Ohio University Policy and Procedure 40.036

Administrative and Professional Pay Plan

Procedure No.:   40.036

Page No.:        1,2,3,4,5,6,7,8 and 9 of 9

Date Issued:     11/04/93

Issued By:       Gary North

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GENERAL POLICY STATEMENT

It is the policy of Ohio University to pay employees:

without regard to race, color, religion, sex, sexual orientation, national origin, age, veteran status or disability status (1)
relative to:

internal equity based upon the demands and requirements of jobs;
external market as defined by University Personnel Services
financial condition of the University
in a manner which maintains personnel costs within appropriate limits so as to ensure the continued financial stability of the organization.

(1) This language was provided by special counsel for the Attorney General's office and is meant to be all inclusive.

SCOPE

The policies and procedures herein apply to all contract employees who are in administrative and professional positions. It excludes persons assigned to the classified Civil Service, persons holding faculty status, deans and vice presidents, student employees, post-doctoral, certain grant and Residence Life positions as specified by the Personnel Director and appropriate unit heads. These policies and procedures define the operation of the pay program for the covered positions and take precedence over any other understandings, implied or otherwise.

PROGRAM OBJECTIVES

It is the intent of Ohio University to maintain a pay program which:

a. Is consistent with the general policies of the University
b. Includes a salary pay plan that is internally equitable and externally competitive with other universities of similar size and location within the state of Ohio
c. Ensures equitable pay for work requiring similar skill, effort, responsibility and working conditions
d. Ensures that the salary program is administered with consistency and uniformity throughout the University, including the regional campuses, with regard to job evaluation and pay grade assignment
e. Includes objective job specifications and qualifications as an aid to hiring and promotion, and affords every applicant fair consideration in accordance with the affirmative action guidelines established by Ohio University
f. Provides a system to identify inequities, forecast future needs, and maintain competitive pay levels

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COMMUNICATING PAY INFORMATION

Information concerning job classifications and pay ranges is made available to all employees through Personnel Services upon request. Furthermore, managers and supervisors are expected to actively and openly communicate the organization's pay program and associated policies to employees on an ongoing basis. Managers and supervisors are also expected to discuss the following areas with each new employee and any employee whose position has been reevaluated:

the position description covering the employee's duties and responsibilities
the employee's potential for progression within his/her pay range
performance and its relation to pay increases

ADMINISTRATIVE RESPONSIBILITY

The President of Ohio University or the appropriate designee has authority and responsibility for the pay plan's goals, objectives, structures and policies. Any exceptions to, or major revisions in, the program must be approved by the President. The following are specific delegations of authority in the day-to-day administration of the program.

Director, University Personnel Services

Ongoing responsibility for overseeing the program is assigned to the Director, University Personnel Services. As such, the following duties are in the Director's purview, although in actual practice, they may be assigned to other staff in University Personnel Services:

drafting/recommending new or revised pay policies and procedures
maintaining position descriptions
monitoring the evaluation of new positions and re-evaluation of existing positions
auditing the pay structure to maintain market competitiveness and internal equity
reviewing compliance with Fair Labor Standards Act, Equal Employment Opportunity Commission, and other governmental regulations including the determination of a position's exempt or non-exempt status
maintaining histories of salary and career records
appraising pay plan program effectiveness and recommending program revisions as necessary.
advising and assisting departments in implementing pay plan policies, guidelines and procedures in salary administration.

The Director of University Personnel Services shall provide annually a report comparing the salaries of Ohio University administrators in each pay grade. The report is intended to provide equity information to assist supervisors in establishing appropriate hiring pay rates. This report shall be distributed to all deans, directors and department heads by April 1 of each year.

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Pay Plan Evaluation

At least every three years, the Vice President for Administration shall request the Director of Institutional Research to conduct a study of this Pay Plan. The purpose of the study is to evaluate the Pay Plan in terms of effectiveness in achieving objectives, external comparability and internal structure and usage by administrative units.

The study shall include an external analysis, comparing selected "benchmark" positions with similar positions at peer institutions in Ohio.

The study shall also include an internal analysis of salaries and pay grades. This overall analysis will assist the University in maintaining internal and external pay equity.

The Director of Institutional Research shall present the results of the study to the Provost, the Vice President for Administration, the Director of University Personnel Services and the Administrative Senate.

Managers and Supervisors

Managers and supervisors are responsible for administering the following parts of the pay plan in accordance with University policies:

communicating program policies and individual pay issues to employees
evaluating employees' eligibility for pay increases
working with University Personnel Services to update position descriptions as necessary.

In addition, issues that are identified by managers and supervisors, which are not covered by the present policies, should be referred to the Director, University Personnel Services for review and recommendation.

POSITION DESCRIPTION QUESTIONNAIRES

The duties, responsibilities and specifications of all positions in the program should be documented in a position description questionnaire. These position descriptions are essential to:

evaluating and classifying positions to determine their relative value to the organization
communicating to new or existing employees the fundamental duties and responsibilities of their positions
providing position information that can be used to determine competitive pay relationships in the labor market.

