Compensation Review

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Compensation
Resource Guide
Staff Employees
Revised August, 2013
Page
Number
Table of
Contents
Overview ……………………………………………………………...……
The Big Picture
Employment Value Proposition ……………………………………...
Total Compensation Philosophy ……………………………………..
Compensation Strategy…………………………………….…………
Compensation Structure
Job descriptions………………………………………………………..
Schedule of pay grades and ranges…………………………………
Updating the pay structure ............................................................
Job evaluation/reclassification ………….……………….......………
Employee Pay
New hire guidelines ………………………………………...…………
Performance management ...........................................................
Base pay increase guidelines ………………………………...……...
Red-circled employees ……………………………….......................
Green-circled employees……………………………………………...
Promotion, transfer and demotion.………………………………......
One-time payments …………….....................................................
Fair Labor Standards Act………………………………………………….
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2
Overview
The Tulane University Staff Compensation Resource Guide was developed to
provide guidelines for compensation administration for staff employees at all
campuses.
All staff employees, regardless of temporary or regular status; regardless of
full-or part-time status; and regardless of salary funding source, are covered
by this Guide. Some exceptions exist where funding sources or other
regulations dictate salary administration procedures for certain employees.
This Guide is dynamic, intentionally designed to be responsive to changes in
the market affecting the assignment of job titles and classifications. Although
Tulane intends to maintain formal compensation programs indefinitely, the
University has the right to modify the Guide at any time.
Employees may access the Guide via the Compensation link on Tulane’s
WFMO homepage. If internet is inaccessible, employees may contact the
Compensation department in WFMO at 865-5280.
The right of employees to be free from discrimination in their compensation is protected under several federal laws,
the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of
1967, and Title I of the Americans with Disabilities Act of 1990.
Compensation Resource Guide
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Overview
(continued)
The Compensation Resource Guide is organized in a manner to acquaint you
with the big picture first, and then to delve into the details of our compensation
programs.
Employment Value Proposition
Description of how the total
work experience at Tulane is
superior to that at other
organizations.
Compensation Philosophy
Articulates the goals of the
compensation program and the role
each element plays in the attraction,
retention, recognition and
development of our employees.
Compensation Strategy
Rules that guide the design,
implementation and
administration of an
organization’s compensation
programs.
Compensation Structure
• Job descriptions
• Schedule of pay grades and
ranges
• Updating the pay schedule
Specific tools and processes
that help determine the value
of a job to Tulane, and to
ensure that jobs are paid
fairly relative to one another
and to the marketplace.
• Job evaluation/reclassification
Employee Pay
• New hire guidelines
• Performance management
• Base pay increase guidelines
• Red-circled employees
• Green-circled employees
The processes and procedures
that help determine how to fairly
compensate, recognize and
reward individuals throughout
their career at Tulane.
• Promotion, transfer and demotion
• Call back pay
• One-time payments
Compensation Resource Guide
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Employment
Value
Proposition
Our Employment Value Proposition (EVP) is a description of how the total work
experience at Tulane is superior to that at other organizations. It emphasizes the
fact that there are many features other than pay that attract good people to the
University.
Following are comments made by employees about what makes the work
experience at Tulane University unique.
1. Engagement
“I have a lot of pride in the University because of its involvement in the community and its
community service requirement [for students].”
“I am proud of the role Tulane is playing in helping the community.”
“People work at Tulane because of the Vision- Tulane does right for the City.”
“Tulane is now inter-twined with the community.”
“New Orleanians stop Tulane employees on the streets and thank them for their support.”
2. Community
“We are a place that cares about employees.”
“Tulane is a loyal community of people.”
“Tulane has tolerance for unique needs, be they child-rearing or having an elder at home. We offer
a forgiving environment.”
“The catalyst to our pride was paying employees for the five months that we were closed. We
proved that we are part of a family that cares.”
“One of the biggest shocks I had was getting paid when I wasn't working. That did more for my
morale than anything. It was unbelievable.”
“We're a family. We come together if someone has a problem.”
“We think of ways to pick each other up. There is camaraderie. We are a family.”
3. A Sense of Place and Tradition
“I work here because of the rich heritage and tradition of Tulane University.”
