• Staff Compensation Philosophy and Market Competitiveness
• Market Competitiveness and Internal Job Evaluation
• Individual Placement Within Ranges and Exempt/Non Exempt Status
• Staff Salary Grades

Staff Compensation Philosophy and Market Competitiveness

USP employees, at all institutional levels, must be skilled and experienced performers committed to excellence, if the University is to realize the high performance goals needed to support our mission of educating the leaders of tomorrow. In order to attract and retain a diverse, talented and effective staff, our compensation philosophy is to pay competitively with the external labor market, considering both wages and fringe benefits in order to determine "total compensation". The external labor market surveyed to determine competitive compensation levels varies according to where, and with whom, we compete for qualified staff for particular jobs. In some cases, the local labor market is considered and for other positions, regional or even national markets are used.

An internal evaluative process is used in conjunction with the compensation information derived from external sources. This ensures job content accuracy when we compare our positions with those at other institutions and organizations, as well as providing an internally equitable structure. It also allows a method to evaluate positions that are unique to our institution or not commonly found in market survey studies.

Salary levels are set using many different factors including the applicant’s or employee’s years of experience, unique skills and abilities, performance, economic conditions and University budgetary considerations.

Market Competitiveness

In accordance with the compensation philosophy, the salary program will be reviewed regularly to assure that it remains competitive with the appropriate labor market. For example, most non-exempt (hourly) jobs will be compared to the appropriate local job market. Other jobs may be compared to a group of peer academic institutions of similar size or complexity, or organizations with similar functions (e.g., accounting, information technology).

The Overall Structure

Human Resources will review the salary structure annually to determine how inflation has impacted salaries and whether other organizations are raising their ranges. In addition, input from Department Heads/Chairs or Supervisors concerning the competitive environment in their own profession is encouraged.

Information about other organizations will be gathered through salary surveys.

Decisions to revise the salary structure will be based upon external market conditions and the University’s operating conditions.

Market Competitiveness and Internal Job Evaluation

Market Competitiveness

Individual Positions

Human Resources will review selected "benchmark positions" annually. In addition, as part of the audit process, review of other positions will be done at the request of the Division/Department Heads.

Benchmark positions are those that represent many staff members or for which survey data is readily available. These jobs form the anchor of the salary structure, and will be compared through compensation surveys with labor market competitors.

Internal Position Evaluation

To supplement the benchmarking information, USP gathers position responsibility information on "non-benchmarked positions" through a Job Description.

Positions are then evaluated through a systematic method of comparing certain criteria, called compensable factors, from one job to another. These criteria are:

• Responsibility
• Complexity
• Decision Making
• Employee Accountability
• Knowledge
• Planning

Position evaluation does not focus on how well an individual performs his or her work, but rather factors such as, but not limited to, the required skill and responsibility of the position itself.

The responsibilities for positions without market pay information (called "non-benchmark positions") are compared to "benchmark positions". This comparison results in "non-benchmark position" being placed into the appropriate salary grade.

Individual Placement Within Ranges and Exempt/Non Exempt Status

Salary Grade Bands

The University's salary program contains 8 broad salary bands. Positions are slotted into these bands at various levels, determined by the responsibilities of the position. Some salary bands may, in fact, contain as many as 40-50 distinctly different position titles. Each of these positions contains its own minimum and full market range. Positions placed within the salary grade at different levels will have different minimum and full market salary ranges. This means that the "full market" for a particular salary grade is not the full market for all of the positions in that salary grade. By using this broad banded approach, the University provides individuals with upward mobility within their salary grade.

Individual Placement Within Ranges

The criteria used to set salaries are the same for internal hires as for those hired from outside of the University. An individual’s placement within the salary range is based on that individual’s education, related experience and skills.