Position description questionnaires will be written in a uniform format in accordance with University Personnel Service guidelines. (contact University Personnel Services for the

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appropriate form). The descriptions will include: a position title, name of incumbent, reporting relationships, a job summary, major duties and responsibilities, and specifications relative to required knowledge, skills and abilities, signatures of the incumbent and the supervisor.

Changes (increases or decreases) in the duties of a position may require a reanalysis and re evaluation of a position. Elapse of time may also trigger a reanalysis and reevaluation. Supervisors are expected to review each position description at least every three (3) years to assure its accuracy and relevance. Where changes are judged significant by the supervisor, the incumbent, or University Personnel Services he/ she should complete a Position Description Questionnaire in conjunction with the incumbent, and solicit review and approval by the appropriate department head.

The questionnaire should be forwarded to Personnel Services for review, evaluation, pay grade assignment and proper follow-up with the supervisor and employee.

POSITION TITLES

Titles provide functional meaning and organizational consistency throughout the University. The use of certain titles will be normally restricted to specific pay grades. Such titles as Bursar, Coach, Editor, and Psychologist clearly describe a function. However, since titles as Coordinator, Director, Associate Dean, Assistant Dean, and Manager have no consistent relationship with function or organizational level, they are not used in determining pay grades.

Administrative titles at Ohio University are not compensable factors but may indicate placement within organizational levels. Thus, title assignment should be as consistent as possible. University Personnel Services should be contacted prior to the assignment of a new title.

Administrative titles should not conflict with or be the same as classified staff titles, and executive officer titles should be reserved for executive officers of the University (appointed by and designated by the President).

POSITION EVALUATION PLAN

A single point-factor evaluation plan is used to determine the overall value of each position in relation to other positions. Three (3) factors considered in evaluating positions are knowledge, scope of decision making, and complexity of problem solving. The sub-factors include education, experience, interpersonal relationships, management, the control of assets, interpretation, impact and complexity of decisions. Progressive levels of responsibility are established for each of the sub factors and points are assigned to each defined level. Each of the three (3) factors is weighted equally.

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PAY GRADE STRUCTURE

The University uses a pay grade structure to establish appropriate pay range limits for positions. The structure is based on competitive practices and internal equity considerations, and provides the possibility for progression to more responsible positions with higher and broader pay ranges. The structure is intended to:

define the competitive pay position for the University
establish differential pay levels between positions to recognize differing demands
establish the lower and upper limits of value for each position.

The minimum amount of a grade is considered the fair value for a newly hired employee meeting the standard specifications of the position. Thus, most new employees will be hired at or near the minimum of the range. Hiring employees above the minimum is subject to the restrictions outlined in the section entitled "Hiring Pay Rate". Employees may not be hired below the minimum. The maximum pay for a position is the upper limit of the range to which the position is assigned. An employee's rate of pay should not exceed the respective maximum for the pay grade assigned to the employee's position (See "Pay Above Maximum").

HIRING PAY RATES

A new employee shall meet the minimum qualifications for a job and shall be paid no less than the minimum salary of the applicable pay grade.

Departments will advertise the appropriate minimum salary range with the option to advertise to the midpoint. The hiring department has the discretion to offer a salary extending from the minimum set for the range up to 25% into the range. Consultation with University Personnel Services should take place before offering a salary beyond 25% penetration. Any difference between the hiring department and University Personnel Services will be referred to the appropriate Planning Unit Head.

When a candidate's qualifications clearly exceed the midpoint requirements (after following the University guidelines on posting and screening) or when a particular skill is in short supply (the determination of which should occur at a point prior to advertising for the position), thus inflating the normal market rate, a starting salary above the midpoint shall be reviewed by University Personnel Services with a recommendation to the Provost and appropriate executive officer.

PAY ABOVE MAXIMUM

Employees normally shall not be paid over the maximum of a pay grade. Every year a special review and consideration should

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be given to providing a salary adjustment to those persons whose pay is above the maximum of their pay grade. In such cases, the proposed increase will be reviewed by the Provost and the appropriate Executive officer with the approval or disapproval communicated to University Personnel Services.

However, exceptional performance may call for an increase beyond the structure movement amount; the planning unit head may seek approval from the provost for this additional increase and the amount of increase will be added to the individual's base salary.

PAY INCREASES

Subject to the Ohio University Board of Trustees' approval of the annual University Planning Advisory Council (UPAC) budget recommendations and available funds, adjustments may be made in the grade structure and individual employee pay rates.

Structure Movement

Each year, the President, with recommendations from the Vice President for Administration and the Personnel Director, will make a determination regarding the movement of the grade structure. This determination will be based upon:

the percentage with which other peer and comparison universities or organizations are moving their grade structures
the current competitive status of the pay plan minimums, midpoints, and maximums
the financial means of the University

Average Percentage Increases for Employees

The President, based on UPAC recommendations, and subject to approval of the Board of Trustees, will decide the average increase amount to be given to employees. This average increase will reflect the available dollars to fund both general and merit increases, and will take into account the criteria stated above, plus the range of pay increases granted by peer and comparison organizations to their employees. It is possible for this amount to be either higher or lower than the structure movement.

