PAYING THEM RIGHt: Tools for salary administration HR Liaison Network Spring Meeting

1. DIVISION OF FINANCE PAYING THEM RIGHt: Tools for salary administrationHR Liaison Network Spring Meeting Texas A&M University, Human Resources February 29, 2012

2. Learning Objectives • Understand basic compensation administration tools and approval processes at A&M • Understand how reclassifications are accomplished and what impacts pay rates • Understand information that can help you manage supervisor and employee expectations • Know where to find further resources online

3. Agenda Classification & Compensation Office Legal & Regulatory Framework Salary Administration Classified Positions Nonclassified Positions Reclassifications Other Types of Pay Changes Rules and Procedures Online Resources

4. Classification & Compensation The office within Human Resources that serves as the point of contact for departments and administers compensation issues for non-faculty (staff positions) such as: • Creating new budgeted positions • Reclassifying/Re-titling existing positions • Salary or pay rates when filling new or vacant positions • Working time and overtime exemption issues • Other types of salary changes

5. Contact Info

6. Contact Info

7. Legal & Regulatory Framework Federal Laws (such as Fair Labor Standards Act) State Laws (Government Code, etc.) A&M System Policies & Regulations University Rules & Procedures Delegations of Authority by Division or Department

8. Basics: Pay for Classified Positions • Title codes 0001 to 6999 • Included in Classified Pay Plan • Minimum pay rates by title • Often, but not always, nonexempt (paid hourly and eligible for overtime) • May or may not be part of formalized career ladder Pay Rates Online

9. Basics: Pay for Classified Positions (cont.) • Hiring rates depend on: • Minimum pay plan rate for the title • To pay more than minimum rate when hiring: • Department head can approve up to 10% above minimum with candidate’s superior qualifications • More than 10% above minimum (even if hiring another A&M employee) requires justification and higher approval • Departments should consider: • Candidate qualifications that exceed the required • Equity within department with others in same title

10. Basics: Pay for Classified Positions (cont.) • Situations that do not necessarily justify higher pay when filling a classified position: • Department head wants to post at a higher minimum because he/she thinks the minimum is too low • The last person in this position was budgeted at 40% more than the minimum rate, and the supervisor wants to post and fill at the last budgeted rate • Department asked for a special high minimum rate and got the VP to sign approval before vacancy was posted

11. Basics: Pay for Nonclassified Positions • Title codes 7000 to 9999 • Not included in Classified Pay Plan • Grouped into executive, faculty, research, extension, professional and administrative categories • Often, but not always, exempt from overtime (paid monthly) • May have hiring ranges if part of established career ladder titles

12. Basics: Pay for Nonclassified Positions (cont.) • Hiring rates depend on multiple factors: • Career ladder minimum rate (if applicable) • Rate approved by HR if new position or vacant position that has been reclassified • HR uses internal comparisons (campus-wide pay for title or comparable positions), external market data (if applicable) and other comparisons in reviewing proposed rates • Last budgeted rate allows some flexibility if the position has not been reclassified – use with discretion!

13. Basics: Pay for Nonclassified Positions (cont.) • To pay more than the HR-approved or last budgeted rate when hiring: • Any amount above requires additional justification and approval • Required level of approval depends on delegations within that division (could be as high as VP or delegated lower) • Be sure justification is well-documented and retained • Departments should consider: • Candidate qualifications that exceed the required • Established career ladder ranges and maintaining equity within department with others in same title

14. Basics: Reclassifications • Primary reason for reclassification in most cases is a documented change in job duties appropriate for the proposed title • Neither performance nor longevity serve as appropriate justifications for reclassification • All career ladder title changes are processed via reclassification • Employee must have minimum qualifications for proposed title • Credentials verifications are performed if employee claims a degree or position requires it • Position description duties must show changes in accordance with the proposed title

15. Basics: Reclassifications (cont.) • Processing time and allowable effective dates • Requests are generally processed in the order received in HR through TAMU Jobs online system. • Allow time for HR analysis to be completed based on volume of requests in compensation • Response time varies based on volume • Heaviest volume tends to occur April through July • Watch for deadlines for guaranteed completion • Department discretion on effective dates • NOTE: Change cannot be retroactive except to the beginning of the pay period in which the reclassification received final HR approval

16. Basics: Pay Rates for Reclassifications • Pay rates for reclassification depend on: • Minimum or established range for the new title, if applicable • The employee’s current rate and whether the title change is lateral or upward progression • To pay more than the HR-approved rate when reclassifying: • Requires additional justification and approval • Required level of approval depends on whether classified or nonclassified, and delegations within that division (could be as high as VP or delegated lower) • Be sure justification is well-documented and retained

17. Potential increases in conjunction with the budget cycle/fiscal year (effective September 1) – depending on budget feasibility Merit percentage and one-time merit increases (department) Reclassifications submitted through budget process (HR) New positions submitted through budget process (HR) Equity adjustments submitted through budget process (HR) University-wide Classified Pay Plan amendments (HR) Changes to career path ranges (HR) University budget guidelines, in conjunction with University Rules and SAPs, are important sources of information for departments Basics: Other Types of Pay Changes

18. Potential increases outside of the budget cycle: Classified Pay Plan amendments (HR) Temporary salary increases (UR 31.01.01.M4) (HR) Out-of-budget-cycle pay changes (UR 31.01.01.M2) (HR) Merit Equity Market Counteroffer Longevity pay on state schedule based on service Job-related skill enhancement pay (SAP 31.01.01.M5.03) (dept.) One-time merit increases (SAP 31.01.01.M5.02) (dept.) Hiring salary adjustments (UR 31.01.01.M7) (dept.) See section 31 of University Rules for guidance Basics: Other Types of Pay Changes

19. Temporary salary increases (UR 31.01.01.M4) (HR) Additional duties of a higher-level position Duration of 30 days or more Must route through HR and have VP approval Must re-certify if continuing beyond one year Hiring salary adjustments (UR 31.01.01.M7) (dept.) Appropriate for specific skills and abilities that exceed minimum required for position ---not performance (i.e. not a “merit” increase) Department heads can approve up to 10% Window for change is between 6-9 months Common Issues with Other Types of Pay Changes

20. Rules and Standard Administrative Procedures (SAPs) Online On HR homepage at http://employees.tamu.edu/default.aspx

21. Rules and Standard Administrative Procedures (SAPs) Online

22. Rules and Standard Administrative Procedures (SAPs) Online

23. Rules and Standard Administrative Procedures (SAPs) Online

24. Changes Coming Soon! • University Rule 31.01.01.M7 and new SAP • Rule currently under review at Office of General Counsel • Effective date to be announced in conjunction with hiring process changes (could be as early as March) • Vice Presidents will be able to approve internal promotion or transfer of current budgeted employees into vacant positions • When posting wage positions, pay rates should match minimum rate for title, if applicable • Watch for announcements and web updates!

25. Online Resources

26. Online Resources

27. Final Thoughts • Within the framework of compensation administration processes, departments and divisions may have their own specific standards and approvals • The compensation office serves as a partner with supervisors, HR Liaisons and department heads on outcomes of compensation requests • Do your part, as appropriate for your position, to help employees in your department understand the applicable processes

28. Contact Info Elizabeth Schwartz Director of Workforce Management eschwartz@tamu.edu 845-0357 Michelle Steedly Manager, Classification & Compensation msteedly@tamu.edu 862-3904 Main Comp #: 845-4170; Email: hrcomp@tamu.edu