PAYING THEM RIGHt: Tools for salary administration HR Liaison Network Spring Meeting

PAYING THEM RIGHT: TOOLS FOR SALARY ADMINISTRATION

HR Liaison Network Spring Meeting

Texas A&M University, Human Resources

DIVISION OF FINANCE

February 29, 2012

Human ResourcesTools for Salary Administration

02/29/2012

Understand basic compensation administration tools and approval processes at A&M

Understand how reclassifications are accomplished and what impacts pay rates

Understand information that can help you manage supervisor and employee expectations

Know where to find further resources online

Learning Objectives


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Agenda Classification & Compensation Office Legal & Regulatory Framework Salary Administration

Classified PositionsNonclassified Positions

Reclassifications Other Types of Pay Changes Rules and Procedures Online Resources


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The office within Human Resources that serves as the point of contact for departments and administers compensation issues for non-faculty (staff positions) such as:

Creating new budgeted positions Reclassifying/Re-titling existing positions Salary or pay rates when filling new or vacant

positions Working time and overtime exemption issues Other types of salary changes

Classification & Compensation


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Contact Info


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Federal Laws (such as Fair Labor Standards Act)

State Laws (Government Code, etc.)

A&M System Policies & Regulations

University Rules & Procedures

Delegations of Authority by Division or Department

Legal & Regulatory Framework


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Basics: Pay for Classified Positions

Title codes 0001 to 6999 Included in Classified Pay Plan Minimum pay rates by title Often, but not always, nonexempt (paid hourly and

eligible for overtime) May or may not be part of formalized career

ladder

Pay Rates Online


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Hiring rates depend on: Minimum pay plan rate for the title

To pay more than minimum rate when hiring: Department head can approve up to 10% above

minimum with candidate’s superior qualifications More than 10% above minimum (even if hiring another

A&M employee) requires justification and higher approval Departments should consider:

Candidate qualifications that exceed the required Equity within department with others in same title

Basics: Pay for Classified Positions (cont.)


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Situations that do not necessarily justify higher pay when filling a classified position: Department head wants to post at a higher minimum

because he/she thinks the minimum is too low The last person in this position was budgeted at 40%

more than the minimum rate, and the supervisor wants to post and fill at the last budgeted rate

Department asked for a special high minimum rate and got the VP to sign approval before vacancy was posted

Basics: Pay for Classified Positions (cont.)


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Basics: Pay for Nonclassified Positions

Title codes 7000 to 9999 Not included in Classified Pay Plan Grouped into executive, faculty, research, extension,

professional and administrative categories Often, but not always, exempt from overtime (paid

monthly) May have hiring ranges if part of established career

ladder titles


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Hiring rates depend on multiple factors: Career ladder minimum rate (if applicable) Rate approved by HR if new position or vacant position that

has been reclassified HR uses internal comparisons (campus-wide pay for title

or comparable positions), external market data (if applicable) and other comparisons in reviewing proposed rates

Last budgeted rate allows some flexibility if the position has not been reclassified – use with discretion!

Basics: Pay for Nonclassified Positions (cont.)


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To pay more than the HR-approved or last budgeted rate when hiring: Any amount above requires additional justification and

approval Required level of approval depends on delegations within that

division (could be as high as VP or delegated lower) Be sure justification is well-documented and retained

Departments should consider: Candidate qualifications that exceed the required Established career ladder ranges and maintaining equity

within department with others in same title

Basics: Pay for Nonclassified Positions (cont.)


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Basics: Reclassifications

Primary reason for reclassification in most cases is a documented change in job duties appropriate for the proposed title Neither performance nor longevity serve as appropriate

justifications for reclassification All career ladder title changes are processed via

reclassification Employee must have minimum qualifications for proposed

title Credentials verifications are performed if employee claims a

degree or position requires it Position description duties must show changes in

accordance with the proposed title


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Basics: Reclassifications (cont.)

Processing time and allowable effective dates Requests are generally processed in the order received in

HR through TAMU Jobs online system. Allow time for HR analysis to be completed based on

volume of requests in compensation Response time varies based on volume Heaviest volume tends to occur April through July Watch for deadlines for guaranteed completion

Department discretion on effective dates NOTE: Change cannot be retroactive except to the beginning of

the pay period in which the reclassification received final HR approval


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Basics: Pay Rates for Reclassifications

Pay rates for reclassification depend on: Minimum or established range for the new title, if

applicable The employee’s current rate and whether the title

change is lateral or upward progression To pay more than the HR-approved rate when

reclassifying: Requires additional justification and approval Required level of approval depends on whether

classified or nonclassified, and delegations within that division (could be as high as VP or delegated lower)

Be sure justification is well-documented and retained


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Potential increases in conjunction with the budget cycle/fiscal year (effective September 1) – depending on budget feasibility Merit percentage and one-time merit increases (department) Reclassifications submitted through budget process (HR) New positions submitted through budget process (HR) Equity adjustments submitted through budget process (HR) University-wide Classified Pay Plan amendments (HR) Changes to career path ranges (HR)

University budget guidelines, in conjunction with University Rules and SAPs, are important sources of information for departments

Basics: Other Types of Pay Changes


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Potential increases outside of the budget cycle: Classified Pay Plan amendments (HR) Temporary salary increases (UR 31.01.01.M4) (HR) Out-of-budget-cycle pay changes (UR 31.01.01.M2) (HR)

Merit Equity Market Counteroffer

Longevity pay on state schedule based on service Job-related skill enhancement pay (SAP 31.01.01.M5.03)

(dept.) One-time merit increases (SAP 31.01.01.M5.02) (dept.) Hiring salary adjustments (UR 31.01.01.M7) (dept.)

See section 31 of University Rules for guidance

Basics: Other Types of Pay Changes


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Temporary salary increases (UR 31.01.01.M4) (HR) Additional duties of a higher-level position Duration of 30 days or more Must route through HR and have VP approval Must re-certify if continuing beyond one year

Hiring salary adjustments (UR 31.01.01.M7) (dept.) Appropriate for specific skills and abilities that exceed minimum

required for position ---not performance (i.e. not a “merit” increase)

Department heads can approve up to 10% Window for change is between 6-9 months

Common Issues with Other Types of Pay Changes


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Rules and Standard Administrative Procedures (SAPs) OnlineOn HR homepage at http://employees.tamu.edu/default.aspx


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Rules and Standard Administrative Procedures (SAPs) Online


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University Rule 31.01.01.M7 and new SAP Rule currently under review at Office of General Counsel Effective date to be announced in conjunction with hiring

process changes (could be as early as March) Vice Presidents will be able to approve internal promotion or

transfer of current budgeted employees into vacant positions

When posting wage positions, pay rates should match minimum rate for title, if applicable

Watch for announcements and web updates!

Changes Coming Soon!


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Online Resources


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Within the framework of compensation administration processes, departments and divisions may have their own specific standards and approvals

The compensation office serves as a partner with supervisors, HR Liaisons and department heads on outcomes of compensation requests

Do your part, as appropriate for your position, to help employees in your department understand the applicable processes

Final Thoughts


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Elizabeth SchwartzElizabeth SchwartzDirector of Workforce ManagementDirector of Workforce [email protected]

Michelle SteedlyMichelle SteedlyManager, Classification & CompensationManager, Classification & [email protected]

Main Comp #: 845-4170; Email: Main Comp #: 845-4170; Email: [email protected]@tamu.edu

Contact Info

PAYING THEM RIGHt: Tools for salary administration HR Liaison Network Spring Meeting

Documents

Transcript of PAYING THEM RIGHt: Tools for salary administration HR Liaison Network Spring Meeting