Information Technology Services Compensation Review at University of Connecticut

University of Connecticut Information Technology Services Market Driven Information Technology Compensation Review M. Mundrane ITS Town Hall January 18, 2023 Community Integrity Contribution Attitude

Compensation Goals Information Technology Services Collective and Individual Objective and Subjective Conforming Supports Longevity Uses Market Data Rational Repeatable Scalable Fair 1 Community Integrity Contribution Attitude

First Approach Information Technology Services 2 Community Integrity Contribution Attitude

First Approach Information Technology Services Marybeth Enrique Herman First three names in organization when sorted by employee ID. 3 Community Integrity Contribution Attitude

First Approach Information Technology Services Marybeth Enrique Herman = 1,000 = 2,000 = 1,000 Here we are using simple numbers for clarity and not for immediate applicability. 4 Community Integrity Contribution Attitude

First Approach Information Technology Services Marybeth Enrique Herman = 1,000 = 2,000 = 1,000 Individual = 4,000 Collective Pool = 3,000 Collective 5 Community Integrity Contribution Attitude

First Approach Information Technology Services Marybeth Enrique Herman = 1,000 = 2,000 = 1,000 750 1,500 750 = 4,000 3,000 Pool = 3,000 6 Community Integrity Contribution Attitude

First Approach Information Technology Services Based on both individual and collective characteristics Entire pool was allocated Not complicated Potential to scale If the desired awards were likely fair, then the actual awards were likely fair This is a big if... 7 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services Each individual award (A) is a common fraction (f) of the desired amount (D). ?1= ? ?1 ?2= ? ?2 ?3= ? ?3 This is just a simple representation of how we ultimately made the allocations. 8 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services The separate relationships can be combined. ?1= ? ?1 ?2= ? ?2 ?3= ? ?3 , , ?1+ ?2+ ?3= ? ?1+ ? ?2+ ? ?3 If each one of these is valid individually, their combination must be equally valid. 9 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services The sum of awards (A) is equal to the allocation pool (P). ?1+ ?2+ ?3= ? ?1+ ? ?2+ ? ?3 ? = ? ?1+ ? ?2+ ? ?3 This presumes that it is desirable to allocate the entire pool. This is a common expectation. 10 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services The common fraction (f) can be pulled out and applied to the collection of desired awards (D). ? = ? ?1+ ? ?2+ ? ?3 ? = ? (?1+ ?2+ ?3) This simply removes the duplicated factor and simplifies the relation. 11 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services We can solve for the common fraction (f). ? = ? (?1+ ?2+ ?3) ? ? = ?1+ ?2+ ?3 The common fraction is a link between the individual aspects (D) and the collective aspects (P). 12 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services The fraction can be substituted back into the full equation. ? ? = ?1+ ?2+ ?3 ? ? ? ? = ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?1+ ?2+ ?3 This more complicated view is deliberate. It shows the detail of the actual calculation. 13 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services Multiplication is commutative. ? ? ? ? = ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?1 ?2 ?3 ? = ? + ? + ? ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?1+ ?2+ ?3 The numerators can be swapped without changing the results. 14 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services The individual awards are still present. ?1 ?2 ?3 ? = ? + ? + ? ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?1+ ?2+ ?3 ?3 ?1 ?2 The individual awards remain as collections of terms in the full representation. 15 Community Integrity Contribution Attitude

Analysis of Approach Information Technology Services Pool scaled by desired awards. The sum of a common fraction of individual awards is the same as the sum of individual fractions of a common pool. Fractions represent competition for available pool. 16 Community Integrity Contribution Attitude

Single Award Information Technology Services Fully populate the values for the first award. 1,000 ?1= 1,000 + 2,000 + 1,000 3,000 pool fraction The award for Marybeth was just a calculation that represented her fraction of the allocation pool. 17 Community Integrity Contribution Attitude

Single Award Information Technology Services This can be simplified. 1,000 ?1= 1,000 + 2,000 + 1,000 3,000 1 ?1= 1 + 2 + 1 3,000 Removing a common factor of 1,000 from both the numerator and the denominator does not change the value. The calculated fraction is identical. 18 Community Integrity Contribution Attitude

