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Internal Staff Pay Changes

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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 staff when any of these events occur.

PAY EVENTS FOR STAFF

Promotion

  • A promotion is defined as a move from a job in a lower grade to a job in a higher grade which typically results in a pay increase.
  • Factors to consider when determining promotional increase:
    • Employee’s current pay – if accessible or voluntarily provided
    • Employee’s knowledge and skills related to the role
    • Employee’s previous experience related to the role
    • Internal equity – how pay compares to the current incumbents’ pay with comparable experience and skills
    • External competitiveness – how pay compares to the market rate for the higher level job
    • Manager/subordinate pay – how employee’s pay would compare to manager's pay
  • Promotions may occur at any time throughout the year, including during the trial period if warranted (full trial period must be completed).

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 current pay – if voluntarily provided or accessible
    • Employee’s knowledge and skills related to the role
    • Employee’s previous experience related to the role
    • Internal equity – the employee’s pay compared to the current staff in the same position with comparable experience and skills
    • External competitiveness – how pay compares to the market rate for the developmental job
    • Manager/subordinate pay – how employee’s pay would compare to manager's pay
  • If the timing of the job change occurs on or near the annual salary planning cycle, a merit increase may be appropriate for past performance as well as the pay change, if applicable, due to a change in classification.

Lateral

  • A lateral job change is defined as a move to the same job code and title outside of the current department or unit. In general, there would be no change in pay unless the current salary was below the current market range for the new job or 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).
    • 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.

Exemption Classification Changes

  • Jobs classified as exempt are not eligible for overtime pay
  • Jobs classified as nonexempt are eligible for overtime pay
  • HR Managers are required to submit nonexempt to exempt job change requests to UHR Staff Compensation for approval
  • Contact your Compensation Partner for all other state minimums

Reclassification

  • A reclassification is defined as a move from one job code to a different job code due to significant changes in core duties and business need, which may result in a pay increase. A reclassification can also result in a move from a higher grade to a lower grade and not be the result of corrective action.
  • Factors to consider when determining reclassification increase:
    • Employee’s current pay
    • Employee’s knowledge and skills related to the role
    • Employee’s previous experience related to the role
    • Internal equity – how pay compares to the current incumbents’ pay with comparable experience and skills
    • External competitiveness – how pay compares to the market rate for the higher level job
    • Manager/subordinate pay – how employee’s pay would compare to manager’s pay
  • Reclassifications may occur at any time throughout the year, including during trial period if warranted (full trial period must be completed).

Remote Work Arrangements

  • Remote employees, as described in Administrative Guide 2.1.21, are paid competitive rates based on the market for the applicable geographic region outside of the 10-county area[1]
  • The HR Manager must partner with UHR Compensation to review and approve the compensation for all employees requesting remote work arrangements per the Remote Work Agreement guidelines:
    • Potential new hires working in a remote location
    • Current employees transitioning into an approved remote work arrangement
    • Current remote employee who relocates and changes work location
  • UHR Compensation must review and approve all remote employee request for possible salary adjustments
  • Salary may be adjusted for employees who become remote employees or change remote work locations

Note: UHR Compensation must review and approve compensation for all the above pay events including a current remote employee who transfers to another unit in a different classification

[1] The 10-county area includes all of the following counties: Santa Clara County, San Mateo County, San Francisco County, Alameda County, Contra Costa County, Marin County, Napa County, Sonoma County, Solano County or Santa Cruz County

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
    • If the employee’s base salary is adjusted while receiving a TAR, the TAR amount must be recalculated and made effective with the salary adjustment
  • Duration: 
    • The temporary acting assignment must be a minimum of two months and not to exceed six consecutive months
      • UHR Staff 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 Staff 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
  • Amount of additional compensation:
    • Exempt employees: recommended guideline – up  to 10 percent of current base pay or $10,000 (whichever is higher)
    • Nonexempt employees – up to 10% of hourly rate paid for all hours worked  and overtime as applicable
  • 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 UHR Staff Compensation must approve total additional compensation exceeding the recommended guidelines
  • Process:
    • Exempt employees - use earn code HNR (Honoria)
    • Non-Exempt - all hours worked must be recorded in the timekeeping system of record; individual payments to non-exempt employees outside the timekeeping system are strictly prohibited

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; Healthy Steps to Wellness)
    • 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 expectations with the added teaching responsibilities
  • Amount of additional compensation:
    • Set and limited by the established rates for the particular program​​
  • Process:
    • Exempt employees - use earn code SUP (Supplemental Pay/Teaching Supplement)
    • Non-Exempt - all hours worked must be recorded in the timekeeping system of record; individual payments to non-exempt 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 or a Spot bonus by the requesting unit manager may be considered
  • Process:
    • The requesting unit may pay a portion of the employee’s current base pay (via labor distribution)