HUMAN RESOURCES MANAGEMENT POLICY COMPENSATION. Policy 15

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1 HUMAN RESOURCES MANAGEMENT POLICY COMPENSATION Policy 15 NOTE: The language used in this document does not create an employment contract between the employee and the Medical University of South Carolina. MUSC reserves the right to revise the content of this document, in whole or in part. No promises or assurances, whether written or oral, which are contrary or inconsistent with the terms of this paragraph create any contract of employment. I. POLICY It is the policy of the Medical University of South Carolina (hereinafter MUSC or the University ) to recruit, hire, train, and promote into all job levels the most qualified persons without regard to race, color, religion, age, national origin, disability, veteran status, genetic information, sexual orientation, gender identity, or sex, except where sex is a bona fide occupational qualification. At MUSC, we strive to create an academic healthcare community where every member is respected and valued. We believe in the strength of a diverse and inclusive workforce, where differences provide us the unique ability to change what s possible in patient care, research and education. II. GUIDING PRINCIPLES AND PAY STRUCTURE OVERVIEW A. MUSC is committed to the practice of fair and equitable pay within the fiscal resources of the University and the pay structure, as set by The SC Department of Administration. The guidelines in this document are designed to provide employees with a general understanding of the University s Compensation System. B. The market median (50 th percentile) is targeted as a competitive basis for salaries. Note that salaries may be below or above the market median based on factors such as experience, skills, level and complexity of duties, and challenges in the recruitment and retention of certain positions. C. As part of the University s pay philosophy, the projected goal in Human Resources Management (hereinafter HRM ) is to proactively review major occupational groups within the University s classification system every 3-5 years. These reviews will be coordinated on a rotating schedule and will include analyses of internal salaries as

2 SUBJECT: COMPENSATION Page 2 of 8 compared with relevant market data to gauge the University s overall market competitiveness. D. HRM administers the classification and pay systems for university employees, including those in unclassified non-faculty positions. 1. Pay rates are determined by factors such as related education and experience, job responsibilities and complexity of duties, internal equity and external market data. 2. Each classified position is associated with one of 10 pay bands. Employees must be paid no less than the minimum of the assigned pay band, and base salaries shall not exceed the maximum of the assigned band. 3. Base pay for full-time employees at MUSC is based on 40 hours worked per week (2,080 hours per year). III. SALARY ASSESSMENTS All salary requests must be reviewed and approved by HRM in order to ensure consistent and equitable salary administration. Each department is responsible for ensuring that it has the resources to implement HRM-authorized starting salaries and salary adjustments. HRM must be contacted for approval prior to a salary commitment being made. HRM will communicate an annual review schedule to manage ongoing requests which will allow for time to meet with the requestor as needed, collect applicable market data and analyze incoming requests. Comprehensive departmental and/or division-wide studies will run concurrently. The targeted completion dates will be communicated individually based on the number and volume of requests pending. Salary Assessments Address Two Broad Issues Paying for the Job Paying for the Individual *Defining the market *Pay position relative to market *Pay within assigned pay band *Internal data on pay in job/similar jobs + *Pay guidelines *Skills, Knowledge, Education, Experience *Internal equity and internal placement in reporting structure A. Setting New Hire Salaries 1. Employees will be paid within the pay band associated with the assigned classification. Relevant market data and other factors dictate where in the band an employee will be paid. HRM may approve special market-based hire rates, or hiring scales, for certain groups of like' positions as the market demands. In anticipation of external market changes and challenging talent requirements, these special market-based rates will allow HRM the flexibility to use relevant compensation models to aid in the attraction and retention of employees in designated segments of the employee population.

3 SUBJECT: COMPENSATION Page 3 of 8 2. Individual pay is determined through an assessment of individual skills, knowledge, experience, and education, in addition to consideration of internal equity and the external market. Additional supporting justification may be requested as needed to substantiate market competitiveness or unique skills. 3. Duties of the position as compared to those with similar duties or similar level of duties is also a factor in determining pay. B. General Increase When applicable, the State Appropriation Act may authorize general base pay increases, also referred to as Cost of Living Adjustments (COLA), for specified occupational categories. C. Pay-for-Performance Provisions for Pay-for-Performance are evaluated each fiscal year by MUSC executive leadership and academic deans, primarily based on internal budgetary limitations. When authorized, guidelines will be issued communicating the specific percentages to be awarded based on employees most recent and current performance evaluation ratings, in addition to information pertaining to employees whose salaries are at the maximum of their respective pay band. D. Promotion, Reclassification and In-Band Increases 1. Promotion: the movement of an employee from one position to another position in a higher salary band and with duties not yet performed; or, for unclassified positions, the movement to a position with an increased level of responsibility. In general, promotional opportunities occur through a competitive process resulting from a recently vacated or newly created position that is posted for recruitment. 2. Reclassification: the assignment of a position in one class to another class, typically due to a natural progression within the same job family, when substantive or organizational changes in duties and level of responsibilities of the position have occurred. A reclassification can be lateral (same band), upward (higher band) or downward (lower band). In general, requests for reclassification will be considered only after an employee has successfully performed the newer duties for a minimum of three to six months, and with assurance that the duties are not temporary. a. An employee who is promoted or reclassified may be eligible for a salary adjustment based on appropriate market comparisons and internal equity. b. If/when a salary adjustment is given, the effective date of the adjustment will be the beginning of the pay period that coincides with or immediately follows the date of promotion or reclassification, and may not be granted retroactively. A salary adjustment will not take effect until HRM has officially approved the request and received all required internal approvals and documents, unless a contractual situation mandates otherwise.

