810.1 Staff Salary Administration

Created by: Dana Trebing on 02/28/2005
Category: 8 - Human Resources; 10 - Benefits/Services
 
Originator: Assistant Vice President of Human Resources
Current File: 810.1
Adoption Date: 09/07/2016
Reviewed for Currency: 09/07/2016
 
Replaces File: 810.1
Date of Origin: 10/31/2001
 
Classification: Human Resources
 
In Archive? 0


810.1 Staff Salary Administration

 

A. Background

Furman University wishes to provide compensation at a level that reflects the responsibility of each position and that is competitive within the appropriate market. Furman is also committed to rewarding individuals who exhibit exemplary performance and implement improvements that move the institution forward in meeting its strategic goals.

 

B. Policy

Furman University's salary administration includes:

(a) A position evaluation process for establishing each position's relative level of responsibility,

(b) Periodic salary studies to determine the market value of benchmark jobs in the appropriate markets,

(c) An annual review of market trends in salary increases and the university’s budget parameters to determine the salary pool available for across-the board and merit increases.

(d) Annual review of the compensation plan to determine if plan adjustments are required for any position.

(e) Annual performance reviews for each employee to determine if individual merit increases are to be awarded.

The Human Resources Office is responsible for the maintenance of the salary administration system and for ensuring that the guidelines are consistently applied. Any exceptions to the policy guidelines must be approved by the appropriate supervisor, appropriate vice president, and Assistant Vice President for Human Resources. Supervisors are responsible for following the guidelines on a consistent basis.

 

C. Guidelines

1.  All positions (jobs) are assigned to a designated salary grade with an established range of compensation.  Such assignment is based on multiple criteria, including, but not limited to: contacts/interactions with people, complexity of tasks, supervisory responsibilities, the significance of error-free performance, decision level, required education and experience. Positions with similar ratings are grouped into the same job/compensation level, or salary grade.  For purposes of this policy, the terms ‘job’ and ‘position’ refer to the sum of the duties, responsibilities, relationships and required experience of an individual or shared role.  Multiple employees may share the same job title, which may have identical duties as others with the same title, but each staff member has a unique position.

2.  Each salary grade has a minimum and maximum reflecting competitive compensation in the appropriate market and recruitment area.

3.  Position responsibilities are outlined in job descriptions describing the function, responsibilities, relationships, responsibility for final decisions, 'reporting to': education/skill requirements and work conditions. Departments will periodically review job descriptions (i.e. during the annual performance review) and work through the Human Resources Office to maintain up-to-date job descriptions.

4.  Position responsibilities may change as new on-going assignments are made or as departments reorganize. When there are significant changes to position responsibilities, a job review should be requested, documenting any changes in the duties and responsibilities of the job. Once the supervisor approves the request, the Human Resources Office will complete a job review and evaluation to determine if the new responsibilities warrant a change in grade assignment, title and/or compensation level.

5.  Requests for new positions, or an increase in hours, must be reviewed and approved by the appropriate vice president and the President of the University.

6.  A department that wishes to hire a new employee must get approval from the Human Resources Office prior to making an offer. Based on the specific case and available funding, the hiring department and Human Resources Office will establish the appropriate grade and initial salary rate.

7.  Salary Adjustments

a.  Employees who have successfully completed their probationary period (90 days), may be eligible for salary increases based on their performance (See File 817.91).

b.  During the annual performance review, the supervisor will establish an overall performance rating for each employee.

c.  Employees who meet the performance expectations of their job as documented in their annual review are eligible for an annual salary increase.

d.  The overall amount available for salary increases and the method of distribution will be determined each year by the Finance and Administration department.

e.  Employees whose salaries are below the minimum for their respective salary grades may be eligible for supplemental salary increases.

f.  Employees whose salaries have reached the top of their respective salary grade range will be eligible for:

i.  across-the-board amount (if any), included in the base salary.

ii.  merit increase based on performance, paid in one lump sum (not included in the base salary). Employees will be eligible for the lump sum merit pay each year that they remain at the top of their salary ranges based on performance.

8.  Promotions

a.  A promotion occurs when an employee is hired into a position at a higher compensation/salary grade level.

b.  Employees who are promoted may receive a salary increase depending on the change in responsibilities, the employee’s current salary, and the salary range of the new position.  The amount of any increase will be at the discretion of the employee’s supervisor, with final approval by the appropriate vice president and the Assistant Vice President of Human Resources.

9.  Transfers

a.  Employees who change positions within the same compensation salary level or grade will not receive a change in salary.

10.  Voluntary Demotion

a.  A voluntary demotion occurs when an employee chooses to accept a position at a lower compensation/salary grade level.

b.  Employees who voluntarily move to a lower level position may receive a salary decrease depending on the change in responsibilities, the employee’s current salary, and the salary range of the new position.  The amount of any decrease will be at the discretion of the appropriate supervisor with final approval by the appropriate vice president and the Assistant Vice President of Human Resources.

11.  Involuntary Demotion

a.  An involuntary demotion occurs when the University assigns an employee to a position at a lower compensation/salary grade level.

b.  Employees who are demoted for performance reasons may receive a salary decrease depending on the change in responsibilities, the employee’s current salary, and the salary range of the new position.  The amount of any decrease will be at the discretion of the appropriate supervisor with final approval by the appropriate vice president and the Assistant Vice President of Human Resources.

c.  Employees who are demoted due to the elimination of a position will not receive a change in salary, if their current salary is in the salary range of the new position. If the current rate is above the salary range, the employee may maintain the current rate of pay, but will not receive salary increases until their salary comes within the salary range for the position.

 

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