Document 13450238

 Policy Title Policy # Functional Area Policy Statement Philosophy Procedures Compensation Philosophy Effective Date: 11/1/11 1.1 Compensation Revised Date(s) 9/1/14 Compensation Philosophy Wage and salary increases cannot, in any manner, be dependent upon the number of or success in securing enrollments or the award of financial aid per Department of Education requirements. The University’s compensation philosophy is rooted in three core values of integrity, diversity, and quality. The following two important objectives guide and direct the wage and salary program. 1. Attract and Retain Top Talent • Promote skills and knowledge • Reward superior performance • Monitor both internal and external equity 2. Efficient Administration • Comply with all federal and state laws • Protect the University’s financial resources • Ensure that administrative procedures are user-­‐friendly & responsive Competitive compensation rates are set at the market midpoint (50th percentile) for similar benchmark positions within local, regional and/or national markets with sensitivity to internal equity. WAGE AND SALARY ADMINISTRATION PROCESS DEFINITIONS Broad banding: Broad banding is a method of grouping jobs and determining pay that makes compensation administration more flexible and more responsive for Administrative Professionals, Confidential Clericals, and Professional/Technical. In broad banding, jobs with similar responsibilities, skill requirements, and disciplines are grouped in bands of job families and pay is linked to the market. Demotions: On occasion an employee is placed or voluntary elects to move into a lower paying position (i.e. grade). These situations are considered a demotion. The salary change is dependent upon the employment classification collective bargaining agreement or the Director, Compensation and Employment. Equity Analysis: Compensation analysis are conducted periodically to ensure that pay is market competitive (external equity) and paid consistently across similar positions and regardless of gender and race differences (internal equity). Green Circled: There may be rare occasions where an employee pay is below the Page 1 of 2 Responsibility Resources range established for that particular position. In this case the rate of pay will be a “green circled.” Interim Assignments: Interim assignments should generally last for less than one-­‐year while the replacement candidate search is underway. Salary may increase to the minimum of the learning, competitive, or expert broadband range based on market considerations, candidate qualifications, experience, and internal equity factors. When the interim assignment is concluding, the employee will return to his/her old position and rate of pay when they left the previous position plus any adjustments they would have received had they not been performing in that interim role. Market Adjustment: Market adjustments are designed to address positional market alignment, recruitment ability, and retention issues due to the growth of the market. A market reference point is assigned annually to each position based on benchmarked comparable positions. An employee’s salary within the market salary range is dependent on individual pay factors including qualifications and years of experience. Promotions: When an employee is promoted to a different position at a higher grade level through the University’s job posting/selection process, salary may increase based on employment classification. Red Circled: There may be times when an employee is paid above the maximum of the established range for a particular position. In this case the rate of pay will be a “red circled.” The employee may remain at this rate of pay indefinitely with no increases until the range (or market reference point) catches up with the rate. Recruitment & Retention Bonuses: Hiring bonuses are rarely used in two circumstances. A new hire may receive a recruitment bonus as part of the offer letter. The bonus amount is paid in two increments, six months and then one year after employment. A current employee may receive a retention bonus as part of a special salary adjustment or as a lump sum payment. Starting Salary: When an employee begins his/her career, efforts are made to ensure that the start rate is appropriate and competitive based on employment classification. Transfers: There may be times when an employee voluntary moves from one job to another; both of which are in the same range. This is considered a lateral transfer and no adjustment to base pay shall be granted. Contact the Director, Compensation & Employment if you have questions about this policy or if you need more information. For additional compensation related information and processes, please refer to the appropriate bargaining contract: • Click here for faculty bargaining contracts • Click here for staff bargaining contracts Page 2 of 2