Salary Administration

4.3 Salary administration

No salary change or employment offers are official until approved by the Board of Governors.

4.3.1 Annual salary range adjustments

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 employees' salaries falling below the minimum of the salary range, the university will 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.

4.3.2 Annual salary increases

Across-the-board, merit and equity salary increases are normally given annually and are effective at the beginning of the university's fiscal year, July 1 (August 1 for exempt employees with 9- or 10-month appointments). In years when sufficient funding is anticipated to be available, 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 an employee can consist of an across-the-board increase, a cost center-funded increase, and/or a centrally-funded increase. Across-the-board increases are provided to full-time employees as a percentage of base salary. Cost center-funded and centrally-funded salary increases are based on performance, equity, and/or cost of living increases and are distributed on an individual employee basis by the cost center head. Eligibility criteria based on length of employment are determined annually.

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 not receive annual salary increases, 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 increase that takes the salary to the maximum of the pay grade.

The cost center administrator is responsible for distributing the annual salary increase notifications to employees.

4.3.3 Starting salaries

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.

4.3.4 Promotions

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:

  • magnitude of the difference between midpoints of the new and current pay grades (the percentage change from one midpoint to the other),
  • need to allow for future merit and equity salary increases within the new salary range,
  • qualifications of the employee relative to the minimum qualifications of the job, and
  • salary that would have been offered to a similarly qualified external candidate.

In determining promotional salary increases in jobs involving multiple incumbents, consideration will be given to the salaries of incumbents sharing the job title, with similar qualifications. 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 and report their findings to the hiring official for their consideration. 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 applied to the salary resulting after the promotion.

Employees who believe they are qualified and who are interested in being considered for promotion to a vacant position must apply to the pertinent posting on the university's applicant tracking system.

4.3.5 Transfers

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.

4.3.5.1 University-Initiated transfers

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.

If the transfer occurs as the result of disciplinary action, the employee's salary will be determined jointly by the employee's new department head and the director of human resources with approval from the major cost center administrator.

  1. Lateral Transfer A lateral transfer occurs when the transfer is to a different position within the same job or to a different job that has the same salary range. There may or may not be a change to the employee's salary resulting from a lateral transfer. In most cases, such decision will be solely dependent upon the decision of the cost center to which the transfer is made.
  2. Transfer to a Job with a Lower Midpoint When the transfer is to a job that has a salary range with a lower midpoint than the employee's current salary range. The cost center may, at its discretion, offer a lower salary than the employee’s current salary due to budgetary constraints and/or to ensure salary equity within the cost center. If 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.
  3. Vacancy Procedures When the transfer is to a vacant position in the same job or to a different job that has the same salary range or salary range that has a lower midpoint, for which the employee meets the minimum job qualifications, the vacant position will not be subject to the normal university vacancy posting procedures. If the department with the vacancy agrees, the employee being transferred will be asked if he/she is interested in accepting the vacant position. If the employee decides not to accept the transfer to the vacant position, normal university vacancy procedures will be followed. (See Section 3.4, Job Posting)

4.3.5.2 Employee-initiated transfers

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 must apply to the pertinent posting on the university’s applicant tracking system and be selected for the position. 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.

  1. Lateral Transfer A lateral transfer occurs when the transfer is to a different position within the same job or to a different job that has the same salary range. There may or may not be a change to the employee's salary resulting from a lateral transfer. Such decision will be solely dependent upon the decision of the cost center to which the transfer is made.
  2. Transfer to a Job with a Lower Midpoint When the transfer is to a job that has a salary range with a lower midpoint than the employee's current salary range, the cost center may, at its discretion, offer a lower salary than the employee's current salary due to budgetary constraints and/or to ensure salary equity within the cost center. If 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.

4.3.6 Reclassifications

The job duties of a position can change over time, and this can result in a reclassification of a position to a new job or different existing job. 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 position that has changed over time.

The essential duties and responsibilities of a job or position 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 increase is determined 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. If a job or position within a job is reclassified to a grade with a lower midpoint, the department head and cost center administrator will determine the salary of the affected employee.

4.3.7 Within-grade salary adjustments

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:

  • Internal equity – may be used to address salary inequities among individuals who are in positions that require similar skills, responsibilities and experience.
  • Special market considerations – may be used when there are compelling market reasons for an adjustment.
  • Additional responsibilities – a salary increase of no more than 12%, not to exceed the maximum salary of the pay range, may be provided for employees who are assigned significant additional, ongoing job duties resulting from a reorganization or implementation of a new organizational initiative. Subsequent equity adjustments may be needed for other employees within the department. Documentation of additional responsibilities must accompany the PAF.
  • Sustained commendable job performance – at the discretion of the cost center, dependent upon adequate budgeting, employees who have an ADP score in the top tier of their cost center for the previous 3 years may receive a salary increase of not more than 12% every third year of employment, not to exceed the maximum of the salary of the pay range. Documentation of the previous three ADP scores and their cost center standing must accompany the PAF.

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.

4.3.8 Temporary additional duties

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.

4.3.8.1 Differential pay – nonexempt employees

An out-of-grade differential is an additional hourly 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 hourly rate to facilitate correct overtime calculations and is not included in the base salary for calculation of annual salary increases.

4.3.8.2 Supplemental pay – exempt employees

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.

4.3.9 Extraordinary circumstances

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.