Compensation Todays Agenda Explore Compensation Issues for NESA

Compensation

Today’s Agenda • Explore Compensation Issues for NESA Schools • What is working and what is not? • Are there new trends or issues for which you should be preparing? • Discuss Compensation Philosophy Process

Components of Compensation – Overseas Faculty Hire • Salary • Tuition assistance • Health Insurance • Housing • Retirement • Airfare to home of record • Shipping • Transportation • What else?

Human Resource Management • HR • Personnel • Salary • Housing • Recruitment • Transportation • Tuition for Kids • Handbook 4

Key Common Challenges - Background • Knowledge driven economy • Increasing demand for high quality International education • Increasing number of schools (China) • Expanding schools 5

Key Common Challenges - HR • Critical to the success of a school is your ability to reach, engage, attract and retain best global talent • Develop best practices in talent management and employee services 6

Best Practices • Planning for needs • Recruitment • Hiring / contracting • On board – orientation • Employment / retention • Termination / separation 7

Needs – HR planning • Project School growth, student enrollment, revenue expectations • Assess internal needs – placement, current updates, new jobs • Develop HR plan for recruitment and management • Number of overseas vs. local hires • Expectation levels 8

Recruitment • Develop strategy – compensation benefits • Coordination between Director and HR/BO • Detail the plan • Marketing materials • Use staff to sell school, country • Recruitment fairs, on-line options • Referrals • Bonus plan 9

Bonus Plan? • Should schools consider a retention or early signing bonus for faculty whose contracts are expiring? • What about something to motivate faculty to inform the school if they are planning to leave? • Should there be something different for local hire employees? • Are there attendance issues? If so, are the policies and procedures in place adequate to handle these situations? 10

Hiring / Contracting • Offer letter / letter of intent • Standard contract • Addendum – specific • Contract signing 11

On boarding / Orienting • Stay in touch often / Establish a buddy • Support travel / relocation plans, housing – end to end • Welcome committee, Campus tour • Help settle in – furnishing, banking, phones, net, utilities • Orientation to operations • Assign teacher mentor 12

Termination /Separation • Exit interview • Review • No surprises 13

Compensation Questions • Do we have to pay more for some teachers? - Math, Science, Computer • Do we pay less for Lower School? • What about collegiality issues with differentiated pay – traditions of equity on campus? • Does everyone deserve a raise every year? • Is compensation the thing that motivates teachers?

Compensation and Benefits Strategies • Market Position • Cost per Employee • Internal vs. External equity • Lead vs. Lag • Attraction vs. Retention • Seniority vs. Performance • Education vs. Skills

Compensation Philosophy • Developed by Board and Superintendent • Drives Decisions Salary & Benefits • Supports Mission Budget Compensation Philosophy Organization Mission and Vision

Why is philosophy important? • Operational framework: Leads to compensation and benefits strategy • Provides consistency over time • Guides decision making • Communicates reason for decisions • Demonstrates what is important to the school

The philosophy statement is not: • Static document • The answer to all compensation and benefits questions

Determining Philosophy • Classify employee needs. • Identify categories of protected persons. • What should be rewarded or valued in regard to human capital? • What are the school’s employment and retention goals for the next 5 years?

Develop Philosophy Statement • What role does compensation and benefits play in the achievement of the school’s strategic plans (financial goals)?

Benefits

Shipping • What are the standard arrangements for shipping of personal items for exiting employees? • What help is available to the business manager for the logistics? • Is there a way for schools to work together to reduce costs? 24

Benefits • Health and Dental insurance – what is offered? Is there a cost to the employee? Does it matter if the employee is single / married / family? • Retirement plans – end of service benefits. • Professional development – what is offered? How is this determined? Is anything required? • Travel allowance / summer / holiday / emergencies / bereavement / sick family member / etc. 25

Benefits • Tuition remission – is this 100 % / for all children / for all faculty and staff / local and ex -pat? • Long Term Disability (LTD) • Unemployment insurance – what are the local requirements? • Who handles the visas and immigration issues and paperwork? 26

Benefits • Is housing provided for all ex-pat employees and families? What is included in this – furnishing / utilities / cleaning / maintenance / etc. • Is a vehicle provided for ex-pat employees? What about transportation to / from school / other requirements? • Are laptop computers provided for faculty – both local and ex-pat? 27

Your Challenge Mission & 21 st Century Education Innovation Financial Constraints

Sunday morning topics

Cracker Barrell • Used text books • Reporting to Faculty • Software systems • Administrative structure • Facility/Security Structure • Procurement • Non-profit • Tuition Collection and discounts