STAFF COMPENSATION PROGRAM

Transcription

1 STAFF COMPENSATION PROGRAM Compensation Administration Guidelines August 2015

2 T a b l e o f C o n t e n t s INTRODUCTION... 1 ROLES AND RESPONSIBILITIES... 2 COMPENSATION PROGRAM AND GUIDELINES... 4 CURRENT COMPENSATION STRUCTURE... 7 STAFF COMPENSATION PROGRAM, EXEMPT (SALARIED)... 7 STAFF COMPENSATION PROGRAM, NON-EXEMPT (HOURLY)... 7 PAY RATE ADJUSTMENTS EQUITY AND MARKET ADJUSTMENTS... 8 FLSA AND WAGE/HOUR GUIDELINES EXEMPT/NON-EXEMPT STATUS AND OVERTIME PAY PAY FOR ALL TIME WORKED (NON-EXEMPT STAFF ONLY) JOB DESCRIPTIONS JOB DESCRIPTIONS RECLASSIFICATION OF A JOB JOB-BASED CHANGES TRANSFER TO A JOB IN THE SAME GRADE PROMOTION TO A JOB IN A HIGHER GRADE DEMOTION TO A JOB IN A LOWER GRADE TEMPORARY ASSIGNMENTS/INTERIM APPOINTMENTS PERMANENT CHANGE IN JOB RESPONSIBILITIES EARNING A DEGREE i

3 Introduction Samford University ( Samford or University ) seeks to attract, retain and reward employees in order to support and further the institution s mission and objectives. To this end, compensation at Samford will strive to: Subject to the University s available resources, establish appropriate levels of pay that are as competitive as possible with local, regional and national markets Reward performance identified through performance reviews Provide compensation cost control based on budgeted amounts Cultivate a positive environment through fair and equitable classification of jobs and fair compensation for job incumbents Comply with applicable federal laws such as the Equal Pay Act, the Fair Labor Standards Act, and any other applicable state and federal laws and regulations This manual is intended to serve as a framework for administering the compensation program at Samford consistently throughout the institution. The Human Resources department is responsible for administering the compensation program and for making periodic updates (e.g., compensation program updates, benchmarking reviews, etc.) in order to keep it current. This manual applies to Samford staff only it does not apply to student employees, faculty, contract coaches or the president, provost or vice presidents. Samford reserves the right to interpret the policies, rules, sections, and provisions contained in this document, it deems appropriate in its sole discretion. Acknowledging that exceptional circumstances may cause variations in the practice of these guidelines, Samford also reserves the right to amend, modify, change, cancel, terminate, or withdraw any or all of the policies, rules, sections, and provisions of these guidelines at any time, unilaterally, with or without prior notice. This document is not a contract of employment and may not be construed as any part of any contract of employment. 1

4 Roles and Responsibilities To ensure that the program is administered in a consistent, impartial manner, the roles and responsibilities for key constituents involved in compensation decision-making are defined in the table below: Employee Manager/ Supervisor Human Resources Understand and fulfill job s essential functions, as defined by the job description Respond appropriately to feedback provided by manager or supervisor as related to job responsibilities and performance Provide accurate records of hours worked, as needed Raise issues or concerns about job responsibilities and/or compensation with his or her manager Understand job responsibilities and requirements of jobs in their areas, and the skills, knowledge, and experience of respective staff Maintain accurate and current job descriptions Recommend and implement performance standards, providing clear and constructive feedback, and evaluating performance Communicate openly with their staff about compensation topics While individual divisions and schools are authorized and delegated the power to make compensation decisions, they must be well reasoned, documented and discussed with and approved by Human Resources Collaborate with administrators and hiring managers to establish and maintain appropriate pay rates Regularly collect benchmark data from the appropriate sources, assess compensation competitiveness, and recommend adjustments to the compensation structure as well as individual pay rates Provide senior administrators, managers, and supervisors with tools and resources needed to make informed compensation decisions for their staff (benchmark data, hiring ranges, federal/state policies, etc.) Design, develop, and maintain the compensation program, including compensation guidelines, and ensure fairness in and consistency of application Communicate the compensation program and ensure understanding within the University community Regularly monitor the effectiveness of the compensation program and practices, its continued competitiveness, and on-going equity 2

