HRM-024: Compensation Program for University Staff Employees

Date: 05/22/2009 Status: Final
Last Revised: 09/21/2015
Policy Type: University
Contact Office: Total Rewards (UHR)
Oversight Executive: Vice President and Chief Human Resources Officer
Applies To: Academic Division and the College at Wise.
Reason for Policy:

The University is committed to providing competitive and equitable staff compensation, while complying with federal laws pertaining to equal pay for equal work. This policy establishes University Staff compensation practices that will attract and retain an outstanding workforce.

Policy Summary:

The Compensation Program supports the University’s goal of attracting, motivating, developing, and retaining qualified employees through the use of market-based salary ranges and compensation practices designed to reward and promote performance, job growth, and career development. This policy aligns with the University’s Total Rewards Commitment. It is the University’s practice to provide compensation increases to University Staff through the annual merit increase cycle, when feasible, and to provide flexibility to respond to exceptional circumstances such as retention and additional responsibilities outside of the annual process.

Definition of Terms in Statement:
  • Bonus:

    A lump sum payment that is not a part of the employee’s base pay.

  • Compensation Factors:

    This includes employee qualifications, experience, performance, market pay range, and organizational strategic & operational objectives.

  • University Staff Employees (University Staff):

    Those salaried, non-faculty employees hired on or after July 1, 2006, and those salaried non-faculty employees and administrative and professional faculty electing to participate in the University Human Resources System established by the Board of Visitors under the authority granted by the Restructuring Act and the Management Agreement. (The term “University Staff Employee” includes all three categories of University Staff Employees - Operational & Administrative, Managerial & Professional, and Executive & Senior Administrative.)

  • UVa Job Structure:

    A standardized set of approved UVa job titles for use across Grounds. Titles are grouped by job families, divided into sub-families, and broken down by title. Each title has a summary sheet that defines the key information associated with each title, including typical work, typical education and experience, typical expertise, market matches, pay range, and the compliance coding.

  • UVa Job Title:

    The descriptive title assigned to a group of positions whose duties and responsibilities are the same kind of work, at a similar skill and responsibility level, requiring substantially the same qualifications. A single pay range, based on market data, is assigned to each UVa Job Title.

Policy Statement:

The University Staff Compensation Program is intentionally designed to attract, motivate, develop and retain qualified employees, and support the University’s performance management and career development processes. Both University Human Resources (UHR) and Schools/Units perform important roles in managing pay for all full- and part-time salaried University Staff under this policy.

  1. Assignment of UVa Job Title:
    Schools/units, consulting with University Human Resources as needed, determine the appropriate UVa job title for each position, based on review and analysis of the work performed and comparison of the job description to the job family title summaries.

  2. Merit Increases:
    Schools/units provide merit increases based on employee performance and other compensation factors as outlined in UHR’s annual Merit Increase Guidelines, if the University provides authority for an annual merit increase. Merit increases may take the form of either base pay or non-base pay, as outlined in the annual Merit Increase Guidelines.

  3. Types of Staff Compensation:
    There are two types of staff compensation – Base pay and Non-Base pay:

    1. Base Pay:
      The University uses market-based pay ranges assigned to UVA Job titles as the foundation for its base pay compensation practices. Market-based pay ranges are determined by UHR using standard compensation best practices; each range is divided into thirds. Typically, an employee’s base pay will be within the lower and upper references of the established market-based range.

      Employee’s base pay is determined using a holistic set of compensation factors including the market pay range, employee qualifications, experience, performance, and organizational strategic & operational objectives. Base Pay within thresholds outlined in this policy and the Compensation Procedures is approved by the top official in the School/unit or their designee. Compensation exceptions are approved by University Human Resources.

      1. Starting Pay:
        Schools/units determine starting pay for external candidates taking positions in their units, based on the compensation factors, the candidate’s qualifications and within the first two-thirds of the market range.

