PAYING THEM RIGHT: TOOLS FOR SALARY ADMINISTRATION HR Liaison Network Spring Meeting Texas A&M University, Human Resources DIVISION OF FINANCE February 29, 2012

Human Resources Tools for Salary Administration 02/29/2012 Page 2  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 Learning Objectives

Human Resources Tools for Salary Administration 02/29/2012 Page 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

Human Resources Tools for Salary Administration 02/29/2012 Page 4 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 Classification & Compensation

Human Resources Tools for Salary Administration 02/29/2012 Page 5 Contact Info

Human Resources Tools for Salary Administration 02/29/2012 Page 6 Contact Info

Human Resources Tools for Salary Administration 02/29/2012 Page 7 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 Legal & Regulatory Framework

Human Resources Tools for Salary Administration 02/29/2012 Page 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

Human Resources Tools for Salary Administration 02/29/2012 Page 9  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 Basics: Pay for Classified Positions (cont.)

Human Resources Tools for Salary Administration 02/29/2012 Page 10  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 Basics: Pay for Classified Positions (cont.)

Human Resources Tools for Salary Administration 02/29/2012 Page 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

Human Resources Tools for Salary Administration 02/29/2012 Page 12  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! Basics: Pay for Nonclassified Positions (cont.)

Human Resources Tools for Salary Administration 02/29/2012 Page 13  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 Basics: Pay for Nonclassified Positions (cont.)

Human Resources Tools for Salary Administration 02/29/2012 Page 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

Human Resources Tools for Salary Administration 02/29/2012 Page 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

Human Resources Tools for Salary Administration 02/29/2012 Page 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

Human Resources Tools for Salary Administration 02/29/2012 Page 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

Human Resources Tools for Salary Administration 02/29/2012 Page 18  Potential increases outside of the budget cycle: Classified Pay Plan amendments (HR) Temporary salary increases (UR M4) (HR) Out-of-budget-cycle pay changes (UR M2) (HR) Merit Equity Market Counteroffer Longevity pay on state schedule based on service Job-related skill enhancement pay (SAP M5.03) (dept.) One-time merit increases (SAP M5.02) (dept.) Hiring salary adjustments (UR M7) (dept.)  See section 31 of University Rules for guidance Basics: Other Types of Pay Changes

Human Resources Tools for Salary Administration 02/29/2012 Page 19  Temporary salary increases (UR 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 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

Human Resources Tools for Salary Administration 02/29/2012 Page 20 Rules and Standard Administrative Procedures (SAPs) Online On HR homepage at

Human Resources Tools for Salary Administration 02/29/2012 Page 21 Rules and Standard Administrative Procedures (SAPs) Online

Human Resources Tools for Salary Administration 02/29/2012 Page 22 Rules and Standard Administrative Procedures (SAPs) Online

Human Resources Tools for Salary Administration 02/29/2012 Page 23 Rules and Standard Administrative Procedures (SAPs) Online

Human Resources Tools for Salary Administration 02/29/2012 Page 24  University Rule 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! Changes Coming Soon!

Human Resources Tools for Salary Administration 02/29/2012 Page 25 Online Resources

Human Resources Tools for Salary Administration 02/29/2012 Page 26 Online Resources

Human Resources Tools for Salary Administration 02/29/2012 Page 27  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 Final Thoughts

Human Resources Tools for Salary Administration 02/29/2012 Page 28 Elizabeth Schwartz Director of Workforce Management Michelle Steedly Manager, Classification & Compensation Main Comp #: ; Main Comp #: ; Contact Info