5 Senior Leadership Communicate openly, regularly, and clearly with the Samford community on all compensation related matters Endorse compensation program design and implementation processes Establish and communicate institutional philosophy and operational goals to the community Set the standard for performance planning, coaching and feedback, and hold their direct/indirect reports accountable for the same Review and endorse annual compensation structure update as warranted Within the constraints of available resources and the prioritization process for the annual operating budget, provide the resources needed to maintain the compensation program Approve relevant compensation actions 3

6 Compensation Program and Guidelines The compensation program has been developed using survey pay information gathered from market benchmarking. Specifically, Samford developed a market-based compensation program with relatively broad compensation ranges for staff that: Is relatively simple with less frequent maintenance and re-evaluation of grading of jobs required due to flexibility built into the structure Allows for increased flexibility in cross-functional job movement Allows for balancing pay for both the job and the incumbent s qualifications and performance The structure consists of 11 grades with pay ranges that align with the market. Job grades are the hierarchical ranking of pay ranges. Multiple jobs are associated with each job grade. Each grade consists of: A minimum, the lowest pay for jobs in the grade. Generally an employee will not be paid below the minimum of the pay range associated with that employee s job The midpoint, the middle of the grade. The midpoint is the pay which is considered to be a fair and equitable rate of compensation for an employee who is fully qualified for the position from the standpoint of training and experience, and whose demonstrated performance on the job over a period of time is satisfactory in all respects A maximum, the highest pay for jobs in the grade. Generally an employee will not be paid above the maximum of the pay range associated with that employee s job Periodically, Samford will conduct a comprehensive market assessment to evaluate the structure s competitiveness and alignment with Samford s mission and objectives. Any revisions will be established and implemented as approved by senior leadership, given the financial resources of the institution. 4

7 Managing Pay Within the Structure Pay grades are wide enough to accommodate a variety of experience and performance levels. The specific level of compensation within a range may reflect any combination of lawful factors, including but not limited to: skill, education, training, experience level, performance and merit, quantity and quality of production, and efficiency. As a general policy, no one should be paid below the pay grade minimum. Setting the Starting Pay The Human Resources office must be consulted for pay decisions for new hires in order to maintain consistency within the pay structure and appropriately consider comparability among similar positions. Step 1: Review the Skills and Experience of the Individual A new employee will generally receive a pay rate between the minimum and midpoint of the grade. Factors, such as relevant experience, education or market conditions should be considered when determining appropriate placement within the grade. Rationale for exceptions for a new hire above the midpoint of the pay range must be documented. The hiring manager must provide written documentation indicating the need for the exception and submit this to Human Resources prior to extending the offer. Consideration for such an exception will be based upon the qualifications of the candidate, number of qualified applicants identified and market considerations. Step 2: Review Internal Equity Before any pay rate is finalized, Human Resources will conduct a review of the compensation of current employees in similar jobs to consider internal comparability. Step 3: Final Approval of Pay Rate Level Final starting pay rates must be approved by the appropriate Vice President and reviewed and approved by HR before being offered to the prospective employee. Upon approval, Human Resources will submit this information for appropriate next steps. Pay Rate Determination for a New Job Periodically, Samford may need to create a new job to allow the University to achieve its strategic objectives. When this becomes necessary, the manager/supervisor, appropriate senior leader, and HR will follow the steps below: Step 1: Develop a Job Description for the Job 5

8 The manager/supervisor, working with the appropriate senior leader, develops a job description for the job to account for the essential duties of the job. Managers should fill out a job description template and submit the template to HR. Step 2: Determine if Job Currently Exists at the University HR completes a review of the job description to determine if it reflects a job that currently exists at Samford. If it does, the job will be given the same title and will be assigned to the same grade as the existing job. If not, proceed to Step 3. Step 3: Review the Description and Determine its Grade Assignment Either through a quantitative market analysis (for benchmark jobs) or a qualitative comparison to jobs already assigned to grades in the compensation structure (non-benchmark jobs), HR will determine the grade to which the job will be assigned. Once this process has been completed and the job is filled (either internally or externally), the starting pay rate will be set using the process described above. 6