      2. Internal Hire Pay Adjustment:
        Schools/units determine pay adjustments for internal candidates being hired in their units based on the type of job change being made, the compensation factors, the employee’s qualifications, and salary placement within the first two-thirds of the market range.

        There are three types of job changes:

        Promotion: A job change to a UVa Job Title with a higher market pay range. Employees typically receive a salary increase when receiving a promotion.

        Demotion: A job change to a UVa Job Title with a lower market pay range. Employees typically receive a salary decrease when receiving a demotion. Demotions may occur for the following reasons:

        • Employee-initiated, typically through competitive hiring process;
        • Management-initiated change in job duties;
        • Management-initiated disciplinary action involving job reassignment.

        Lateral Transfer: A job change to a UVa Job Title with the same market pay range. Salary may increase, decrease or remain the same on a lateral move.

        Compensation for all job changes is determined based on review of the compensation factors.

      3. Off-Cycle Pay Adjustments:
        Schools/units may provide off-cycle pay adjustments for reasons such as changes in job duties, market, equity, retention/ counter-offers, etc., considering the compensation factors. Off-cycle pay adjustments may increase or decrease salary. Off-cycle pay adjustments that include a change in UVa Job Title require an updated job description as documentation.

    2. Non-Base Pay:
      Non-base Pay is approved by the top official in the School/unit or their designee. Non-Base pay consists of:
      1. Bonuses:
        Schools/units fund and provide bonuses (including those awarded via gift cards) to recognize contribution, achievement of significant performance milestones, and/or address specific organizational needs (such as recruitment or retention). The fiscal year total for bonuses received by each employee may not exceed $3,000 or 10% of the employee’s base salary, whichever amount is greater. Sign-on bonuses and contractual bonuses are excluded from the fiscal year bonus thresholds, as are any annual merit bonuses.

        Schools/units should clearly communicate bonus programs/opportunities, and ensure equal opportunity in the design and implementation of bonus programs. Schools or units may establish more restrictive and/or descriptive criteria for bonuses than those defined above but may not increase the dollar thresholds outlined above. Exceptions to total dollar thresholds must be approved by the Vice President and Chief Human Resources Officer in advance of communicating such to the employee.

      2. Non-Monetary Rewards:
        Schools/units may provide non-monetary items or additional leave (up to five days per calendar year) for employee recognition. The value of non-monetary rewards counts towards the dollar thresholds identified in the above section on Bonuses.

      3. Supplemental Pay:
        Schools/units use this pay practice when a business need indicates the necessity to compensate non-exempt staff for shift, working conditions, call-back and on-call status.

      4. Acting Pay (Temporary Pay):
        Schools/units use this pay practice to provide additional pay to an employee who temporarily takes on substantially greater responsibility than his/her assigned position. Acting Pay is established at 10% of current salary, and is provided for up to one (1) year. In rare situations, such as when an employee is acting in a position several organizational levels higher than their assigned position, acting pay may be set at 15% of salary. Exceptions must be approved by University Human Resources.

  4. Effective Dates:
    For all pay actions, effective dates are established at the beginning of a bi-weekly pay period, and on a prospective basis. Retroactive increases are not permitted.

  5. Quality Assurance:
    Schools/units partner with University Human Resources to ensure fair and consistent administration of the staff compensation program. Any policy compliance issues are reviewed with school/unit senior leadership. Repeated policy non-compliance results in loss of compensation approval authority. In order to ensure a consistent approach to job titling, University Human Resources is authorized to change UVa Job titles that are incorrectly assigned.

Procedures:

Under development.

Related Information:

HRM-029, Managing Staff Wage Employment

Major Category: Human Resource Management
Next Scheduled Review: 09/21/2018
Approved by, Date: Executive Vice President and Chief Operating Officer, 05/22/2009
Revision History: Updated 9/21/15, 5/16/12, 10/8/09.
Supersedes (previous policy):
HRM-024, Pay Practices Program for University Staff