Salary Administration
East Carolina University
Department of Human Resources
Classification and Compensation
East Carolina University’s
Compensation Philosophy
It is the policy of East Carolina University to support and sustain a high performance work
environment focused on having the right people, doing the right work, at the right time.
The University’s high performance work environment requires compensation levels that:
1)
2)
3)
4)
are consistent with University priorities,
promote and reward successful work behavior,
recognize job competencies that are linked to organizational goals,
maintain appropriate labor market competitiveness to ensure effective recruitment
and retention of a highly competent and diverse work force, and
5) are supportive of individual, family, and community values.
The career banding program is structured to ensure SPA employees receive fair and
equitable treatment in regard to compensation levels and career development
opportunities. The Career Banding Salary Administration policy and guidelines will be
applied effectively for all eligible employees.
East Carolina University’s
Compensation Philosophy



Compensate employees equitably and fairly
Offer compensation to employees within the
market halo (90% - 110% of their Market
Rate)
Remain Competitive in the Market
Developing a Unit Compensation
Plan





Long-Term vs. Short-Term Philosophy
What is reasonable and attainable?
What can you pay within budget constraints?
How far away are your employees from their
market rates?
What are the most immediate needs?
Pay Determined by …..


Competency level of employee
and the
Pay Factors
Pay Factors
Financial Resources - amount of funding available
Appropriate Market Rate - market rate applicable to the
demonstrated functional competencies
Internal Pay Alignment - consistent alignment of salaries
for employees who demonstrate similar required
competencies in the same banded class
Required Competencies - functional competencies
required based on organizational business need
Determine Competency Level
If all competencies at the same level, the overall
competency would be at that level
If individual competencies vary, consider:
– Are any competencies more important?
– Are the majority at one level?
– What overall competency would represent an
average of all competencies?
Determine Appropriate Pay
Market Index
10 %
Min
Contributing
10 %
90
110
10 %
Max
Journey
Advanced
Market
Market
Market
Rate
Rate
Rate
Pay Based on Competencies
Example #1
Competency Assessment Form
Contributing
Comp A
X
Comp B
X
Comp C
X
Overall
X
Journey
Advanced
Employee’s Pay
Career-Banded Class Rates
Min
Max
Contributing
Journey
Advanced
Market
Market
Market
Rate
Rate
Rate
Pay Based on Competencies
Example #2
Competency Assessment Form
Contributing
Journey
Comp A
X
Comp B
X
Advanced
Comp C
X
Overall
X
Employee’s Pay
Career-Banded Class Rates
Min
Max
Contributing
Journey
Advanced
Market
Market
Market
Rate
Rate
Rate
Assess internal pay alignment



Is proposed salary equitable with salaries for
other employees who may have similar
competencies?
May rank all employees in the competency level
and compare market index
Adjust proposed salary if needed
East Carolina University
Career Banding Career Adjustment
Worksheet
Employee Name: Katherine Odegard
Position #: 33333
Department Name: Allied Health
Department #: 12345678
Employee SSN#: 345-67-8901
Banded Class and Competency Level: Research Specialist - Journey
Schematic Code: 12502
I. Career Progression Adjustment
Competency/Skill Change
Competency Level Change
Retention
Labor Market
II. Justification:
Ms. Odegard is well below the journey market rate. Her current salary is at 78% of the
appropriate market rate and we would like to give her a $5,000 increase to bring her up to 88%
of the market. See attached Salary Assessor Worksheet.
III. Salary Recommendation:
Effective Date: 9/1/07
Funding Source (Account Number (s))
Current Salary
36,000
Increase
%
13.89%
Budget
Code
Purpose
Code
16065
110
Object
Code
1210
FRS Account
6-54321
% FTE
Semi-Monthly
Distributed Salary
Employee Annual
Salary
1.0
1708.33
41,000
Career Progression Limitations
Competencies may increase, but
-- no funding for pay increase
-- current salary already exceeds appropriate
level
-- internal pay alignment may limit increased
pay
Discussing Pay with Employees
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
Explain four pay factors
Explain any budget constraints
Explain that when funds do become available
they are awarded on a current basis
Explain career development connection
Reminders
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

Documentation is critical
Compensation is tied to demonstrated
competencies
Detailed justification is necessary
SALARY ASSESSOR
ACTIVITY