40.036: Administrative and Professional Pay Plan
|Status:||Approved on June 29, 2011||Signatures and dates
on archival copy
|Initiated by:||Linda L. Lonsinger|
Chief Human Resource
|Endorsed by:||Pam Benoit|
Executive Vice President and Provost
|Approved by:||Roderick J. McDavis|
- I. General Policy Statement
We will pay employees without regard to race, color, religion, gender, sexual orientation, national origin, age, veteran status or disability status relative to:
- internal equity based upon the skills and requirements of positions;
- external market as defined by University Human Resources ("UHR");
- financial management of the University.
- II. Program Objectives
It is the intent of Ohio University to maintain a salary program that:
- is consistent with the general policies of the University;
- includes a salary plan that is internally equitable and externally competitive with comparable market ranges;
- ensures equitable pay for work requiring similar skill or competency, scope, and responsibility;
- ensures that the salary program is administered with consistency and uniformity throughout the University, with regard to position evaluation and salary structure;
- includes objective job specifications and qualifications as an aid to hiring and promotion, and affords every applicant fair consideration in accordance with all applicable regulations and governmental laws;
- provides a system to identify inequities and maintain competitive salary levels;
- provides data for the strategic analysis of compensation costs, forecasts;
- provides data supporting workforce, talent, and succession planning.
- III. Communicating Salary Information
Information concerning career levels and salary ranges is made available to all employees through Ohio University’s web site as posted by University Human Resources. Furthermore, managers are expected to actively and openly communicate the organization's pay program and associated policies to employees on an ongoing basis. Managers are also expected to discuss the following areas with all employees.
- how the overall compensation and performance management systems work and the employee’s role in the process;
- compensation and performance management policies and procedures;
- the position competency profile covering the employee's duties, responsibilities, and competencies needed to successfully perform position duties;
- the employee's potential for career progression;
- performance and its relation to salary increases and Reward and Recognition.
- IV. Administrative Responsibility
The President of Ohio University or the appropriate designee has authority and responsibility for the salary plan's goals, objectives, structures, and policies. The following are specific delegations of authority in the day-to-day administration of the program.
- A. Chief Human Resource Officer
Ongoing responsibility for overseeing the program is assigned to the Chief Human Resource Officer. As such, the following duties are in the Chief Human Resource Officer’s purview, although in actual practice they may be assigned to other staff in University Human Resources:
- drafting and recommending new or revised salary policies and procedures;
- maintaining position descriptions in accordance with retention schedules;
- 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 regulations, and other governmental regulations including the determination of a position's exempt or non-exempt status;
- maintaining histories of salary and career records in accordance with retention schedules;
- 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.
- B. Salary Plan Evaluation
The Vice President for Finance and Administration shall request the Chief Human Resource Officer to conduct a study of the Administrative Pay Plan every three years, or as needed. The purpose of the study is to evaluate the Salary Plan in terms of effectiveness in achieving objectives, external comparability, and internal structure and usage by administrative units.
- C. Position Competency Profile
The duties, responsibilities and specifications of all positions in the program should be documented in a Position Competency Profile. This form will provide information regarding the essential functions of the position, specifics with respect to position scope and accountability, and the skills and competency level requirements of the position. Managers are accountable to complete a PCP for each position they supervise, with input from their staff.
Substantial changes may occur (e.g., combining major job functions) in the duties of a position may require a re-evaluation of a position. The college or planning unit head, department, or incumbent may initiate a request for re-evaluation. Managers are expected to review each position competency profile whenever necessary (e.g., re-organization) to ensure its accuracy and relevance. Where changes are judged significant by the Manager or University Human Resources, the Manager will revise the profile and solicit review and approval by the appropriate department head.
The position competency profile will then be forwarded to University Human Resources for evaluation placement and proper follow up with the Manager and employee.
- V. Position Titles
Titles provide functional meaning and organizational consistency throughout the University. The use of certain titles will be normally restricted to specific career levels. Such titles as Bursar, Coach, Editor, and Psychologist clearly describe a function and are very useful for market benchmarking. Other titles such as Director, Manager, Dean, etc., will be used following standard convention and definition to ensure appropriate organization and career level placement, and consistent application within the career band system. See the Position Title Convention Guidelines for details.
