Compensation

Todays 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 Airfare to home of record
Tuition assistance Shipping
Health Insurance Transportation
Housing What else?
Retirement
 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
Salary & Benefits
Drives Decisions
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 schools employment and
retention goals for the next 5 years?
 Develop Philosophy Statement

What role does compensation and benefits play in the achievement

of the schools 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 &
21st Century
Education

Financial
Innovation
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