Multiple Awards Information Technology Services This can be done for each of the awards in turn. 1 ?1= 1 + 2 + 1 3,000 2 ?2= 1 + 2 + 1 3,000 1 ?3= 1 + 2 + 1 3,000 The awards are effectively based on the ratios of the desired amounts and not their individual magnitudes. 19 Community Integrity Contribution Attitude

Weights Information Technology Services The values can simply be called weights to decouple them from any specific meaning. 1,000 1 + 2 + 1+ =1 1 1,000 + 2,000 + 1,000+ = 4+ = 1 The sum of the individual fractions must be identically equal to 1. This is true for any group of fractions calculated this way using a series of weights. 20 Community Integrity Contribution Attitude

Weights Information Technology Services Weights can be generated in various ways Weights describe relative competitiveness for the award pool Individual fractions are individual weights divided by the sum of the weights Sum of the fractions is always 1 Must allocates entire award pool Not different than the initial approach 21 Community Integrity Contribution Attitude

However Information Technology Services Staff are individuals Numerous jobs Different levels Longevity missing Market data missing Approach must scale Fairness must remain Those desired awards sound kind of vague . 22 Community Integrity Contribution Attitude

Midpoint Gap Information Technology Services Example pay band with an associated lower (L) bound, upper (U) bound, midpoint (M), and compensation (X). L M U current T target X G Define a target (T) and associated gap (G) that also fits within the pay band. 23 Community Integrity Contribution Attitude

Midpoint Gap Information Technology Services The target gap (G) is the difference between the target (T) and the current salary (X). L M U X T ??= ?? ?? G This is useful quantity because it is tied to both the existing and desired compensation for an individual. 24 Community Integrity Contribution Attitude

Target Gap Information Technology Services Lower bound (L) is pay band minimum Upper bound (U) is pay band maximum Midpoint (M) is full performance for that job at that level Good approach for midpoints Inadequate for an organizational review We need intermediate targets 25 Community Integrity Contribution Attitude

Target Gap Information Technology Services Future compensation is just current compensation plus award. ? = ? + ? Award is a fraction of the gap. ? = ? ? Gap is target minus current compensation. ? = ? ? This leads to a single relation. ? = ? ? + 1 ? ? 26 Community Integrity Contribution Attitude

Uniformly Spaced Targets Information Technology Services Mapping evenly within a pay band results in a series of targets that are uniformly spaced. T T T U M 1.0 1.0 1.0 1.0 Same approach below the midpoint. Easy to calculate. Is this intuitively valid? 27 Community Integrity Contribution Attitude

Normal Distribution Information Technology Services One expects a population to conform at least somewhat to a typical distribution. 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 -3 -2 -1 0 1 2 3 This is a plot of the normal distribution function. 28 Community Integrity Contribution Attitude

Normal Distribution Information Technology Services One expects a population to conform at least somewhat to a typical distribution. Approaches 100% 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 Approaches 0% 0.0 -3 -2 -1 0 1 2 3 This is a plot of the cumulative normal distribution. 29 Community Integrity Contribution Attitude

Normal Distribution Information Technology Services Representing the pay band as a cumulative distribution. -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 1.0 0.9 0.8 L M = 2.275% = 50.000% 0.7 0.6 0.5 0.4 0.3 U = 97.725% 0.2 0.1 0.0 L M U 30 Community Integrity Contribution Attitude

Uniform in Compensation Information Technology Services Distribute data points evenly along x-axis. -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 1.0 closest 0.9 0.8 L M = 2.275% = 50.000% 0.7 furthest 0.6 0.5 0.4 0.3 U = 97.725% 0.2 0.1 0.0 L M U 31 Community Integrity Contribution Attitude

Uniform in Percentile Information Technology Services Distribute data points evenly along y-axis. -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 1.0 0.9 0.8 L M = 2.275% = 50.000% 0.7 0.6 0.5 furthest 0.4 0.3 U = 97.725% 0.2 closest 0.1 0.0 L M U 32 Community Integrity Contribution Attitude

Normal Targets Information Technology Services Mapping evenly by percentile results in targets that are closer together in the vicinity of the median. U M T T T 1.1 3.1 1.0 1.4 The normal distribution can be approximated simply to produce the expected behavior. 33 Community Integrity Contribution Attitude

