Issue
The School Employees Retirement System of Ohio (SERS), a pension and post-retirement benefits provider specializing in serving the needs of non-teaching public school employees, was experiencing internal equity and salary competitiveness alignment issues that were affecting its ability to attract and retain qualified employees necessary to serve its members. Seeking updated market benchmarks, comprehensive plan review, and cost-effective implementation of a fresh strategy, SERS partnered with the CBIZ Compensation Consulting team.
Solution
Knowing that any compensation decisions would be subject to public scrutiny and therefore must be defensible and benchmarked, our compensation consultants conducted a thorough review, reported results, and provided data-backed recommendations to the SERS board.
Our approach included:
- Market-competitive pay evaluation, including a peer group analysis and published survey data
- Separate investments team analysis and incentive review
- New pay structure design and implementation planning
- Annual in-person reporting of results to the SERS board for structure updates and pay increases
Outcome
The initial implementation strengthened market alignment and alleviated preexisting pay compression. In subsequent years, board support for advancing the pay ranges and budgeting for market-competitive pay increases not only ensured that the pay structure kept up with market trends, but also allowed employees to progress through the range. Our approach has enabled SERS to compete more effectively for talent, while improving both retention and the overall credibility of its compensation program.
Initial Implementation
In 2022, implementation included moving all employees to at least the range minimum as well as compression adjustments that better aligned employee pay in the range, while freeing some salary room to hire new employees without creating a pay compression issue
2022-2025 Progress
The range minimums and maximums were moved each year in line with overall salary trends to maintain structural alignment with the market. Board-approved salary increase budgets resulted in employee advancement through the range, as shown by the shift in dots to the right compared to 2022. Over this period, average pay positioning increased from 26% to 42% range penetration, even as the overall structure moved up 11.8%.
| Company Information | |
|---|---|
| Industry | Government |
| Geographic Footprint | Columbus, OH |
| Assets Under Management | $20.7 Billion |
| Number of Members | 241,000 |
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