9 Current Compensation Structure Staff Compensation Program, Exempt (salaried) Grade Minimum Midpoint Maximum Midpoint Differential Range Spread A $23,200 $29,000 $34,800 N/A 50% B $26,680 $33,350 $40,020 15% 50% C $30,680 $38,350 $46,020 15% 50% D $35,280 $44,100 $52,920 15% 50% E $40,580 $50,720 $60,870 15% 50% F $44,330 $59,850 $75,360 18% 70% G $52,310 $70,620 $88,930 18% 70% H $61,730 $83,330 $104,940 18% 70% I $72,840 $98,330 $123,830 18% 70% J $85,950 $116,030 $146,120 18% 70% K $101,420 $136,920 $172,410 18% 70% Staff Compensation Program, Non-exempt (hourly) Based on 2,080 Annual Hours (40 Hour Work Week) Grade Minimum Midpoint Maximum A $11.15 $13.94 $16.73 B $12.83 $16.03 $19.24 C $14.75 $18.44 $22.13 D $16.96 $21.20 $25.44 E $19.51 $24.38 $29.26 F $21.31 $28.77 $36.23 G $25.15 $33.95 $42.75 H $29.68 $40.06 $50.45 I $35.02 $47.27 $59.53 J $41.32 $55.78 $70.25 K $48.76 $65.83 $82.89 Ongoing Maintenance of Compensation Structure Human Resources will review the appropriate market trends and surveys to determine if and when structural adjustments are warranted, and will make a recommendation to leadership. Senior Leadership will make the final decision on the structure increase, given the financial resources of the institution. 7

10 Pay Rate Adjustments Equity and Market Adjustments Human Resources will review survey data and internal pay rates regularly. From time to time, it may be necessary and appropriate to adjust pay rates to establish/maintain internal comparability or to recognize significant market changes. Equity Adjustment: an adjustment that is made to ensure that an individual staff member s pay rate appropriately reflects his/her skills, knowledge, experience, and performance. Comparability adjustments may be made at the same time as the annual increase, and, if so, will be clearly communicated to the staff member to avoid confusion with the annual increase. Market Adjustment: an adjustment that is made to recognize changes in the competitive market pay rate for a job. Market adjustments are unlikely to occur often, because the compensation program is based on benchmarking and is updated regularly to ensure continued competitiveness. Occasionally, however, unusual market circumstances may warrant an adjustment. All ad-hoc individual adjustments will be reviewed and approved by the appropriate Vice President and HR prior to being implemented. President s Cabinet will approve any Universitywide adjustments. Merit Increases While it is the intent of Samford to provide merit increases when finances permit, the institution cannot guarantee that such increases will occur every year. Senior leadership will determine the percentage of the merit increase pool and communicate the amount to the managers and supervisors. It is expected that individual merit pay increases will be reasonably distributed according to established performance criteria among employees. Red Circle Policy If increases in pay are made for all staff members, an employee whose pay exceeds the maximum for the job s pay range may be red-circled. The incumbent may receive some level of pay increase, provided his or her performance is entirely satisfactory. The amounts of such increases, however, will vary depending on the availability of funds, performance, and internal comparability. Amounts may be paid as a lump sum rather than as an adjustment to base pay. Over time, an employee s pay rate may fall within range due to upward adjustments to Samford s compensation structure. Off-Cycle Increases There may be exceptional circumstances that warrant a pay increase independent of any general pay increases. For example, an off-cycle increase may be due to a temporary appointment (see p. 13 for more detail). If this is the case, the adjustment will be 8

11 communicated separately from other increases. Off-cycle increases will be reviewed on a case by case basis. 9