- VI. Salary Structure
The university uses a career banding compensation system to establish appropriate salary ranges for positions. The compensation rate of a position is primarily established by market pricing competitive benchmark positions. Career bands also provide career progressions, both lateral and vertical, wherever possible to facilitate career development and succession planning opportunities.
It is the goal of Ohio University to benchmark jobs to the market that mirrors our recruiting practices. For example, the relevant market data for most classified positions will be the local area labor market (Athens County). For higher level professional and leadership positions, the relevant market expands to include regional and national labor markets.
To ensure that the Ohio University Pay Structure remains up-to-date and fully competitive, UHR carefully selects and periodically participates in comprehensive salary surveys from reputable third party vendors. Effective job matching and a large number of relevant (e.g., Higher Education, industry specific, or Not-For-Profit industry) data points ensure a high degree of data applicability.
Salary ranges and market reference points (MRPs) which represent the median of the market for a given position are developed for each job family within the career bands. Position content, complexity, job family, and role requirements determine the specific level for a position within the band. Salary minimums and maximums represent the market ranges for positions within a given job family. All staff shall be paid within this specific market range. Exceptions will be rare and must be approved by the planning unit head and the Chief Human Resource Officer.
The career band system is intended to:
- Provide greater alignment with the external competitive labor market combined with greater flexibility to enhance recruitment and retention.
- Support reward and recognition for significant increases in position scope and demonstrated competency.
- Provide the Career Progression Guidelines for each job family, where appropriate, to clearly identify critical success factors for both vertical and lateral career movement. See the Compensation Guidelines for additional detail.
- VII. Hiring Pay Rates
Every person newly appointed to a position shall meet the minimum qualifications for that position. The initial salary shall not be less than the minimum salary of the applicable salary range.
The hiring department Manager has the discretion to offer a salary extending from the minimum set for the range up to 25% into the range. Consultation with UHR should take place before offering a salary beyond 25% penetration up to the MRP. Any difference between the hiring department and UHR will be referred to the appropriate Planning Unit Head and the Chief Human Resource Officer for resolution.
When a candidate's qualifications clearly exceed 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), a request from the hiring department for a starting salary above the midpoint (MRP) shall be reviewed by the planning unit head and UHR, with the final decision being made by the Chief Human Resource Officer.
- VIII. Salary Increases
Subject to the Ohio University Board of Trustees' approval of the annual budget recommendations and available funds, adjustments may be made in the career band salary structure and individual employee pay rates.
- A. Structure Movement
Each year, the President, with recommendations from the Vice President for Finance and Administration and the Chief Human Resource Officer, will make a determination regarding the movement of the salary structure. This determination will be based upon the:
- Percentage with which other peer and comparison universities or organizations are moving their salary structures.
- Current competitive status of the salary plan minimums, Market Reference Points, and maximums.
- Financial means of the University.
- B. Average Percentage Increases for Employees
The President, 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 money available to fund both merit and total 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.
- C. Merit Increases
Following the establishment of the average percentage increase, a determination will be made regarding the amount of the funds allocated to merit increases. Merit awards are made at the discretion of the department head and will vary with the level of performance of the individual employee, as well as other criteria such as position in salary range and relative equity.
- IX. Restructuring
Positions will be set in the career band structure at the time of implementation. Major changes within a department or planning unit may require a re-assessment of positions if there is a major impact on position responsibilities. In such cases, a thorough review of the strategic plan and organization charts and work flow will be necessary. Any changes (new position, position elimination, etc.) will require Planning unit and Chief Human Resource Officer approval. The effective date of a pay increase may be, at most, retroactive back to the beginning of the current fiscal year. A reduction in pay may be immediate, but never retroactive.
Any employee's concern regarding rate of pay within the salary range or effective date will be resolved through Policy 41.011, where applicable.
- A. Promotion
Promotional increases shall be given to employees when they are appointed to a higher level position (e.g., Sr. Accountant to Manager, Accounting). Employees shall be granted a promotional increase to at least, the minimum of the new salary range or 5-15% of current salary based on proper positioning in the new salary range, whichever is greater. Such increases shall be effective at the time of the promotion. This increase shall be in addition to any merit increase for which the employee may be eligible. A promotional increase exceeding 15% requires the approval of the planning unit head and the Chief Human Resource Officer or appropriate designee.
