Human Resources Mercer Consulting 2

3. Compensation Initiative Phases Current Pay Philosophy A pay philosophy was drafted and reviewed as the first phase of the project. Job Catalog / Job Structure An on-line tool was created to house job descriptions. Jobs have been grouped by Job Family, Subfamily, Track (Support, Individual Contributor or Management) and Level (1-6) to ensure consistency in level of work performed. Job guides and descriptions 650 job descriptions have been written and are available for viewing within the Job Catalog. Job titles New job titles have been assigned and are in the Job Catalog. Market Pricing Market pricing of 370 benchmark jobs has been completed and results used to develop the pay structure. Pay Structure A new pay grade structure is being established which will replace what we have today. 3

4. Job Families/Sub Families Admissions Advising and Academic Programs Executive and Professional Education Learning and Curriculum Registrar Research Support Administration and Operations Administrative and Office Support Data Analytics Program and Project Administration Strategic Advising Alumni Relations Annual Fund Campaign Strategy DLC Fundraising Donor Relations and Stewardship Foundation Relations Gift Administration Gift Planning Major Gift Fundraising Principal Gift Fundraising Prospect Research n/a Campus and Space Planning Engineering and Construction Facilities Generalists Facilities Services Repair and Maintenance Utilities Accounting Budget and Financial Analysis Contract Administration Credit Union Finance Administration NSA Finance Administration SA Finance Administration Support Grant Administration Investments Payroll Procurement and Sourcing Property Tax Treasury and Planning Audit Compliance and Risk Management Application Development Application Support Business Analysis IT Generalists IT Project Management IT Security and Risk Network and System Administration User Experience Web Administration Web Development Academic Services Facilities Information Technology Administrative Services Insurance n/a Government and Community Relations International Students and Scholars Legal Technology Licensing and Intellectual Prop. Finance Legal, Licensing and Government Relations Advancement Library n/a Clinical Billing and Health Plans Clinical Services and Administration Community Wellness Medical Laboratory Medical Records Pharmacy Athletics Business Development Governance n/a Medical Acquisitions Advertising and Sales Communications and Marketing Generalists Digital Strategy Editorial and Writing Graphics and Design Multimedia Production Public Relations Publishing Technical Writing Hospitality n/a Affirmative Action Benefits Compensation Diversity and Inclusion Employee Relations HR Generalists Human Resources Information Systems (HRIS) Labor Relations Organization and Talent Development Recruitment Museum n/a Communications and Marketing Security n/a Human Resources Career Services and Global Education Customer Service Residential Life Social and Spiritual Life Student Activities and Services Student Financial Services Student and Customer Service Environmental Health and Safety Events n/a n/a 4

5. Job Track Definitions Support Performs diverse duties (e.g., administrative, technical, or production) using knowledge and skills in support of the Institute s daily operations Individual Contributor Achieves objectives through his/her own work and is accountable for the outcomes AND Performs specialized work using knowledge and skills in area of expertise OR Coordinates the development and/or implementation of programs, projects, or processes Management People Managers: Directly supervise at least 1 full-time MIT employee Achieve objectives through, and is accountable for, the work of his/her direct reports Responsible for conducting and completing the performance evaluation and development plan for his/her direct reports Make recommendations on pay and hiring decisions (which may be subject to review and approval) OR Functional Managers: Accountable for project/program/function outcomes Manage a project/program/function and achieves objectives through the work of others Influence and direct the work required to achieve the project/program/function s goals May provide input into pay and hiring decisions and/or provide input into performance evaluations and development plans for others 5

