Managers Guidelines for Salary Requests for Administrative Staff at Ohio University

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1 Managers Guidelines fr Salary Requests fr Administrative Staff at Ohi University Cmpensatin Pay Philsphy Ohi University believes that emplyees are its mst valuable resurce and are partners in achieving the university s missin and gals. Cmpensatin is a key factr in recruiting, retaining, mtivating and rewarding a talented and cmmitted wrkfrce. Pay determinatin plicies and guidelines emphasize cntinued develpment f knwledge, expansin f skills, perfrmance and the ability t be flexible and adaptable t change. Our gals are: t cmpete fr qualified emplyees in an evlving higher educatin envirnment, t pay emplyees fairly and equitably t reward qualified emplyees t be fiscally respnsible The purpse f these guidelines is t establish a university decisin-making prcess fr emplyee base wage adjustments ther than general annual increases fr administrative staff. Fr pay plans t be equitable and effective it is imprtant t cnsider bth internal and external equity. Internally, it is imprtant t cnsider the salaries f like jbs, as well as the individual s skills, knwledge, perfrmance and jb related experience. The external market cnsists f ther rganizatins with whm we cmpete fr emplyees with relative skills and experience. University Human Resurces will review the salary levels and ranges t determine whether we are paying at market. University Human Resurces tracks the market value f jbs by participating in annual salary surveys and btaining salary infrmatin n industry standard psitins, referred t as benchmark jbs; i.e., thse jbs that are typical in higher educatin and ther industries and easily matched t jbs at OU. Salary data frm these surveys indicate a salary range fr jbs fund in the market similar t urs. The market value fr certain jbs will vary and pay levels may increase at different rates depending n whether certain skill sets are in increasing demand r whether there is a shrtage f individuals with specific expertise. UHR will watch the market clsely and mnitr the relevant labr market t determine market mvement and its effect n emplyees pay. The prvisins in these guidelines are t ensure that the same decisin factrs and pririties are cnsistently applied with respect t adjusting salaries and apprving salary actins within the cntext f the Administrative and Prfessinal cmpensatin pay plan. All actins described in the fllwing guidelines must be reviewed and apprved thrugh the applicable apprval prcess befre they are cmmunicated t the affected r prspective emplyee. Refer t Plicy fr Administrative & Prfessinal Pay Plan and Plicy Pay Determinatin Plicy fr Classified/ Classified IT & Administrative IT Staff

2 I. Summary f Current Pay Determinatin Plicies (utlined in plicies and ) A. New Hires Starting salaries fr new emplyees are typically determined by referring t the pay grade assigned t the psitin being filled, the individual s jb-related experience, knwledge and skills, current pay, and the salaries f ther emplyees perfrming the same r similar jb functins. In rder t cmpare pay fr emplyees in similar jbs, a manager must als analyze jb-related characteristics fr each emplyee, including: Jb cntent (are emplyees, in fact, ding similar wrk?) Years f experience Qualificatins, educatin Jb-related knwledge Skills (required and premium ) Technical expertise Perfrmance Value f jb in the labr market Emplyees shall be hired at n less than the minimum salary f the applicable pay grade prvided that the minimum qualificatins f that psitin are met. All salaries must be apprved by the Planning Unit Head. Using the Pay Structures as a Guide fr Starting Salaries - The pay grade minimum is the rate that is typically ffered t emplyees wh meet the minimum qualificatins and wh are expected t perfrm the basic duties and respnsibilities f the psitin after nrmal training. These emplyees ften have limited relative experience and will require learning certain aspects f the jb. - The midpint r the market reference pint is cnsider apprpriate fr experienced and fully qualified emplyees whse perfrmance and experience fulfill the majr requirements f the psitin and enables them t perfrm mst aspects f the jb effectively with little r n training. - The maximum f the pay grade is cnsidered the upper limit f the salary pprtunity in a grade fr a bradly and highly experienced emplyee. The individual shuld be knwledgeable in the jb and related areas, and may have specialized skill r unique knwledge and serve as an expert resurce. Apprval Prcess fr Starting Salaries fr New Administratrs The hiring department is authrized t apprve starting salaries within the first quartile r 25 th percentile f the A/P pay structure, r within the develping range f the C&IT pay structure fr IT administratrs. With apprval frm the planning unit head, the department is authrized t prepare the appintment letter. Requests fr starting salaries beynd the 25 th percentile f the A/P pay structure, r beynd the develping range f the C&IT pay structure fr IT administratrs require cnsultatin with University Human Resurces. UHR will review the request and make a salary recmmendatin t the department. With apprval frm the planning unit head, the department is authrized t prepare the appintment letter. Requests fr starting salaries beynd the midpint r market reference pint f the pay structure require cnsultatin with University Human Resurces. A justificatin r business case fr the higher salary shuld be prvided by the department and apprved by the planning unit head. UHR will review and frward the request with a