“The prestige, research and quality of the students keep me here.”
“You have unlimited access to University life- culture, academics, sports, libraries, education,
grounds, festivals, conferences.”
“The Business Week ranking, the sports teams- I always email all of the positive Tulane stories to
my friends.”
“The kids here keep you feeling youthful.”
“This is a nice physical environment, trees and greenery.”
“The staff is hard-working, dedicated and very proud of the university… proud to be Tulanians.”
“There is a cachet in the community to say that you are working for Tulane.”
“Tulane is an elite research institution. Administrative staff know and appreciate that.”
4. Challenge and Growth
“You'll never be disappointed with your job's challenge at Tulane. It's never dull around here.”
“Jobs here are exciting, complex and interesting.”
“Most jobs here are very challenging and there is a broader variety of activity than at other
organizations in the marketplace.”
“I like the autonomy you have at Tulane.”
“Tulane gives you the opportunity to work with great people from around the country.”
“We have a very rich and diverse work environment.”
“Tulane is a competitive place. We want to advance and do well, push to get ahead. But it's a
healthy competition.”
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Employment
Value
Proposition
[continued]
The following Employment Value Proposition was developed based upon what
employees today are saying about the work experience at Tulane. Contained
within the value proposition are some of the reasons our people choose to commit
themselves to the organization.
The Tulane University work experience can be set apart from others, by the
unique combination of …
•
•
•
•
Engagement. Our employees are motivated by the difference they
make at Tulane and in the greater communities of which the university is
part. We will encourage you and support you to maximize your
contribution to both.
Community. You aren’t just a Tulane employee, you are a member of
the Tulane community. You belong to an organization that understands
that loyalty and commitment are two-way streets.
A Sense of Place and Tradition. An environment of intellectual
curiosity, learning and research, infused with the energy of campus life,
will inspire you with endless opportunities to stimulate your life and mind.
Challenge and Growth. The breadth of activity performed at Tulane
University provides you with a wide range of opportunities to contribute.
You have the opportunity to grow your job and to pursue new directions
as you grow, in a dynamic organization that goes beyond traditional
limitations.
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Total
Compensation
Philosophy
Tulane University has established a Total Compensation Philosophy to
articulate the goals of its compensation program and the role each element
plays in the attraction, retention, recognition and development of our
employees. Our total compensation program is intended to encourage
employees to perform at the highest level by acquiring superior skills and
competencies, and understanding their role in the University’s success.
Guideposts
Our Total Compensation Philosophy is shaped by the following guideposts.
• Understandable. The effectiveness of the total compensation program is
dependent on manager and staff understanding and acceptance. We will
commit to provide the necessary resources to design, communicate, simplify
and administer the program to promote understanding and acceptance by all of
our employees.
• Flexible. We will provide a mix of programs flexible enough to adjust to
changing economic conditions and to employee needs. The base salary
portion of total compensation will continue to be significant, and we will
consider introducing variable pay elements in the future that will be tied to
individual and University performance results.
• Equitable. Total compensation will be allocated to each individual based
upon: 1) the expected contribution of the job to Tulane; 2) the individual’s skills,
abilities, competencies and results; and 3) the pay for comparable jobs in our
recruiting markets.
• Career-driven. Our concept of career will have no rigidly defined starting or
ending points. We will strive to be the type of organization where consistent
superior performers can grow and develop for their entire working career.
Goals and Outcomes
The University will endeavor to use its total compensation programs to
accomplish the following goals.
• Encourage and reward employees to exceed performance expectations.
• Pay each employee fairly in comparison to the pay for similar jobs in other
peer organizations.
• Recognize the increasing work levels of employees who seek new
responsibilities or who step up in understaffed situations.
• Provide employees at the lowest grade levels with a respectable living wage.
• Pay each employee fairly in comparison to the pay for similar jobs within
Tulane.
• Link employee pay to the success of Tulane in achieving its mission.
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Compensation
Strategy
While a well-defined Total Compensation Philosophy ensures that a
compensation program supports an organization’s mission, strategy, goals
and culture, a compensation strategy is the more specific rules that guide the
design, implementation and administration of an organization’s compensation
programs.
