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Indiana University

 

Policies for Support Staff
Represented by CWA, Local 4730 at Bloomington and Northwest

Salary Decisions for Individual Employees
CWA 9.4

Revised July 12, 2013

Employees covered by this policy
This policy applies to all Support Staff at Bloomington and Northwest.

A. Introduction
The university's compensation program will include guidelines for determining individual salaries for the following situations: a new hire, promotion/reclassification, transfer, demotion, temporary assignment, or a special salary adjustment.

  1. An incumbent is the current employee in a specific position.

  2. A quartile is any one of four equal divisions.

  3. Salary range is the range of salaries, from lowest to highest, that is assigned to each grade level.

  4. Grade level is the alphabetical level assigned to a group of jobs.

B. New hire starting salaries

  1. When setting starting salaries the following factors should be considered:

    1. Externally competitive starting salaries

    2. Salaries of current incumbents in the same job or comparable jobs within the RC

    3. The new employee's qualifications for the position

  2. Except as provided in c. below, starting salaries will typically be set in the first quartile of the salary range. A new employee who meets the minimum qualifications of the position should receive a salary as close to the minimum as possible.

    1. A starting salary set in the first quartile of the salary range requires that the new employee's qualifications meet or exceed the minimum qualifications for the position.

    2. A starting salary at or near the salaries of current incumbents in the same or comparable jobs will not be approved unless the new employee's qualifications are comparable to those of the current incumbents.

    3. A starting salary may be set in the second quartile of the salary range up to the midpoint. This requires that the new employee's qualifications are exceptional.   Departments will provide justification upon request to the campus human resources office to start a new hire's salary above the first quartile.

  3. Before making a salary offer to a new hire with a starting salary above the range minimum, the following approvals must be obtained:

    1. Department head

    2. Head of the Responsibility Center for Bloomington positions

    3. The campus human resources office

  4. If a starting salary in the second quartile is approved on the basis that such is necessary in order to attract qualified candidates, the job in question will automatically be reviewed to determine the appropriateness of its position classification.

C. Salary increases as a result of promotions or reclassifications

  1. A salary increase is given to recognize a significant increase in the level of an employee's job responsibilities. It occurs when an employee is promoted to a position in a higher pay range, or when an employee's current position is reclassified to a higher range.

    1. Promotions must comply with Policy 10.2, Rules and Guidelines for Filling Positions.

    2. Reclassifications must comply with Policy 9.3, Position Classification/Reclassification.

      1. An increase becomes effective with the first pay period following the approval of the new classification.

  2. Salary increases are subject to the parameters described below:

    1. The minimum increase is a 5 percent increase or the minimum of the new salary range--whichever is higher-- provided the new salary rate does not exceed the maximum of the new salary range.

      1. In limited circumstances, a minimum salary increase may be less than 5 percent if the increase would create internal equity within the unit and if the promoted or reclassified employee gives his or her consent.
    2. The maximum increase is to the same relative position within the new salary range (i.e., the percentage difference between the pay ranges involved) or at the midpoint of the new range, whichever is higher.

  3. The campus human resources office and the requesting department head (who will provide for notice/approval to the Head of the Responsibility Center for Bloomington positions) will work together to establish a salary increase amount which meets the following criteria:

    1. Is at least comparable to the salary level that would be paid to a new hire with equivalent qualifications

    2. Ensures equity with current salaries for employees assigned to the same job and salary range

    3. Adequately recognizes the assumption of higher level responsibilities

    4. Is consistent with the promotional increases provided to other employees under comparable circumstances

    5. Considers the individual's qualifications for the position

  1. A salary set in the first quartile of the salary range requires that the employee's qualifications meet or exceed the minimum qualifications for the position. A salary set in the middle of the salary range requires that the employee's qualifications are exceptional.

  2. After the approvals described below are obtained, the salary action and increase amount can be communicated to the affected employee.

    1. Increases in the first quartile require the approval of:

      1. Department head

      2. Head of the Responsibility Center for Bloomington positions and the campus human resources office for Northwest positions.

    2. Increases in the second quartile require the approval of:

      1. Department head

      2. Head of the Responsibility Center for Bloomington positions

      3. The campus human resources office

    3. Increases above the midpoint require the approval of:

      1. Department head

      2. Head of the Responsibility Center for Bloomington positions

      3. The campus human resources office

      4. Notice to the office of the chancellor, provost, or appropriate vice president

D. Lateral moves

  1. A lateral move is defined as a lateral transfer initiated by the employee, or a reassignment initiated by management, or a reclassification to another job title; all at the same salary range within the same salary plan.