4 SUBJECT: COMPENSATION Page 4 of 8 E. In-Band Salary Increases: may be awarded to an employee based on exceptional circumstances, such as the assignment of substantial additional duties and responsibilities which enhance the scope and complexity of the job; acquisition of job-related additional knowledge and skills; transfer from another state agency; or retention, when an employee has a bona fide job offer. Note that such increases are not guaranteed, and an employee may be considered for no more than one (1) retention increase in a 12 month period, and no more than one (1) in-band increase per fiscal year. Once HRM has completed its review and deems a salary adjustment is justified, multiple factors are considered including those outlined below in order to make a sound pay decision. EXAMPLE OF CRITERIA FOR CONSIDERATION* Assessment of Employee, Position and Salary Degree of increase in responsibilities, scope and complexity Moderate Significant Current salary relative to market data and/or internal averages High Low Current salary relative to other similarly-situated employees (i.e. similar duties, skills, knowledge, competencies, and experience) High Low Moderate Depth and breadth of skills and knowledge High Modest Increase 2% 4% Significant Increase 7% 10% *For guidance only; increases are not guaranteed F. Market and Equity Adjustments Market data from published salary surveys that HRM has deemed relevant and reliable will be used to gauge compensation in the market for jobs similar to those at MUSC. The validity of the data sources is determined based on a number of factors, including: reasonable sample size; relevance and quality of position descriptions provided for the surveyed job; data that is not self-reported by employees whose positions are being surveyed; and results that provide percentile breakdowns. HRM also utilizes market assessment tools to compile survey data as needed. It is important to note that geographic information, surveys that match titles only, and those in which data is self-reported, will not be used to determine market matches. Premium adjustments or discounts may be applied to relevant survey matches to adjust for significant differences between the job at MUSC and the survey job. The appropriate survey scope/cut is based on the comparison market for the priced job. The market median (50 TH percentile) is targeted for comparison.

5 SUBJECT: COMPENSATION Page 5 of 8 In addition to market data, HRM will also take into consideration attrition information, recruitment/retention factors and departmental recommendations. Results of each salary study will be discussed with and a summary provided to the requesting department. G. Pay upon Lateral Transfer Employees who accept a lateral transfer into a position or classification within the same pay band generally do not receive a pay increase as a result of the transfer. Factors such as greater job responsibilities and skill enhancement may be taken into consideration, as applicable. H. Salary Decreases In the event a classified employee is demoted or his/her assigned position is reclassified to a lower pay band, a decrease in salary will be considered on a case-by-case basis. 1. A non-probationary employee who is promoted or reclassified upward and is subsequently demoted/reclassified downward prior to attaining permanent status (completion of trial period) in the higher classification, will have a reduction in salary by the amount received upon promotion or upward reclassification. This reduction in salary is not grievable. 2. The salary of an employee who was awarded an in-band increase based upon the assignment of additional duties or responsibilities will be reduced by the amount awarded if the duties are removed within six (6) months of the date of the salary increase. This reduction in salary is not grievable. 3. An employee who does not successfully complete a warning period of Substandard Performance in accordance with HRM Policy No. 16, Employee Performance Management System and has been demoted may experience a reduction in salary. This reduction in salary is not grievable. 4. If a demotion or downward reclassification is voluntary, an explanatory statement should be signed by the employee and supervisor and submitted to HRM. A reduction in salary in conjunction with a voluntary demotion or downward reclassification is not grievable. 5. If an employee s salary is above the salary band maximum of the lower classification as a result of a demotion or downward reclassification, the employee shall not be eligible for pay increases unless: the maximum of the pay range is subsequently adjusted above the employee s rate of pay; or the employee is subsequently promoted/reclassified upward and the current rate of pay is below the maximum for the new band. 6. When an employee is demoted and the salary is not reduced and he/she is subsequently promoted within six (6) months from the date of demotion, the employee will not be eligible for a promotional pay increase unless the salary at the time of promotion is below the pay band minimum for the classification to which promoted.

