Changes to Existing Employee Compensation
Administrative and Professional Employees
A promotion is the movement of an employee to a job in a higher pay grade. An employee may apply for a newly created position or one that has been vacated. This generally warrants a pay increase; the amount of increase should be determined by reviewing several crucial factors:
- The pay range associated with the new position
- The employee’s current pay in relation to the new pay range
- The employee’s qualifications for the new position
- Pay of other similarly situated employees
Internal candidates who are selected to fill a role as part of a fully external, competitive search may be offered up to the 25th percentile of the new grade or a 5-15% increase in pay. No offer should be made below the minimum of the new pay grade. Hiring managers should consider the candidate’s knowledge, skills, and experience, and the pay of other similarly situated employees to ensure an equitable compensation decision.
Existing employees who are reclassified into a higher pay grade as part of an incumbent review or waiver/partial waiver of posting are eligible for a 5-20% increase in pay, with the percentage increase based on documented performance and equity placement in the new classification, or to the minimum of the new pay grade, whichever is greater.
Departments who wish to offer an amount outside of the above guidelines must provide the exception request with justification to Compensation, prior to any offer or communication made to the employee.
A voluntary demotion occurs when an employee applies for a job in a lower pay grade. This generally warrants a pay decrease, with the amount determined by considering the incumbent’s current pay, the pay range associated with the lower grade, the knowledge, skills, and performance of the incumbent, and pay of other similarly situated employees. Compensation must be consulted when a potential demotion is being considered.
Employees who are voluntarily demoted will receive a 5-15% decrease in pay, or no greater than the maximum of the new pay grade for a demotion, (with the percentage decrease based on documented performance in their former role and equity placement in the new job). An exception request for no decrease in pay must be sent to Compensation for review and approval. Approval will be dependent on several factors including the employee’s compa ratio and internal equity analysis.
A lateral transfer is movement to a job in the same pay grade. There is to be no change in pay for a lateral move.
Reclassification of a job is only necessary when there are significant changes to the job’s duties and responsibilities and the current job will not be backfilled. Performance of the incumbent or minor changes in the job would not warrant a reclassification.
Position descriptions are reviewed once a year by departments and employees during the performance management process. Positions that have changed more than 30% should be submitted to Compensation for review. Jobs cannot be reviewed for reclassification more than once every 12 months. Jobs cannot be reviewed for reclassification if the incumbent has been in the job less than 6 months. Changes to a position that result in a promotion, demotion, or lateral move for an employee will follow the same pay practices previously mentioned. If the change reflects a downgrade, Compensation will consult with Employee and Labor Relations. All reclassification requests should be routed through the Planning Unit for comment prior to submission to Compensation.
Temporary Changes to Job Content/Interim Appointments
It may be necessary for employees to assume additional and/or different responsibilities for a temporary period of time not less than 30-days and not more than 180-days. Since temporary and interim appointments can vary significantly, supervisors must consult with Compensation when there is a proposed temporary change that requires consideration of a temporary pay adjustment. Depending on the circumstances or length of the assignment, Policy 40.011 Employee Recognition Awards may be appropriate.
Pay Structure Movement
Each year, the President, with recommendations from the Vice President for Finance and Administration and the Chief Human Resources Officer, will decide the movement of salary structures. This determination will be based upon:
- The current competitive status of the pay plan minimums, midpoints, and maximums
- The financial means of the University
- The percentage with which other peer and comparison universities or organizations are moving their grade structures
Pay structure movement will not affect employee pay unless the employee’s rate of pay falls below the new minimum of their pay grade.
Departments may offer Recognition Pay pursuant to Policy 40.011 as incentive or as recognition of an employee's one-time, exceptional achievement. Rewards and recognition are used to improve performance, motivate employees, build confidence, and increase employee retention.
Effective Date of Pay Changes
The effective date of any pay change initiated by a compensation process will default to the first day of the pay period in which the request was received by the compensation team for review.
Job titles should reflect the nature of the work and the role of the job within Ohio University. Compensation should be consulted when a job title change is contemplated, to provide guidance that is consistent with the University’s guidelines and with market practices. Title changes typically do not warrant a change in job entry date unless there is a corresponding change in job family, subfamily, career track or level. Title changes require Compensation approval prior to changes being implemented.
Counter offers may be considered for employees with a current, regular appointment, when the employee can produce verifiable documented evidence of an external offer of employment for a similar role. Compensation and the Dean/Vice President must approve counter offer requests prior to the counter offer being communicated to the employee. When a counter offer has been offered and accepted, Ohio University will not consider future counter offers in the same capacity to which the employee currently serves. Counter offers are prohibited for internal offers within Ohio University. Bonuses or Employee Recognition Awards may not be used for this purpose.
Exceptions to pay determination guidelines are subject to planning unit head approval after consultation with and approval by Compensation and if necessary the Chief Human Resource Officer (the appointing authority as defined by civil service law).
Administrative Employees may appeal a job evaluation pursuant to Policy 40.040.