Definition of Total Compensation
The University’s total compensation package is comprised of three elements:
1) base pay, 2) base pay increases and 3) benefits. The University will
consider each element of total compensation, individually and collectively, so
that each element receives its proper emphasis.
1. Base pay. Base pay is the fixed pay that employees can expect to earn
on an hourly, weekly, monthly or annual basis. It is designed to provide each
employee with reliable wages to ensure a standard of living commensurate
with the incumbent’s duties and responsibilities within geographic and
industry norms. Base pay will reflect: a) the expected contribution of the job
to the University based upon current job requirements, b) competitive base
pay information for similar jobs at peer organizations, and c) individual
knowledge, skills and competencies that relate to success on the job.
2. Base pay increases. Base pay increases are designed to advance an
employee’s base pay according to his/her growth and advancement at
Tulane. A base pay increase is an indication that Tulane expects the
employee to contribute at a higher level in the future. In the long run, four
factors will influence an employee’s base pay increase.
 Change in job accountabilities. The supervisor’s assessment of changes in
the scope, complexity and responsibility of an employee’s job over the
course of the year. Supervisors will be accountable for updating formal job
descriptions when job content (duties, activities, accountabilities, etc.)
changes by 15% or more.
 Change in knowledge, skills and competencies. The supervisor’s
assessment of the advancement of the individual’s capabilities over the
year.
 Range penetration. Base pay increases will parallel the “learning curve”,
advancing base pay to the fully competent (midpoint) level and then
tapering off.
 Change in market pay for the job. Base pay increases may be used to
address inequities that arise relative to a job’s pay compared to the market.
NOTE: Bonus payments. In the future, performance incentives may be
designed as bonus payments (variable pay) rather than as a guaranteed
portion of total compensation. Variable pay programs will be developed and
implemented thoughtfully over time, and will provide participants with the
opportunity to earn pay levels above the average in the marketplace for
above average performance.
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Compensation
Strategy
(continued)
3. Benefits. The benefits program is designed to secure the employee’s
standard of living by reducing the employee’s concerns about financial
catastrophe in the event of a medical emergency, disability, death, or
retirement. Through its paid time off policy, Tulane also hopes to support a
healthy and productive workforce by encouraging a proper work-life balance
with ample time off for holidays, vacation, time to heal and time to tend to
personal concerns. Tulane will maintain a benefits program that is aligned with
industry peers and University affordability. We will strive to provide benefits that
are perceived as fair, and that recognize and encourage longevity with Tulane.
Competitive Position
Using high quality, current and comprehensive market pay surveys, Tulane will
establish base compensation levels that reflect marketplace practices. The
competitive labor market in which the University competes for talent, will vary
by employee group, as follows.
Executives/Management- Target pay levels for fully competent performance will
be at the median of University or nonprofit peer companies nationally.
Professional Staff- Target pay levels for fully competent performance will be at
the median of University or General Industry peer companies in the Region.
Nonexempt- Target pay levels for fully competent performance will be at the
median of General Industry in the greater New Orleans area.
Communication Objectives
Tulane is committed to providing employees with knowledge of their pay and
benefits that will contribute to their career decisions and provide them with
reasonable pay expectations. We would like employees to understand enough
about the pay program that they trust in the pay delivery processes and do not
spend their own valuable time on pay administration issues. In short,
employees should:
• Have a good understanding of how their base pay is determined.
• Know their pay range minimum and maximum, and know the pay range for
their next progression/promotion.
• Understand the criteria and process for determining pay increases
• Understand any changes that are made to their compensation or benefits
program.
• Understand the role and value of their benefits.
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Job
Descriptions
A job description provides details about the requirements, job responsibilities,
duties, and performance standards of a position. To be a fair representation
of the job, the description must include a statement indicating the function of
the position within the department, the minimum requirements, and the
essential duties and responsibilities. In order to facilitate comparison
between different positions and to ensure consistency, all job descriptions
must be in the same format.
There are many advantages of thoughtful, well-organized job descriptions.
The most important are:
Employment and Selection – Based upon the job description and the
educational and experience requirements, recruiting efforts can be designed
to match the essential requirements of the job. A good job description can
be utilized to measure an applicant’s qualifications for the job as well.
