Salary Administration East Carolina University Department of Human Resources Classification and Compensation.

Salary Administration

East Carolina UniversityDepartment of Human Resources Classification and Compensation

East Carolina University’s Compensation Philosophy

It is the policy of East Carolina University to support and sustain a high performance work environment focused on having the right people, doing the right work, at the right time. The University’s high performance work environment requires compensation levels that:

1)are consistent with University priorities, 2)promote and reward successful work behavior,3)recognize job competencies that are linked to organizational goals, 4)maintain appropriate labor market competitiveness to ensure effective recruitment and retention of a highly competent and diverse work force, and5)are supportive of individual, family, and community values.

The career banding program is structured to ensure SPA employees receive fair and equitable treatment in regard to compensation levels and career development opportunities. The Career Banding Salary Administration policy and guidelines will be applied effectively for all eligible employees.

East Carolina University’s Compensation Philosophy

Compensate employees equitably and fairly Offer compensation to employees within the

market halo (90% - 110% of their Market Rate)

Remain Competitive in the Market

Developing a Unit Compensation Plan

Long-Term vs. Short-Term Philosophy What is reasonable and attainable? What can you pay within budget constraints? How far away are your employees from their

market rates? What are the most immediate needs?

Pay Determined by …..

Competency level of employee

and the Pay Factors

Pay Factors

Financial Resources - amount of funding available

Appropriate Market Rate - market rate applicable to the demonstrated functional competencies

Internal Pay Alignment - consistent alignment of salaries for employees who demonstrate similar required competencies in the same banded class

Required Competencies - functional competencies required based on organizational business need

Determine Competency Level

If all competencies at the same level, the overall competency would be at that level

If individual competencies vary, consider:– Are any competencies more important?– Are the majority at one level?– What overall competency would represent an

average of all competencies?

Determine Appropriate Pay

Journey

Market

Rate

Min

Contributing

Market

Rate

Advanced

Market

Rate

Max

Market Index

10 %

90

110

10 %10 %

Pay Based on CompetenciesExample #1

Journey

Market

Rate

MinContributing

Market

Rate

Advanced

Market

Rate

Max

Contributing Journey Advanced

Comp A X

Comp B X

Comp C X

Overall XEmployee’s Pay

Competency Assessment Form

Career-Banded Class Rates

Pay Based on CompetenciesExample #2

Journey

Market

Rate

MinContributing

Market

Rate

Advanced

Market

Rate

Max

Contributing Journey Advanced

Comp A X

Comp B X

Comp C X

Overall X

Employee’s Pay

Competency Assessment Form

Career-Banded Class Rates

Assess internal pay alignment

Is proposed salary equitable with salaries for other employees who may have similar competencies?

May rank all employees in the competency level and compare market index

Adjust proposed salary if needed

East Carolina UniversityCareer Banding Career Adjustment

WorksheetEmployee Name: Katherine Odegard Department Name: Allied Health Employee SSN#: 345-67-8901

Position #: 33333Department #: 12345678

Banded Class and Competency Level: Research Specialist - Journey

Schematic Code: 12502 I. Career Progression Adjustment

Competency/Skill Change Competency Level ChangeRetentionLabor Market

II. Justification:Ms. Odegard is well below the journey market rate. Her current salary is at 78% of the appropriate market rate and we would like to give her a $5,000 increase to bring her up to 88% of the market. See attached Salary Assessor Worksheet.

III. Salary Recommendation: Effective Date: 9/1/07

Funding Source (Account Number (s))

Current SalaryIncrease

%

Budget Code

Purpose Code

Object Code

FRS Account % FTESemi-Monthly

Distributed SalaryEmployee Annual

Salary

 36,000 13.89%  16065  110  1210  6-54321  1.0  1708.33 41,000

Career Progression Limitations

Competencies may increase, but

-- no funding for pay increase

-- current salary already exceeds appropriate level -- internal pay alignment may limit increased

pay

Discussing Pay with Employees

Explain four pay factors Explain any budget constraints Explain that when funds do become available

they are awarded on a current basis Explain career development connection

Reminders

Documentation is critical Compensation is tied to demonstrated

competencies Detailed justification is necessary

SALARY ASSESSOR ACTIVITY