Missouri State University's workforce is its most vital resource and it is the intention of the University that the compensation plan demonstrates the high value the University holds for its employees. Therefore, the Missouri State University System strives to maintain a total compensation package for faculty, staff, and administrators that is directed toward attracting, retaining, and rewarding a highly qualified, engaged, committed, and diverse workforce to serve the University's students and the State of Missouri. Compensation shall be externally competitive when compared to the appropriate market, internally equitable, and based upon individual performance, qualifications required, and the complexity, scope, and impact of the work performed. Performance should be directly linked to obtaining pay rewards of sufficient magnitude to be valued. Strategically, the compensation system, in conjunction with other human resource strategies, contributes to workplace conditions that support employees at all levels of the University in meeting or exceeding performance standards. Performance management and compensation increases are directly linked with the furtherance and achievement of the University's strategic goals; there should be a strong correlation between the strategic goals of the University and the goals and objectives set by supervisors and their employees. Employee performance is evaluated in relationship to achievement of employee goals and objectives.
The job classification system facilitates employee training, promotions, transfers, and other personnel administrative functions.
Please refer to http://www.missouristate.edu/human/Glossary.htm Compensation Terms Glossary, for definitions of many of the terms used below.
The Job Classification System consists of job families, jobs, positions, pay grades and salary ranges. Some jobs are unclassified; these jobs were not included in the job classification system described here because the job evaluation plans did not adequately evaluate the nature of these jobs.
A Job Family is a group of jobs involving work of the same nature but requiring different skill and responsibility levels. Jobs at the University have been divided into four different job families with each job family having its own jobs and job descriptions, job evaluation plan, pay grades, and salary ranges.
A job is work consisting of responsibilities and duties that are sufficiently alike to justify being covered by a single job description. A job may be assignable to more than one employee (i.e., the job of Administrative Assistant II is held by more than one person, but these individuals are in the same job because they all perform similar duties and responsibilities). A job refers to the combination of duties and responsibilities that are carried out by all persons in that job.
A position is used to denote the unique responsibilities and duties assigned to one employee. In instances when there is only one person with a certain job title or job description, the position is the same as a job. If however, there are multiple individuals with the same job title/job description, then each individual is in his or her own position. In other words, a position represents a specific person and the unique duties and responsibilities that person performs.
A job description is a summary of the essential duties and responsibilities of a job. A job description identifies the nature of the work that is performed, specific duties and responsibilities, outcomes of the performance of these duties and responsibilities, and the knowledge, skill, and abilities required to perform the job.
Job descriptions are used for the hiring process, the performance evaluation process, communication between employees and their supervisors about job responsibilities, salary administration, and the identification of training needs. Job descriptions serve as a broad outline of the duties and responsibilities of a job. Job descriptions are not restrictive in the sense that they exclude the assignment of other duties and responsibilities; in fact, job descriptions can be expected to change as the work performed changes. It is the responsibility of employees to review and understand the duties and responsibilities of their job as stated in their job description. Supervisors should recognize when the broad outline of duties and responsibilities needs to be updated and work with the Office of Human Resources to revise job descriptions. It is permissible for departments to maintain specific job duty lists or desk job descriptions particular to a position within a multiple-incumbent job.
The job evaluation plan for each job family is used to objectively and systematically evaluate job descriptions belonging to that job family in terms of compensable factors in order to determine the pay grade for each job. During job evaluation, a job is assigned a degree level for each compensable factor in the job evaluation plan based on the amount or extent of a compensable factor that is required by a job. The job evaluation process is based strictly on the minimum requirements and essential duties and responsibilities of a job and not on the level of performance of an individual in a job.
Jobs with similar job evaluation results or points are placed in the same pay grades; a pay grade is one of the classes into which jobs of the same or similar values are grouped. A salary range is assigned to each pay grade. The salary range consists of the minimum and maximum dollar amount that is paid to jobs in a specific pay grade. The salary range is based on salary survey data for the jobs in each pay grade, where the minimum of the salary range approximates the 25th percentile of market pay, the midpoint approximates market pay, and the maximum approximates the 75th percentile of market pay of all jobs in the pay grade.
