Salary Administration Guidelines Staff Compensation Program

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Staff Compensation ProgramSalary Administration Guidelines

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESCONTENTS1. Introduction . 22. Our Compensation Philosophy . 33. Compensation Basics – Effective Compensation Programs . 5 Basic Principles . 5 Typical Program Components . 54. DePaul University’s Staff Compensation Program Overview . 7 Goals . 7 Governance . 7 DePaul’s Program Components . 85. Salary Program Management and Administration . 12 A. Job Descriptions . 12 B. Managing Salaries within the Grade . 12 C. Starting Salaries . 13 D. Merit Reviews . 14 E. Significant Changes to a Job . 14 F. Skill Achievement . 15 G. Promotions. 16 H. Transfer/Lateral Moves . 19 I. Demotions . 19 J. Off-Cycle Salary Reviews . 19 K. Compensation for Part-Time Staff . 19 L. Staff Recognition Award Program . 18 M. Non-Cash Rewards . 196. Job Titles. 217. Program Maintenance . 23 Market and Equity Reviews . 238. Legal Considerations. 24 Fair Labor Standards Act . 249. Glossary of Terms . 261

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESIntroductionDePaul University is pleased to present the salary administration guidelines for the staffcompensation program, which covers all non-union staff jobs at the university. This documentdescribes the program and presents guidelines for ensuring that staff salaries are administeredappropriately across the university.DePaul is committed to a policy of equal opportunity in every aspect of our operations. Wevalue and appreciate a diverse workforce, and we seek qualified and talented employees from avariety of backgrounds. Accordingly, the compensation program does not discriminate on thebasis of gender, race, age, color, religion, national or ethnic origin, sexual orientation, disability,marital status, military leave, veteran status or any other status protected by law, in matterspertaining to employment. The program will comply with all applicable state and federal lawsgoverning compensation and all other applicable laws and regulations.The university intends to administer this program in accordance with these guidelines; however,reserves the right to modify any of the guidelines described in this document at any time withoutprior notice. Nothing within these guidelines constitutes a contract or guarantee of employment.2

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINES1Our Compensation PhilosophyDePaul University’s mission is to make an extraordinary education accessible. Our namesake,St. Vincent de Paul, consistently recognized and respected the dignity of each person, and ourcompensation philosophy is aligned with guiding principles based on our Vincentian values. Weare committed to treating all DePaul employees with respect, and our compensation programs,policies, and practices will support this commitment.Our Guiding Principles We value the collective work and contributions of all individual staff members at DePaulUniversityWe evaluate our compensation against peers in our industry and marketplaceWe support a fair, equitable, and consistent approach to compensation for all employees,and recognize individual results through the use of an annual merit review process based onperformance and the achievement of goalsWe align the work of our employees to DePaul’s overall success and mission through theperformance management program; individual goals are linked to the university’s strategicand operational goalsWe provide a competitive overall compensation package, including a competitive basesalary, benefit programs for employees and their dependents, retirement savingsopportunities, and optional work/life programsProgram AdministrationDePaul strives to deliver fair and competitive compensation that enables the university to attract,retain, and engage highly qualified individuals with the requisite expertise and skills to serve themission of the university. We will: Collect, analyze, and utilize pertinent market-driven salary data from both higher educationand general industries in the Chicago area to develop equitable salary grades that take intoaccount roles, responsibilities and requirements of the jobs; Pay all employees within the minimum and maximum of their respective salary ranges; Develop and enforce administrative guidelines to ensure the compensation program isadministered in a consistent, impartial, and sustainable manner; Uphold ethical conduct and legal compliance in the application of compensation policies,rules, practices, and all applicable employment laws and regulations;3

DEPAUL UNIVERSITY STAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESReview our philosophy and practices to ensure that our guiding principles and values areconsistently upheld in practical administration;Communicate any changes to this philosophy, our compensation policy, and ouradministration of the program in a timely manner.Note: This document and other aspects of DePaul’s compensation program (job descriptiontemplate, listing of salary grades, salary planning matrix, etc.) are available online nsation/Pages/default.aspx4