6. Job Structure Example A grouping of jobs with a similar function and purpose across the Institute (e.g., Finance, Human Resources, Library Services, etc.). Note: Not a department or organization. Job Family Finance A grouping of jobs within a specific segment of a job family with similar function and purpose (e.g., within Finance job family Accounting, Audit, Procurement). Sub-Family Accounting Support Individual Contributor Management Provides a consistent framework for organizing roles across the Institute for pay, benchmarking and job progression. Job Track Individual Contributor Articulates vertical progression opportunities within a job track. There are currently six levels in each job track (e.g., S1 - S6 in the Support track). The levels do not correspond to current pay grades. Job Level Accountant 1 A segment within a Family or Sub-Family that groups positions with a similar level of core job duties and responsibilities. Job family level guides define generic responsibilities and requirements. Job The finest level of segmentation, representing position-specific responsibilities and requirements. Position descriptions specify responsibilities and day-to-day tasks for that role. Note: Position titles are not within the scope of this project and are not being changed as a result of this effort. Staff Utilities Cost Accountant Accountant Position 6

7. Job Titles Background Job Titles Job titles appear on HR reports, typically seen by HR staff Job titles are more generic than position titles Position Titles Position titles appear in the MIT directory, available to all Position titles are more specific than job titles to reflect more accurately the role of the position within an organization Position titles will NOT be changed as a result of this effort; they will continue to be managed by DLCs General Principles Job titles align with the category of job (Support, Individual Contributor, Management) Job titles are consistent Job titles are succinct and reflect the level and focus of the job being performed The same jobs in Administrative and SRS Administrative are given the same title, with SRS added to distinguish between the two 7

8. Job Titles Standards and Examples Support and Individual Contributor Tracks The job title consists of a function plus a common term associated with jobs in the function, and use numbers (1,2,3) to indicate progression. Examples Administrative Assistant 1 Administrative Assistant 2 Administrative Assistant 3 Accountant 1 Accountant 2 Accountant 3 Management Track The job title consists of the word Management , followed by the job level, followed by the sub family or job family (if no sub family exists) name Examples Management 1, Admissions Management 2, Admissions Management 3, Admissions 8

9. Job Catalog Demo 9

10. Compensation Initiative Phases Whats Coming Employee Mappings Each employee will be preliminarily assigned to a combination of a job family, sub family (if applicable), job track and level in the new structure. Each employee will have a generic job description and be assigned a new salary grade/range. We will be working with A Deans to determine best approach to have DLCs review their employee mappings. Policies and Procedures A policies and procedures document has been drafted containing guidelines related to pay decisions, pay practices, etc. This will be reviewed by project sponsors, the advisory group, and others before finalizing as key decisions still need to be made. Implementation New job titles and pay grades will be established in SAP and our Applicant Tracking System (old job titles will no longer be available). Employee transactions will be created and input into SAP for all employees whose job is within scope of the project. Communications A communications plan is being developed, for various audiences e.g. hiring managers, HR contacts, AOs, employees, etc., regarding project.

11. Appendix Advisory Group Name School Office of General Counsel Office of President Vice President for Finance Office of the Executive Vice President & Treasurer Sloan School of Management Medical Vice President for Research Human Resources Office of Provost School of Engineering School of Humanities, Arts, and Social Sciences School of Science Institute for Data, Systems, and Society Vice President for Research Alumni Facilities Lincoln Labs Allison Romantz Ann McNamara Ann Warner-Harvey Anthony Sharon (Executive Sponsor) Bill Garrett Cathi Tetreault Colleen Mazzeo Leslie Chris Frechette Doreen Morris (Executive Sponsor) Eileen Ng Erminia Piccinonno Heather Williams Jennifer Kratochwill Jennifer Walsh Jill Soucy John DiFava Kerry Harrison Human Resources Lorraine A. Goffe (Executive Sponsor) Resource Development Environmental, Health, & Safety Sloan School of Management Media Lab Chancellor's Office Medical School of Architecture Libraries Office of the Executive Vice President & Treasurer Vice President for Research Human Resources Office of the Dean for Undergraduate Education Office of the Dean for Student Life Physics Lorraine Ng Lou DiBerardinis Lucy Lui Martha Collins Mary Markel Murphy Melissa Donahue Ramona Allen Robin Deadrick Robin Elices Ron Hasseltine Travis Pregent Sharon Bridburg Sonja Dagbjartsdottir Vicky Metternich 11