General and Merit Increases

Following the establishment of the average percentage increase, a determination will be made regarding the amount of the funds allocated to general increases and merit increases. All employees who display satisfactory performance will be eligible to receive the general increase. Merit awards, however, are made at the discretion of the department head and will vary with the level of performance of the individual employee.

POSITION EVALUATION AND REEVALUATION

New and/or significantly revised positions must be evaluated in order to assign them to the appropriate pay grades. Also

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refer to "NOTE" below. When a new position is created or an existing one is substantially revised, a Position Description Questionnaire shall be completed and submitted to Personnel Services. Based on the content, Personnel Services will:

gather all necessary supplementary data to achieve a detailed understanding of the position, including supervisor and incumbent input; it is recognized that the supervisor has the prerogative to change the content of the position and therefore must agree with the changes made to the position questionnaire.
evaluate the position according to the Position Evaluation Plan.
assign the position to the appropriate pay range according to the position evaluation results.

Personnel Services will share the initial rating of the position with the supervisor and determine whether additional information is required for accurate grade assignment. The formal pay grade assignment will be issued thereafter.

NOTE: Changes (increases or decreases) in the duties of a position may require a reanalysis and reevaluation of a position. Elapse of time may also trigger a reanalysis and reevaluation. Supervisors are expected to review each position description at least every three (3) years to assure its accuracy and relevance. Where changes are judged significant by the supervisor, the incumbents, or University Personnel Services he/she should complete a Position Description Questionnaire in conjunction with the incumbent, and solicit review and approval by the appropriate department head.

The questionnaire should be forwarded to Personnel Services for review, evaluation, pay grade assignment and proper follow-up with the supervisor and employee.

Appeals

If there is disagreement by an affected employee of his/her assignment of a pay grade within the pay system, the employee may initiate a review of his/her assignment with the Director of University Personnel Services with the supervisor's acknowledgement. The director of University Personnel Services will review the employee's position description and review the Administrative Pay Plan's job evaluation factors with the employee and his/her supervisor and/or department head. After this review, the Director of University Personnel Services shall submit a written report of the review and recommendations to a committee comprised of the senior administrative officers of the University who will make a final determination of the pay grade. A written statement of the decision will be sent to the affected employee and the

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employees' supervisor with a copy to University Personnel Services.

Any employee's concern regarding rate of pay within pay grade assignment will be resolved through Ohio University Policy #41.011, Grievance Procedure for Contract Administrators, where applicable.

Promotions*

Promotional increases shall be given to employees when they are assigned to a different position that is in a higher pay grade. Employees shall be granted a promotional increase to at least the minimum of the new pay grade, or ten percent (10%) of the current salary, whichever is greater. Such increases shall be effective at the time of the promotion. This increase shall be in addition to any general and merit increase for which the employee may be eligible. A promotional increase may exceed ten percent (10%) if special circumstances merit an increase beyond this level, and it is approved by the provost.

*A promotion is defined by the American Compensation Association as: The assignment of an employee to a job in a higher job classification and pay grade. (Glossary of compensation and Benefits Terms, 1989)

Upgrades*

When an employee's position is assigned into a higher pay grade as a result of substantially increased duties and responsibilities, his/her pay will be adjusted to reflect the new level of responsibility. The increase in pay will be equal to the greater of five percent (5%) of the incumbent's current pay or the amount required to raise the incumbent to the minimum of the new grade and will be effective at the time of the job evaluation. This increase may be in addition to any general (inflationary) increase and may also include any additional merit increase. However, the new pay level shall not be greater than the maximum of the new grade. An upgrade increase may exceed five percent (5%) if special circumstances merit an increase beyond this level. An exception must be approved by the provost.

*An upgrade is defined by the American Compensation Association as: The movement of a job to a higher level in a job evaluation system, or to a higher job grade and pay range.

Demotion*

Employees being reassigned to a different position in a lower pay grade with decreased responsibility shall have their salary reduced if it is in excess of the lower grade's maximum. It may be reduced as low as the midpoint of the new salary grade. Any assignment below the midpoint shall be reviewed by University Personnel Services with a recommendation to the provost and appropriate planning unit head.

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*A demotion is defined by the American Compensation Association as: The assignment of an employee to a job in a lower job classification and pay grade.

Downgrades*

Re-assignment of a position into a lower pay grade will not normally result in a reduction in current pay unless current pay is above the maximum of the lower grade.

*A downgrade is defined by the American Compensation Association as: The movement of a job to a lower level in a job evaluation system or to a lower job grade and pay range.

Lateral Moves

When an employee moves into a new position within the same pay grade as his/her current position (that is, makes a lateral move) there will normally be no change in compensation.

[Language modified July 1, 1993]

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Dick Piccarrd revised this file (http://www.ohiou.edu/policy/40-036.html) on October 3, 2005.

Please E-mail any comments or suggestions to "policy@ohio.edu".