Policy: Pay Practices Program for University Staff Employees
|Date: 05/22/09||Policy ID: HRM-024||Status: Final|
|Contact Office:||Consulting Services (UHR)|
|Oversight Executive:||Vice President and Chief Human Resources Officer|
|Applies To:||Academic Division and the College at Wise.|
|Table of Contents:|
|Reason for Policy:||In accordance with the Restructured Higher Education Financial and Administrative Operations Act and the resulting implementation of a new Human Resources system, this policy establishes guidance for consistent, equitable and fiscally responsible means for supervisors to compensate and reward University staff. The Pay Practices Program supports the University’s commitment to attracting, motivating, developing and retaining qualified employees.|
|Policy Summary:||The Pay Practices Program supports the University’s goal of attracting, motivating, developing, and retaining qualified employees through the use of market-relevant salary ranges and pay practices to reward performance and employee development.|
|Definition of Terms in Statement:||
Pay Practices Program: A process for ensuring that employees’ base pay, salary increases, bonuses, incentives and other rewards (not including employer-sponsored benefits, e.g., health and dental insurance, long- and short-term disability, paid leave, retirement, life insurance, etc.) are in alignment with the University’s mission, goals, and objectives. The University staff Pay Practices Program consists of eight major components: (1) market-based pay ranges; (2) competitive starting pay; (3) merit increases; (4) promotion pay; (5) reward and recognition; (6) supplemental/differential pay; (7) incentives - exceptional recruitment, retention and project-based; and (8) strategic compensation alignment.
Bonus: A lump sum payment that is not a part of the employee’s base pay.
Competitive Starting Pay: The base pay offered to candidates accepting a University staff position. The competitive starting pay is determined by review of several factors including relevant market-based pay range, employee skills, competencies, and other factors as appropriate to the situation.
Differential Pay: A base pay adjustment that usually reflects specified job conditions (shift, hazards, etc) and/or makes salaries competitive with the market. Differentials may be applied to UVa Job Titles, geographic locations, or individual positions in the University.
Incentives - Exceptional Recruitment, Retention and Project-based: Incentives which may be applied on an exception basis in order to address significant recruitment and retention needs or for mission-critical projects. Incentive options include sign-on bonus, retention bonus, project-based incentives, compensatory leave, and annual leave.
Leave Plan Year: Begins with the first day of the pay period which includes January 1 (known as Pay Period 1) and ends on the last day of the pay period preceding Pay Period 1 of the following year.
Market-based pay ranges: A salary range for a UVa Job Title, based on market pay survey information from reliable primary and/or third party sources. This data reflects salary levels for similarly situated positions in the talent pool from which the University recruits its employees. Each range has a lower reference, a competitive range, and an upper reference.
Merit Increases: Base pay adjustments which vary based upon an employee’s overall performance contribution, as measured by the annual performance evaluation. If an employee’s base pay is at or above the upper reference for the pay range, the merit amount may be provided as a one-time payment, rather than as a base pay adjustment.
Reward and Recognition: Bonuses, non-monetary awards, and recognition leave provided to employees in recognition of an employee's contributions to the overall objectives of the University. These rewards are typically provided to employees in recognition of teamwork, special project completion, identification/implementation of new or modified business practices, exemplary effort, employee appreciation and skill acquisition.
Strategic Compensation Alignment: A base pay adjustment provided to retain employees critical to the work of the University. Salary adjustment decisions are made using a holistic approach where multiple relevant factors (including the market-based pay range, employee skills and competencies, competitive counter-offers, and performance) are considered in support of sound pay decision-making.
Supplemental Pay: Payments that apply to specific positions designed to address unique needs of the University (i.e., interim assignments.) Supplements are not included as part of the employee’s base pay.
University Staff Employees: Those salaried, non-faculty employees hired on or after July 1, 2006, and those salaried, non faculty employees and Administrative and Professional Faculty electing to participate in the University Human Resources System established by the Board of Visitors under the authority granted by the Restructuring Act, and the Management Agreement.
The pay practices are intentionally designed to attract, motivate, develop and retain qualified employees as well as support the University Staff career development model and performance management process. University Human Resources (UHR) in collaboration with the Schools/Departments will manage pay for all full- and part-time salaried University Staff using this process. (The focus of pay practices is on all forms of cash compensation and not the employer-sponsored benefits.) There are eight components of the Pay Practices Program:
The Employee is responsible for:
Processing an Award for Reward and Recognition
|Major Category:||Human Resource Management|
|Category Cross Reference:|
|Next Scheduled Review:||05/22/12|
|Approved By, Date:||Executive Vice President and Chief Operating Officer, 05/22/09|
|Revision History:||Updated 5/16/12, 10/8/09.|
|Supersedes (previous policy):|