Pay Setting Guidelines and Policies
Jump to: Pay Guidelines
The appropriate starting pay rate for a position varies greatly depending on a variety of factors. The below information is helpful when making pay setting decisions. The IUHR Compensation team is available to assist HR professionals with base pay decisions.
All required approvals must be obtained prior to any communication with employees.
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.
The following should be considered when making individual pay decisions:
- The fiscal resources of the unit; all pay increases must be funded with available base budget
- The level of decision making and complexity of the position within the associated career level
- The employee's job-related qualifications and performance
- The external relevant labor market
- The pay of other employees performing similar work in the Department, Responsibility Center, and across Indiana University
- Base pay should not be above the maximum of the applicable pay range
Applicable Policies
Before You Begin…
- Consult local department / RC / campus human resources
- Review applicable pay and salary setting policy and guidelines
- Consult fiscal officer to determine resources and salary guidelines
- Consult IU Human Resources as needed
Pay Guidelines by Career Structure
Exempt Individual Contributor
This career structure contains exempt (not overtime-eligible) individual contributor. Exempt roles are paid on a salary basis and must meet the criteria of at least one of the FLSA duties exemption tests and meet the minimum salary threshold as outlined by the FLSA.
It is common for Exempt Individual Contributor positions to have variance in level of responsibility and complexity within the same role descriptor and career level. As such, pay setting decisions for this career structure tend to lean more on individual factors that change from position to position. In this career structure, departments should place emphasis on position-specific factors when determining pay within a given pay range, such as expectations of the position and the level of decision making involved.
Resources
Exempt People Leader
This career structure contains exempt (not overtime-eligible) people leader roles across the university. A people leader role is primarily responsible for overseeing and managing other staff employees. Exempt roles are paid on a salary basis and must meet the criteria of at least one of the FLSA duties exemption tests and meet the minimum salary threshold as outlined by the FLSA.
In this career structure, the complexity and level of decision-making can vary greatly from position to position. As such, pay setting decisions for this career structure tend to lean more on individual factors that change from position to position, and the complexity of the processes and teams being led. In this career structure, departments should place emphasis on position-specific factors when determining pay within a given pay range, such as expectations of the position, number of appointed staff the position is responsible for, and the level of decision making involved.
Resources
Non-Exempt Individual Contributor
This career structure contains only non-exempt (overtime-eligible) roles across the university. Non-exempt roles do not meet the criteria as outlined by the Fair Labor Standards Act (FLSA) duties exemption tests and/or do not meet the FLSA minimum salary threshold to qualify as exempt from overtime. In this career structure, departments should place extra consideration on union requirements (if applicable). It is common for there to be less variance from position to position in this career structure. As such, departments should place emphasis on internal equity and paying similar wages for similar work.
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