3 recmmendatin t the Prvst. Prvst apprval must be received befre initiating an appintment letter. B. Prmtin Prmtins nrmally ccur as a result f the emplyment prcess and is the upward mvement f an emplyee t a jb in a higher pay grade with greater respnsibility. A prmtinal increase must bring the emplyee t, at least, the minimum f the new pay grade. The amunt f the increase is nrmally 10% fr administratrs and 7%-12% fr IT administratrs, but is dependent upn increased level f respnsibility. Befre determining the amunt f prmtinal increase, the fllwing factrs shuld be cnsidered: The emplyee s prficiency relative t jb requirements. Where the emplyee s current pay is in relatin t the pay range. Hw the emplyee s recmmended pay cmpares t that f thers in same r similar psitins, bth internally and externally. Hw the emplyee s recmmended pay cmpares t that f the supervisr r direct reprts. The emplyee s perfrmance. The impact f the emplyee s psitin n departmental gals and n the university s missin and gals. Funding availability. Prmtinal Increases fr Administratrs: Prmtinal increases fr administratrs are nrmally 10% f incumbent s current salary r the minimum f new pay grade, which ever is greater. With apprval frm the planning unit head, the department is authrized t prcess the new appintment letter. Departmental requests fr prmtinal increases in excess f 10% require cnsultatin with University Human Resurces. A justificatin r business case fr the higher increase shuld be prvided by the department and apprved by the planning unit head. UHR will review and frward the request with a recmmendatin t the Prvst. Prvst apprval must be received befre initiating an appintment letter. Prmtinal Increases fr IT Administratrs: Prmtinal increases fr IT administratrs are nrmally in the range f 7%-12% f the incumbent s current salary r the minimum f new pay grade, which ever is greater. With apprval frm the planning unit head, the department is authrized t prcess the new appintment letter. Departmental requests fr IT prmtinal increases in excess f 12% require cnsultatin with University Human Resurces. A justificatin r business case fr the higher increase shuld be prvided by the department and apprved by the planning unit head. UHR will review and frward the request with a recmmendatin t the Prvst. Prvst apprval must be received befre initiating an appintment letter. C. Upgrade The assignment f a psitin t a higher pay grade based n an evaluatin r jb audit f the psitin due t significant changes in the assignment f duties and level f respnsibility. Upgrade Increases fr Administratrs Upgrade increases fr administratrs are nrmally 5% f incumbent s current salary r the minimum f new pay grade, which ever is greater. With apprval frm the planning unit head, the department is authrized t prcess the new appintment letter.

