Salary Administrations Policy & Procedures

Individual Pay Rate Determination

I. Purpose

To provide administrative guidance and delineate responsibilities for the maintenance of the salary administration program and the processing of salary recommendations.

II. Scope

The guidelines in this policy apply to non-exempt and exempt employees as defined by the Fair Labor Standards Act.

III. Objectives

  1. Attract and retain competent employees.
  2. Provide for recognition of and reward for differences in individual ability and performance.
  3. Establish and maintain competitive salary ranges consistent with the economic requirements of the University and commensurate with other Universities and locations in which Webster University operates.
  4. Relate salaries paid for the duties and responsibilities of positions to provide a stimulus for employee self-improvement and advancement to greater responsibilities.
  5. Maintain a performance appraisal program which identifies opportunities for employee development and places compensation rewards on an objective basis.
  6. Provide an effective management control system which will permit delegation of responsibility within a framework of policy and procedure.

IV. Statement of Policy

  1. Position description:
    All positions will be defined in terms of their reflective duties and responsibilities.
  2. Position Evaluation:
    All positions will be evaluated and classified in the order of their relative value, utilizing University evaluation techniques.
  3. Salary Structure:
    The University will maintain a competitive salary structure which consists of salary and wage grades and ranges.
    1. Salary and Wage Grades:
      All positions will be classified by position title and salary and wage grade which indicates the range of their minimum and maximum salary value.
    2. Salary Ranges:
      Salary ranges are the means by which the relative value of positions is expressed in dollar terms and should be sufficiently broad to provide salary growth potential for competent personnel. Salary ranges specifically establish the lowest dollar amount generally paid for minimum acceptable performance, and the highest dollar amount generally paid for outstanding performance relative to position market value and other positions in the program.
    3. Maintenance:
      Salary and wage grades and ranges will be reviewed annually by the Human Resource Department and appropriate changes will be recommended to the Vice President for Finance and Administration.
  4. The Human Resource Department will annually evaluate the job market in terms of competitive factors, changes in living costs, organization economics and objectives. From this analysis, a salary increase budget, expressed as percents will be developed and justified for approval by the President and the Administrative Council.

    The details of the salary budget will allocate dollars to each employee. This budget will indicate employee name, current salary and midpoint, performance level, and the amount and percentage of planned salary adjustments. This salary budget will then be reviewed and approved by the President and the Administrative Council.
  5. Salary Progression requirements
    Before an employee can receive a salary adjustment, the employee's position must have been described, evaluated, and assigned a salary grade.

