Compensation Guidelines

Developing Job Architecture and Establishing Pay Ranges for Jobs

The foundation of the University’s market-based compensation (“MBC”) program is a solid and strong Job Architecture, which includes uniform and consistent Job Descriptions that are developed utilizing a Job Leveling Framework. The following components are fundamental to development of Job Architecture and establishment and assignment of Pay Ranges for Jobs and are functions that are performed by the HR Compensation Team (“Compensation Team”).

Job Descriptions

The Job Description is most important for making compensation decisions, but is also utilized for recruiting, performance management, and legal compliance. Job Descriptions are developed by the Compensation Team with input from the respective Leader, as appropriate.

A Job Description groups Positions together that perform similar functions and responsibilities, and also allows for placement of Jobs into the appropriate Job Family. Job Descriptions should:

• Identify the essential functions performed by individuals in the Job,
• Outline the major duties of the Job, and
• Describe the qualifications and skills required for the Job

Job Leveling Framework

A Job Leveling Framework is utilized to develop Job Descriptions utilizing consistent criteria to establish the appropriate Job Levels within the University. The Job Leveling Framework can be found in Appendix B: Job Leveling Framework.

Job Titles

All Job Descriptions will include a standardized title which will apply to all Employees in the Job. The Job Leveling Framework assists with establishing consistent titles and titling construct. There may be a business need for a Working Title. The use of a Working Title must be in accordance with the guidelines found in Appendix C: Working Title Guidelines.

Job Family

The University has ten (10) major Job Families that serve as the foundation of the MBC program. When a Job Description is created, the Compensation Team will group the Job into the appropriate Job Family to allow Employees and prospective employees to see where a Job is aligned within the University as well as how they can move (both vertical and horizontal) within the University.

Although the Jobs are grouped by Job Family, each Job will be assigned a Pay Range. Many of the Job Families also have sub-Job Families. A listing of Job Families and sub-Job Families can be found in Appendix D: Job Families.

Job Evaluation for Newly Created Jobs

When a new Job Description has been created, a Job Evaluation is conducted by the Compensation Team. The purpose of Job Evaluation is to assign a Pay Range to the Job. The methodology used to make Pay Range assignments to a Job is a Market Pricing approach that focuses on the following components:

• External Review: The Compensation Team reviews and analyzes independent, third-party, Salary Survey data, taking into consideration the strength of job match, University size, industry, geographic location, and University type, as appropriate.
• Internal Review: The Compensation Team reviews and analyzes the information provided to determine the Job’s scope, complexity, and potential impact to the University as well as specific factors such as knowledge, skills and responsibilities required to successfully perform the Job.

Job Evaluation for Significant Changes to Existing Jobs

If a Leader identifies that an Employee is performing significantly different essential functions than are described in the Job Description, the Leader will engage their Human Resources Business Partner (“HRBP”) to discuss the changes. A significant change would typically be an overall 25% or greater change in the essential functions or changes that would impact how a Job is mapped in the Job Catalog. The HRBP will provide a summary of the changes to the Compensation Team for review to determine whether the changes are significant enough to warrant a Job Evaluation. If so, the same process as described above for a newly created Job will be followed by the Compensation Team.

The Compensation Team will make decisions regarding any change in the Pay Range for a Job as a result of a Job Evaluation on a case-by-case basis. In order to maintain the integrity of Pay Range assignments for all University Jobs, final approval of Job Evaluations will remain with the Compensation Team.

Criteria considered in determining whether a Pay Range change for a Job is appropriate include:

• Change of essential functions;
• Scope, level and complexity of essential functions;
• Relationship of the Job to other Jobs in the University or department;
• Supervision, both given and received;
• Exercise of independent judgment; and
• Autonomy and authority related to decision-making and accountability.

Criteria not considered* in determining whether a Pay Range change for a Job is appropriate include:

• Quantity of work (volume);
• Information relative to the Employee’s length of service;
• Time spent at a Position within Pay Range;
• Skills and education not related to the Job or minimum qualifications; and
• Employee’s performance

*These criteria may be considered when establishing an individual Employee’s Base Pay Rate, not a Job’s Pay Range.

Pay Ranges and Salary Structure

One of the key components of the MBC program are the Pay Ranges and Salary Structure. The development of Pay Ranges involves the comparison of the University’s internal Evaluation of the Jobs coupled with external Salary Survey data. This Salary Survey data is gathered and updated from independent, third-party surveys which are purchased by the University.

The University’s Salary Structure is designed to provide a smaller Midpoint Differential at the lower Pay Ranges and increase as the Pay Ranges increase.

• Jobs in the lower Pay Ranges typically require skills that are less complex and easier to acquire so an Employee is able to advance to the next Pay Range over a shorter period of time.
• Jobs in the higher Pay Ranges typically require skills that are more complex and harder to acquire and may take the Employee longer to advance to the next Pay Range.

Fair Labor Standards Act (FLSA)

The determination of which Jobs are classified as Non-Exempt and Exempt is made by the Compensation Team utilizing the Fair Labor Standards Act (FLSA) duties and salary tests. In order to maintain compliance with FLSA, final approval of FLSA exemption status will remain with the Compensation Team. The Compensation Team will consult with the Office of General Counsel, as needed, in the determination of a Job’s FLSA exemption status.

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