Midpoint Centric Targets Information Technology Services This can be utilized to generate a table that contains more information. -4 -3 -2 -1 0 1 2 3 4 1 2 3 4 5 6 7 8 43,634 48,870 54,734 61,302 68,658 76,897 86,125 96,460 110,052 116,190 121,013 125,398 129,782 134,605 140,744 154,336 49,782 55,756 62,446 69,940 78,333 87,733 98,261 103,741 108,047 111,962 115,877 120,183 125,664 137,800 52,559 58,866 65,929 73,841 82,702 92,626 54,740 61,309 68,666 76,906 86,135 96,471 56,724 63,530 71,154 79,693 89,256 99,966 103,462 107,306 112,200 123,035 58,707 65,752 73,642 82,479 92,376 60,889 68,195 76,379 85,544 95,809 100,179 109,853 63,665 71,305 79,862 89,445 69,814 78,191 87,574 98,083 This is a full set of targets relative to midpoint for ITS levels. 34 Community Integrity Contribution Attitude

Midpoint Centric Targets Information Technology Services This can be utilized to generate a table that contains more information. -4 -3 -2 -1 0 1 2 3 4 1 2 3 4 5 6 7 8 43,634 48,870 54,734 61,302 68,658 76,897 86,125 96,460 110,052 116,190 121,013 125,398 129,782 134,605 140,744 154,336 49,782 55,756 62,446 69,940 78,333 87,733 98,261 103,741 108,047 111,962 115,877 120,183 125,664 137,800 52,559 58,866 65,929 73,841 82,702 92,626 54,740 61,309 68,666 76,906 86,135 96,471 56,724 63,530 71,154 79,693 89,256 99,966 103,462 107,306 112,200 123,035 58,707 65,752 73,642 82,479 92,376 60,889 68,195 76,379 85,544 95,809 100,179 109,853 63,665 71,305 79,862 89,445 69,814 78,191 87,574 98,083 lower bounds This effectively spans each pay band. 35 Community Integrity Contribution Attitude

Midpoint Centric Targets Information Technology Services This can be utilized to generate a table that contains more information. -4 -3 -2 -1 0 1 2 3 4 1 2 3 4 5 6 7 8 43,634 48,870 54,734 61,302 68,658 76,897 86,125 96,460 110,052 116,190 121,013 125,398 129,782 134,605 140,744 154,336 49,782 55,756 62,446 69,940 78,333 87,733 98,261 103,741 108,047 111,962 115,877 120,183 125,664 137,800 52,559 58,866 65,929 73,841 82,702 92,626 54,740 61,309 68,666 76,906 86,135 96,471 56,724 63,530 71,154 79,693 89,256 99,966 103,462 107,306 112,200 123,035 58,707 65,752 73,642 82,479 92,376 60,889 68,195 76,379 85,544 95,809 100,179 109,853 63,665 71,305 79,862 89,445 69,814 78,191 87,574 98,083 upper bounds This effectively spans each pay band. 36 Community Integrity Contribution Attitude

Midpoint Centric Targets Information Technology Services This can be utilized to generate a table that contains more information. -4 -3 -2 -1 0 1 2 3 4 1 2 3 4 5 6 7 8 43,634 48,870 54,734 61,302 68,658 76,897 86,125 96,460 110,052 116,190 121,013 125,398 129,782 134,605 140,744 154,336 49,782 55,756 62,446 69,940 78,333 87,733 98,261 103,741 108,047 111,962 115,877 120,183 125,664 137,800 52,559 58,866 65,929 73,841 82,702 92,626 54,740 61,309 68,666 76,906 86,135 96,471 56,724 63,530 71,154 79,693 89,256 99,966 103,462 107,306 112,200 123,035 58,707 65,752 73,642 82,479 92,376 60,889 68,195 76,379 85,544 95,809 100,179 109,853 63,665 71,305 79,862 89,445 69,814 78,191 87,574 98,083 midpoints This effectively spans each pay band. 37 Community Integrity Contribution Attitude

