Augmented rewards program helps improve retention at a nonprofit, accredited educational institution
An educational institution realized that its compensation and benefits programs were in need of an overhaul. A&M was engaged to recommend changes that would better reward senior performance and make the programs cost effective.
The institution is a non-profit, accredited educational institution, with several hundred management, faculty, and support staff located on a main campus and in several locations across major metropolitan areas. We were asked to work with management to design compensation and benefit arrangements that would aid in recruiting and retaining top management, faculty and support staff.
We developed a comprehensive interactive analytical financial model (“IAFM”) that includes detailed compensation and benefit program data for management, faculty and support staff. The IAFM includes individual and school wide demographics that is capable of providing turnover and age, gender and tenure statistics.
A&M assisted the institution as follows:
- Helped the school prepare specific job descriptions for every position. We benchmarked the compensation and benefits levels for every position to determine appropriate pay ranges and benefits.
- Developed a new compensation and benefits methodology for all senior management, faculty and staff. We designed communication materials so the institution could explain these changes to all employees, and we assisted in the implementation the new compensation structure.
- Assessed the financial obligation of each of the retirement plans. We determined the optimum structure to fund these obligations. We helped implement a cost-effective approach for accumulating the required funds in a structure designed to protect the funds from creditors.
Results:
- The institution now has the ability to determine competitive compensation and benefit ranges for every position.
- Recruiting and retaining senior management as well as faculty has improved dramatically.
- Employees are much better informed, better served, and better protected by the coordinated, comprehensive compensation and benefit programs now in place.
- Funding for the institution’s retirement programs is more cost efficient and employees have more confidence that funds will be available to pay benefits when they become due.