12 FLSA and Wage/Hour Guidelines Exempt/Non-Exempt Status and Overtime Pay Federal 1 and state laws require that overtime be paid for certain jobs. All jobs fall under one of the two categories below: Exempt refers to jobs that are excluded from these overtime requirements. This means that incumbents are not entitled to overtime pay if the job is exempt regardless of how many hours are worked. Non-exempt refers to jobs that are not exempt from legal overtime requirements. This means that incumbents in non-exempt jobs are entitled to overtime pay for all time worked beyond 40 hours in a week. The overtime rate of pay is one-and-a-half times the regular hourly rate for each hour worked. Prior to working beyond the normally scheduled hours, the incumbent must obtain approval from his/her manager. According to the FLSA, Samford can be penalized for failure to pay for unauthorized time worked. In accordance with legal requirements, the classification of a job as exempt or non-exempt depends on the content of the job as outlined in the updated federal regulations effective August 23, Criteria include: type of job responsibilities, reporting relationships, and/or qualifications of the person. It does not depend on how the staff member (or manager) wants to classify the job. Human Resources will make the final decision as to whether a job is exempt or non-exempt based on an analysis of the job as compared to federal regulations. Many exemptions from overtime require a minimum weekly salary. If a position is evaluated for exemption as a full-time job, but is later reduced to a part-time position, the minimum weekly salary may not be met and the position will lose its exemption. Pay for Time Worked (Non-Exempt Staff Only) It is the responsibility of the manager to communicate when overtime is and is not necessary for the staff member. In order to adhere to the budget, managers must inform staff in advance of restrictions in the number of overtime hours worked. It is the responsibility of the staff member to follow managerial guidance and to work overtime only when it is approved by his/her manager. Further details on FLSA can be found on the Department of Labor s website: 1 The Federal law is the Department of Labor s Fair Labor Standards Act (FLSA), originally enacted in 1938 and most recently updated in

13 Job Descriptions Job Descriptions Job descriptions are an essential management tool and can be used for many purposes, including recruitment, organizational planning, pay benchmarking, FLSA classification, ADA (Americans with Disabilities Act) compliance, and conveying expectations for performance management. It is important that job descriptions be current, accurate, and complete, as jobs partly are assigned to salary grades based on their content, role, and responsibilities. For every position, a job description will be developed and approved by the supervisor and department or division head. Job descriptions should not be viewed as an exhaustive list of tasks, but rather as an overview of the duties and responsibilities of the role. Human Resources will provide a job description template that should be used for writing job descriptions. The Human Resources office is responsible for archiving current job descriptions for all staff positions. Reclassification of a Job During the normal course of operations, changes in primary/essential responsibilities may make it necessary to rewrite or update the job description. If there are substantial changes, the modifications should be noted and forwarded to the appropriate senior leader for review and approval. In conjunction with a staff member from Human Resources, the senior leader should review changes to ensure equitable distribution of departmental workloads and appropriate assignment of tasks. When both the senior leader and HR staff member are satisfied with the revised job description, the position will be evaluated for grade assignment by HR. The following are examples of situations that may warrant a job reclassification: Department reorganization and job restructuring Addition of full-time staff reporting to the job Addition of new area(s) of responsibility Major change in level of authority and accountability Small changes in a job do not influence market value or the job's core role at Samford and, therefore, would not warrant reclassification (e.g., different software to handle same job responsibilities, procedural changes to existing work, responsibility for overseeing student workers). In addition, a job would not be reclassified if the incumbent earns a degree or achieves another educational milestone, unless this results in changes in the job, level of authority, scope of responsibility, etc. 11

14 Re-classification Requests Requests for reclassification should be made by the manager to whom the job reports, and not by individual staff members. If a staff member believes that his/her job needs to be reclassified, he/she should discuss this with his/her manager, who will review the request with Human Resources to determine the appropriate course of action. If the senior leader agrees with the request, he/she can forward the petition for re-evaluation to Human Resources for review. In the case of a re-organization, HR can initiate the re-evaluation process. Only one re-evaluation per job is permitted in a given calendar year, except that exempt/non-exempt status may be reviewed as deemed appropriate. 12