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINES2Compensation Basics – Effective Compensation ProgramsAs a manager of staff at DePaul, it is important to understand the basic principles of howcompensation programs are developed and designed so that you have the background to helpanswer questions from your staff.Basic PrinciplesAny compensation program must address two primary concerns: Establishing a competitive salary range for jobs that takes into account roles, responsibilitiesand requirements of the jobs; Determining the appropriate salary for individuals, with consideration of their knowledge,skills, expertise and job performance.In recent years, compensation programs are also being linked to career progression so thatsalaries align with employee growth and development.Typical Program ComponentsThe following are typical components of staff compensation programs.Job EvaluationJob evaluation refers to the process of grouping jobs together to ensure university-wideconsistency in how salary decisions are made and for career progression. The most commonways to group jobs are as follows: Job families and Job functions categorize jobs by the functional specialty; Job categories describe various levels of impact and complexity of work for three majortypes of roles: Support, Professional, and Management.Salary StructureA salary structure refers to a series of grades with salary ranges that establish salaryopportunities for jobs.An analysis of market salaries must be done to determine the competitive salary rates and todevelop salary ranges. Salary ranges have a minimum, midpoint and maximum that reflectsmarket competitive salary rates, and provide appropriate salary opportunities for staff within awide variety of levels of experience and expertise.5

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESSalary Administration GuidelinesThe job evaluation process and salary structure provide the organizational framework forsalaries, and these guidelines describe the policies and processes to be followed when makingsalary decisions. Guidelines cover the full range of employment situations that may warrant asalary adjustment. In essence, guidelines are the ‘roadmap’ for how the program will operate,including such aspects as starting salaries, promotions, transfers, and change in jobresponsibilities.6

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINES3DePaul University’s Staff Compensation ProgramOverviewGoalsDePaul University’s Staff Compensation Program has been designed to: Manage salaries through a simple, clear program that is consistent with the university’svalues, mission, and objectives. The program enables DePaul to:– Recruit, retain and engage qualified staff;– Provide competitive salary opportunities;– Provide fair and consistent salary administration across all departments at DePaul;– Reward staff for high performance and continued development of skills and expertise. Provide managers with sufficient guidance to make consistent and appropriate salarydecisions while also providing flexibility to meet the business and staffing needs of theirareas; Provide the DePaul community with clear and accurate information about the compensationprogram and how salaries are administered.GovernanceUniversity leadership, the compensation team, managers and staff all have important roles toplay in the compensation program.University Leadership will: Approve the compensation philosophy and program; Hold the leadership team accountable for supporting the program and ensuring its effectiveand consistent administration in their areas of responsibility; Support Human Resources in managing and maintaining adherence to the program.The Compensation Team will: Monitor market conditions and make recommendations for updating the program; Work with leaders and managers to ensure adherence to the program; Communicate any changes to the philosophy, compensation program, policies, practices,and administration to managers and staff in a timely manner; Track how the program is used and make recommendations for enhancements.7

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESManagers will: Develop and maintain understanding of the program; Maintain up-to-date job descriptions for direct reports; Support the program and follow its guidelines in making pay decisions to manage andmaintain adherence to the program; Consult with the compensation team to clarify outstanding questions and seek advice asnecessary; Communicate positively with employees to provide information about the program and how itaffects them.Staff members will: Develop understanding of the program and keep informed about the compensation programby using the resources DePaul makes available (e.g., written materials, Human Resourceswebsite); Discuss questions or concerns with their managers and/or the compensation team; Work with their managers to keep their job description updated.DePaul’s Program ComponentsJob EvaluationFor purposes of this program, jobs at DePaul are evaluated based on their roles, responsibilitiesand requirements. The jobs are assigned a salary grade and grouped into job families, jobfunctions, and job categories. This process groups similar jobs together and streamlines themarket pricing process and grade assignments of jobs across the university.Job Families and Job Functions Job Families are groups of jobs that are similar in the field/profession of the work and coreaccountabilities.Job Functions are sub-sets within a job family and are used to further group jobsThe job family framework helps to group jobs by the nature of the work, rather than by theorganizational or reporting structure. Your peers within your department are likely part of thesame job family as you, and may be part of the same job function. A listing of the university jobfamilies is located after the Glossary section of this document.8

