Salary Administration East Carolina University Department of Human Resources Classification and Compensation
East Carolina University’s Compensation Philosophy It is the policy of East Carolina University to support and sustain a high performance work environment focused on having the right people, doing the right work, at the right time. The University’s high performance work environment requires compensation levels that: • are consistent with University priorities, • promote and reward successful work behavior, • recognize job competencies that are linked to organizational goals, • maintain appropriate labor market competitiveness to ensure effective recruitment and retention of a highly competent and diverse work force, and • are supportive of individual, family, and community values. The career banding program is structured to ensure SPA employees receive fair and equitable treatment in regard to compensation levels and career development opportunities. The Career Banding Salary Administration policy and guidelines will be applied effectively for all eligible employees.
East Carolina University’s Compensation Philosophy • Compensate employees equitably and fairly • Offer compensation to employees within the market halo (90% - 110% of their Market Rate) • Remain Competitive in the Market
Developing a Unit Compensation Plan • Long-Term vs. Short-Term Philosophy • What is reasonable and attainable? • What can you pay within budget constraints? • How far away are your employees from their market rates? • What are the most immediate needs?
Pay Determined by ….. • Competency level of employee and the • Pay Factors
Pay Factors Financial Resources - amount of funding available Appropriate Market Rate - market rate applicable to the demonstrated functional competencies Internal Pay Alignment - consistent alignment of salaries for employees who demonstrate similar required competencies in the same banded class Required Competencies - functional competencies required based on organizational business need
Determine Competency Level If all competencies at the same level, the overall competency would be at that level If individual competencies vary, consider: • Are any competencies more important? • Are the majority at one level? • What overall competency would represent an average of all competencies?
Determine Appropriate Pay Market Index 10 % 10 % 10 % Min Max 90 110 Contributing Market Rate Advanced Market Rate Journey Market Rate
Pay Based on CompetenciesExample #1 Competency Assessment Form Contributing Journey Advanced Comp A X Comp B X Comp C X Overall X Employee’s Pay Career-Banded Class Rates Min Max Contributing Market Rate Journey Market Rate Advanced Market Rate
Pay Based on CompetenciesExample #2 Competency Assessment Form Contributing Journey Advanced Comp A X Comp B X Comp C X Overall X Employee’s Pay Career-Banded Class Rates Min Max Advanced Market Rate Contributing Market Rate Journey Market Rate
Assess internal pay alignment • Is proposed salary equitable with salaries for other employees who may have similar competencies? • May rank all employees in the competency level and compare market index • Adjust proposed salary if needed
East Carolina University Career Banding Career Adjustment Worksheet Employee Name: Katherine Odegard Department Name: Allied Health Employee SSN#: 345-67-8901 Position #: 33333 Department #: 12345678 Banded Class and Competency Level: Research Specialist - Journey Schematic Code: 12502 I. Career Progression Adjustment Competency/Skill Change Competency Level Change Retention Labor Market II. Justification: Ms. Odegard is well below the journey market rate. Her current salary is at 78% of the appropriate market rate and we would like to give her a $5,000 increase to bring her up to 88% of the market. See attached Salary Assessor Worksheet. III. Salary Recommendation: Effective Date: 9/1/07
Career Progression Limitations Competencies may increase, but -- no funding for pay increase -- current salary already exceeds appropriate level -- internal pay alignment may limit increased pay
Discussing Pay with Employees • Explain four pay factors • Explain any budget constraints • Explain that when funds do become available they are awarded on a current basis • Explain career development connection
Reminders • Documentation is critical • Compensation is tied to demonstrated competencies • Detailed justification is necessary