Employee Understanding – Upon hire, a job description can help new
employees to understand the specific duties and responsibilities of their new
position. Employees can refer to their job description to measure whether or
not they are performing satisfactorily and meeting expectations. If written
properly, job descriptions can help employees understand how they fit in the
organization and how their work helps achieve the organization’s goals.
Training and Development – Gaps between required skills, knowledge, and
job experiences versus preferred skills, knowledge, and job experiences can
provide a basis for constructive training and development activity.
Performance Management – Job descriptions may provide employees with
an explanation of their job in the organization’s operation and the
performance that is expected of them while they occupy the job. In addition,
the description can be utilized as a basis for evaluating employee
performance over a period of time.
Wage and Salary Administration – WFMO staff members use job
descriptions to compare one position to another. The comparisons assure
that job classifications, pay decisions, and benefit allocations are fairly and
accurately handled. Tulane also uses the descriptions for matching jobs on
surveys so that it can determine how pay stacks up against that of other
employers.
Legal/Regulatory Compliance – Job descriptions provide a basis for
determining whether a job is exempt or non-exempt from the Fair Labor
Standards Act and assist in determining the proper EEO classification.
Additionally, the job description allows Tulane to meet its obligation to define
"essential" responsibilities and job demands as required by some laws, such
as the Americans with Disabilities Act (ADA).
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Pay Grades
and Ranges
Tulane administers base pay by using a pay structure composed of a series
of pay grades and ranges. As an administrative practice, a job is placed into
a grade and a target pay level is established for the position (the midpoint or
market rate), along with a specific minimum (the hiring rate) and maximum
(limit on the rate an employer will pay for each job).
The minimum of the pay range is the rate paid an employee who is assigned
to a position for which he/she possesses minimal qualifications and who is
expected to be able to perform basic duties and responsibilities after normal
training.
Organizations using this scheme are said to “manage to the midpoint;” that
is, a fully job-knowledgeable employee who consistently meets expectations
or who has continued to learn and grow in the job for several years will be
paid “at midpoint.” This midpoint is the proxy for the targeted market rate for
the job. In theory, only employees who consistently exceed performance
standards on a sustained basis might expect a salary above midpoint. The
pay ranges serve as a key cost-control mechanism for Tulane.
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Updating the
Pay
Structure
In order to maintain a competitive pay structure, Tulane may adjust its pay
ranges every year in accordance with annual salary budget surveys. The
primary source utilized in determining an appropriate adjustment will be the
WorldatWork Annual Salary Budget Survey.
In accordance with policy, a comprehensive market review will be performed
every two to three years. This review will involve the collection of market data
for approximately 200 benchmark jobs and then pay structure adjustments
made to reflect the findings of this comprehensive review.
Note: Pay structure adjustments do not change the grades to which positions
are assigned and do not result in automatic changes to individual salaries.
Salary structure adjustments are normally effective January 1 st of each year.
All structure increases are contingent upon the financial resources of the
University.
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Job Evaluation/
Reclassification
Work measurement provides a systematic process for measuring job content
that enables an organization to establish the relative value of jobs across all
levels within the organization, to compare jobs to the external marketplace,
and to satisfy tests of fairness and reasonableness. Work measurement
concerns itself only with job size/complexity. The process assumes “fully
competent performance” and does not evaluate organization or incumbent
performance.
The oldest and most widely accepted job evaluation methodology is the Hay
Guide Chart®-Profile Method of work measurement. This system examines
three primary factors: 1) the knowledge required to do a job; 2) the kind of
thinking required to solve problems commonly faced; and 3) the
responsibilities assigned to a job.
In order to assess the relative value of each staff job, Tulane uses a
streamlined job measurement tool rooted in the fundamentals of the Hay
methodology and other well-established job analysis methodologies, and
comprised of the following four factors.
• Complexity is the total knowledge and thinking required in the job.
Knowledge can be attained through formal education or technical training,
experience, on-the-job training, or any other effective sources. Knowledge
can include understanding processes, technical skills, and conceptual
expertise in one or more fields of education, management or science.
