BRIGHAM AND WOMEN S HOSPITAL

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1 BRIGHAM AND WOMEN S HOSPITAL HUMAN RESOURCES POLICIES AND PROCEDURES SUBJECT: COMPENSATION POLICY #: HR- 201 EFFECTIVE DATE: January 1, 2008 POLICY Brigham and Women s Hospital maintains an employee compensation program to ensure that the organization is able to recruit, reward, and retain qualified employees. The program is designed and administered in accordance with all state and federal laws. In order to accomplish these objectives, the compensation program, which includes formal salary ranges, a performance management program, and differentials, as appropriate, is established for all positions which is: competitive with the marketplace and reasonable when compared to the established formal salary ranges for other, similarly weighted, positions within the organization. An employee s salary within the range is determined by a number of factors, including, but not limited to, the employee s experience, education (where appropriate), job performance, particular competencies, length of service and business needs. DEFINITIONS Non-exempt Employee: Employees who are paid on an hourly basis for each hour worked. Hourly records must be maintained for the time worked. All time worked over 40 hours in the defined work week must be paid at the stated overtime rate of one and one half times the regular rate. Exempt Employee: Employees who are paid a predetermined salary for the results they are expected to accomplish, regardless of the number of hours they work. Exempt employees are not subject to overtime provisions set forth by the Department of Labor s Fair Labor Standard Act. Exempt employees must be classified as such through pre-defined administrative, professional, and/or executive exemption tests under the Department of Labor. Job Description: A written statement of the major job responsibilities and duties, skills, abilities, education, experience, competencies and other qualifications required in order to perform the job as well as information concerning working conditions and reporting relationships. Job descriptions are used in hiring, job evaluation and performance management processes.

2 Job Evaluation: The process by which Human Resources, in conjunction with the department manager, evaluates the relative market and internal ranking of new positions and existing positions requiring re-evaluation. It is during this process that exempt status, grade, salary range, and pay structure are determined in accordance with appropriate market data and a review of internal rankings. Pay Grades: Grouping of jobs into set pay ranges as determined by the hospital s job evaluation method. Pay Ranges: The positioning between pay grade base minimum to pay grade base maximum reflected at a straight time hourly rate or salary. The pay ranges used for the hospital are reviewed on an annual basis as part of the formal wage and salary program analysis. When necessary, the pay ranges will be adjusted in order to remain competitive in the marketplace. When pay ranges are adjusted, employees may be eligible to receive a wage adjustment provided their rate of pay does not exceed the pay range maximum. Employees will not have a rate of pay less than the approved pay range minimum Market Ranges: A type of pay range, where the relative requirements of the job have not changed, however, specific market conditions mandate a change in the pay range to remain competitive with the market place. Pay Structures: Hierarchies of pay grades and ranges. BWH currently has six pay structures as outlined in the Wage and Salary Program Guidelines distributed each fiscal year. The pay structures are as follows: Non-Exempt Service and Maintenance Non-Exempt Technical and Office Exempt Professional and Management Non-Exempt and Exempt Research Exempt Research Management Non-Exempt and Exempt Brigham and Women s Physician Organization At or Over Maximum Rate: Employees whose base pay is at or above the maximum of the pay range for their job are designated as having an At/Over Maximum rate. These employees are not eligible to receive pay increases to their base rate of pay exceptions to this policy must be approved by the Vice President of Human Resources and must be submitted through the appropriate Human Resources Consultant. On-Call Status: Employees who are required to be available outside of regularly scheduled hours to receive calls and/or be able to report to work in not less than twenty (20) minutes when called. Employees are not required to remain on work premises. Non-exempt employees are eligible for an on-call pay rate. On-call rates are assigned by the non-exempt grade level of the position. Exempt employees are not eligible for on-call pay.

3 DETERMINING PAY RATES Starting Rates of Pay New hire salaries are determined by Human Resources with input from the hiring manager. Starting salaries will be based on applicant s experience, education, market conditions, and review of internal equity considerations, as appropriate. Only representatives from Human Resources may extend offers of employment and quote starting rates of pay. Special considerations, prior commitments or job offers made by managers, physicians, or anyone other than Human Resources are not binding on Brigham and Women s Hospital Promotional Increases Promotional increases may be granted when an individual is promoted from a position with a lower pay range to a position with a higher pay range. All promotions and promotional increases should be discussed with Human Resources, in order to assess the appropriate promotional amount. A promotional increase must bring an employee s pay to the minimum of the new pay range, regardless of the percentage amount. If a promotion is effective within three months prior to an employee s merit review date, consideration of both merit and promotional increases should be incorporated in the promotional adjustment. Also, the performance evaluation date must be adjusted as a result of a promotional increase. Lateral Transfers Employees transferring to a position which is the same grade as their current position usually will be reviewed by the transferring manager and provided a prorated increase for the months in the position prior to the transfer. The receiving department will establish the goals for the new role and review the work after six months, thereby establishing a new performance review day that will become the new annual review date. Any exceptions should be reviewed with Human Resources. The goal is to for the employee to have a review every twelve (12) months. Also please refer to transfer policy, HR-113

4 Transfer to a Lower Salary Range Employees may be assigned to or request to fill a job in a lower pay range/grade. If an employee requests a transfer to a position within a lower pay range, the employee s pay rate should be reviewed for reduction in accordance with the salaries of employees in that particular job. Factors such as internal equity, relevant experience, market conditions, etc. should be considered when determining a salary reduction. The employee s salary should not exceed the range maximum. The appropriateness of changing the performance evaluation date should also be reviewed. The pay rate for an employee assigned to a position in a lower pay grade/range for a reason other than a voluntary transfer (i.e. re-evaluation of position, department restructuring), will not receive a pay rate adjustment. Demotions/Downgrades A demotion occurs when an employee moves from a position in one job classification to another position which is classified in a lower pay grade/range; the original position is left vacant, to be filled or eliminated. A demotion may be either employee or employer initiation. The following guidelines apply in determining the effect of the demotion on an individual s salary rate. When a demotion results from an employee request, work performance or ability issues, the employee s salary will be adjusted to the minimum rate of the new pay range plus the percentage increase for previous relevant experience. When the demotion results from a reduction in workforce, reassignment of the existing workforce, or new requirements for the position, the employee s salary will be maintained at his/her present rate except that it may not be lower than the minimum or higher than the maximum of the new pay range. Temporary Assignments Occasionally, it may be necessary to temporarily assign an employee to a job other than their regular job. Higher Paid Job: Employees assigned on an acting basis to a job with a higher pay range and provided they perform the principal duties and responsibilities of the higher paying position may be considered to receive a temporary increase, however, any such adjustment should be discussed with Human Resources. Lower Paid Job: Employees temporarily assigned to a position in a lower pay range continue to be paid at the rate of pay for their regular job.

5 RESPONSIBILITY The administration of compensation program is the responsibility of the BWH Human Resources Department in conjunction with the Corporate Compensation Department for Partners Healthcare System, Inc. APPROVED BY: Vice President Human Resources Chief Operating Officer This policy is intended as a guideline to assist in the consistent application of Brigham and Women s Hospital policies and programs for staff. The policy does not create a contract implied or expressed, with any Brigham and Women s Hospital staff members, who are employees at will. Brigham and Women s Hospital reserves the right to modify this policy in whole or in part, at any time, at its sole discretion.