- B. Career Progression
When an administrative or professional employee demonstrates proficiency at a significantly higher competency level (e.g., Accountant to Senior Accountant — see the applicable Career Progression Guidelines) within a defined career progression, base salary will be adjusted accordingly. The increase in salary will be between 4%-10% based upon market competitiveness, relative equity, and proper placement within the salary range. Career progression increases are normally combined with merit increases with respect to effective date. Exceptions require both the planning unit head and Chief Human Resource Officer approval. Applications of all such increases are dependent upon functional need and budgetary considerations.
- C. Demotion
A demotion is defined as: The appointment of an employee to a lower level position (e.g., Senior Accountant to Accountant).
Employees being appointed to a different position in a lower salary range shall have their salary reduced if it is in excess of the lower range's maximum. It may be reduced as low as the midpoint (MRP) of the new salary range. Any salary below the midpoint (MRP) shall be reviewed by University Human Resources.
- D. Lateral Moves
When an employee moves into a new position with a similar salary range as the current position (that is, makes a lateral move) there will normally be no change in compensation. Exceptions require planning unit head and Chief Human Resource Officer approval.
- E. Position Re-Evaluation
Re-evaluation that places the same position into a lower level (e.g., Project Specialist to Project Administrator) will not normally result in a reduction in current pay unless current pay is above the maximum of the lower range. In such cases, pay shall be reduced to the maximum of the salary range, promptly or within one year.
- F. Equity Adjustments
Salary adjustments may be necessary throughout the year as there are dynamic changes in competitive salary rates or other conditions that affect internal salary relationships (e.g., salary compression, relative equity concerns, etc.). Please refer to the Equity section of the Compensation Guidelines for more detail.
- X. Interim Appointments
In order to meet urgent needs, it may be necessary to appoint a person to an administrative position in an interim capacity. Designating an employee to an interim status is justified only when time or circumstances do not permit the immediate selection of a permanent appointment under the established selection and appointment procedures for administrative staff. The appointment in an interim capacity to administrative position should not exceed a 6-9 month period. Exceptions may be granted only by the responsible planning unit head and Chief Human Resource Officer.
The following conditions shall apply to interim appointments:
- An employee in an interim capacity shall meet the minimum academic and professional qualifications for the interim position.
- An interim appointee will receive a salary adjustment for the time spent in the interim appointment.
- Appointment of a current employee to an interim position, of the same or higher career band salary range, shall typically carry an increment of 10% over the current base salary. Exceptions will require the approval of the relevant planning unit head as well as the Chief Human Resource Officer.
- Requests for an interim shall be initiated with the completion of an Interim Request Form, routed through the appropriate unit, college, or planning unit head, to the Chief Human Resource Officer for consideration.
Proposed revisions of this policy should be reviewed by:
- Executive Staff
- Council of Deans
- Chairs and Directors Council
- Administrative Senate
- Forms, References, and History
- A. Forms
The following forms are specific to this policy:
- The "Position Competency Profile" is available from University Human Resources, or online at http://www.ohio.edu/hr/forms/index.cfm#p.
- The "Interim Request Form" is available from University Human Resources, or online at http://www.ohio.edu/hr/forms/index.cfm#i.
- B. References
The following items are relevant to this policy:
- The Faculty Handbook.
- Policy 17.990, "Undergraduate Teaching Appointments."
- Policy 20.109, "Employing Graduate Students on Contracts."
- Policy 20.110, "Student Employment."
- Policy 40.039, "Compensation for Classified Staff."
- Policy 40.040, "Job Classification System."
- Policy 40.055, "Pay Determination for Classified, Classified IT, and Administrative IT Staff."
- Policy 40.057, "Research Appointments."
- Policy 40.105, "Appointment of Executive Officers."
- Policy 40.106, "Administrative Appointments."
- Policy 41.011, "Grievance Procedure for Administrative Presidential Appointees."
- Compensation Guidelines are available from University Human Resources, or online at http://www.ohio.edu/hr/comp/.
- Career Progression Guidelines for specific job families are available from University Human Resources, or online at http://www.ohio.edu/hr/comp/.
- Position Title Convention Guidelines are available from University Human Resources, or online at http://www.ohio.edu/hr/comp/.
- C. History
Draft versions of this policy that were circulated for review, their cover memos, their forms, and Reviewers' comments on them are available on the password-protected Review site, at https://www.ohio.edu/policy2/40-036/.
A prior version of this policy was approved on November 4, 1993.