Midpoint Centric Targets Information Technology Services This can be utilized to generate a table that contains more information. -4 -3 -2 -1 0 1 2 3 4 1 2 3 4 5 6 7 8 43,634 48,870 54,734 61,302 68,658 76,897 86,125 96,460 110,052 116,190 121,013 125,398 129,782 134,605 140,744 154,336 49,782 55,756 62,446 69,940 78,333 87,733 98,261 103,741 108,047 111,962 115,877 120,183 125,664 137,800 52,559 58,866 65,929 73,841 82,702 92,626 54,740 61,309 68,666 76,906 86,135 96,471 56,724 63,530 71,154 79,693 89,256 99,966 103,462 107,306 112,200 123,035 58,707 65,752 73,642 82,479 92,376 60,889 68,195 76,379 85,544 95,809 100,179 109,853 63,665 71,305 79,862 89,445 69,814 78,191 87,574 98,083 extra targets extra targets This effectively spans each pay band. 38 Community Integrity Contribution Attitude

Continuous Longevity Scale Information Technology Services Longevity scale is L Service is y Half scale is h Starts at 0 Asymptotic to 1 ? ? = ? + 39 Community Integrity Contribution Attitude

Continuous Longevity Scale Information Technology Services Longevity scale is L Service is y Half scale is h Starts at 0 Asymptotic to 1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 h = 1 0.1 0.0 0 5 10 15 20 25 30 ? ? = ? + 40 Community Integrity Contribution Attitude

Discrete Longevity Scale Information Technology Services Longevity scale is L Service is y Granularity is n Half scale is h Starts at 0 Asymptotic to 1 Jumps at granularity Same overall shape 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 h = 1 n = 1 0.1 0.0 0 2 4 6 8 10 ? ? ? = ? ? + ? 41 Community Integrity Contribution Attitude

Weight Information Technology Services Weight (W) is the product of longevity (L) and positive gap (G). ??= ?? max(0,??) Weight starts at zero Weights cannot be negative Weight is asymptotic to gap (G) 42 Community Integrity Contribution Attitude

Example Information Technology Services Pool is about total gap Longevity has a granularity of 4 and half scale of 1 Gap is target minus current Pool 5,000 Service Longevity 0.500 0.966 0.954 0.960 0.955 0.966 0.951 0.966 0.333 0.840 0.902 0.733 0.963 0.862 0.963 0.871 Totals Gap 850 -269 1,332 3,377 2,013 -694 1,739 -198 434 2,484 3,222 783 -378 3,508 510 1,162 19,875 Weight 425 Award 113 1.1 28.2 20.9 24.1 21.2 28.8 19.5 28.0 0.7 5.5 9.3 2.9 26.5 6.5 26.4 6.9 L=INT(4*S)/(INT(4*S) + 4) 0 0 1,271 3,242 1,922 339 864 512 0 0 G=T-X 1,653 441 0 0 Weight combines longevity and positive gap 145 2,087 2,908 574 39 556 775 153 0 0 W=L*MAX(0, G) 3,024 491 1,012 18,753 806 131 270 5,000 Competition allocates individual awards 43 Community Integrity Contribution Attitude

Market Data Information Technology Services 44 Community Integrity Contribution Attitude

Market Data Information Technology Services Making Fair Pay a Reality We believe everything works better when you get pay right. Because when pay is fair, trust grows. Organizations and employees can thrive and face challenges together, work toward common goals, and act with passion. This is the spark that has shaped our 22-year journey as compensation technology leaders and fair pay advocates. 45 Community Integrity Contribution Attitude

Market Data Information Technology Services Compensation management company Decades of experience Widely recognized Industry leading National data set Gathered from employers Regionally adjusted 46 Community Integrity Contribution Attitude

Market Data Information Technology Services Searching for IT positions Hartford area Span range of ITS 25% 50% 75% IT generalist IT lead IT supervisor IT manager 77,089 93,125 109,728 132,667 85,111 105,915 124,798 147,110 93,422 119,413 140,703 160,881 Data as of 12/21/2022. 47 Community Integrity Contribution Attitude

UCPEA Pay Bands Information Technology Services Salary Bands Existing contract Effective July 1, 2022 48 Community Integrity Contribution Attitude

UConn Pay Bands Information Technology Services ?? ?? ?? General university pay band at some level. 49 Community Integrity Contribution Attitude