TOTAL REWARDS STRATEGY AND COMPENSATION STUDY REPORT ON

TOTAL REWARDS STRATEGY AND COMPENSATION STUDY REPORT ON FOCUS GROUP OBSERVATIONS February 19, 2008 Copyright © 2008 by The Segal Group, Inc. , the parent of The Segal Company. All rights reserved.

Introduction Overall Observations by Question

Introduction The goals of these focus groups were to: ØCollect qualitative information from employees regarding their perceptions, concerns, and opinions regarding the current total compensation offerings. ØDiscuss (in a two-way, interactive format) employees’ issues and concerns. ØPresent the project plan and timeline. ØGather input and information that will help develop compensation policies that are consistent with the College’s Total Rewards Strategy, culture, and work environment. 6158273 v 1 2

Introduction Ø Segal conducted 36 employee focus groups at Broward Community College from January 28, 2008, to February 1, 2008. Ø Approximately 600 Professional/Technical Staff and Administrative employees attended the focus groups. Ø Focus groups were structured by function (e. g. , information technology, executive assistants, campus safety, Associate Deans). Ø The presentation explained the goals and timeline of the Total Rewards Strategy and Compensation Study and posed questions for discussion. 6158273 v 1 3

Five Key Elements of a Total Rewards Strategy REWARDS OF WORK TM MODEL Affiliation All the monetary rewards you receive Direct Financial · Salary · Incentives/Bonuses · Cash recognition · Premium pay · Pay process Indirect Financial Your benefits 6158273 v 1 · Health benefits · Retirement benefits · Recognition · Tuition benefits · Institution commitment · Institution support · Work environment · Community involvement and citizenship · Role Total Rewards Strategy The feeling of belonging to an admirable institution that shares your values Work Content · Variety · Challenge · Autonomy · Meaningfulness · Feedback The satisfaction that comes from the work you do Career · Advancement · Personal growth · Development · Employment security Your long-term opportunities for development and advancement in the institution 4

Focus Group Questions 1. Which of BCC’s total rewards offerings do you value most? Why? 2. What elements of total rewards define BCC as an “employer of choice? ” 3. What elements of BCC’s pay delivery process can be improved to better recognize and value employees’ contribution to the college? 4. How could the current mix of total rewards components be realigned to deliver greater value to employees? 5. In what ways can career development opportunities be enhanced? 6158273 v 1 5

Introduction Overall Observations by Question

Overall Observations ØOverall, employees have a strong affiliation with BCC and their colleagues and truly enjoy the work environment. ØIn general, employees are satisfied with the variety and value of BCC’s benefit program. Employees suggestions, include: · improving the vision and dental plans · providing employees with discounts at the bookstore, childcare facilities, and cafeterias · increasing employers’ 403(b) contributions offered through ORP currently 10. 65% · offering cash incentive for not electing BCC benefits ØIn general, employees feel the compensation system could be enhanced by: · linking pay to performance and recognizing individual contributions to the College and the added value of assuming additional duties and responsibilities · providing employees with the opportunity to enhance their pay by progressing through the entire pay range for their job · providing additional incentives for excellent work 6158273 v 1 (continues on next page) 7

Overall Observations (continued) ØThe performance management system for administrators and professional technical staff needs to be revised and reevaluated to produce more valid instruments that can take into account employee contributions and be tied to the merit pay process. ØTo enhance employee engagement, once the study is complete, BCC should provide greater clarity regarding the new structure and opportunities for career growth so they can understand how to advance at the College. ØEmployees would like to know the specific results from this study. ØEmployees would like continued transparency as BCC implements a new Total Rewards System. ØIf pay for performance is implemented, employees request that employees, supervisors and managers be fully trained on how to use the system. 6158273 v 1 8

Introduction Overall Findings Observations by Question

1. Which of BCC’s total rewards offerings do you value most? Employees most appreciated the value and variety of the “indirect financials” – or benefits – that BCC offers as part of its total rewards package. The four other cogs of the Total Rewards Strategy model were also recognized, though less frequently. ØHealth benefits (31/36 groups) ØRetirement Plans (23/36) ØTuition benefits (29/36) ØProfessional Development (14/36) ØTime Off (27/36) ØSalary (13/36) · · · Sick Leave Pool Sick Leave Accrual Spring Break Winter Break Holidays Vacation Accrual 6158273 v 1 ØWork Environment (8/36) ØJob Stability (7/36) 10