Thinking is the application of knowledge in the job. Thinking ranges from
choosing from among well-defined choices to using innovation and creativity
to overcome difficult and complicated challenges.
• Interpersonal Demands measures the nature of the job’s person-to-person
relationships with job contacts, both internal and external (referred to as
‘constituents’). Interpersonal demands are not determined by the frequency
of contact, rather by the type of interpersonal interactions required and the
interpersonal skills needed for the incumbent to be successful in his/her job.
• Results Impact is the job’s influence on Tulane’s strategic plan and
objectives. It measures the job’s role in the University’s decision making
hierarchy, and the requirements of the job in making changes and/or
achieving results.
• Management measures the extent to which the job is required to bring
together, harmonize, and integrate various aspects of Tulane’s operations in
order to drive high levels of service, quality, innovation, effectiveness and
efficiency.
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Job Evaluation/
Reclassification
(continued)
A reclassification may be appropriate if the content of a job has changed
significantly (e.g., the responsibilities have changed by more than 15%). The
following reclassification process should be followed by employees who believe
that their position is not classified correctly:
1. Any department requesting a reclassification of an employee should submit
the following to their dean or respective Senior Officer: employee's name,
current title and current salary; current job description and a revised job
description with new/additional duties highlighted; proposed new title; a current
organization chart for the department and a proposed organization chart for the
department, post-reclassification; a written justification for the reclassification,
including the proposed source for any salary adjustments to be made to the
employee's salary and the department's basis of assumption for the new salary.
If the dean or Senior Officer approves the reclassification, he/she will forward
the request and attendant paperwork to the Vice President for Administrative
Services.
2. The Vice President for Administrative Services will review the proposed
reclassifications once every four months in consultation with the Chief
Operating Officer, the Provost and the Senior Vice President for Operations and
Chief Financial Officer. The appropriate senior officer for the department
requesting the reclassification, if not included in the aforementioned group, will
be consulted.
3. All approved reclassification requests will be sent to WFMO for completion of
the reclassification review by the Compensation department. Documentation
must be reviewed by OIE.
4. The requesting department will be notified of the approval and the impending
review. Departments will be notified of those reclassification requests that are
not approved.
5. If the reclassification results in a higher grade, the employee’s salary will be
increased to at least the new pay grade minimum. If the reclassification results
in a lower grade level assignment, the employee’s new salary may not exceed
the new pay grade maximum.
Changes in job content and definition that arise from the temporary assignment
of duties or from typical growth in a job should not be addressed with
reclassification, but through the performance management/performance
appraisal process.
Compensation Resource Guide
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New Hire
Guidelines
For purposes of this policy, new hires are defined as employees who have
never been employed by Tulane, a former employee who has been
separated from the University for more than 30 days due to voluntary
resignation, or a former employee who was laid-off for more than one
year.
Starting salaries for new hires should reflect the value of the job and current
allowable hiring ranges. Department heads are responsible for
considering internal pay equity regarding a proposed new hire salary.
Tulane hiring rates for jobs will be dependent upon the skills and progressive
job experience of the candidate. Typical candidates who have minimal up
to five years of experience should be hired at 80% up to 90% of the salary
range midpoint. Those with more than five years of progressive
experience in a comparable job, who can demonstrate superior past
performance can be hired at 90% up to 100% of the salary range
midpoint.
It is not appropriate to offer a low starting salary with the promise of an
increase after the introductory period, and such requests for salary
increases will be denied.
Any agreements, whether written or verbal, that promise an increase at the
end of the introductory period, or at any time during the fiscal year in
which the employee was employed, are not recognized or supported by
University policy for staff employees. Therefore, all employment offer
letters must be submitted to WFMO for review and approval prior to
delivery to the new employee.
Compensation Resource Guide
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Performance
Management
Performance management is the process by which employee growth and
related accomplishments on the job are formally evaluated. To facilitate this
process, all supervisors are responsible for communicating to their employees
what the job expectations, annual goals and annual development plan will be.
At the time of employment, each employee is to be given a copy of his/her job
description, and there will be a discussion between supervisor and employee to
ensure an understanding of the required job duties and responsibilities.