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESExamples of Job Families and FunctionsFamily: Human ResourcesFunctions: Compensation, BenefitsFamily: Academic SupportFunctions: AdvisingFamily: Library ServicesFunctions: Collections, Archives9

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESJob CategoriesJob categories describe the overall nature of work. The three job categories at DePaul are:Support, Professional, and Management.SupportProfessionalManagementSupport jobs are those jobs whichprovide organizational relatedsupport or service (administrativeor clerical) OR roles operating in a“hands on” environment insupport of daily operations.The majority of time is spent inthe delivery of support services oractivities, typically undersupervision. The jobs in thiscategory are generally paid on anhourly basis and classified asnon-exempt under the Fair LaborStandards Act (FLSA), althoughassignment to this category is nota recommendation of FLSAstatus. Higher level support jobsmay be responsible foroverseeing well-defined tasksperformed by non-exemptemployees, but are notresponsible for employeedevelopment. Jobs in thiscategory may also overseestudent workers and/orvolunteers.Professional jobs typicallyoversee the design,implementation, and delivery ofprocesses, programs and policiesusing specialized knowledge andskills normally acquired throughadvanced education orspecialized training. Professionaljobs are generally exempt jobsunder the FLSA withresponsibility in a field, function,or specialty area. A professionalstaff member may oversee thework of two or fewer directreports and/or manageprocesses and programs;however, this is incidental to theprimary role of the job.Management jobs are those jobswhich accomplish their goals andaccountabilities primarilythrough the management ofstaff in operational and/orstrategic roles within a specifiedjob family/function. Jobs in themanagement category have themanagement and development ofpeople as a major accountability,and generally have directreports. The majority of time isspent overseeing their areas ofresponsibility, planning,prioritizing and/or directing theresponsibilities of employees.Job LevelsJob levels have been developed within each of the above job categories. Each level describescharacteristics of jobs that will be assigned to the level, including organizational impact,complexity, leadership responsibility, as well as knowledge and experience requirements.Each job at DePaul has been reviewed, compared to the level criteria, and assigned to the levelthat best describes the job. A list of university job levels after the Glossary section in thisdocument.Salary GradesSalary grades establish a range of salary for a job based on the competitive market value ofsimilar jobs, and consist of a minimum, midpoint and maximum.10

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESComparison MarketsDePaul University is a complex organization with many different types of staff jobs. In order toestablish competitive salary ranges for jobs, the compensation team benchmarks salaries to themarket that best reflects our talent needs. Depending on the job, we may recruit locally,regionally or nationally from other universities and/or from employers outside of higher education(i.e., general industry). Job benchmarking is based on responsibilities and requirements, nottitles.Market data is used to establish competitive salary ranges that enable DePaul to effectivelyrecruit, retain, and engage a highly qualified, skilled workforce.DePaul participates in a number of carefully selected salary surveys to ensure the university hasaccess to current and quality data. These surveys are conducted on an annual basis byreputable survey firms who use proven methods for collecting, analyzing and presenting data.The compensation team regularly evaluates data sources to ensure they continue to meetDePaul’s needs and that the quality and credibility remains high.11

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINES4Salary Program Management and AdministrationThis section provides guidance on salary decisions in various employment situations. If youhave questions or need assistance, the compensation team is available to help.A. Job DescriptionsJobs are assigned to the compensation program based on their role, responsibilities andrequirements. Therefore, it is important that job descriptions are kept current, accurate, andcomplete. Job descriptions are used for: Market pricing – to assist in determining the competitive salary for the job based on marketdata; Internal equity – to assist in ensuring comparable salary opportunities for comparable jobs; Performance reviews – to ensure the employee and manager have a clear and sharedunderstanding of the job’s primary responsibilities; Recruiting – to ensure that accurate job information is used to identify qualified candidatesand to provide new employees with a clear understanding of the job.All job descriptions must be completed using the DePaul template, which is available on thecompensation website.B. Managing Salaries within the GradeThe salary structure at DePaul is based on market data, best practices in compensationprogram design, and the jobs at the university. The market data establishes a midpoint, and asalary range is created around that market data to accommodate a wide variety of salaryopportunities based on experience and contribution over time.Employees can expect to be paid within the range associated with their job’s grade. No one willbe paid below the grade minimum. Similarly, employees should not be compensated abovethe maximum of the salary range for their job. There may be a rare exception where a salaryabove the range is appropriate, but this must be reviewed by the compensation team and VicePresident of Human Resources, and approved by either the President, Provost, or EVP,depending on the unit in which the job resides. A list of DePaul’s salary grades is available onthe compensation website.The salary ranges have been designed to be wide enough to accommodate a variety ofexperience and expertise levels, from entry level to expert. Use the following guidelines todetermine the appropriate salary for an existing employee and to determine the appropriatestarting salary for a new hire.12

