The document discusses the various variables and types of compensation in human resources administration within the education sector, emphasizing the importance of merit pay systems, effective evaluation procedures, and training programs. It also details aspects of direct and indirect compensation, including salary administration, fringe benefits, and the impact of compensation on employee motivation and satisfaction. Furthermore, the document addresses compliance with laws related to minimum wage and health insurance, as well as the risks employees face in their work environment.

1. Human Resources
Administration in Education
Compensation

2. Variables Affecting Compensation
Performance
“The evaluation of performance is
concerned with a basic question:
‘Did you get the job done?’ ”

3. Variables Affecting Compensation
Continued
• Effort
• Merit Pay
• A merit pay system will be ineffective unless it has the
following components:
1.Effective teacher evaluation procedures.
2.Training programs for management and supervisory
personnel who will implement the plan.
3.School board and management commitment to the plan
in time and resources.
4.Staff involvement in developing the program.

4. Variables Affecting Compensation
Continued
• Merit Pay cont.
1. Teacher acceptance and satisfaction
2. Adequate financing
3. Merit pay for all who meet the criteria
4. Plausible, fair, and equitable performance criteria
5. Valid and verifiable measures of results
6. Objectivity and consistency in applying assessment
measures
7. Increased student learning promoted

5. Variables Affecting Compensation
Continued
• Seniority
• Skills
• Job Requirements

6. Types of Compensation
• Intrinsic
– Participation in Policy Making
– Discretion
– Responsibility
– Professional Development

7. Types of Compensation
Continued
• Extrinsic and Direct
– Salary
– Merit Pay
– Overtime and Sick Leave

8. Types of Compensation
Continued
• Extrinsic and Indirect
– Holiday and Vacation Leave
– Services
– Insurance Programs

9. Direct Compensation: Salary and Wage
Administration
• Equitable salary system
• Comparability
• Position Evaluation
• Performance Incentive
• Salary Review
The Effects of Salary on Motivation:
“Money increases intrinsic motivation”

10. Direct Compensation: Salary and Wage
Administration Continued
Public Disclosure of Salaries
Compensation Packaging
Equity of Pay and Performance
Employee Relations in Salary Management
Collecting Community Wage Data

11. Direct Compensation: Salary and Wage
Administration Continued
Salary and Wage Review
Salary Schedule Construction
Multiple Salary ranges
Establishing Base Salaries

12. Direct Compensation: Salary and Wage
Administration Continued
• Payroll Deductions
“The board of education should have a comprehensive
payroll deduction policy covering such areas as the
minimum and maximum amounts that may be
deducted; the number and types of deductions
authorized; deduction procedures; the opening and
closing dates for entering deductions on the payroll
records”.
• Pay Periods

13. Direct Compensation: Salary and Wage
Administration Continued
Principles for Presenting Recommendations to the
School Board
The Fiscal Condition of the School District
The Administrative Organization of the School District
Employee Unions and Associations
Salary Recommendation Procedures

14. Direct Compensation: Salary and Wage
Administration Continued
Small Business Job Protection Act of
1996:
• Commonly referred to as “Minimum Wage
Law”
• Budgets must be adjusted to compensate
for the required increase in wages.

15. Indirect Compensation: Fringe Benefits
Administration
Types of Fringe Benefits
Benefits Required by Law: social security premiums, state
retirement insurance, unemployment compensation, and
workers’ compensation
Voluntary Fringe Benefits: insurance programs, time away
from job, and services
Managed Health Care: school districts must employ case
management specialist or contract with a company
specializing in third party health care administration

16. Indirect Compensation: Fringe Benefits
Administration Continued
Health Insurance Portability Act of 1996
“The law addresses the needs of approximately 25
million Americans who are denied health
insurance coverage because of an illness or who
cannot change jobs because they, their spouse, or
their dependents would be denied insurance
coverage because of a preexisting medical
condition such as diabetes.”
Medical Savings Accounts: employees choose the
physician, hospitals, and treatments. Major
illnesses are paid by the districts’ insurance while
money withdrawn from MSA pays for minor costs.

17. Indirect Compensation: Fringe Benefits
Administration Continued
Procuring Health Care and Related
Insurance
The Insurance Agent and Broker: While the
broker is not under contract to any specific
agency, the agent acts on behalf of the
company
Selecting Insurance Companies: It is essential to
check their performance and financial solvency
with well-established rating firms

18. Indirect Compensation: Fringe Benefits
Administration Continued
Health Risks in the Workplace
Three categories of health risks for school
employees:
1. Facility environmental risks
2. Violence
3. Risk of contracting infectious disease

19. Indirect Compensation: Fringe Benefits
Administration Continued
Crisis Event Management
• Crisis occur because of a variety of situations:
• Accidents
• Misconduct
• Natural disasters
• Technology malevolence
• Violence