Compensation Philosophy and Alignment

Compensation Philosophy

Montgomery College seeks to provide every employee a competitive level of compensation that reflects his or her individual contribution to the College’s mission of empowering students to change their lives and enriching lives in the community. We achieve this mission by providing a total compensation package including base pay, benefits, personal and professional development, and the intrinsic value of working in an education environment. Being a destination employer means, in part, providing a competitive total compensation package that retains and attracts the best people. Montgomery College is committed to sound stewardship over available total reward resources for every employee. This compensation philosophy presents the key objectives and principles that guide the way Montgomery College employees are rewarded and recognized for taking part in the College’s mission.


Compensation Objectives
  • Establish compensation levels for positions on the basis of their relative internal worth and external competitiveness within relevant labor markets
  • Reward employees on the basis of work performance
  • Communicate compensation information to maximize employee understanding and appreciation of each reward element in the context of the total compensation package
  • Administer pay equitably and consistently and in a way that is simple and understood by employees
  • Establish a compensation policy that is consistent with judicious expenditures of funds entrusted to the College
  • Develop reward structures, programs, and practices that will facilitate and support other HR processes including staffing, succession planning, labor relations, performance management, and career development
  • Maintain appropriate controls to ensure that all compensation is structured and delivered free from inappropriate bias or wrongful discrimination
  • Promote fairness, equal opportunity, and support of the institution’s diversity goals, and comply with all applicable federal and state laws and regulations

Intangible Rewards
  • Meaningful and challenging work
  • Opportunities to grow and develop
  • Environment/culture of respect, integrity, College’s core values, work/life balance
  • Safe, pleasant work environment
  • Intellectual, rigorous environment

 

Compensation Alignment

Background:

In 2014, Dr. Janet Wormack, Senior Vice President for Administrative and Fiscal Services, led a collegewide initiative to review and assess the College’s Classification and Compensation Program.  This initiative was supported by Aon Hewitt, a global human resources and compensation consulting firm.

The objective of the initiative was to ensure the long-term fiscal sustainability of the College’s compensation program in light of budgetary and other related challenges and opportunities.

Findings include, but are not limited to;

  • A comprehensive review of our current compensation program to assess its affordability and sustainability;
  • Competitive market research and analysis to assess our pay practices and ensure they are aligned with the market, as well as determine the competitiveness of our current compensation program, and the growing trend in higher education to adopt market-based compensation programs;
  • Developed a formal compensation philosophy to guide and inform our pay practices;
  • Redesigned the College’s pay structure using market pay data for over 300 College jobs; 
  • Held focus group sessions and gathered feedback on the preliminary salary schedule and program design; and
  • Validated the new structure and job alignment with College leadership

    The results of these findings were presented to the Board of Trustees. After careful review and analysis, it was determined that there will be no layoffs, reduction in current salaries or loss of jobs. The next phase of the project includes a detailed review of our compensation policies and guidelines to identify areas that will be impacted by the findings and recommendations from the compensation study. 

 

Next Steps & Timeline

January 2018
All new hires, promotions and temporary salary increases will be made in accordance with the new schedule. 

July 2018
The new Compensation Alignment Program is in effect for non-bargaining employees. 

Redesign Timeline 

compensaton alignment timeline

 

HRSTM will continue to communicate and post updates as the program is deployed.  Should you have any questions, please contact: compprogramquestions@montgomerycollege.edu 

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