MOSAIC POLICY AND PROCEDURE
NAME:
Compensation Administration
Approval Signature:
__
Approval Date: ____4/1/15_____
Title: ______SVP of Human Resources________________
Department: _Human Resources
POLICY:
The following statements express objectives with respect to base pay of all
employees, but are subject to change based on the financial condition of Mosaic.
Not all of these objectives may be achieved for each employee. They are set forth
as a reminder to you that Mosaic has these goals in mind.
It is the objective of Mosaic to establish and maintain a compensation system,
which will:
I.
Reflect the difficulty and responsibility of jobs.
II.
Be externally competitive, and internally consistent and fair.
III.
Motivate employees to work toward achievement of company
goals.
IV.
Create incentive for personal growth and monetary advancement
on the basis of demonstrated performance.
PROCEDURE:
I.
Administration Responsibilities
A.
Chief Executive Officer
Has overall responsibility for implementation of major
policies covering the administration program.
B.
Compensation Administration
Human Resources – National Office
i.
Works in conjunction with local Mosaic offices to
design and implement the compensation program to
ensure achievement of policy objectives.
ii.
Provides interpretation and information concerning
compensation policies and procedures to
management.
iii.
Conducts and participates in pay surveys, and
analyzes appropriate labor market data.
iv.
Maintains job descriptions for all Mosaic positions
and reviews descriptions to ensure they accurately
reflect responsibilities and duties. Prepares
new/revised job descriptions as necessary, and
ensures that positions are classified according to
FLSA requirements.
Page 1 of 7
Effective Date: July 1, 2003
Revision Date: April 1, 2015
v.
Provides annual update of Mosaic job list, job
codes and pay ranges.
C.
Human Resources Solutions
i.
Provides technical assistance regarding
compensation policies and procedures.
ii.
Provides support to ensure that employees are
classified correctly within job titles.
iii.
Provides training for compensation policies and
performance evaluations.
D.
Executive Director or designee/Vice President of Operations
i.
Authorizes and administers the performance or
promotional increases within the guidelines of the
projected annual operating budget.
ii.
Communicates dates of performance appraisals to
employees and their supervisor.
iii.
Ensures that job descriptions are reviewed and
performance appraisals completed at least annually.
iv.
Submits job analysis questionnaires for any new or
significantly changed positions to the Vice
President of Human Resources Solutions for
review.
1. Revisions to job descriptions cannot alter the
education and experience required, cannot
change items 1 – 4 of the essential job
functions, and may only have limited changes
in knowledge, skills and abilities.
2. Year for year experience may be substituted for
education (i.e., if a bachelor's degree is
required, an additional four years of experience
may be substituted), except for certain
professional and/or management positions.
E.
Ad Hoc Compensation Committee
i.
The members will be selected from various
departments throughout Mosaic.
ii.
The committee will meet as needed, and will be
responsible for the pointing of jobs, as needed.
iii.
Review policies and procedures and make
recommendations as necessary.
iv.
Make recommendations on titling guidelines.
v.
Provide salary surveys as requested.
Compensation Administration
Page 2 of 7
Effective Date: July 1, 2003
Revision Date: April 1, 2015
II.
Compensation Approvals
A.
Standard changes in compensation (increases and decreases are
subject to two levels of approval:
i.
Immediate Supervisor
ii.
Executive Director or designee/Vice President of
Operations (if the Vice President is the
immediate supervisor, the Vice President must
provide secondary approval).
B.
III.
All above maximum range increases and any out-of-cycle
increases must be approved by the Vice President of Operations,
in consultation with the Vice President of Human Resources
Solutions.
Administrative Guidelines
A.
Pay Grades and Ranges
Each job is assigned a pay grade that has a corresponding
minimum, midpoint and maximum pay range.
B.
Administration of New or Revised Jobs
Before any offer or transfer is made to fill any new or
revised position, the Vice President of Human Resources
Solutions will develop a new job description based on the
job analysis questionnaire, or will revise an existing job
description. The Vice President of HR Solutions will then
determine if there is a need for pointing the job. If so, the
Vice President of HR Solutions, along with two other
members of the compensation committee will establish an
appropriate pay grade from each job using the Mosaic
pointing system.
C.
Resolving Differences
i.
If the Executive Director or Vice President of
Operations does not agree with the designated grade
of a job, they will discuss the issue and the reason
why with their supervisor. Every attempt will be
made to resolve differences. When necessary,
salary survey information will be obtained specific
to the job in question to validate the pay grade.
ii.
The Senior Vice President of Human Resources
will have final authorization over all compensation
administration matters.
Compensation Administration
Page 3 of 7
Effective Date: July 1, 2003
Revision Date: April 1, 2015
IV.
Compensation for Individual Employees
A.
Compensation for New Employee
i.
As a general rule, an employee should be hired at
the minimum of the pay grade. The minimum is
considered an equitable amount of pay for an
employee meeting the minimum qualification of
the job.
ii.
Compensation for a newly hired employee may
reflect the individual's applicable work experience.
Initial compensation cannot exceed the midpoint of
the pay range for that position. Any exception to
this policy must be recommended by the Executive
Director and approved by the Vice President of
Operations in consultation with the Senior Vice
President of Human Resources.
B.
Promotion
i.
ii.
iii.
iv.
v.
C.
Compensation Administration
A promotion is defined as being offered a Mosaic
job in a higher pay grade.
A promotion is normally accompanied by an
increase in pay. Six (6) to ten (10) percent is
considered a normal promotional increase.