Starting Rates of Pay

Salary ranges offer considerable flexibility to hiring new employees at competitive rates. A salary offer for a new hire is based on the experience and qualifications the candidate brings to the position. Experienced candidates may receive higher salary offers, which reflect their greater experience, accomplishments and skills. Individuals with less experience and fewer skills may be offered a salary close to or at the minimum of the range. The candidate’s qualifications and experience should also be considered in relation to those of incumbent employees in the same salary range (not just the same position), so that internal inequities are not created when we hire new employees.

Promotions

Promotional increases are salary increases that accompany a promotion from a position in one salary grade (or tier of a salary grade) to a position in a higher salary grade (or higher tier in a salary grade). When an employee is promoted, a promotional increase may be provided up to 5%, based on the responsibilities and duties of the new position.

Transfers

Transfers offer employees the opportunity to change positions to develop additional skills and to broaden their professional knowledge. A lateral transfer is a move to a position within the same salary grade. There are no automatic increases for a lateral transfer. However an employee might receive a salary increase based on the new position responsibilities. When an employee is transferred to a position in a lower salary grade, an adjustment to pay may be made based on the responsibilities of the new position.

Exempt/Non Exempt Status

The Fair Labor Standards Act (FLSA) is a federal law which regulates the work/pay relationship between employees and employers, including:

• Minimum wage
• Overtime
• Child labor

One key component of the FLSA is the distinction between "exempt" and "non-exempt" employees. Exempt employees are those individuals who are exempt from the overtime provisions of the FLSA. Therefore, exempt employees are paid a base salary for performing services, regardless of the number of hours needed to complete the tasks. A non-exempt employee, however, is paid an hourly rate for each hour worked. Exemptions are generally determined based on position responsibility, discretion, independent judgment and decision making authority required in the position.

Department Heads or Supervisors must authorize any extra hours worked by a non-exempt employee which is beyond the regularly scheduled and budgeted hours. Employees in non-exempt positions must be paid overtime for hours worked over 40 hours per week. This time is paid at time-and-one-half in the same pay period it is worked. To accomplish this, time worked by a non-exempt employee must be recorded on a timesheet to ensure compliance with the FLSA. Exempt employees are not eligible to receive overtime pay.

Hours used to determine eligibility for overtime include those hours an employee actually works. It does not, for example, include hours paid (but not worked) for:

• Sick time
• Personal or Floating Holiday
• Vacation time

Compensatory Time Off

If a non-exempt employee works additional hours in any work week, but does not work over 40 hours, the additional hours may, at the discretion of the employee, be either

• paid at regular "straight-time" hourly rates, or
• banked as compensatory time.

New Jobs

When a new position is created and approved, the Department Head/Chair or Supervisor should prepare a Job Description for Human Resources review. Human Resources, with input from the Department Head/Chair or Supervisor, will then evaluate the position and analyze market data. This evaluation is based on the major responsibilities, and will determine the appropriate salary grade and pay range.

Please note that the position evaluation process by Human Resources requires at least two weeks.

Position Re-Evaluations

It is not unusual for position responsibilities to evolve over time. Therefore, it may be necessary to re-evaluate a position based on a new set of skills and responsibilities. The procedure for re-evaluating a position is the same as evaluating a new position. Increased volume, workload or use of new tools may not necessarily result in a change in salary grade.

A position re-evaluation may be initiated by the employee or Supervisor. Because it is the Supervisor’s responsibility to determine the structure of the position, an employee must discuss a re-evaluation with the Supervisor first. Supervisors are encouraged to discuss the position with Human Resources before a Job Description is prepared. As with a new position, a position re-evaluation requires a two-week period for completion by Human Resources.

Request for Reconsideration

Position evaluation results will be communicated to the Department Head/Chair by Human Resources. Employees and/or Department Heads/Chairs or Supervisors may request a meeting with a representative from Human Resources if there are any questions regarding the outcome of the evaluation process. If necessary, the Director of Human Resources & Office Services may engage a consultant to confirm the results of a position evaluation.