Home > Compensation > Salary Admin > Guidelines for Mid-Year Pay Adjustments

Guidelines for Mid-Year Pay Adjustments

Applicable to appointed staff not represented by a union.
For union staff please see the Pay and Salary Setting Policy.

Indiana University prohibits discrimination based on arbitrary considerations of such characteristics as age, color, disability, ethnicity, sex, gender identity, marital status, national origin, race, religion, sexual orientation, or veteran status.

Managers should consider the following when making individual pay decisions:

Market adjustments

Definition/Application:

Market adjustments are salary adjustments for an employee or group of employees who have fallen behind in base salary as compared to similar positions on campus and/or in the market.

Adjustments may not be approved if the differences are explainable based on qualifications, type or length of experience (both internal and external to IU), the work itself, and/or performance and productivity. Market data utilized must be approved by University Compensation.

Process:

Market Adjustment requests should be handled in consultation with IUHR Compensation.

If you wish to make these types of adjustments please contact a member of the compensation team to discuss: .

Increases requested July-November will be effective with the first January pay period.

Increases submitted December-June will be effective July 1 and handled through Budget Construction using an exception code.

This timing is to encourage the thoughtful use of equity adjustments and to allow broader compensation planning for departments and RC's.

Approvals:

All Market Adjustment requests require:

  • Appropriate RC approvals
  • Campus Budget approval
  • IUHR Compensation approval
Counter offers

Definition/Application:

Counter offers are made in response to a competing job offer within the university or from another employer in order to retain high-level performers in hard-to-recruit for and/or highly specialized positions.

When considering a counter offer, current position duties, performance, and level of responsibility should be evaluated to determine if a counter offer is appropriate and, if so, the amount. For competing job offers within the university, the counter offer may not exceed the competing offer amount.

In all counter offers, written evidence of the competing offer must be provided. Internal equity must be considered; adjustments as a result of counter offers do not justify salary adjustments for other similar positions/employees.

Process:

Please utilize the Mid-Year eDoc to process with action reason COU.

Please attach the internal or external offer documentation and justification for request.

Approved increases will be effective at the start of a future pay period.

Approvals:

All Counter Offer requests require:

  • Appropriate RC approvals
  • Campus Budget approval
  • IUHR Compensation approval
In-Position Job Duty Changes

Definition/Application:

Position duties have substantially changed and the position now has a sustained increase in responsibility and/or scope.

Submit position to IUHR Compensation for review and classification prior to any pay decisions.

Position review may result in:

  • (RCL) Re-classification - position review resulting in a change in pay grade or job family (Ex: 2AD to 3AD or 2SA to 2IT, where market data would support an increase)
  • (HLR) Higher Level Responsibilities - position review resulting in no change in classification, but additional duties are substantial and may warrant additional compensation within current pay grade.

Process:

Increase adjustment for position duty changes should take place outside of budget construction when an employee meets the performance expectations of current job responsibilities.

Approved increases will be in alignment with the position re-classification or update and effective at the start of a pay period.

(RCL) Re-classification - Increase requests for PA staff should not exceed the Market Zone of the pay range. Increase requests up to 4% do not require IUHR Compensation review. Please utilize the Mid-Year eDoc to process with action reason RCL.

(HLR) Higher Level Responsibilities - Increase requests cannot exceed 8% or the maximum of the pay range. Increase requests up to 4% do not require IUHR Compensation review. Please utilize the Mid-Year eDoc to process with action reason HLR.

Approvals:

All In Position Job Duty Change requests require:

  • Appropriate RC approvals
  • Campus Budget approval
  • IUHR Compensation approval
Retention/High Value Requests

Definition/Application:

A one-time increase that may be used in a limited capacity (typically less than 5 employees per RC) to retain high performing individuals in their current positions.

Ex: Employee Jane D. is a long tenured employee whose knowledge of particular systems and processes is critical to the success of an upcoming key initiative. Adjusting her pay 5% shows the appreciation and value of her knowledge and abilities.

Ex: Employee Jim B. has been with the university for 3 years and has grown tremendously in his role and has gained the necessary experience to operate at an expert capacity. Adjusting his pay 5% acknowledges his growth and the greater impact of his role for the department.

Process:

Please utilize the Mid-Year eDoc to process with the action reason RET

Approved increases will be effective at the start of a future pay period.

Retention/High Value requests cannot exceed 8% or the maximum of the pay range. Increase requests of up to 4% do not require IUHR Compensation review. Increase must align with market for role.

Typically an employee will not receive another increase outside of budget construction within the fiscal year.

Approvals:

All Retention/High Value requests require:

  • Appropriate RC approvals
  • Campus Budget approval
  • IUHR Compensation approval