The job description, pay grades, and salary ranges are used in the recruitment and compensation of personnel.
No salary change or employment offers are official until approved by the Board of Governors.
It is the intention of the University to adjust salary ranges annually to keep up with changes in market pay based upon the availability of funds. Recommendations on salary range adjustments will be made to the President annually by the Executive Budget Committee based on compensation cost indicators, the projected state appropriations amount, and other revenue projections for the next year.
If adjustments to the salary ranges result in newly hired employees' salaries falling below the minimum of the salary range (because the new employees were not eligible for an annual salary increase), the University intends to adjust employees' salaries to the minimum of the salary range assuming projected state appropriations amounts and other revenue amounts are sufficient to allow these adjustments.
Employees whose salaries fall below the minimum of the adjusted salary ranges because of receiving a small or no annual salary increase due to poor performance will be in Performance Improvement Plan (PIP) status; these employees may receive an adjustment to the range minimum effective the date they are released from PIP status if performance improvement goals have been met.
Merit and equity salary increases are normally given annually and are effective at the beginning of the University's fiscal year, July 1. Each year the salary increase budget for the following fiscal year is recommended to the Board of Governors by the President after consultation by the President with the Executive Budget Committee. The annual salary increase for each employee is determined by the cost center administrator on an individual basis using the Compensation Matrix. The Compensation Matrix is a tool used to allocate the money available in the salary increase pool based on a combination of merit and equity. The employee's performance evaluation score for the preceding year and the location of the employee's salary within the salary range on January 15 are used to determine the employee's salary increase. The resulting dollar amount increase will be applied to the base salary in effect on June 30 and will become effective July 1.
Unclassified employees are not assigned to a job family and do not have salary ranges, but they are still subject to the same performance evaluation process and the same salary increase pool percentage as other staff.
In years when only a small salary increase pool is available, the University may elect not to use the Compensation Matrix to determine annual salary increases.
New employees with a hire date of January 15 or earlier will be eligible for consideration for salary increases occurring July 1. Employees hired after January 15 in a given year are not eligible for an annual increase on July 1 of that same year, but will be eligible for an increase the following fiscal year.
It is the intention of the University that employee salaries fall within the salary range to which the job is assigned. Employees' salaries that are above the maximum of their salary range will be limited to an annual increase amount that is 50% of the compensation matrix-determined salary increase until annual adjustments to the salary range causes the maximum amount of the salary range to exceed the current salary. If an annual salary increase results in a salary above the maximum of the range, the salary increase will be equal to the amount of the compensation matrix-determined increase that takes the salary to the maximum of the pay grade plus 50% of the remainder of the compensation matrix-determined salary increase.
The cost center administrator is responsible for distributing the annual salary increase notifications to employees that communicate the amount of any annual increase contingent upon Board of Governors approval of salary decisions.
Starting salaries for new employees cannot be less than the minimum nor more than the maximum of the salary range of the job. The normal starting salary should be between the minimum and midpoint of the range. A starting salary above the midpoint may be established with sufficient justification (e.g., scarcity of applicants, outstanding qualifications or market considerations) and requires approval by the division's senior administrator. Starting salaries should be commensurate with the employee's qualifications and related experience and should be confirmed with the Office of Human Resources before a final salary offer is made. Human Resources will assist in determining an appropriate starting salary, especially for multiple incumbent positions.
When considering the starting salary of a new hire either through external recruitment or promotion, a review of the qualifications and experience of the new individual is required as compared to others in the same job within the same major cost center to ensure that the new employee is paid appropriately in comparison to incumbents. When the Department Head and the Director of Human Resources cannot agree upon a starting salary, the major cost center administrator (President, Provost, Vice President, Chief Financial Officer, or Chancellor) for the area in which the new employee will be employed will determine the starting salary.
A promotion is the selection of an employee for a job that has a salary range with a higher midpoint than the midpoint of the employee's current salary range through the process of posting a vacancy and conducting a search.
Each pay grade contains jobs with similar job evaluation point totals so the pay grade and associated salary range reflects the value of all jobs in the grade. The midpoint of the salary range is a control point and can be used to measure the size of the difference between grades both in terms of salary and the value of the new job based on job evaluation factors, such as knowledge, skill, and technical mastery, supervisory responsibility, management responsibility, span of control and impact of the job on the University.