4 Departmental requests fr upgrade increases in excess f 5% require cnsultatin with University Human Resurces. A justificatin r business case fr the higher increase shuld be prvided by the department and apprved by the planning unit head. UHR will review and frward the request with a recmmendatin t the Prvst. Prvst apprval must be received befre initiating an appintment letter. (Nte: Requests fr increases beynd the nrmal rates shuld be reviewed and evaluated with cnsideratin t internal and external equity, perfrmance and the psitin s impact n departmental gals, as well as, the missin and gals f the university.) D. Demtin The assignment f a psitin t a lwer pay grade based n an evaluatin r jb audit f the psitin due t significant changes in the assignment f duties and level f respnsibility. Emplyees reassigned t a different psitin in a lwer pay grade with decreased respnsibility shall have their salary reduced if it is in excess f the lwer pay grade s maximum. May be reduced as lw as the midpint f the new pay grade. With apprval frm the planning unit head, the department is authrized t prcess the new appintment letter. Any assignment belw the midpint must be reviewed by University Human Resurces. A justificatin fr the decrease in salary shuld be prvided by the department and apprved by the planning unit head. UHR will review and frward the request with a recmmendatin t the Prvst. Prvst apprval must be received befre initiating an appintment letter. E. Lateral Transfers The mvement f a persn t a similar psitin within the same pay grade as his/her current psitin. Nrmally there is n change in cmpensatin. (See II.Special Salary Requests fr Administrative Emplyees.) F. Peridic Increases Salary increase pls are determined by the President and subject t apprval f the Bard f Trustees. This determinatin is based n recmmendatins frm the VP fr Administratin and the Assistant VP fr Human Resurces based n market data, ecnmic indicatrs, salary planning prjectins and the availability f funds. When prvided, these increases are nrmally effective at the start f the fiscal year. General increases are distributed t all emplyees wh display satisfactry perfrmance. Merit increases are made at the discretin f the department head and vary with level f perfrmance. Funds may als be prvided t address equity r psitin-in-grade cncerns, r the strategic value f a psitin, and are usually awarded n the basis f ne s jb perfrmance. Lump Sum Payments may ccasinally be given t recgnize perfrmance. These payments are cnsidered earnings t the emplyee, but the amunt is nt included in the emplyee s annual base salary. (See plicy ) II. Guidelines fr Special Salary Requests fr Administrative Emplyees The purpse f these guidelines is t establish a university decisin-making prcess fr all administrative (salaried) base pay adjustments nt addressed in pay determinatin plicies and These guidelines are established t ensure that the same decisin factrs and pririties are cnsistently applied. Requests fr prmtinal increases t salaries currently abve r belw market value shuld be reviewed

5 and evaluated based n internal and external equity, perfrmance and the psitin s impact n the missin and gals f the university. A. Advancement Within a Pay Grade There may be times when significant changes in respnsibilities may appear t warrant a prmtin, but upn evaluatin it is determined nt enugh t warrant reassignment f the psitin t a higher pay grade. T recgnize increased respnsibility r the acquisitin f new skills r knwledge, change in duties and scpe f respnsibility, change in educatin/experience requirements, change frm individual cntributr t manager, etc., a mdest increase may ccur. Examples that wuld nt warrant a salary increase: - An increase in vlume f wrk/activity/transactins - Supervising additinal staff with similar respnsibilities - Acquiring a degree r certificate t remain current in psitin Examples that may warrant a salary increase: - Majr changes in prgrammatic respnsibilities - Jb requires significantly brader knwledge - Mre cmplex decisins and prblem slving - Impact and risks f decisin utcmes mre significant t department/unit - Brader, higher level cmmunicatins skills are required, i.e., influence, facilitatin, negtiatin - Mre cmplex prblems encuntered requiring higher level skill - Increased accuntability - Acquiring a degree r certificate enhances the emplyee s capability t d his/her jb at a higher level r is f benefit t the department - Acquiring skills/knwledge that is rarely fund and is critical t the department A mdest pay increase will be cnsidered when there has been a significant increase in either jb respnsibilities r the cmplexity f the jb, but nt enugh t warrant an upgrade. The amunt f increase wuld depend n the degree f change. In sme cases, UHR may require an updated/new jb descriptin (PDQ) in rder t ensure that the psitin s descriptin accurately reflects the increased respnsibilities. A business case shuld be presented t the apprpriate planning unit head fr cncurrence and submitted t UHR fr review. Salary increases up t 4% may be made with apprval frm the Chief Cmpensatin Officer. Apprval frm University Human Resurces must be received befre initiating a salary change. Requests fr salary increases larger than 4% may require a review and recmmendatin frm the Assistant Vice President f Human Resurces and apprval frm the Prvst. B. Lateral Transfers The mvement f a persn t a similar psitin within the same pay grade nrmally des nt warrant a salary adjustment. Hwever, lateral mvement is beneficial t the university in rder t develp and utilize emplyee talent and crss-train emplyees s that they may cntinue t add value t the university, as well as, t the individuals wh braden their base f knwledge and enhance their prfessinal grwth ptential. A mdest pay increase will be cnsidered when there has been significant value added by the emplyee t the psitin.