  2. Lateral moves typically do not involve a major change in level of responsibility or job scope and, as such, do not normally result in a salary change. However a lateral move may result in a change in salary.

    1. A reassignment initiated by management or a reclassification to another job title, all at the same salary range within the same salary plan, will result in no salary change.

    2. A lateral transfer initiated by the employee for personal or career development reasons or as the result of choosing another position in a reduction in force situation may result in a salary change.

  3. A move to the same or comparable position in a different salary plan from one campus to another may involve a salary adjustment depending on the comparability of the positions and any differences in the salary ranges.

  4. Lateral transfers must comply with Policy 10.2, Rules and Guidelines for Filling Positions.

E. Demotions

  1. Employees will be assigned to positions that are consistent with their skills and abilities and the university's needs, and their salary will fairly reflect that assignment.

  2. A demotion is the reassignment of an employee to a new position in a salary range lower than the current range or the continued assignment of an employee to the same position that has been reclassified to a lower grade level. A demotion to a lower classified position may result in a decrease in salary.

    1. Example of a demotion that results in no salary reduction:

      1. A reclassification to a lower grade resulting from a change of duties. (Such cases require no salary reduction except when an employee is reclassified to a lower grade level and his/her salary is outside the range of the new position.)

    2. Examples of demotions that may result in a salary reduction:

      1. An employee voluntarily chooses another position in a lower range for personal or career development reasons, or chooses to take a position in a lower range due to a reduction in force. Such a demotion will also result in a classification change.

      2. An employee is transferred to a position in a lower range due to lack of performance or lack of qualifications.

      3. An employee who is reclassified to a lower position and his/her salary is outside the range of the new position.

  3. Demotions that result in a salary reduction are subject to the parameters described below:

    1. If an employee's current pay is outside of the maximum of the new salary range, the decrease is to the top of the new salary range.
    2. The maximum decrease is to the same relative position within the salary range (i.e., the percentage difference between the pay ranges involved).

  4. Demotions must comply with Policy 10.2, Rules and Guidelines for Filling Positions.

  5. The campus human resources office is responsible for the approval of all demotions and associated salary actions.

F. Equity adjustments

  1. An equity adjustment is a special, one-time increase to the base salary provided to an employee or employees to correct a significant deviation from internal equity or external competitiveness.

  2. Equity adjustments may be appropriate in any of the situations described below. In these situations the department may review salaries across their organization and may request adjustments for additional individuals to ensure equity is maintained.

    1. An employee is paid substantially lower in the salary range than other employees in the same job or comparable jobs at IU with comparable qualifications and comparable years of service.

    2. There is significant compression between the employee's salary and the salaries of more recent hires in the same job within the same department, which results from conditions outside the control of the department head (e.g., placements through reduction in force or reorganizations).

    3. There is significant compression between the employee's salary and any salaries of other employees who report directly to the employee.

  3. Following are guidelines for equity adjustments:

    1. A salary adjustment may occur at any time of the year.

    2. Salary adjustments will not be approved retroactively.

    3. No employee will receive more than one salary adjustment during any twelve-month period.

    4. Generally, an employee must have been in the current position for at least six months and performance must be at least at the satisfactory level.

    5. A salary adjustment should not exceed 10 percent of the employee's current salary.

    6. The employee's salary should be below the midpoint of the range and the employee should have considerable years of service and/or critical experience or skills.

G. In-Range Increases

  1. An in-range increase may be appropriate when an employee has:

    1. undertaken a significant change in responsibilities that resulted in a greater scope of responsibility within the current level; and

    2. mastered new job competences resulting in significant additional responsibilities within the current level.

  2. Job changes must be measurable and well documented

    1. the rationale for an in-range increase requires written substantiation of the assignment of additional responsibilities and/or the new job competences

    2. the Department must document the new responsibilities in an updated position description with the campus human resource office.