Ongoing communications should also occur throughout the year between
employees and supervisors regarding job expectations and performance.
Between January 1 and no later than March 1 of each year, the supervisor and
employee together will review a performance appraisal form completed by the
supervisor, along with the employee’s job description (see appendix for sample
form). In this process, the employee’s progress regarding personal goals and
contributions to department objectives for the new fiscal year will be discussed;
and performance standards for each key responsibility indicated on the job
description will be updated, if necessary. If the employee is not performing all
duties in a satisfactory manner, the supervisor and employee will work together
to develop a strategy to ensure performance improvement. Completed
performance appraisals and accompanying job descriptions, both in the
prescribed format, must be submitted to WFMO by March 15 of each year.
This written process will apply to all exempt and non-exempt employees whose
positions are classified in this Guide.
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Base Pay
Increase
Guidelines
Tulane will consider four factors in determining an appropriate base pay
increase for an employee.
• Performance . Creating a high performance culture starts with paying-forperformance and ensuring that Tulane retains its highest performers.
Therefore, performance ratings will be considered in allocating pay
increases.
• Market deficiencies. In order to effectively compete for talent and to pay in
a manner consistent with market practices, Tulane will examine those job
categories that are the furthest below market in considering pay increase
allocations.
• Living wage. The significant rise in the cost of living in New Orleans has
impacted all Staff employees. However, nowhere has the pain been greater
than among those that earn the least. These are the individuals who have
had the greatest proportion of their income diverted to living cost increases.
Therefore, in allocating pay increases, Tulane will consider those
employees who have the greatest challenge in fulfilling the most basic of
their needs.
Over time, as Tulane revises its performance management practices, and
trains supervisors and managers in proper performance planning and
development, the following factors will determine base pay increases
• Change in job accountabilities. The supervisor’s assessment of changes in
the scope, complexity overall workload and responsibility of an employee’s
job over the course of the year.
• Change in knowledge, skills and competencies. The supervisor’s
assessment of the advancement of the individual’s capabilities over the
year.
• Range penetration. Base pay increases will parallel the “learning curve”,
advancing base pay to the fully competent (midpoint) level and then
tapering off.
• Change in market pay for the job. Base pay increases may be used to
address inequities that arise relative to a job’s pay compared to the market.
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RedCircled
Employees
A red-circled salary is one that is greater than the maximum of the range in
which the job is located. Under the new schedule of salary grades and
ranges, any employee who is above their salary range maximum, and
therefore red-circled, will already be paid at least 20% above midpoint
(market). Because these employees are receiving salaries higher than the
market value of their jobs, their base salaries will be frozen until future
revisions of the salary structure catch up.
Those red-circled employees who are deemed to perform at the very highest
level will be eligible to receive a lump sum payment, contingent upon
financial resources and administration policies. The maximum amount of this
lump sum payment will be a percentage of base pay equal to the same
percent as Tulane’s overall salary increase budget.
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GreenCircled
Employees
A green-circled salary is one that is less than the minimum of the pay grade
in which the job is located. Because employees with these salaries are being
paid an amount less than the market value of their jobs, the University has
committed to bringing these salaries up to the range minimums. These
increases are called equity adjustments and will be considered each fiscal
year, contingent upon available funding.
Compensation Resource Guide
19
Promotion,
Transfer
and
Demotion
A promotion is the result of: 1) an opening at a higher job level as a result of the
current incumbent moving, or 2) a business need to create a job at a higher
level. In both cases, there is a probable need to backfill the position of the
promoted employee.
Supervisors are encouraged to promote qualified employees into vacant or new
positions. An employee must have been employed with the University at least
six consecutive months to be eligible for a promotion.
Procedures for Requesting a Promotion
1. The department must submit the old and new job descriptions, an
organization chart, cover memo, and proposed salary changes to the
Compensation Analyst for review. If the department wishes to promote an
employee from within, the department must prepare a memo addressed to the
Vice President for OIE explaining why waiving search procedures is justified,
and including the employee’s resume.
2. Once the Compensation Analyst has reviewed the position for the
classification purposes, the departmental documentation will be forwarded to
the Vice President for OIE for review. Once a decision regarding the promotion
has been made, the department will be notified in writing. A written response
also will be forwarded to the department by the Compensation Analyst.