However, such increases may be reduced if the
increase places the newly promoted employee
above the midpoint of the new pay range.
Compensation for a promoted employee will reflect
the individual's applicable work experience and pay
history.
Promotional increases should take an employee to
no less than the minimum of the new pay range,
even if that exceeds the 10 percent limit, and a new
job date will be given to the promoted employee.
All promotion employee status notices must have
two signatures, one of which is the Executive
Director or highest administrative supervisor.
Lateral Transfers or Re-evaluation of Existing Jobs
i.
Lateral transfers are defined as transfers to jobs in
the same pay grade. A lateral transfer may occur
without a change in pay in normal situations. If a
transfer occurs, the employee will be paid
according to the range of the pay grade of the
receiving agency. The Executive Director of the
receiving agency and the appropriate Vice
President must approve exceptions. Employees
Page 4 of 7
Effective Date: July 1, 2003
Revision Date: April 1, 2015
may retain their job anniversary and evaluation date
if the transfer is to a similar position (e.g., direct
support specialist to a direct support associate).
Re-evaluations of existing jobs may be requested at
the approval of the Chief Executive Officer for
national office positions, at the approval of the Vice
President of Operations for agency positions, or
based on organizational restructuring. Reevaluations for any other reason may only be
requested between March and May of any year
during budget planning. If a re-evaluation of the job
moves the job into a higher pay grade due to new
market data and re-pointing, then the employee will
be promoted and the prior promotion policy will
apply.
ii.
D.
Demotion
i.
ii.
V.
An employee may be reassigned to a job in a lower
pay grade as a result of a performance that needs
improvement. A reduction in pay may be
considered. Employees may retain their job
anniversary and evaluation date if the demotion is
to a similar or previously held position (e.g.,
business manager to office manager).
If an employee requests transfer to a lesser position,
pay may or may not be reduced. Each situation
needs to be reviewed on an individual basis.
Compensation for Exception Situations
A.
Below Minimum
i.
Generally employees who are below the minimum
of their pay grade will be brought to the minimum
within a reasonable period of time, preferably no
more than one year, if they are less than ten (10)
percent under the minimum.
ii.
If an employee's pay rate is more than ten (10)
percent below the minimum, a longer-term strategy
will be used in order to progress the person to the
minimum.
B.
Compensation Administration
Above Maximum
If an employee is above the maximum of their
current pay range, several options may be considered.
i.
Give no increase and freeze the employee's salary
Page 5 of 7
Effective Date: July 1, 2003
Revision Date: April 1, 2015
ii.
iii.
C.
Rehire
i.
ii.
iii.
D.
VI.
until the pay structures adjust upward to place the
employee within the pay range.
Give a lump sum increase of a given dollar
amount, but do not adjust base pay.
Promote the individual to a job in a higher pay
grade if performance and individual capabilities
warrant such an action, and if approved within
budget.
An employee separated from employment and
eligible for rehire may be re-employed at the same
rate for the same job, providing that past
performance had been fully competent.
An employee may be rehired for a different job at a
rate of pay that is appropriate to the new position.
An employee who is rehired by Mosaic within six
(6) months of former employment will maintain
his/her seniority for longevity if hired into the same
position.
Wage Pass Through/Market Based
i.
Employees will receive the appropriate rate
increase or lump sum payment when additional
monies are received due to wage pass throughs or
when market based pay adjustments are given.
ii.
Employees on probation for performance issues, or
considered not in good standing, may be excluded
from these increases, at the Executive Director's
discretion.
iii.
If states mandate decreases or freezes in funding,
wages may be frozen at the approval of the Mosaic
Leadership Council.
Performance Increases and Performance Appraisals
A.
Performance Increases
i.
It is the policy of Mosaic to pay for performance.
An employee will receive performance increase
only when it is warranted by the level of
performance of the employee measured against the
responsibilities and duties of the job as stated in the
job description. Increases are not automatic.
Performance which receives a “Needs
Improvement” rating will not be eligible for any
increase. Merit increases shall not exceed ten (10)
percent.
Compensation Administration
Page 6 of 7
Effective Date: July 1, 2003
Revision Date: April 1, 2015
ii.
iii.
iv.
v.
B.
Increases withheld for reasons of inadequate
performance or incomplete training may later be
granted when the employee's performance reaches
a satisfactory level, but will not be retroactive to
the review date. This includes market-based
increases applied to all employees when there is a
pay structure adjustment.
A performance increase will not be given to an
employee until his/her performance has been
properly appraised and a copy of the appraisal has
been submitted to the Executive Director or Vice
President of Operations for review.
All performance increases will be effective based
upon the employee's job anniversary date for their
current position, unless the original performance
evaluation indicated a one (1) rating.
Performance increases are subject to availability of
funds.
Performance Evaluations
i.
Each employee's performance must be appraised by
the immediate supervisor and reviewed by the next
highest level of management.
ii.
Except for executive employees, performance
evaluations will occur per the following schedule:
6 months after hire date Performance appraisal
or date in new job and pay review
1 year after hire date Performance appraisal
or date in new job and pay review
After first year, annually Performance appraisal
from anniversary date in job and pay review
iii.
VII.
Evaluations may be done three (3) months after an
employee's hire date or date in new job if done
consistently in new job and if done consistently for
all employees in that program.
Confidentiality of Individual Pay and Pay Ranges
Pay information is privileged and confidential. Information
regarding individual employee compensation will be shared only
on an employee-related, need to know basis.
Compensation Administration
Page 7 of 7
Effective Date: July 1, 2003
Revision Date: April 1, 2015