It is the University's policy to bring an employee's salary to the minimum of the salary range for the pay grade into which he/she is promoted, but not above the maximum of the new salary range. In general, the midpoint of the new salary range is considered the market salary for the new job and an appropriate salary following a promotion. The amount of the promotional increase is left to the discretion of the hiring official. However, an appropriate promotional increase will recognize the following criteria:
In determining promotional salary increases in jobs involving multiple incumbents, consideration will be given to the salaries of incumbents with similar qualifications in the new pay grade. There is usually less room for discretion in determining the new salary for an employee promoted to a multiple-incumbent job.
The Office of Human Resources will review all promotional increases relative to the above criteria for equity purposes. Any promotional increase must be approved by the Office of Human Resources before being communicated to the employee.
If a promotion is effective on July 1, the annual salary increase is calculated first on the pre-promotion salary and then the promotional criteria would apply.
Employees who believe they are qualified and who are interested in being considered for promotion to a vacant position must obtain and submit a Request – Consideration for Transfer or Promotion Form to the Office of Human Resources.
A transfer is a move to a different position within the same job (an Administrative Assistant II in Department A transfers to an Administrative Assistant II position in Department B) or to a different job (an Academic Administrative Assistant II transfers to an Academic Administrative I position) that has salary range midpoint that is the same or lower than the midpoint of the employee's current salary range. Transfers occur as the result of an employee's request or through actions taken by the University. Union employees are covered by the transfer procedures established in the Memorandum of Agreement for their bargaining unit.
A University-initiated transfer occurs as the result of an action taken by the administration such as a reorganization or restructuring of a department or unit or the elimination of a position. A University-initiated transfer may also be the result of disciplinary or performance-related actions. Such transfers may result in either a lateral transfer or a transfer to a job that has a salary range with a lower midpoint than the employee's current salary range as defined below.
An employee may request a transfer upon completion of one year of service in his/her current position and department. This requirement can be waived provided the employee's immediate supervisor agrees with the transfer. To initiate a transfer, an employee should complete a Request - Consideration for Transfer or Promotion form for a specific vacancy and submit it to the Office of Human Resources. An employee-initiated transfer may result in either a lateral transfer or a transfer to a job having a salary range with a lower midpoint as defined below.
A reclassification is a change in the pay grade to which a job is assigned based on job analysis of the essential duties and responsibilities of a job that has changed over time. Sometimes, the job duties of a position or positions within a job can change over time, and this can result in a reclassification of a position or positions within a job to a new job or different existing job.
The essential duties and responsibilities of a job or position within a job can change due to many factors, including departmental reorganizations or an evolution of job duties over time caused by changes in technology, regulatory mandates, etc. If an employee or supervisor thinks that the job duties have changed sufficiently to warrant a reclassification review, the immediate supervisor of the job or position within the job can initiate a request for reclassification review of the job by the Office of Human Resources. Requests for reclassification review must be authorized at each organizational level of the division with the major cost center administrator (Provost, Vice President, Chief Financial Officer, or Chancellor) authorizing Human Resources to do the reclassification review.
A reclassification review can result in an increase, decrease, or no change to the grade associated with the job or position within a job. If a job or position within a job is reclassified to a grade with a higher midpoint, the amount of the reclassification increase must be at least 5% but no more than 12% of the employee's current salary as recommended by the department head and approved by the cost center administrator. The employee’s salary must be brought to at least the minimum of the new range even if the increase is more than 12%. If a job or position within a job is reclassified to a grade with a lower midpoint and the employee's salary is above the maximum of the new salary range, the salary will be reduced by the amount required to bring the employee's salary below or to the maximum of the new salary range.
A within-grade salary adjustment is a salary increase without a change in grade and can be requested for employees for one of the following reasons:
The Department Head will determine the appropriateness and amount of the in-grade salary adjustment with input from the Office of Human Resources and approval of the major cost center administrator.
Normally, the addition of new duties to a job does not require a salary adjustment because it is expected that job duties change and evolve over time. If the volume of additional duties causes nonexempt employees to work in excess of forty hours in a week, the payment of overtime and earning of compensatory time-off is considered compensation for the additional work.