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESDevelopingQ1 Building both skillsand knowledge aswell as ability tohandle the fullbreadth of job dutiesand responsibilitiesEmployee isworking towardsproficiency in the job Typical zone forstarting salaries forindividual withlittle/or noexperience in thejob and who is on asteep learning curve Salary RangeMarket Reference RangeQ2Q3Possesses all/mostof the basicknowledge and skillrequirements, butmay need to buildupon them throughexperiencePerforms jobresponsibilities withincreasingeffectivenessPerforms most jobresponsibilitieseffectively andindependentlyMay still be learningsome aspects of jobor developingexpertise to handlethem moreindependently andeffectivelyTypical zone forstarting salaries forindividualexperienced in mostjob responsibilities PremiumQ4Fairly seasoned andproficient;consistently exhibitsmost desiredcompetencies toperform jobsuccessfullySignificant relevantexperience andpossesses allrequired knowledgeand skillsDemonstratessustained high levelof proficiency in allaspects of job overan extended periodof timeHas broad andsteep knowledge ofown area as well asrelated areasZone should also beconsidered if job ishard to fill Typical zone forstarting salaries forindividual withextensive direct jobexperience Expert in all jobcriteria; depth andbreadth ofexperience,specialized skills,adds significantvalue to institutionServes as expertresource and/or rolemodel/mentor toothersThis represents apremium on marketsalaries; typicallyreserved foremployees withexceptionalexpertise or whohave consistentlydemonstrated thehighest levels ofsustainedcontributionsZone should also beconsidered if job ishard to fillRarely appropriateas a zone forstarting salaryC. Starting SalariesIt is important to ensure that a starting salary is appropriately set based on the skills, knowledgeand experience of the candidate, with consideration for internal equity.The starting salary for a new staff member at the university is determined by considering thesalary range associated with the salary grade and by reviewing the candidate’s qualifications forthe job as compared with job responsibilities and the “Managing Salaries within a Grade” model(see item B in this section). This will ensure that new employees begin their employment with an13

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESappropriate salary based on their skills, knowledge, and experience. Prior work experienceshould be considered in determining the salary offer, provided that it is relevant to the staffmember’s current job (i.e., prior duties performed and the knowledge, skills, and abilities gainedin those prior jobs are readily applicable to the job at DePaul.)The compensation team will review all starting salary offers above midpoint to confirmappropriateness and to ensure internal equity across the university. Any potential salary offersabove the grade maximum must be reviewed by the compensation team and Vice President ofHuman Resources and approved by either the President, Provost, or EVP, depending on theunit in which the job resides.D. Merit ReviewsDePaul’s philosophy is to reward staff for performance that contributes to both the individualdepartment’s goals as well as DePaul’s overall goals. The most common and consistent waymanagers can reward staff is through performance-based merit increases that typically occur onan annual basis, subject to financial feasibility and leadership approval.Employees covered by the staff compensation program are eligible for consideration for a meritincrease, with the following exceptions: Anyone hired within 3 months prior to the merit review date; Individuals on a performance improvement plan, or whose last review was unsatisfactory; Employees with salaries above the salary range maximum, though these employees may beeligible for a lump sum payment if performance warrants.Each year university leaders analyze the university’s budget and if appropriate, approve a meritincrease budget. Generally, the overall budget available for merit increases is expressed as apercentage of payroll (e.g., 2.5%), however, this amount is not necessarily what individual staffmembers will receive. The actual merit award is determined by individual performance andposition within the salary range.Every year, each employee’s performance will be evaluated through the performance reviewprocess. The overall performance level should guide the merit increase. Since salary increasebudgets vary from year to year, the compensation team will publish an annually updated meritincrease matrix to provide guidance to managers.E. Significant Changes to a JobIt is common for jobs to evolve incrementally over time to meet the needs of the department.There are also times when there are significant permanent changes to the responsibilities of ajob.Not all changes to a job warrant a grade or salary change. Examples include:14