6 A mdest pay increase up t 4% will be cnsidered when there has been a significant increase in either jb respnsibilities r the cmplexity f the jb. The amunt f increase wuld depend n the degree f change. A business case shuld be presented t the apprpriate planning unit head fr cncurrence and submitted t UHR fr review. Salary increases up t 4% may be made with apprval frm the Chief Cmpensatin Officer. Apprval frm University Human Resurces must be received befre initiating a salary change. Requests fr salary increases larger than 4% may require a review and recmmendatin frm the Assistant Vice President f Human Resurces and apprval frm the Prvst. Examples that may warrant a salary increase: - New jb requires use f significantly new set f cntent knwledge r skills. - Emplyee s previus experience adds much t the new rle. - Cmbined skill set is f greater value than the single skill set. - Emplyee will be expected t wrk with mre internal/external cnstituents at a higher level. - Level f cmmunicatin (written and ral) is higher. - Emplyee will be expected t negtiate, set wn standards and gals, manage r cach at a higher level than current psitin. - New jb requires a higher level f analysis, innvative/creative thinking, and ability t adapt. - The impact f decisins and level f cnsequences is greater. - Increased level f independent actin and autnmy. Lateral Career Prgressin When it is determined that the psitin the emplyee is transferring t requires new and/r additinal skills, and is mre cmplex than the psitin the emplyee is transferring frm, an increase may be apprpriate. Internal Equity shuld als be taken int cnsideratin when an emplyee makes a lateral mve. The emplyee s current salary shuld be cmpared t salaries f thse in his/her new peer grup. An increase may be warranted, depending n the circumstances. C. Mid-Year Merit Increases T recgnize an emplyee that has sustained exceptinal perfrmance ver an extended perid f time and has clearly demnstrated the acquisitin f new cmpetencies, then a mdest increase may ccur. A mdest pay increase up t 4% will be cnsidered when an emplyee s cntributins have been s exceptinal that a mid-year pay increase is warranted. A business case shuld be presented t the apprpriate planning unit head fr cncurrence and submitted t UHR fr review. Salary increases up t 4% may be made with apprval frm the Chief Cmpensatin Officer. Apprval frm University Human Resurces must be received befre initiating a salary change. Requests fr salary increases larger than 4% may require a review and recmmendatin frm the Assistant Vice President f Human Resurces and apprval frm the Prvst.