An out-of-grade differential is a monthly amount payable for a defined period of time to nonexempt employees who temporarily accept the addition of significantly higher level duties than those consistent with the job description. The out-of-grade differential is temporarily added to the base salary to facilitate correct overtime calculations but should not be considered in the calculation of annual salary increases.
Supplemental pay is a monthly amount payable for a defined period of time to exempt employees who temporarily accept significant additional or higher level duties than those consistent with the job description, such as when serving in an Acting or Interim role. The supplemental payment is not added to base salary and is not included in annual salary increase calculations.
The President of the University System is authorized to change the salary in hiring, promotion, transfer, or other personnel actions or allow a salary to exceed the maximum of a salary range, in circumstances which the President determines appropriate, such as, but not limited to, market conditions, difficulty in attracting and retaining employees, or circumstances of inequity. The adjusted salary will be submitted to the Board of Governors for approval in the normal course of business.
The Fair Labor Standards Act (FLSA) covers such employment matters as hours of work, minimum wage, overtime compensation, and other conditions of employment. The University is covered by many provisions of this act. The Fair Labor Standards Act establishes specific criteria for determining which jobs are nonexempt and require pay for overtime hours worked and compensatory time off, and which jobs are exempt and do not require compensation for overtime. All job classifications are determined to be exempt or nonexempt by the Office of Human Resources based on the FLSA.
Technical, secretarial, clerical, skilled crafts and trades, and service occupations are typically considered nonexempt and are eligible for overtime and compensatory time. All nonexempt employees are required to record their hours worked:
These forms are required for nonexempt employees to meet the record keeping provisions mandated by the FLSA administered by the Department of Labor, Division of Wage and Hour.
Executive, administrative, managerial, faculty, and professional positions are classified as exempt and no overtime is paid or compensatory time earned. Because exempt employees are not eligible for overtime, they are not required to keep a record of the hours they work. Normally, the requirements of positions filled by administrative and professional employees require a minimum of forty (40) hours of work each week.
If an employee or supervisor has a question concerning whether a position is exempt or nonexempt, contact the Office of Human Resources. The FLSA specifically states that neither the employee nor the employer may waive the employee's right to be compensated for overtime if the job is classified as nonexempt. Therefore, each supervisor, department head, director, and administrator is responsible for ensuring that the act is followed and the University policy for overtime requirements is observed.
Nonexempt employees will be paid for actual hours worked each day within their workweek and any accrued leave benefits taken such as vacation, sick, compensatory time off, or other available paid leave by accurately completing their time sheet. Nonexempt employees must record actual hours worked for each day on their time sheet.
The University provides the option for employees to use accrued leave under Missouri State University's vacation or sick leave policies while they are on an approved Family and Medical Leave Act (FMLA). If accrued vacation or sick leave are not used during FMLA leave, pay will be reduced by the hours that the employee is absent from work even if the absence is less than a full day.
Exempt employees are paid on a salary basis and, in general, will be paid their full salary for any week in which they perform work. Their pay may be reduced only in the following circumstances:
The University workweek is defined as a seven-day period that begins at 12:01 a.m. Monday and ends at 12:00 midnight Sunday. A normal workweek of 40 hours is established for most employees. Because of the variety of functions of the many departments within the University, there may be differences in normal hours and days of work. An employee starting a new job should ask the departmental supervisor for the work schedule. While the normal workweek of 40 hours is achieved through working five 8-hour days in a workweek, some employees achieve a 40-hour workweek by working four 10-hour days in a workweek. For leave benefits, see Chapter 6 for the policy governing how such employees are paid for recognized University holidays, vacation, and sick leave. For the University closing policy, see Section 2.15.
The University supports the principle of flextime for its employees in order to provide for more efficient utilization of the abilities of its employees, better service to the public, and improved working conditions for employees. Departments are encouraged to accommodate the reasonable requests of employees for alternative work schedules when consistent with the department's objectives.
Flextime refers to a range of flexible formats that permit employees to choose the times they will start and end work. While employees may request consideration of a flextime schedule allowing for a specific arrival and departure time, approval of the request will be granted only if all policy guidelines and work schedule requirements are met (See Sections 4.6.3 and 4 below).
