[NCASG] Question on determining compensation using market - Oregon's Process

Mon Nov 14 07:06:09 MST 2022

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Hello from the State of Ohio,

The State of Ohio does not use labor market data to set compensation but often uses our PayScale benchmark subscription to evaluate how our point factor method measures against the benchmarked labor market.

Reneé Norris
Classification and Compensation Manager
Office of Talent Management
State Human Resources Division
614-466-3517
renee.norris at das.ohio.gov<mailto:renee.norris at das.ohio.gov>
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From: HARBISON Tonya A * DAS <Tonya.A.HARBISON at das.oregon.gov>
Sent: Thursday, November 10, 2022 8:52 PM
To: Cotnoir, Thaddeus <Thaddeus.Cotnoir at maine.gov>
Cc: MILLER Dustin * DAS <Dustin.MILLER at das.oregon.gov>; CONEY Jen A * DAS <Jen.A.CONEY at das.oregon.gov>; dhr_ncasg_survey_list at admws.idaho.gov
Subject: Re: [NCASG] Question on determining compensation using market - Oregon's Process

CAUTION: This email originated outside the State of Idaho network. Verify links and attachments BEFORE you click or open, even if you recognize and/or trust the sender. Contact your agency service desk with any concerns.

________________________________
Hello from the State of Oregon,

We use several steps in setting salary ranges for classifications.
Here is a highlight of our process.

First, new/updated classifications are rated by Hay.
The Hay score is used to set the minimum salary range for the new/updated classification based on internal equity.

Second, we gather market data from purchased and public data sources and prepare and calculate market comparisons.
Comparisons are based on:  SR Maximum, plus employer cost for Health and Retirement benefits, and social security.
The Executive Branch seeks to establish and maintain its status as a “market employer” whose employees earn, on average, between 95 and 105% of the compensation earned by similarly situated employees in comparable markets.
Links to prior report and guide to methodology:

Current report:
        2020 Salary and Benefit Report<https://protect-us.mimecast.com/s/44lnCn5kmOfK2lXjf9pMim?domain=gcc02.safelinks.protection.outlook.com>
        Salary and Benefit Report Guide<https://protect-us.mimecast.com/s/5HWNCo2lnyHBRlDZHzVnA4?domain=gcc02.safelinks.protection.outlook.com>
Third, we consider recruitment and retention (variance from the Statewide average turnover and the ability to hire/fill positions).
Market comparison is not a “sole deciding factor”, if a classification is “below” the 95 and 105% market goal consideration is given to whether agencies are able to continue hire/fill positions.

Fourth, we consider agency/political priorities.

We do not have any specific “tools” and use custom in-house developed IT processes to gather and calculate the data.
If you have questions, or want additional details, let me know.

____________________________________________________________________
Tonya Harbison | HR Data Consultant  503-949-6257
Chief Human Resources Office, Classification and Compensation
State of Oregon, Department of Administrative Services
https://protect-us.mimecast.com/s/umUVCpYmo2IvWQ9KuYQWvg?domain=oregon.gov<https://protect-us.mimecast.com/s/ngQgCqxnpZtz3L1lfE1sU2?domain=gcc02.safelinks.protection.outlook.com>

[CHRO vt sig]

From: CONEY Jen A * DAS <Jen.A.CONEY at das.oregon.gov<mailto:Jen.A.CONEY at das.oregon.gov>>
Sent: Thursday, November 10, 2022 12:52 PM
To: MILLER Dustin * DAS <Dustin.MILLER at das.oregon.gov<mailto:Dustin.MILLER at das.oregon.gov>>; HARBISON Tonya A * DAS <Tonya.A.HARBISON at das.oregon.gov<mailto:Tonya.A.HARBISON at das.oregon.gov>>
Subject: FW: Question on determining compensation using market

Can one of you please respond for us?

Thank you!

Jen Coney, HR Administrator
Chief Human Resources Office
Classification and Compensation | HR Client Services
503.949.6169
[CHRO vt sig]

From: Cotnoir, Thaddeus <Thaddeus.Cotnoir at maine.gov<mailto:Thaddeus.Cotnoir at maine.gov>>
Sent: Thursday, November 10, 2022 12:39 PM
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Cc: Lee, Kelsie M <Kelsie.M.Lee at maine.gov<mailto:Kelsie.M.Lee at maine.gov>>
Subject: Question on determining compensation using market

Greetings,

I am reaching out to you from the State the Maine, on behalf of our Bureau of Human Resources Compensation and Classification Unit. Maine currently uses the Korn-Ferry Hay methodology for determining compensation. This has always worked well for us, but because Hay doesn’t take into consideration market pay, we are continually getting requests to discuss recruitment and retention stipends. Does your state use any sort of methodology that takes into consideration market pay? What is the tool you use and are you willing to share more with us?

Please send your responses to both me (Kelsie.M.Lee at maine.gov<mailto:Kelsie.M.Lee at maine.gov>) and Thaddeus Cotnoir (Thaddeus.Cotnoir at maine.gov<mailto:Thaddeus.Cotnoir at maine.gov>).

Thank you for your assistance!

Kelsie M. Lee
BHR Compliance Director
State of Maine Bureau of Human Resources
Phone: Desk: (207) 287-4428 Cell: (207) 215-5555| TTY: 711 Maine Relay
79 SHS | 4th Floor, Burton M. Cross Building | Augusta, Maine 04333
Email: Kelsie.M.Lee at maine.gov<mailto:Kelsie.M.Lee at maine.gov>

and

J. Thaddeus Cotnoir
Public Service Coordinator | Compliance Division
State of Maine Bureau of Human Resources
#4 SHS | 4th Floor, Burton M. Cross Building | Augusta, Maine 04333
email: thaddeus.cotnoir at maine.gov<mailto:thaddeus.cotnoir at maine.gov>

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