Compensation Structure and Policy FAQ

Compensation Structure and Policy
Frequently Ask Questions (FAQ’s)

March 1, 2010


What are the objectives of the State’s new compensation plan?

The top 4 objectives of the compensation plan are:
1. Create and maintain internal equity (fairness) among positions as measured by a defensible method of job evaluation.
2. Maintain the appropriate level of competitiveness with our relevant external
markets.
3. Motivate the loyalty, retention, and contribution of all our employees.
4. Keep the administration of our salary plan objective, flexible and
understandable.
 

What are the basic building blocks of our compensation plan?

The basic building blocks of the compensation plan are:
1. Use the Hay Job-Profile Method of Job Evaluation® to measure the size of all
our jobs.  This is an objective system that is the most widely used in the
world.
2. Use evaluated job content to determine the internal ranking of all our
positions.  (The job is evaluated, not the person.)
3. Make annual comparisons to our relevant external markets to determine the
proper positioning of our salary structures.
4. Perform an annual review of our structures, practices, and budgets in order
to keep our program competitive and relevant to the changes in our state.
 

What is a pay range?

The range of pay rates, from minimum to maximum, set for a pay grade.

What is a pay grade?

A salary and wage range in the pay plan prepared by the Hay Group and the
Classification and Compensation Section.

What is the Market Policy Position (MPP)?

The Market Policy Position is the position in the pay range that is the targeted
level of base salary in the relevant comparator markets as defined in the State of Wyoming’s
Compensation philosophy that was adopted by the Legislature in 2009. This is the true market
rate.  The market includes both other State Governments and employers within Wyoming, both
public and private sector.

Why did the two year movement to CMA go away?

The State is moving towards a pay for performance system that is based on
market and performance.  The two year movement to CMA was strictly a time-based policy
which did not factor in the performance of an incumbent.  Employees who excelled and
employees who performed at a bare minimum were compensated the same rate simply based
on time.

What is a market survey? 

The gathering of data on wages and compensation paid by other employers for
select key job classes or survey benchmarks.

Who does the State compare themselves to in the market?  What are our salary
survey sources?

 During the Fall of 2008, market data was gathered using a number of sources:

− Central States Compensation Association
− Hay PayNet Data – this is proprietary salary information from the Hay
   Group
− In-State Custom Survey
− Wyoming Hospital Association Survey
− Wyoming Prevailing Wage Survey for Contractors

Which column is actually market?

The Market Policy Position or MPPA&I Human Resources Division
Compensation Structure and Policy  FAQ’s 03-01-10 Page 3

Do all of the classifications in a grade fit in the market range?

 Yes. We used Job Evaluation to create internal equity, and market survey data
to create ranges.

What is the timeline for implementing the performance component of the plan?

 It is anticipated a revised appraisal system will be developed prior to July 1,
2011.

Why are some jobs on different pay tables?

Based on the market survey information that was gathered, certain
occupational groups were paid consistently higher than the grade they were allocated to on the
General Pay Table.  Therefore, it was necessary to create a specific pay table for these
occupational groups. 

What are the level Z’s on the pay table?

Based on an analysis of the market data, these jobs were paid higher than our
scale so the Z’s were added to accommodate these positions.

How will the at-wills be paid?

The at-wills will have their own pay tables.  One pay table will be created for
the attorney positions and another for all other at-will positions; Directors, Deputy’s and
Administrators.

Will the agencies have the flexibility to fix internal inequities created by the
placement of positions?

No, not initially.  In the compensation phase of this project employees will be
moved to minimum.  This will fix some of the inequities but may also create compression.  We
are aware that compression and internal equity will be an issue, however, due to the lack of
funding, we are not able to address all of these concerns at this time.   The new system of
movement of pay based on market/performance will help us alleviate these issues.

How often will the pay tables be updated?

A&I Human Resources Division will review the market data yearly and update
the pay tables as needed based on analysis of the data.