Compensation Policy Guidelines

 

The Compensation Policy Guidelines are used by decision makers when recommending and/or approving pay for candidates and employees in positions that are assigned to CCP Jobs.  Pay decisions should consider the candidate or employee’s qualifications (education, experience, Knowledge, Skills, and Abilities (KSA’s), etc.), external market factors, and the pay of PSU employees in similar positions.  Budgetary factors can also impact pay decisions.  HRS can provide compensation data for existing employees to decision makers to use.

 

  1. Initial Pay for New Hires
  • A new employee’s initial pay should be set in consideration of the candidate's qualifications (education, experience, Knowledge, Skills, and Abilities (KSA’s), etc.), external market factors, and the pay of PSU employees in similar positions.
  • Beginning salaries for new employees should generally not be set at a rate greater than the salaries of existing employees with equivalent qualifications within the same job title in order to reduce the possibility of compression issues.
  • Pay for new hires will be approved through the appropriate organizational hierarchy during the appointment process.

 

  1. Initial Pay for Rehired Employee
  • A former employee who is rehired to a position paid on the same pay grade as a previous position should be paid comparable to the salary he/she was paid when he/she left, with consideration for their qualifications (education, experience, Knowledge, Skills, and Abilities (KSA’s), etc.), external market factors, and the pay of PSU employees in similar positions. Consideration should also be given for across-the-board increases and/or market adjustments that may have occurred during the break in service. 
  • Pay for a rehired employee will be approved through the appropriate organizational hierarchy during the appointment process.

 

  1. Promotion
  • A promotion occurs when an employee moves to a different position assigned to a job with a higher pay grade.
  • A promoted employee’s initial pay should be set in consideration of the candidate's qualifications (education, experience, Knowledge, Skills, and Abilities (KSA’s), etc.), external market factors, and the pay of PSU employees in similar positions.
  • Salaries for promoted employees should not be set at a rate greater than the salaries of existing employees with equivalent qualifications within the same job title in order to reduce the possibility of compression issues.
  • Promotion-based salary adjustments are in addition to across-the-board increases if the promotion is made at the time of the annual wage adjustment.
  • Pay for a promotion will be approved through the appropriate organizational hierarchy during the appointment process.

 

  1. Transfer
  • A transfer occurs when an employee moves to a different position assigned to a job with the same pay grade as the position previous occupied. In such cases, the employee shall generally not be eligible for a pay increase at the time of such transfer.
  • Pay for a transfer will be approved through the appropriate organizational hierarchy during the appointment process.

 

  1. Demotion
  • A demotion occurs when an employee's position is reclassified to a job on a lower pay grade; when an employee is transferred to a position on a job on a lower pay grade typically due to reorganization; when an employee voluntarily accepts a position in a job on a lower pay grade than the position occupied; or when the employee is involuntarily moved to a different position assigned to a job on a lower pay grade for disciplinary reasons.
  • The salary of an employee who is demoted for any reason shall be lowered unless the Division Head determines that it is in the best interest of the University to keep the employee at his or her current salary.
  • Pay for a demotion because of a position reclassification or voluntary transfer will be approved through the appropriate organizational hierarchy during the appointment process.
  • Pay for a demotion because of poor performance or disciplinary action will be approved through the demotion process.

 

  1. Position Reclassification – Job on Higher Pay Grade
  • Position reclassified to a Job on a higher pay grade:
    • The salary for an employee whose position has been reclassified to a Job with a higher pay grade should be set in consideration of the candidate's qualifications (education, experience, Knowledge, Skills, and Abilities (KSA’s), etc.), external market factors, and the pay of PSU employees in similar positions.
    • Salaries for employees whose position was reclassified to a Job on a higher pay grade should not be set at a rate greater than the salaries of existing employees with equivalent qualifications within the same job title in order to reduce the possibility of compression issues.
  • Position reclassified to a Job on a lower pay grade:
    • The employee’s salary will not be changed; however, the reclassified grade maximum will define the limit of future pay increases.
  • Pay for an employee on a position that has been reclassified to a job on a higher pay grade is determined through the reclassification process.

 

  1. Market/Equity Adjustments
A market/equity adjustment can occur during the normal salary adjustment process or at any other time.  A market/equity adjustment is above the normal salary increase amount assigned to eligible employees during the regular salary review process. 
Reasons for a market/equity adjustment may include: 
  1. Inequity with internal or external market rates.
  2. Assignment of additional significant duties and/or responsibilities, including supervisory duties.
  3. Attainment of additional skills or certification relevant to the position.
  4. Exceptional, sustained job performance.
  5. Recruitment or retention issues

 

Review and approval of market/equity adjustments should consider the following and other relevant factors:

 Comparison of similar position descriptions and employee salaries within and across the division.

  1. Comparison of length of time in job by employee and other employees.
  2. Market studies (from external source).
  3. Employee performance reviews.

 

Market/Equity Adjustments can be requested, reviewed and approved by the appropriate Division Head during the regular salary adjustment process.  Market/Equity Adjustments requested outside of the regular salary adjustment process are requested on the Salary Change Form found in GUS Cloud > Other > My Dashboard > Line Manager and Administrator Dashboard.  The form is routed through the organizational hierarchy to the Division Head for action.

 

Individual employee pay will be reviewed in consideration of market survey data and recruiting requirements.  Based upon this review, individual employee pay may be adjusted to better reflect market rates, decrease compensation-related turnover or match a job offer.  The actual percentage an employee’s pay is adjusted will be based on the employee’s KSAs in comparison to the job’s KSAs, and the extent of external market pay factors.  Market adjustments will only be considered for employees with at least a satisfactory performance rating.

 

  1. Pay Above Grade Maximum
  • Approval by the President is required for pay above grade maximum.