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Internal Staff Pay Changes

The employee life cycle includes various times when a pay review may be needed. Work with your local HR manager or group to review pay for existing staff when any of these events occur.

Pay Events for existing staff

Promotion

  • A promotion is defined as a move from a job in a lower grade to a job in a higher grade with different and/or increased level of responsibility, which may result in a pay change
  • Factors to consider when determining promotional increase:
    • Employee’s knowledge and skills related to the role
    • Employee’s previous experience related to the role
    • External competitiveness – how pay compares to the market rate for the higher level job
    • Internal equity – how pay compares to the current incumbents’ pay with comparable experience and skills
    • Manager/subordinate pay – how employee’s pay would compare to manager's pay
    • Employee’s current pay- if voluntarily provided or accessible
  • Promotions may occur at any time throughout the year

Career Development

  • A career development job change is defined as a move to a different job code and title in the same or lower grade which may result in a pay change
  • Factors to consider when determining potential career development increase or decrease:
    • Employee’s knowledge and skills related to the role
    • Employee’s previous experience related to the role
    • External competitiveness – how pay compares to the market rate for the developmental job
    • Internal equity – the employee’s pay compared to the current staff in the same position with comparable experience and skills
    • Manager/subordinate pay – how employee’s pay would compare to manager's pay
    • Employee’s current pay- if voluntarily provided or accessible
    • If the timing of the job change occurs during the annual salary planning cycle, an annual increase may be appropriate for past performance

Lateral

  • A lateral job change is defined as a move to the same job code and title outside of the current department. In general, there would be no change in pay unless it causes an internal equity issue (e.g., the employee is significantly lower or higher paid than the current staff in the same job with comparable experience and skills) within the hiring unit
    • During Annual Salary Planning: If the timing of the job change is on or near the annual salary planning cycle, an annual increase for past performance may be appropriate.  The employee’s new manager should consult with the former manager to determine how to compensate the employee for past performance
    • Outside of Annual Increase: If the job change occurs outside of the annual salary planning cycle, the hiring manager may consider a base pay increase or decrease if there will be an internal equity issue caused as a result of the transfer

Exemption Classification Changes

  • HR managers are required to submit nonexempt to exempt job change requests to the University Human Resources Staff Compensation Team for approval prior to reclassifying the employee
  • Jobs classified as exempt are not eligible for overtime pay
  • Jobs classified as nonexempt are eligible for overtime pay

Temporary Acting Role (TAR)

  • Additional compensation may be considered for a regular benefits eligible employee (grades A-P, exempt or non-exempt) who temporarily fills a position at a higher classification level.  This is applicable if the employee is actually performing at least 50% of the job of the higher level responsibilities i.e., employee is assigned to the higher level role in absence of the current incumbent who is on leave or while the job is posted
  • Amount:  5% is typical; up to 10% for significant increase in scope and complexity of temporary additional responsibilities
  • Duration: The temporary acting assignment must be a minimum of two months and not to exceed six consecutive months
    • UHR Compensation must approve any extension of the TAR
  • Employee retains the current job code, title, and exemption classification during the temporary assignment
  • Non-exempt employees remain eligible for overtime and TAR amounts are included in overtime pay calculations
  • Factors to consider when determining additional compensation:
    • Employee’s current pay
    • Percentage of time the employee is performing the higher level role
    • Employee’s previous experience related to the role
    • Internal equity – how pay compares to the current peers pay for comparable experience and skills
    • Manager/subordinate pay – how employee’s pay would compare to  manager's pay
  • Approvals:
    • UHR Compensation must approve the use of a TAR to ensure consistent application or whether another action is more appropriate, i.e., reclassification
    • A TAR greater than 10% of the employee's actual base pay and/or extension beyond 6 months requires UHR Compensation approval
    • Employee’s manager may discontinue the higher level role and additional compensation at any time if any of the following applies to the additional work:
      • Causes a conflict of interest
      • Has a substantive impact on the employee's ability to perform the primary duties
      • Failing to perform the additional duties
      • There is a change in operational needs of the employee's department

Work Outside Regular Responsibilities (non-Teaching)

  • Additional compensation may be considered for a full-time employee who performs non-teaching work outside the boundaries of the employee’s regular responsibilities (e.g., an accountant in Business Affairs does calligraphy work for a special event in Alumni Association)
  • Criteria (all four must be met):
    • Occurs on a one-time or infrequent basis
    • Requires a significant amount of time in excess of the employee’s normal work schedule
    • In advance of the work being performed the employee provides written notification to the manager and HR manager for approval
    • Employee has successfully completed their trial period and is demonstrating satisfactory performance in current job
  • Amount of additional compensation:
    • Exempt employees: recommended guideline – up  to 10 percent of current base pay or $10,000 (whichever is higher)
    • Nonexempt employees – all hours worked must be recorded in the timekeeping system of record; individual payments to nonexempt employees outside the timekeeping system are strictly prohibited
  • Factors to consider when determining additional compensation for exempt employees:
    • Employee’s current pay
    • Percentage of time the employee is performing the additional work
    • Employee’s previous experience related to the role
  • HR manager and the University Human Resources Staff Compensation Team must approve total additional compensation exceeding the recommended guidelines

Work Outside Regular Responsibilities (Teaching)

  • Additional compensation may be considered for an employee who performs teaching work outside the boundaries of the employee’s regular responsibilities
  • Criteria (all four must be met):
    • The teaching activity is for an established university program (e.g., executive programs in the GSB and School of Engineering; Continuing Studies; Post Graduate Medical Education Seminars; Health Improvement Program)
    • Employee is appointed through the regular appointment process of the program
    • Program provides compensation to others performing the same teaching duties
    • In advance of the teaching work, employee must provide written notification to the manager and HR manager
  • Additional Criteria:
    • If the teaching occurs during the employee’s normal work schedule, employee obtains prior written approval from the manager and HR manager to ensure the employee’s primary job responsibilities can be performed to meet the manager’s job expectations with the added teaching responsibilities
  • Amount of additional compensation:
    • Determined and limited by the established rates for the particular program​​
    • Nonexempt employees – all hours worked must be recorded in the timekeeping system of record; individual payments to nonexempt employees outside the timekeeping system are strictly prohibited

Additional Work Within Regular Responsibilities

  • Additional compensation is not provided for additional assignments within the boundaries of the employee’s regular responsibilities and scope of job description
  • If the work is outside the employee’s unit, the employee’s manager must provide prior approval to conduct the work
  • A form of non-monetary recognition by the requesting unit manager may be considered in lieu of pay