810.1 Staff Salary Administration

810.1 Staff Salary Administration

A. Background

Furman University will provide compensation at a level that reflects the responsibility of the position and that is competitive within the appropriate market. Furman is also committed to rewarding individuals who exhibit exemplary performance and implement improvements and ideas that move the institution forward in meeting its strategic goals.

B. Policy

Furman University's salary administration will include:

(a) A position evaluation process to establish the position's relative level of responsibility.

(b) Periodic salary studies to determine the market value of benchmark jobs in the appropriate markets.

(c) Annual review of trends in salary increases and the budget parameters to determine the salary pool available for across-the board and merit increases.

(d) Annual review of the compensation plan to determine if plan adjustments are required.

(e) Annual performance reviews (See File 817.91) to determine if individual merit increases are to be awarded.

The Personnel Office will be responsible for the maintenance of the salary administration system and for ensuring that the guidelines are consistently applied. Any exceptions to the policy guidelines must be approved by the Budget Unit Head, Vice President, and Director of Personnel. Department Heads and Supervisors are responsible for following the guidelines on a consistent basis.

C. Guidelines

Hiring

A new employee will normally receive the minimum rate of pay for the compensation level assigned. However, if an employee has experience which is directly related and can be used immediately upon hire, the pay rate at hire may be established up to 25% above the minimum (within budget parameters). The hiring department must get approval from the Personnel Office prior to making an offer. Based on the specific case and available funding, the hiring department and Personnel Office will (a) establish the hire rate and (b) determine if the new employee is eligible for a probationary increase after 90 days. (See File 817.9.)

Annual Review/Salary Increases

1. Employees who have successfully completed their probationary period, may be eligible for salary increases based on their performance (See File 817.91).

2. Employees who meet the performance expectations of their job as documented in their annual review (See File 817.91) are eligible for an annual salary increase.

3. During the annual review, the supervisor will establish an overall performance rating based on the following model:

Ratings:

1 - Employees who are not doing an acceptable job

2 - Employees who are minimally meeting job expectations -- needs improvement

3 - Employees who are meeting job expectations, doing good work in achievement of goals and competencies

4 - Employees who exceed job expectations, goals, and competencies in multiple areas of the job

5 - Employees who exceed job expectations, goals, and competencies in almost all areas by exhibiting exemplary performance in innovation, adapting to change, making improvements, leadership, etc.

4. The funds available for annual salary increases will be allocated based on the overall performance rating:

Ratings:

1 - no increase

2 - across-the-board only

3 - merit level 1

4 - merit level 2

5 - merit level 3

5. Employees whose salaries have reached the top of their respective salary range will be eligible for:

a. across-the-board amount, included in the base salary

b. merit increase based on performance, paid in one lump sum (not included in the base salary). Employees will be eligible for the lump sum merit pay each year that they remain at the top of their salary ranges based on performance.

Promotion

1. A promotion occurs when an employee is hired into a position at a higher compensation/salary level.

2. Employees who are promoted will receive a salary increase of:

a. 2.5 - 5.0%, depending on the change in responsibilities, or

b. the minimum of the range.

Transfer

1. A transfer occurs when an employee is hired into a position within the same compensation salary level.

2. Employees who transfer into a new position will not receive a change in salary.

Voluntary Demotion

1. A voluntary demotion occurs when an employee accepts a position at a lower compensation/salary level.

2. Employees who voluntarily move to a lower level position will receive:

a. a salary decrease of 2.5 - 5.0%, depending on the change in responsibilities, or

b. the maximum of the range.

Involuntary Demotion

1. An involuntary demotion occurs when the University assigns an employee to a position at a lower compensation/salary level. This may occur when it is determined that an employee is unable to perform the job or when the employee's current position is eliminated and placement is only available at a lower compensation/salary level.

2. Employees who are demoted for performance reasons will receive:

a. a salary decrease of 2.5 - 5.0% depending on the change in responsibilities, or

b. the maximum of the range.

3. Employees who are demoted due to the elimination of a position will not receive a change in salary if their current rate is in the salary range of the new position. If the current rate is above the salary range, the employee will maintain the current rate of pay, but will not receive salary increases until their salary comes within the salary range for the position.

Job Review/Evaluation

1. Each position is evaluated based on six criteria: contacts/interactions with people, complexity of tasks, supervisory responsibilities, impact of job (errors, outcomes), decision level, and education and experience. Positions with similar ratings are grouped into the same job/compensation level.

2. Each compensation level has a minimum and maximum reflecting competitive compensation in the appropriate recruitment area.

3. Position responsibilities are outlined in job descriptions describing the function, responsibilities, relationships, responsibility for final decisions, 'reporting to': education/skill requirements and work conditions. Departments will periodically review job descriptions (i.e. during the annual performance review) and work through the Personnel Office to maintain up-to-date job descriptions.

4. Position responsibilities may change as new on-going assignments are made or as departments reorganize. When there are significant changes to position responsibilities, a job review should be requested by completing a Job Review Request Form and documenting the changes. Once the Department Head approves the request, the Personnel Office will complete a job review and evaluation to determine if the new responsibilities warrant a change in ratings, title and/or compensation level.

New Position Requests/Increase in Hours

1. Requests for new positions, or an increase in hours, must be reviewed and approved during the university's annual budget process (November - February).

2. The requestor must provide documentation to justify the need for the new position (or hour change) and complete a job questionnaire/job description defining the position's responsibilities. This documentation must be submitted to the Personnel Director prior to January 15th to be considered for the next fiscal year.

3. The Personnel Director will review the request, conduct follow-up meetings as necessary and will prepare a report/recommendation for the Budget Committee's review.

4. The requestor will be notified of the approval/denial of the new position request by April.

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