3. If approved, the department must initiate the appropriate electronic
paperwork via the Human Capital Management system to initiate the change.
For all salary actions, the signature of the appropriate Senior Officer is
required.
Supervisors may not ask employees to permanently assume the additional job
duties or responsibilities of a higher level job until the employee has been
formally promoted into that job.
Transfers
A transfer takes place when an employee applies for and is accepted into a
posted vacant position in another department. There are several ways in which
transfers will be addressed.
1. A lateral move occurs when an employee transfers from one position in a
department to another position with the same job title and pay grade, either in
the same department or in a different department. In such cases, the
employee’s salary will remain unchanged, as long as the employee’s salary is
at least the minimum of the grade.
2. If an employee transfers from one position in a department to a different
position within the same grade in another department, the employee’s salary
will remain unchanged, as long as the employee’s salary is at least the
minimum of the grade.
3. If an employee transfers from one position in a department to a higher-level
position in another department or within the same department (i.e. promoted),
the employee may receive an increase in salary up to the midpoint of the new
grade salary range.
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Promotion,
Transfer
and
Demotion
(continued)
4. If an employee transfers from one position in a department to a lowerclassified position in another department, the employee’s salary will be
decreased if it is currently above the maximum of the new grade salary range.
The employee’s new salary must fall between the minimum and maximum of
the new grade salary range. At no time will an employee receive a salary
increase upon accepting a lower-classified position in the same or in another
department.
Note: An employee who moves from one budgeted position to a different
budgeted position within the same department with no change in title or grade
is not considered to have transferred and is not eligible for a salary increase
upon the move.
Demotions
Voluntary or involuntary movements by employees that result in reassignment
by the supervisor or department head within the department to a lower pay or
grade status because of disciplinary actions or inability to perform the job
duties and responsibilities of the position are considered demotions. The
employee’s salary will be reduced to fall above the minimum of the salary
grade of the new position. At no time will an employee be allowed to receive a
salary increase upon demotion. Individuals who may be moved to a lower
level job, at Tulane’s request, to fill a business need, will not have their salary
reduced. Demotions must be approved by WFMO and OIE to ensure
compliance with federal and state job discrimination laws.
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One-Time
Payments
Tulane desires to evolve the compensation system towards a pay for
performance culture. One-time payments, like Bonus payments, can assist in
the creation of that culture provided the administration of same is consistent.
One-Time Payments Policy
One Time payments are awarded for specific services, events or deliverables
that are clearly outside the employee’s established job duties, including annual
goals and objectives. (One-time payments are awarded as the precipitating
event concludes and require pre- and post-approval by a senior officer.
Normally such payments may not exceed 5% of the recipient’s base salary
(except in those cases where the one-time payment is made for the delivery of
a service, such as serving as an adjunct.)
Examples of justifiable one-time payments include:
1. Extraordinary service during an emergency situation or in connection with
an event of paramount importance to the university’s operations;
2. Continuing to provide services to one’s former department on personal time
in situations when the department cannot quickly fill a vacant position and
needs the services. This service should only be for a predetermined fixed
time frame.
3. Providing services in the university’s auxiliary operations or receiving
payment for a class one teaches as an adjunct outside of core working
hours.
One time payments are not appropriate in any other circumstance . They can
not be used to retain employees, to address gaps between current salary and
market basis for salary, or to reward employees for fulfilling the requirements of
their position as described in their existing job description. Further, one-time
payments are not to be used to reward employees, for change in job
accountabilities or content, or changes in knowledge, skill or competencies. In
the case of the aforementioned, supervisors should consult with the department
of Compensation in WFMO to determine if such changes warrant a
reclassification.
Compensation Resource Guide
22
Fair Labor
Standards
Act
This federal legislation first enacted in 1938, established regular working
hours, overtime pay at time and a half regular wages, and prohibited using
minors in a number of occupations. It has been amended many times over the
years, most importantly in August 2004.
Enforced by the Department of Labor, the Fair Labor Standards Act (FLSA)
determines whether or not a position is exempt or non-exempt, and stipulates
certain other guidelines for salary administration. Each job must be tested
under the FLSA to ensure appropriate status classification. It is very important
that all Tulane employees be classified correctly, as penalties may be
assessed the University for violations.