15 Job-Based Changes Transfer to a Job in the Same Grade Not all career advancement opportunities are promotions. A staff member can advance in his or her career by taking a different job in the same grade. This enables him or her to become broadly skilled, enhances his or her ability to contribute to Samford, and positions the staff member for future promotional opportunities. Managers, in consultation with Human Resources, may recommend a pay rate within the grade based on the incumbent s skill, knowledge, experience, performance, and current position within grade. Final decisions regarding changes to the pay rate must be reviewed and approved by Human Resources as well as the appropriate Vice President before making the employee aware of any change. Promotion to a Job in a Higher Grade Being promoted involves taking on a job that is assigned to a higher grade. Such a move generally warrants an increase in pay rate to recognize these additional responsibilities and to ensure that pay rate for the new job is consistent with market and other jobs within the university. An exception may occur if the incumbent s current pay rate is relatively high in the grade for his or her current job. Human Resources and managers will collaborate to determine an appropriate pay rate within the new grade, based on the staff member s skill, knowledge, experience, and performance. The manager will recommend a pay rate, which Human Resources will review and approve and submit to the appropriate Vice President for approval. In no case shall the promoted staff member receive less than the minimum for the new position. Demotion to a Job in a Lower Grade At times, a staff member may be reassigned to a job in a lower pay grade. This may occur because of a more appropriate fit between the staff member s capabilities and the skills and expectations of a different job, or the staff member may choose to take on a job with lesser responsibilities. Involuntary Demotion When a staff member is involuntarily reassigned to a job in a lower grade, the incumbent s pay rate may remain the same, and the maximum will be managed within the new grades minimum and maximum. This means the incumbent s pay rate may either be red-circled or reduced at the discretion of the manager and Human Resources. 13

16 Voluntary Demotion If a staff member elects to take a job in a lower grade, his or her pay rate may be reduced to reflect the responsibilities of the new job. The amount of decrease in the pay rate should reflect the difference between the grade of the current job and of the new job. This difference should be determined by examining the percentage difference between the grades and applying the differential to the current pay rate. NOTE: Before finalizing compensation, however, the incumbent s skills, knowledge, experience, and performance must be reviewed in comparison to the guidelines for the new pay grade and in comparison to incumbents in similar roles. The initial pay rate adjustment recommendations should be modified, if necessary, to ensure comparability with the current incumbents in similar positions in the new pay grade. Temporary Assignments/Interim Appointments From time to time, it may be necessary for staff members at Samford to take on additional or different responsibilities temporarily (typically 90 days 1 year). The nature of these assignments will be assessed by Human Resources and the appropriate manager on a case-bycase basis. Any corresponding changes to pay (stipends) will be reviewed and approved by Human Resources as well as by the appropriate Vice President. Stipends are temporary additional payments separate from base pay. Employees may be eligible to receive stipends for additional work that is different from their day-to-day job responsibilities. Examples may include, but are not limited to: taking on responsibilities of another job due to employee resignation, or temporary program or event management or coordination. Once the additional work has ended, the stipend will terminate. Permanent Change in Job Responsibilities Adding significant additional duties to an existing job may warrant a change in pay rate and should be calibrated to the magnitude of change. The nature of these assignments will be assessed by Human Resources and the appropriate manager on a case-by-case basis. Any corresponding changes to pay will be reviewed and approved by Human Resources and the appropriate Vice President. Pay Rates Above Grade Maximum Employees whose pay rates are above the maximum of their salary grade will not be eligible for increases to base salary. In exceptional circumstances, employees may instead be eligible for a lump sum payment. As pay grades are adjusted for inflation and/or market pressure, employee pay rates that were previously above the grade maximum, may again fall within the structure. 14

17 Earning a Degree Earning a degree or other professional designation by itself does not generally warrant a pay rate increase unless job responsibilities change as a result of the degree attainment. 15