DEPAUL UNIVERSITY STAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESUse of different tools to handle the same responsibilities. This most frequently would be theintroduction of technology to handle current manual processes or updates to existingtechnology;Similar responsibilities added or exchanged for existing responsibilities;The volume of work is increasing or decreasing but the complexity of the work does notchange;The attainment of a degree or other educational milestone, unless this results in changes tothe job, level of authority, or scope of responsibility.Examples of significant job changes that warrant a review of the salary grade and/or salaryinclude: Additional responsibilities that are different from the existing responsibilities and requireadditional training/self-study to learn; The level of accountability has changed significantly, such as significant changes to budgetresponsibility or additional people management responsibilities.Managers should consult with members of the compensation team if they believe there is asignificant change to a job’s responsibilities. The request should not come from employees.The manager’s request should include a revised job description which highlights the keychanges to the existing job. The compensation team will review the changes and provideguidance on the appropriate course of action.Job Evaluation ProceduresThe compensation team will:1. Analyze and compare the revised job description content to the content of the existing job aswell as other similar jobs within the university;2. Determine if the new job description does not align with an existing job within the university,in which case the team will compare the job description against external market data forgrading;3. Evaluate and determine the FLSA exemption classification for the job;4. Communicate to the hiring manager and/or budget manager the summary of the evaluationand recommendation for the job (salary grade/range, job title, and FLSA exemption status);5. Upon manager approval, update job and employee information;6. Provide communication templates to manager if there is an incumbent in the position.F. Skill AchievementThe university expects that all staff members will continue to build and maintain current job skillsin order to effectively perform job expectations. However, from time to time an employee maysignificantly enhance his/her skills which materially affect the demonstration of jobresponsibilities. Earning a degree typically does not warrant a salary increase unless theemployee has developed skills that enable him/her to perform the job responsibilities at anoticeably higher performance level.15

DEPAUL UNIVERSITYSTAFF COMPENSATION PROGRAMSALARY ADMINISTRATION GUIDELINESGenerally, skill achievement should be rewarded through the performance review process. Inrare situations, an additional salary adjustment may be appropriate. Managers should reach outto the compensation team to review prior to any conversations with the employee.G. PromotionsA promotion is movement to a job assigned to a higher salary grade. Such a move generallywarrants an increase in base salary to recognize higher level responsibilities and to ensure thatthe salary for the new job is consistent with market and internal equity. An exception mayoccur if the employee’s current salary fits comfortably in the salary range of the new job.The compensation team will work with managers to develop an appropriate salary within thenew salary grade, based on the employee’s skill, knowledge, experience, performance, andinternal equity. Since circumstances vary and each employee has a different salary history, itis important to consider multiple factors including the incumbent’s current salary within the newgrade when making compensation decisions related to promotions. The compensation teamshould provide consultation on all promotions.There are a number of considerations to take into account when determining a promotionalincrease to ensure the starting salary in the new job is appropriate, including: The degree of increase in responsibilities; Performance relative to expectations; Current salary in comparison to the new grade; Salaries of other incumbents in similar jobs; Depth and breadth of demonstrated skills.If an employee is being promoted into an existing job within the university, no new jobdescription is required.If the employee is being promoted into a job that is new to the university, a manager mustsubmit a new job description for evaluation.The following pages provide a guideline for promotions to a higher grade. Consider how eachstatement applies to the employee and plot the assessment on the corresponding line. Afterplotting each item, a pattern is likely to be evident. This pattern will help develop an appropriateincrease recommendation.16


SALARY ADMINISTRATIO N GUIDELINES . 1 . . Support, Professional, and Management. Salary Structure A salary structure refers to a series of grades with salary ranges that establish salary opportunities for jobs. . decisions while also providing flexibility to meet the business and staffing needs of their

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