A flextime work schedule is an alternative work schedule for employees who normally work the eight-hour, five-day workweek, usually from 8:00 a.m. to 5:00 p.m.
Flextime scheduling permits employees to select a work schedule that may assist with individual needs, especially commuting needs and family needs. It also provides employees with a degree of flexibility that may improve employee morale; may reduce tardiness, absences for personal business, turnover, and overtime costs; and may increase employee, as well as departmental productivity and service.
The University does not have a formal rest period policy for its employees. Each department is responsible for establishing its own break policy based on the needs of the department. Rest periods, if permitted by a department, are to be limited to 15 minutes, twice per day (one during each four hours worked), with departments ensuring that adequate staff is on duty at all times.
The Fair Labor Standards Act establishes the federal wage and hour law governing the payment of overtime. Only employees in nonexempt positions are eligible for overtime pay. Overtime pay is earned based upon hours worked over 40 hours in a week. Overtime work is not to be performed at the discretion of the employee. Any overtime work must be approved and scheduled, in advance, by the employee's department head or supervisor. However, employees who are "permitted to work," whether approved by the supervisor or not, must record all hours worked and are entitled to overtime. Overtime is automatically compensated as one hour of the employee’s regular hourly rate and ½ hour of compensatory time banked for each hour worked over 40 in an employee’s workweek.
An example of an employee "permitted to work" would include a nonexempt employee taking work home after the normal work day. Any hours worked at home on University business should be recorded and counted as hours worked toward 40 hours in a workweek. Another example is a nonexempt employee who is at work early and/or who stays late and is performing activities within the scope of his/her job for the University. These hours also should be recorded and counted as hours worked toward 40 hours in a workweek.
The University may request employees to work overtime due to special needs of the department. Supervisors will give as much notice as possible to employees when overtime work is anticipated. Advance notice, however, may not always be possible. Refusal to work mandatory overtime will be grounds for disciplinary action up to and including termination.
When nonexempt employees work more than forty (40) hours in the employee’s work week, the hours over forty (40) hours are automatically paid at straight time and the additional half (1/2) time will be banked as compensatory time. If requested the additional half (1/2) time that is banked as compensatory time may be paid out in the following month it is earned with departmental budgets permitting. Compensatory time off shall be taken during the remaining weeks of the monthly pay period in which it is earned, or within the 12 months immediately following the monthly pay period. An employee who has accrued compensatory time off shall be permitted to use such time within the period stated above if the use of such compensatory time off does not unduly disrupt the operations of the department.
Employees may accrue compensatory time off up to a limit established by the University, but in no case may compensatory time exceed 240 hours. An employee who has accrued compensatory time off shall, upon termination of employment, be paid for the unused compensatory time off at a rate of compensation not less than: 1) the average regular rate received by such employee during the last three years of the employee's employment; or 2) the final regular rate received by such employee, whichever is higher. An employee may, at the discretion of the University, be paid for accrued compensatory time off at a time other than termination. Such compensation shall be paid at the regular rate earned by the employee at the time the employee receives payment.
The provision of compensatory time applies only when the hours worked are in excess of 40 for the workweek. A department head or supervisor may schedule time off for an employee or offset hour for hour during a particular workweek to compensate for excess hours worked during a previous day of the same workweek.
Pay is disbursed on the last banking day of the month. Employees will have their pay deposited directly to a financial institution of their choice. The University is required to deduct withholdings for federal and state income taxes and social security taxes from an employee's salary each month. Additionally, the University will withhold voluntary deductions for: U.S. Savings Bonds ($50 minimum deduction); University group medical, dental, and life insurance; participation under the Missouri State Employees' Cafeteria Plan;; donations to the United Way and/or the Missouri State University Foundation; salary reductions for a University-approved 403(b) tax-sheltered program, salary deferral to the Section 457 Deferred Compensation Plan, union dues to the International Brotherhood of Electrical Workers (IBEW Local 453) or Teamsters Local Union 245 , contributions to the Missouri Savings for Tuition (MOST) program, and other authorized deductions.