6 SUBJECT: COMPENSATION Page 6 of 8 I. OTHER PAY 1. Shift and Weekend Differential Pay Shift and weekend differentials may be authorized for eligible non-exempt (hourlypaid) employees who regularly work evening, night or weekend shifts provided the employees work at least four (4) hours into the shift. Shifts are designated as follows: Day Evening Night 7:00 a.m. 3:00 p.m. 3:00 p.m. 11:00 p.m. 11:00 p.m. 7:00 a.m. 2. On-Call and Call-Back Pay a. On-call duty is restricted to non-exempt (hourly-paid) employees in preapproved positions. Its purpose is to provide essential staffing coverage and an approved employee must be scheduled and available to return to duty work-ready, within a specified period of time. b. An employee in on-call duty status who is not available when contact is attempted or who is not able to report to work, as required, shall not be eligible for on-call compensation for that date and may be subject to disciplinary action. c. Should it become necessary for a non-exempt (hourly-paid) employee to be called back to work for emergency services after he/she has worked a normal day or shift and the services require less than two (2) hours on the job or in the event no work is available, a minimum of two (2) hours of work time will be credited. If the actual call-back time causes an employee to exceed 40 hours of work time during a single workweek, then overtime will be paid or compensatory time accrued. d. Employees on Annual Leave, Sick Leave, or Compensatory Leave are not eligible to be in an on-call duty status. 3. Award and Incentive Pay In certain instances, departments may award lump-sum payments to individuals or groups of employees who materially affect the financial and/or operational goals of their respective organizational units. Bonus requests and incentive plans must be recommended through appropriate administrative channels and approved by HRM Classification & Compensation. Please see the Award and Incentive Pay Request form for additional information regarding the criteria that must be met and approved prior to awarding.

7 SUBJECT: COMPENSATION Page 7 of 8 Bonus requests and incentive plans do not become part of an employee s base salary and are not intended to be awarded on an annual basis as part of one s total compensation. 4. Temporary Pay for Acting/Interim Responsibilities a. A temporary pay adjustment may be approved for an employee who temporarily assumes substantially greater or higher level responsibilities. In all circumstances, HRM must be contacted for approval and determination of appropriate salary adjustments prior to any changes being made. Temporary adjustment amounts are determined based on documented circumstances, departmental justification, internal equity and relevant market comparisons. b. A temporary pay adjustment for an acting/interim role may be approved for a specific period of time or until the higher level position has been filled, whichever occurs first, typically not exceeding one year. 5. Travel Time (Non-Exempt Employees Only) a. Home to Work Travel: Travel time between home and work is not considered work time; therefore, it is not compensable. b. Home to Work on a One Day Assignment in Another City: Travel to another city for a one day assignment (i.e. lectures, meetings, and training programs) is to be compensated as normal hours worked for time spent traveling to and from the other city, as well as the time spent attending the assignment. c. Travel that is all in a day s work: Time spent by an employee in travel as part of their principal activity, such as travel from job site to job site, is considered work time and must be compensated. d. Travel Away from Home: Travel that keeps an employee away from home overnight is work time when it cuts across the employee s workday, and the employee is engaged in job related activities. The time is not only hours worked on regular working days during normal working hours but also during corresponding hours on non-working days (i.e. Saturdays, Sundays). e. Time spent in travel outside of regular working hours as a passenger on an airplane, train, etc. is not considered work time. 6. Lectures, Meetings and Training Programs (All employees) Attendance at lectures, meetings, training programs and similar activities is to be counted as work time (overtime may accrue for non-exempt employees) unless the following four (4) criteria are met:

8 SUBJECT: COMPENSATION Page 8 of 8 a. The event is outside normal hours; b. Attendance is voluntary; c. It is not job-related; and d. No other job related work is concurrently performed. IV. OTHER RELATED INFORMATION AND PROCEDURES A. In accordance with State law, employees will be notified at the time of hiring of the terms of employment, including but not limited to, the status of the position under the federal Fair Labor Standards Act (FLSA), normal hours and wages agreed upon, the timing of payments, and the deductions, which will be made from wages earned. B. All payments to employees will be processed through the HRM and Payroll systems and will be made by direct deposit and are subject to applicable Federal and State taxes and withholdings. C. Employees may access My Records, at at any time to view their pay statements, showing gross pay and deductions for each pay period. Approved By Information Contact Reviewed Lisa P. Montgomery, MHA Executive Vice President Finance and Operations Department of Human Resources Management/Classification and Compensation July 2015