2. What elements of total rewards define BCC as an “employer of choice”? Most employees emphasized benefits as a whole or specific benefits programs as what attracts them to BCC, with health benefits mentioned most often. Job security and stability are also important for PTS staff. ØBenefits outranked salary as a reason for initial employment only (18/36 groups) ØHealth benefits (18/36) ØRetirement (10/36) ØTuition benefits (10/36) ØFlexible schedule (9/36) ØTime Off (16/36) ØJob Security and Stability (11/36) 6158273 v 1 11

3. What elements of BCC’s pay delivery process can be improved to better recognize and value employees’ contribution to the college? ØPay for Performance/Merit Pay · · Tie compensation to performance evaluations Increase base pay (e. g. , increase within range, move to higher range) Provide bonuses Promote employees ØPerformance Management System · · Greater objectivity and validity is needed in any new system Direct supervisors’ reviews should carry more weight Allow and encourage supervisors to use the whole range of ratings Develop an appeals process (continues on next page) 6158273 v 1 12

3. Improvements to Pay Delivery Process (continued) ØPay Compression · · · New employees paid nearly as much as experienced, long-term ones COLAs keep everyone at the bottom of the range, regardless of experience No opportunities to move within a pay range except for COLA’s Pay Schedule Movement No clear rules exist for employees to move beyond the minimum of the pay range No clear rules exist for employees to move between pay ranges ØOvertime · Employee and supervisors need additional training on Fair Labor Standards Act and the use of compensatory time and overtime pay. (continues on next page) 6158273 v 1 13

3. Improvements to Pay Delivery Process (continued) ØCost of Living · Acknowledge differential in South Florida market · Use other local institutions as comparators ØHiring and Promotions · · · · Provide more promotional opportunities within BCC Post salary range and grade for open positions Post union representation for open positions Hire employees at higher than the minimum of the range Recognize prior experience at hiring Recognize education Limit the time an employee can be in an interim position (continues on next page) 6158273 v 1 14

3. Improvements to Pay Delivery Process (continued) ØEquity · Ensure comparability of job titles on different campuses · Provide greater recognition for PTS staff · Provide additional pay for employees who assume increased responsibility and accountability · Increase equity between PT and FT employees · Increase equity between grant-funded and state-funded employees · Distribute resources among campuses equitably ØJob Titles · Increase consistency of job titles (continues on next page) 6158273 v 1 15

3. Improvements to Pay Delivery Process (continued) ØAccountability · Ensure fairness and accountability in performance evaluation process · Once new Total Rewards System is complete, it is important that supervisors be trained on performance management, compensation, and classification policies ØCommunications · Once new Total Rewards System is complete, provide more internal communications to employees about how they can advance in pay and in their careers 6158273 v 1 16

4. How could the current mix of total rewards components be realigned to deliver greater value to employees? ØEnsure that salaries are market-competitive ØProvide more incentives (e. g. , for project work, grant work, adjunct work, good ideas, saving BCC money) ØProvide discounts (e. g. , bookstore, child care, cafeteria) ØIncrease employee recognition · Say thank you · Hold more recognition ceremonies · Have supervisors or coworkers nominate PTS employees for PTS award instead of self-nomination · Budget for small, spot awards · Develop creative non-monetary ways to recognize staff ØIncrease access of PTS employees to management 6158273 v 1 17

5. In what ways can career development opportunities be enhanced? ØProvide career development opportunities · Clarify minimum job requirements · Provide greater opportunities for employees to transition from grant-funded to state-funded positions · Improve message of “one campus” by facilitating movement of employees between campuses and departments ØEnhance employee communications under the new system · · How job classification works How to move between jobs How to get promoted Work expectations ØIncrease opportunity · Provide greater opportunities for internal candidates to fill higher level vacancies · Allow greater opportunity to attend professional development workshop during work day · Allow greater opportunity to attend job-specific training 6158273 v 1 18