University of Wisconsin – Green Bay Compensation Philosophy Philosophy Statement The University of Wisconsin – Green Bay is committed to excellence in undergraduate and graduate education. The foundation of our educational philosophy is to provide students with a 360° education as a means of developing critical thinkers, creative problem solvers and strong communicators. To support our commitment to excellence, we shall maintain a compensation program directed toward attracting, retaining and rewarding a qualified and diverse workforce. Our culture must challenge employees to contribute in meaningful ways to the mission of the University. Our compensation program shall be transparent, fair, non-discriminatory, easy to administer and easily understood. Additionally, we recognize that it is the combined efforts of all employees of the University, faculty, academic staff, classified staff, and administrative (limited) employees that will allow the University to achieve its mission. Therefore, our compensation goals for all employee classifications must be comparable. Within the boundaries of financial feasibility, employee compensation shall be internally equitable and externally competitive based on performance as recognized within each division. Objectives Internal Equity The University and its employees benefit when a formal pay administration program is established, maintained and well understood. The University will apply the system-wide job classifications for staff positions to establish consistency across the University and as a means of determining fair and equitable pay. These classifications will be applied uniformly to ensure internal equity, valid comparability with the appropriate labor markets, provide clear distinctions between classifications and to allow for employee flexibility within the organization based on responsibility, experience, educational qualifications, longevity with the University, and other job related characteristics. External Market Competitiveness It is important that the University’s compensation and benefit programs are well positioned relative to our peers. The University wants to compete with other similarly situated Universities and public and private employers to attract individuals with established track records as well as those with growth potential. Our goal is to achieve at least the median of the competitive market, when financially and administratively feasible and to be internally consistent with equitable pay practices. Competitive compensation cannot be achieved immediately. Therefore, factoring in performance, our focus will be to bring the lower (in absolute terms) 40% of employees in all categories up to our goal while recognizing the contributions of employees and retaining April 9, 2013 1 APPROVED BY CHANCELLOR high performing employees. Regardless of fluctuations in state support, it is imperative that the University demonstrate progress towards the aims detailed in this document. Compensation Program Implementation Our external comparable market is defined by job category, as follows: 1. Faculty and Limited: Publicly funded and not for profit Bachelor’s and Master’s granting institutions in the US with an enrollment of 4,000 to 20,000 students (as determined through the national CUPA-HR database) and UW System. 2. Academic Staff Positions: Upper Midwest public and private organizations of similar size and scope, publicly funded and not for profit Bachelors and Masters granting institutions, with enrollment of 4,000 to 20,000 students (as determined by the CUPA-HR database) including all UW System institutions and Wisconsin Technical colleges. 3. Classified Staff: Primarily Wisconsin based public and private sector companies of similar size and scope. For evaluating external pay competitiveness for academic staff and classified staff positions, we will rely primarily on data from the CUPA-HR administrative and professional surveys for applicable jobs, existing surveys published by reputable survey companies, and other available salary surveys that meet professional standards. Local market salary survey data will be used primarily for FLSA non-exempt jobs. A local and regional market will be used primarily for FLSA exempt jobs. Where applicable, both private and public sector organizations will be used as comparable organizations. All salary data that represents salaries from outside the immediate Green Bay area will be adjusted to the Green Bay labor market. Faculty pay competitiveness will be determined based on comparable discipline and function as reported by CUPA-HR including consideration of graduate advising and undergraduate mentoring duties. Salary Ranges Staff positions will be placed into a system of pay grades that is consistent with the market data. For jobs where there is insufficient market data, the jobs will be compared to jobs where market data are available in order to slot them into the appropriate salary grade based on decision making complexity, scope and difficulty of the job, supervisory responsibilities and similar characteristics to ensure a fair and internally equitable pay grade assignment. Hiring Rates and Progression within Salary Ranges In order to attract qualified candidates to our University while recognizing pay compression concerns for existing employees, the University will maintain internal equity in pay practices and hiring rates. Faculty and staff employees’ salary movement April 9, 2013 2 APPROVED BY CHANCELLOR through their respective salary ranges will be based on performance and workplace expectations. Supervisors will encourage professional development opportunities for employees to facilitate movement and progression through salary ranges. Supervisors will receive training on employee advancement and performance evaluations so that all departments have appropriate development possibilities. Such development may lead to salary increases and/or career advancement opportunities. Transparency A compensation strategy (as opposed to a philosophy), approved by the Chancellor, will be distributed to all employees annually. This strategy will consist of pertinent action items formulated in response to current conditions. A summary of the criteria by which any compensation changes occur (whether acrossthe-board, cost-of-living, merit, promotion, market, or adjustments to offset compression) should be made known to all employees before compensation decisions are made. The decision-making authority for any compensation decision should be made available as well. Overtime and overload policies will be clearly stated and based upon departmental and operational needs. Responsibilities Human Resources Department The Human Resources Department is responsible for maintaining the classification and compensation programs in a fair and non-discriminatory fashion. The responsibilities include classifying new positions, reclassifying current positions when job duties and responsibilities change, assigning appropriate job titles based on duties and scope of responsibility, determining the appropriate level of pay for new hires and promotions, maintaining internal equity, monitoring salary ranges for compression, market updates, and related activities designed to keep the system consistent with the University’s pay strategy and facilitating progression through the ranges, as appropriate. The Human Resources Department will collect market data or market trend data for all jobs on an annual basis and make recommendations to University leadership regarding adjustments to the plan, consistent with the University’s pay strategy and financial capabilities. Market and trend data will be reviewed with the Committee on Workload and Compensation annually. Changes in compensation philosophy and strategy will be made with input from appropriate faculty, academic staff and classified staff governance committee, depending on the affected employee group. Chancellor’s Cabinet The Chancellor’s Cabinet is responsible for ensuring that the compensation philosophy advances the University’s operational needs and strategic goals. The Cabinet will also play a vital role in maintaining the integrity of the philosophy by adhering to its April 9, 2013 3 APPROVED BY CHANCELLOR objectives in their actions. The Chancellor has final authority for any decisions related to the compensation philosophy. April 9, 2013 4 APPROVED BY CHANCELLOR