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Duke University’s IT Broadbanding Initiative

Angel N. Dronsfield
Duke University
Durham
North Carolina

In June of 1998, in an attempt to increase Duke University's ability to attract and retain talented information technology (IT) employees, a cross-functional team comprised of university IT and human resources staff, along with outside consultants, began designing a broadbanding and recognition program for IT positions. The team was challenged to identify a recognition and rewards strategy that enhanced Duke’s ability to recruit and retain IT staff; establish a technical career path for talented IT staff; and create a flexible and competitive compensation program. This presentation will discuss the IT broadbanding initiative at Duke and its initial implementation.

1. Define skills and competencies required for organizational success
2. Align employee skills and competencies with defined organizational needs
3. Recognizing the unique dynamics of the knowledge worker, we will emphasize paying for the person rather than the position and stress other recognition through non-financial methods.
4. Recognizing the financial limitations of the institution, we will balance financial and non-financial rewards in a manner, which provides competitive total rewards and recognition for IT employees.
5. Streamline internal processes and increase management discretion and accountability in employee rewards and development decisions.
6. Increase internal and external recruiting effectiveness through focus on core aptitudes and competencies as opposed to job or task-based job descriptions and encourage lateral moves to develop new competencies and skills.
7. Facilitate self-directed career planning through open communication of classifications, bands, competencies, and achievements/rewards.
8. Emphasize competitive advantage of Duke IT through effective deployment of non-financial rewards.
9. Improve the impact of performance management systems through increased relationship of appraisals to salary increases.

Recognition Strategy

The overall objective of the recognition strategy was that it support the distinct needs of the technology function within multiple areas of the Duke systems. As comparative framework, the Design Team used both national and Research Triangle Park, NC, IT employers, and targeted salary levels around the 50^th percentile of the local IT market. Following industry trends, the desired pay mix was primarily base salary, but with significant opportunities for variable and premium pay based upon both exemplar performance and project objectives. To support the need to recognize top performers, the Design Team recommended strongly that all bonuses (spot and project) be openly communicated and not simply included as an additional amount in the regular paycheck. The philosophy of the team was to share the compensation policy and practice information with employees in order to ensure they have a full understanding of the rewards programs and associated decisions, and to further have the rewards serve as incentives for retention and performance. Finally, as a result of the concept of paying for the person instead of the position, internal equity had to be redefined. Rather than comparing salaries of staff members with like titles, the new system would require managers to compare salaries of employees with similar demonstrated competencies. Pay diversity would be commensurate with identifiable skills and competencies.

One key challenge facing the Design Team was to keep the conversion to the new recognition system budget neutral. While it would be acceptable to have expenses increase in the future, the design of the new system must be such that it could be implemented initially with no bottom line impact. Therefore, it was determined early in the design phase that no pay adjustments would result from converting to the new system.

Employee Value Proposition

• Represent and act on behalf of the CIOs to ensure successful implementation for MCIS and OIT on schedule
• Each committee member will keep their CIO or Director informed on the progress of the Implementation Team
• Committee members will raise issues to the CIOs for decision making when necessary
• Approve manager band assignments prior to the next level of management beginning the slotting process
• Review and approve communication and training materials and the method of delivery
• Recommend implementation process enhancements for MCIS, OIT and other departments
• Provide oversight and guidance on the implementation process ensuring the intent of the system is maintained and desired outcomes are achieved

1. Receive initial training on the new system and slotting process (in small groups)
2. Attend slotting session with direct manager, possibly his/her direct manager, a member of the Implementation Team, and possibly a peer
3. Receive "approval" of initial slotting from Broadbanding Oversight Committee (through Implementation Team member); subject to final approval from HR
4. Communicate results of slotting process with direct reports individually