Salary and Wage Administration Policy

1.700 SALARY AND WAGE ADMINISTRATION POLICY

1.        Philosophy and Objectives

The primary purpose of salary administration at Guilford College is to attract and retain well-qualified individuals who can best contribute to the College's mission. Decision-makers in the salary administration process will strive to make salary decisions fairly and communicate them effectively. To provide the College with the ability to use its limited resources most effectively, salary administration aims to:

·         be responsive to market influences with consideration for internal equity (see Definitions portion of this policy);

·         recognize different performance levels among employees;

·         acknowledge the basic financial needs of all employees; and

·         take into consideration the costs of turnover and the adverse effects of inadequate salaries on the need for supervision, employee morale and institutional image.

1.        Methods and Guidelines

Salary adjustments are divided into two main categories:

·         annual budgeted salary adjustments

·         other salary adjustments

Annual budgeted salary adjustments are based on one or more of the types described in the Definitions portion of this policy. The campus decision and notification process is as follows:

·         Average annual salary increases are projected in the strategic plan and appropriated as part of the annual budget recommended by the President and approved by the Board of Trustees.

·         The President, with the advice of the Vice Presidents, determines priority needs of the institution that require use of salary dollars (cost-of-living, merit, equity) based on information from sources such as deans, directors, department chairs, and the Human Resources Office.

·         The President establishes guidelines, using institutionally recognized market and internal equity data and input from the campus community. For administrative and support staff, the human resources department proposes equity adjustments based on CUPA, Employment Security Commission of NC, and other internal and external data. The President communicates the guidelines to be used in making adjustment decisions, indicating the proportion of salary dollars allocated to each type (see Definitions). These types and proportions are determined according to institutional needs and initiatives whenever campus-wide adjustments are possible.

·         Once the types and proportions have been determined, the President and Vice Presidents allocate remaining salary adjustment pools to their respective administrative units.

·         The President prepares a memorandum to announce the changes to employee salaries and wages as well as employee contributions for medical and dental benefits for the next calendar year.

·         Managers, using the guidelines established by the President, allocate the salary pools within their units.

·         Within the units, each supervisor develops individual salary adjustment recommendations using performance documentation and/or other data appropriate to that year's guidelines (institutionally recognized equity or market studies, for example).

·         Unit administrators review and discuss recommendations and documentation for the recommendations (performance documentation, institutionally recognized market or internal equity data) with the supervisor, adjust the recommendations and/or forward the recommendations to the appropriate vice president.

·         Prior to recommending the final salary adjustments to the President, each Vice President will consult with the Director of Human Resources to review implications of the recommended adjustments for the campus as a whole. The role of the Director is to advise the Vice Presidents on whether there is appropriate documentation for the adjustment, the potential impact on internal equity, or whether the proposed adjustment complies with policy.

·         Once the President approves the adjustments, he sends individual letters to all employees to confirm the new salary and wage amounts.

Other salary adjustments could include post-probationary adjustments for staff, promotions (faculty and non-faculty), market, internal equity and responsibility adjustments including interim appointments and significant administrative assignments (see Guidelines for Other Salary Adjustments portion of this policy.).

2.        Distribution and Communication of the Policy

To facilitate the understanding of salary and wage administration at Guilford College, this policy will be included in the Staff Handbook and the Faculty Handbook.

Definitions

At Guilford College, annual salary adjustments are based on one or more of the following:

Cost of living adjustment is an across-the-board amount related to--but not necessarily the same as--the changes in the cost of living (determined by the Consumer Price Index which reflects the changes in the cost of various consumer items during the previous 12 month period). Cost of living adjustments become part of an individual's salary base.

Internal equity is a comparison of salaries for similar positions at Guilford College based on appropriate and relevant data including these factors: previous related experience outside the College, a sustained change in responsibility that is more or less than what is considered normal for that type of position, education, or responsibility level within a group of similar positions at Guilford College. Internal equity adjustments become part of an individual's base salary.

NOTE: length of service is relevant for internal equity ONLY in the context of performance; that is, consideration of performance should override length of service in salary decisions.

Market or external equity is the comparison of Guilford College salaries with those of other similar employers and is based on bona fide and relevant data. Market or external equity adjustments become part of an individual's base salary.

Performance adjustment is one based on level of performance identified through documentation, including an established review process. Performance adjustments may be made in one of two ways:

·         As a one-time payment when performance has been exceptionally meritorious in the preceding year. This type of adjustment does not become part of the salary base and is made as a single payment.

·         As a permanent adjustment based on sustained meritorious performance. This type of adjustment becomes a part of the salary base.

3.        Guidelines for Other Salary Adjustments

Individual salary adjustments may be made throughout the year for the following reasons:

Post-probationary adjustments for staff. Upon successful completion of the initial six-month probation period, an employee may be eligible for a salary adjustment up to 5%. The amount of the adjustment may vary, depending on such factors as performance, internal equity, initial salary and budget. A performance review form must be completed and submitted with a Personnel Action form requesting approval of the probationary adjustment.

Equity adjustments. On a case-by-case basis, significant internal inequities may arise outside the annual salary review process described above. In these unusual situations, a request for an adjustment may be initiated. Factors generally considered are directly related experience, job performance and level of responsibility. The decision to request an equity adjustment should include consultation with the Office of Human Resources and appropriate documentation should accompany the request. Equity adjustments for staff are normally limited to ten percent.
 

Market adjustments. A market adjustment is intended to mitigate a documented external inequity using Guilford College recognized market data. Market adjustments are normally limited to ten percent. Market adjustment proposals must consider institutional internal equity.

Responsibility adjustments including interim and administrative appointments.

Adjustments for substantial, documented reassignments or changes in the duties/responsibilities within the same position may be initiated after consultation with the appropriate vice president or president. Documentation should accompany the request. For staff employees, rationale will include changes in the level of responsibility as documented by a Position Description.

Adjustments for interim appointments and administrative assignments are limited to the period for which these assignments are made and do not become part of the salary base. For staff interim appointments, increases should not be given for interim periods of less than thirty days and staff employees may not retain the higher compensation level for more than thirty days after the interim period ceases to exist.

Bonus. A one-time payment for special projects, or assignments completed in a superior manner. This type of payment does not become part of the salary base.

The attainment of a degree or license does not automatically result in a salary adjustment. In some cases, an adjustment for market and/or internal equity may be appropriate. Such adjustments should be recommended based on the same type of documentation required for other market or internal equity adjustments.