  3. In determining any in-range salary adjustment, the department should consider:

    1. The employee’s job-related qualifications and performance

    2. The pay of other employees performing similar work in the RC

    3. The unit’s fiscal resources

  4. To be eligible, the employee’s salary should be below the fourth quartile of the wage schedule.

Procedure 9.4
Requests for equity adjustments

    1. Department heads will consider requests for salary adjustments from managers, supervisors, and employees.

    2. A request for an equity adjustment should be based on one or more of the following criteria:

      1. Competitive salaries and the employee's qualifications

      2. Salaries of current employees in the same job or comparable jobs within the department or in other departments across the campus

      3. The employee's placement within the salary range relative to the number of years of service

      4. The employee's performance

    3. Recommendations for a salary adjustment will be initiated and forwarded by the department head, with notice to the Responsibility Center for Bloomington positions, and submitted to the campus human resources office.

    4. The campus human resources office (HR) will review the request, and is responsible for the approval of all salary adjustments.

      1. HR will notify the president of CWA, Local 4730, for Bloomington and Northwest positions and the Northwest campus CWA vice president for Northwest positions, prior to the approval of a salary adjustment, and provide the president an opportunity to discuss the request.

    5. Notification of the result of a requested salary adjustment will be made by and to the following persons:

      1. HR will notify the requesting department head.

      2. Department heads will notify the employee requesting the adjustment.

      3. The department head will notify departmental employees to initiate the paperwork required for payroll and budget actions.

H. Salary adjustments cannot exceed range maximum

    1. A maximum salary for each job is appropriate to ensure fiscal responsibility and internal equity. The range maximum represents the highest salary that may be paid to an employee within a job.

    2. The maximum of a salary range represents a salary that is significantly above average competitive salary levels. As such, it is reserved solely for exceptional performers who continually make significant contributions to the university.

    3. Unless otherwise negotiated by the university and the union, employees should not receive a salary increase that would cause their salary to exceed the established maximum for the assigned salary range. This is necessary to preserve the integrity of the salary structure.

    4. If a classification change would cause an employee's salary to exceed the salary maximum of the new classification, the employee's salary will be reduced to the top of the new salary range of the new classification.

I. Temporary assignments resulting in temporary salary adjustments

    1. The university recognizes the need for work assignments to be made on a temporary basis from time to time in order to facilitate flexible staffing and career development. When such an assignment is made to a position in a higher range level for no less than two weeks, the university will provide for a temporary salary adjustment.

    2. Salary changes that may accompany temporary assignments will be based on the following considerations:

      1. The exact nature or extent of the employee's assumption of higher level responsibility in the temporary position

      2. The expected length of the assignment

      3. A consideration of the current salary in relation to the salary range of the temporary position.

    3. A temporary assignment involves an employee assuming the higher level duties and responsibilities of a position other than the normal position for a limited period of time. In effect, the employee is functioning in the temporary position instead of the normal position, though the employee may retain some significant elements of the normal position.

    4. All requisite approvals should be obtained before the temporary promotion and salary increase is communicated to the affected employee.

    5. A temporary salary adjustment will be in effect for the exact period of the temporary assignment. The amount of the adjustment is determined in consultation with campus Human Resources and will be based on the extent of the duties being performed not to exceed 25% of the employee’s current salary.

    6. Temporary assignments are assumed to be for less than one year. If a temporary assignment is expected to exceed one year, then the chancellor, provost, or appropriate vice president must approve the assignment and any special salary adjustment.

    7. If the temporary assignment becomes permanent, Policies 9.1, Establishing a Position and 10.1, Posting and Advertising a Position Vacancy apply. The salary adjustment provisions for promotions, lateral transfers, or demotions described in the above sections may also apply.

    8. Temporary assignments anticipated being of six months duration or more must be advertised internally in accordance with the provisions of Policy 10.1, Posting and Advertising a Position Vacancy. Should the position later be made permanent, and the employee assigned was selected in accordance with the provisions of Policy 10.1, then no further re-advertisement and selection is required.

J. Temporary assignments resulting in no change of pay

    1. The following types of temporary assignments do not result in a change of pay:

      1. Temporary assignments of fewer than two weeks or 10 working days, whichever is greater, will not result in any special compensation.

      2. A temporary assignment to a position in the same or lower salary range will not result in any loss to an employee. Normal salary increases will continue and any employee benefits that may vary will be applied as to the employee's normal salary range.
     

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University Human Resources
Last updated: 12 July 2013
URL: http://hr.iu.edu/policies/
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