7 D. Internal Equity Adjustments T crrect an internal inequity and establish equal pay fr jbs f equal value; where tw r mre psitins in different parts f the university have substantially the same duties and respnsibilities and require equal skills and effrt but have substantially different rates f pay. In rder t cmpare pay fr emplyees in similar jbs, the fllwing jb-related characteristics fr each emplyee must be analyzed: - Jb Cntent (t ensure that emplyees are, in fact, ding similar wrk) - Years f Experience (at OU r externally) - Educatin - Jb-Related Knwledge - Skills (required and premium ) - Technical Expertise - Perfrmance Once it has been determined that there may be a pssible pay inequity, UHR will review market data (e.g., salary surveys and recent new hire salaries) t determine whether there are any market frces that have helped t create an inequity. Findings will be reviewed with the department and planning unit head. UHR will recmmend an apprpriate salary adjustment t the individual emplyee s pay rate. Salary increases up t 10% may be made with cncurrence frm the planning unit head and apprval f the Chief Cmpensatin Officer. Apprval frm University Human Resurces must be received befre initiating a salary change. Requests fr salary increases larger than 10% may require a review and recmmendatin frm the Assistant Vice President f Human Resurces and apprval frm the Prvst. When an entire grup f emplyees in the same r similar jbs is reviewed, it will be determined which individuals need adjusting in relatin t either their peers r the market. (See E. External Equity r Market Adjustments) E. External Equity r Market adjustments T react t shifts in the cmpetitive labr market fr a specific psitin r categry f psitins that are affected by an inequity (i.e., hiring salary rate, retentin) University Human Resurces will rutinely research, cllect and maintain relevant market data fr cmparable external psitins t ensure prper alignment f OU psitins with the external market. UHR will review the market data (e.g., salary surveys and recent new hire salaries) t determine whether there are any market frces that have helped t create an inequity. A psitin is cnsidered t be equal t external market rate if it is being cmpensated within 90 percent f the designated external market rate. Once it has been determined that there may be a pssible pay inequity, findings will be reviewed with the department and the planning unit head. UHR will review the individual s time in grade and psitin and make a recmmendatin regarding an apprpriate pay adjustment t the individual emplyee s pay rate. Adjustments t the individual emplyee s pay rate will be determined in cnsultatin with the department. Nte: Market and/r equity reviews invlve many factrs (e.g., market rates, internal parity, emplyee skills, experience and perfrmance, as well as departmental budget cnstraints) and merely undertaking a review des nt necessarily mean that adjustments will be made, nr des

8 it mean that all emplyees will receive adjustments. Affected emplyees shuld be infrmed nly after decisins have been finalized. Salary increases up t 10% may be made with cncurrence frm the planning unit head and apprval f the Chief Cmpensatin Officer. Apprval frm University Human Resurces must be received befre initiating a salary change. Requests fr salary increases larger than 10% may require a review and recmmendatin frm the Assistant Vice President f Human Resurces and apprval frm the Prvst. When an entire grup f emplyees in the same r similar jbs is reviewed, it will be determined which individuals need adjusting in relatin t either their peers r the market. Perfrmance and Equity Adjustments It is als imprtant t recgnize that market and/r equity adjustments can send unintended messages. Fr example, smene whse perfrmance is nt satisfactry but wh gets a market r equity adjustment anyway culd assume that perfrmance des nt need t change. In this case, it may be advisable t hld back the adjustment until perfrmance has been brught up t an acceptable level. Recruitment and Retentin Issues Internal and external equity prblems can prevent departments frm ffering cmpetitive pay levels and can cntribute t emplyees leaving Ohi University fr higher pay. Departments can assist in aviding equity prblems by cntacting UHR if they begin t ntice any f the fllwing: - Difficulty hiring peple with needed skills and experience - High turnver - Emplyees leaving fr higher pay - Candidates turning dwn jb ffers due t lw salaries E. Retentin (Cunter Offer r Stay Mney) In cases where the emplyee has received a dcumented ffer f higher salary fr emplyment with anther rganizatin, the department may cunter ffer as fllws: i. Match the salary ffer. ii. Decline t match the salary ffer. iii. Increase salary by less than the salary ffer. The university administratin des nt encurage cunter ffers abve the salary ffer, r when the ffer is internal t the university. Cnsideratin will be given t the impact f a salary increase n ther peple in the same r similar classificatin and wrking in the same unit and department. All such requests will require prir apprval frm the planning unit head, a review and recmmendatin frm the Chief Cmpensatin Officer t the Assistant Vice President f Human Resurces and final apprval frm the Prvst.

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