    It is the policy of the University to grant salary adjustments on the basis of individual performance. To this end, all employees included in the program should be reviewed at least annually. This does not mean that salary increases are automatic or annual. Performance, salary increase budget and individual position within the salary range are the prime considerations in determining amount and frequency of salary adjustments.
  6. Making a Salary Change
    1. Salary Recommendations:
      A recommended salary adjustment, if it is provided for in the salary increase budget, must be initiated by the Department Head. The Human Resource department will audit all changes for policy and budget compliance prior to payroll submission. A summary of all proposed salary adjustments will be prepared annually for review by the Vice President for Finance and Administration to be forwarded to the President and the Administrative Council.
    2. Salary Exceptions:
      A proposed salary increase, if not budgeted, or if it is an exception to salary guidelines, must be forwarded by the department head to the Human Resource Department for approval by the Human Resource Department and the President. Exceptions and supporting documentation must be attached.
    3. Merit Increases:
      The amount of merit increase is governed by the President and the Administrative Council and approved by the Board of Trustees. Increases which exceed guidelines or recommendation of no increase will be considered exceptions.
    4. Promotion/Reclassification Increases:
      A promotion or upgrade is a permanent reassignment from a position evaluated in a lower salary grade to another position evaluated in a higher grade. When an employee is promoted or upgraded, the new salary shall be set at least at the salary range minimum of the higher salary grade, except: If the salary range minimum for the higher valued position is not at least 5-7 percent higher than the employee's current salary, pay should be increased to an approximate level within the higher salary range by a normal promotional increase of 5 to 7 percent of current salary. An upgrade is a re-evaluation of a position to a higher salary grade.
    5. Salary Adjustment for Demotions:
      A demotion is a permanent reassignment from a position evaluated in a higher salary grade to another position evaluated in a lower salary grade.When an employee is demoted, salary may remain unchanged provided it does not exceed the salary range maximum of the lower position. If the individual's salary exceeds the maximum, salary shall be reduced to a level no higher than the maximum. Exceptions to this policy must be approved by the Human Resource Department, the Department Head, and the President.
    6. Downgrades:
      It is not the University's practice to reduce an employee's salary simply because of position re-evaluation into a lower salary grade. This action is not considered a demotion and the employee's existing salary shall continue.
    7. Transfers:
      A transfer is a change from one position to another within the same salary grade, or a change from a position in one organizational unit to a position of equal value in another organizational unit. Transfers will not always be rewarded by a salary adjustment. However, the employee's past performance and salary and wage guide level should be considered for purposes of determining desirable merit increases. Thus, merited increases may be coincidental with transfers when justified by such considerations. An employee shall not be transferred to a new or revised position until the position has been described, evaluated, and classified.
    8. Temporary Promotions/Out of Classification:
      When an employee is promoted temporarily to a higher valued position and does not meet the minimum job requirements, the temporary salary increase shall be set at 10% below the salary range minimum of the higher salary grade. Employees who meet the minimum job requirements will receive a temporary salary increase in accordance with the normal promotional increase guidelines.
    9. Lump Sum Performance Bonus for Employees Above Salary Range Maximums:
      The salary and wage range maximum does not in itself limit rewards to an employee whose performance is clearly well above position expectations. Rewarding individuals whose salaries are above the range maximum of the salary grade may be accomplished through annual lump sum bonuses. Bonuses will be determined and administered in the following manner:
    10. Determination:
      1. Lump Sum bonuses will be determined by the immediate supervisor in accordance with budget compliance, the approved annual merit increase percentage, and the employee's individual performance level.
      2. The incumbent has not received a salary adjustment in the last 12 months.
      3. All such bonuses are authorized by the President
      4. Administration:
        1. Allocation of Lump Sum bonuses will occur during the same time period in which employees receive merit increases.
        2. Lump sum bonuses are calculated by multiplying the employees annual salary with the merit percentage increase determined by the immediate supervisor.
        3. The Human Resource department will review all bonus adjustments prior to submission to the President.
    11. New Hires:
      A new employee's salary shall not exceed salary range midpoint, with certain permissible exceptions. If the employee offers qualifications in excess of those normally required, the individual may be hired at a salary above range midpoint but treated as an exception and must be approved by the Human Resource Department, the Vice President for Finance and Administration, and the President. Before a candidate may be hired to a new or revised position, a job description and evaluation must have been prepared and the establishment of the position within the salary and wage grade scale must be authorized.
    12. Red Lined Salaries
      A red lined salary is that which exceeds salary range maximum. As a result of salary program introduction, some employee salaries may be red lined. These salaries should be administered according to promotion policies.
  7. Performance Appraisal
    1. In keeping with salary and wage progression policy, formal performance appraisals shall be conducted annually to assist in determining salary adjustments.
    2. University appraisal forms will be used when evaluating performance to ensure accuracy and consistency regarding factors to be appraised and performance level definitions.
    3. Forms will be forwarded to the departments by the Human Resource Department the previous month before an employee's anniversary date. Performance Appraisals should be conducted during the month of the employee's anniversary. The Supervisor will return the completed appraisal to the Human Resources Department by the end of the month.
    4. Supervisors are to give employee appraisal forms for their completion and current job descriptions. Supervisors should set appointment times with employees to review completed performance appraisal forms and job description tasks. Appointments should be conducted within two weeks after the initial forms are given to employees.
    5. The supervisor will also complete an appraisal form on each employee during the month of his/her anniversary date.
    6. During the scheduled appointment, each factor is covered and discussed between the employee and supervisor. The supervisor and employee may elect to do one of the following:
      1. The employee may accept the supervisor's evaluation for submittal to the Human Resources Department.
      2. The Supervisor may accept employee's evaluation for submittal to Human Resources Department.
      3. A joint evaluation may be completed with revised considerations for submittal to the Human Resources Department.
    7. The Supervisor should give the employee a signed final copy of the performance appraisal and retain one copy.
  8. Responsibilities
    1. President and Administrative Council
      Recommend overall salary structure increase percents, salary ranges and total salary budget.
    2. Human Resource Department
      1. Develop data to support recommended overall salary structure increase percents, total salary budget and revisions in salary policy or ranges.
      2. Advise the President and the Vice President for Finance and Administration regarding salary and wage policy and the disposition of proposed exceptions.
      3. Maintain equitable relationships among all salary positions.
      4. Provide guidance to management in the development, analysis, and evaluation of positions.
      5. Audit position relationships and University salary structure annually.
      6. Complete relevant salary surveys periodically.
      7. Annually submit recommendations supported by cost information for revision of salary structures.
      8. Review all salary actions for consistency with University policies and forward exceptions to the Vice President for Finance and Administration and the President according to policy.
      9. Study the economics of the University's business community and recommend changes.
      10. Recommend revisions in salary policy or procedures to maintain the program on a current basis.
      11. Summarize all annual salary adjustments
      12. Communicate salary and wage policy and range changes to managers, staff, and faculty throughout the University.

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