Exempt Status
An “exempt” position is exempt, or excluded, from the overtime provisions of
the FLSA. Basically, employees in these positions are required, on a regular
basis, to use independent judgment and have the authority to make decisions
regarding matters of significance, as defined by the FLSA. This responsibility
must be greater than merely ensuring that policies and procedures are
followed correctly. The Compensation Analyst performs a detailed test under
the FLSA to determine if a position should be classified as being either
exempt or non-exempt.
Since exempt employees are considered to be “salaried” and receive a given
annual salary for satisfying the requirements and responsibilities of their
positions, additional payment for any overtime work performed is not required.
If asked by the supervisor or department head to coordinate or participate in a
special project for the department itself on a temporary basis which requires
additional work on the part of an exempt employee; and such duties or
responsibilities normally are a part of the employee’s regular job duties, that
employee will not be eligible for any additional remuneration either in the form
of increased salary or lump sum payment.
Exempt employees may be eligible for additional remuneration in the form of a
temporarily increased salary if the employee is asked by the supervisor or
department head to assume at least 25 percent of the duties and
responsibilities of a different (exempt) position on a temporary basis, and such
duties and responsibilities are not normally a part of that employee’s position.
If approved, an exempt employee’s new temporary salary should fall between
the minimum and maximum of the established salary range of the new
position. If an employee’s salary already falls within the new range, the
department head may, at his or her discretion, grant additional remuneration if
funds are available; and is encouraged to do so in acknowledgement of the
employee’s willingness to assume the different duties temporarily. At no time
will this temporary increase exceed the maximum of the different position
salary range. A memo providing justification for such a temporary
reassignment must be forwarded to WFMO and to the Compensation Analyst
for review and approval prior to making such assignment.
Compensation Resource Guide
23
Fair Labor
Standards
Act
(continued)
An exempt employee may be eligible for a one time payment only if the
employee is asked to perform services for a department other than the
department in which the exempt employee is officially assigned; such duties
are not normally a part of the employee’s job responsibilities; and if the work is
to be performed outside normal work hours (e.g. teaching a class).
Non-Exempt Status
A non-exempt position is not exempt (not excluded) from the overtime
provisions of the Fair Labor Standards Act (FLSA). Therefore, an employee
who works more hours than the full-time equivalent of his/her work week must
receive overtime pay. Non-exempt employees typically provide assistance to
others and do not have the authority to make independent decisions over
matters that impact the department significantly, as defined by the FLSA.
Non-exempt employees are required to account for incremental days worked.
For example, consider an employee scheduled to work 7.5 hours per day. If
the employee works for 6 hours and then leaves early for non-medical
reasons, the time sheet must be marked to show 6 hours worked and 1.5
hours of vacation time for that day. Time taken off for medical reasons may
be charged against sick leave accrual time.
If asked by the supervisor or department head to work additional hours as
deemed necessary; such duties and responsibilities are normally a part of, or
similar in complexity to, the employee’s regular duties, that employee must
receive additional remuneration for overtime hours worked at the employee’s
regular rate of pay.
Overtime Pay
The University’s standard work week will consist of 37.5 hours for full-time
work; in some departments, employees may be required to work a minimum of
40 hours per week due to the nature of the work being performed. For
overtime purposes, the “full-time equivalent” will be the normal weekly hours
worked for a particular position, whether it be 37.5 or 40 hours. A single work
week is defined as any consecutive seven-day period of time.
A non-exempt employee who works a standard 37.5-hour work week will be
compensated overtime at the rate of 1.5 times the employee’s regular rate of
pay for all hours worked in excess of 37.5 hours in a single work week. A
non-exempt employee who works a standard 40-hour work week will be
compensated overtime at the rate of 1.5 times the employee’s regular rate of
pay for all hours actually worked in excess of 40 hours in a single work week.
Vacation and sick leave do not count as time worked in determining overtime.
Each work week stands alone, and overtime may not be averaged out or
carried over into another work week or another pay period.
Compensation Resource Guide
24
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