[work-in-process] 7/14/10. University of Maine System Hourly Employee Classification and Compensation Program Guidelines

Transcription

1 [work-in-process] 7/14/10 University of Maine System Hourly Employee Classification and Compensation Program Guidelines December 2010

2 The information and guidelines herein are intended to ensure a common understanding, consistent implementation, and proper maintenance of the UMS Hourly Employee Classification and Compensation Program (HECCP). Represented employees should refer to their contracts for additional information pertaining to the handling of specific classification and compensation issues. 1

3 CONTENTS TOPIC PAGE HECCP History and Key Terms Background 3 Key Terms 4 Classification General Policies 7 Reclassification 11 Job Analysis 11 Job Evaluation 13 Compensation New Classifications 18 Hiring Salaries 19 Promotional Increases 19 Annual Increases 19 Work in a Higher Job Classification 19 Leave of Absence 19 Involuntary Transfer to a Lower Grade 20 Lateral Transfers 21 Market Premiums 21 Above the Salary Range 23 Salary Structure Updates 24 Appendix A: Request for Position Review Appendix B: Position Description Questionnaire Appendix C: Job-Worth Hierarchy 2

4 HECCP History and Key Terms Background In 20xx the University of Maine System (UMS) launched its new Hourly Employee Classification and Compensation Program (HECCP). A highly complex and collaborative initiative, HECCP took 3 years to complete and involved thousand plus employees throughout its design. All universities and the System Office were represented. Project governance included a 13-member joint labor-management committee, 10- member working group, and 11-member steering committee. Interest and involvement by employees throughout the HECCP project was high, evidenced by a strong response to opinion surveys and position description questionnaires. In addition, there was strong participation in the various employee information and idea-sharing sessions which were held over the 3 year period, including occupational panel interviews, subject-matter-expert events, and classification specification reviews. Benefited by this high employee involvement and guided by expertise from outside consulting firm Fox Lawson & Associates, the project team led the design of a state-of-the-art classification and compensation program. A program that is anchored in best practice principles with features that meet the needs of the UMS and its employees. The program is internally equitable and externally competitive. It is easy to understand and communicate. It is fiscally responsible, legally defensible, and culturally compatible - aligned with key principles of the UMS Compensation Strategy. The missions, needs and values of the UMS and each university guide the compensation plans and related practices. Total compensation includes pay and benefits and is used to determine market competitiveness. The compensation plans reflect the relevant labor markets in which the universities compete for positions. These markets vary depending on the position and may be local, state, regional, national, or international and include comparable institutions as well as relevant private sector organizations. Competitive compensation must be sensitive to the need to maintain student tuition and fees at levels that are accessible to Maine students. The compensation plans and pay delivery methods will be as responsive as possible to UMS priorities and individual university needs, while maintaining fairness and consistency. To achieve their goals, UMS compensation plans must be clearly communicated to all employees. Individual employee salaries may recognize exceptional performance, as documented in performance reviews, professional development and qualifications, and the value of individual contributions. The compensation plans will be reviewed periodically to assess market competitiveness and effectiveness in attracting and retaining employees. Blah, blah, blah The UMS values faculty and staff as the most vital resource for advancing its missions and programs. 3

5 HECCP History and Key Terms (continued) Key Terms Position The total duties and responsibilities requiring the employment of a single employee. The total number of positions in an organization equals the number of employees plus vacancies. Job The total collection of tasks, duties and responsibilities assigned to one or more individuals whose work has the same nature and level. Classification A body of work performed by a group of positions with similar jobs at a similar level of responsibility. This is described by a classification specification, which provides a more generalized description of work than conventional job descriptions. Please note that classifications are intentionally designed in a more generic manner than job descriptions that typically provide more specific descriptions of the work performed by individual employees. We sometimes use the word class for classification (e.g., broad class, class specs, etc.). Classification Specifications A general description of a class of work designed as the system-wide standard for UMS. Classification specifications include a general summary of the work performed by the classification, and provide for the distinguishing characteristics of the class, which includes: Level of Decisions The authority and latitude that a particular classification and/or career level has to change the way a job is performed, or the authority the classification has to commit the department or the organization to a course of action. Direction Received The level of direction or instruction received when performing the job. Direction Provided The level of responsibility for another employees job performance. Responsibilities A non-exhaustive list of duties and tasks representative of the classification and/or career level. Education/Training The average minimum level of education and/or training required for entry into the classification. Work Experience The average minimum amount of related work experience necessary for entry into the classification and/or career level. Note: For some classifications, especially in the trades, working title-specific duties and responsibilities will accompany the classification specifications. 4

6 HECCP History and Key Terms (continued) Career Level The purpose of career levels is to recognize the significant range of responsibility, direction received, direction provided, work complexity, and education and experience that may exist in classifications with large numbers of employees working in various capacities across the University System. The number of career levels in any classification is a reflection of the range of work in that classification alone, and not an indication of that position s relative value in the University System. Career levels, where appropriate, are identified within each classification specification. The number of career levels for each classification ranges from one to three. Those with a single career level are identified as Career Level classifications. Job Family A set of classifications which are closely related to one another but reflect increasing levels of decision-making, responsibility, and/or accountability. Classification System The arrangement of all of the classifications used by UMS, together with the classification specifications. A classification system is a method of describing and naming work performed in an organization. It provides a structure or framework for understanding how jobs relate to one another and the business reasons for positions. A good classification system results in a sensible hierarchy of related positions and groups that work together under the same classification title. Job Evaluation A formal process used to create a job worth hierarchy within an organization. The two basic approaches are market data and the job content. The HECCP utilizes both approaches when valuing its jobs, blending the best features of job content with those of market pricing. Job Evaluation Committee (JEC) A committee whose membership is charged with the responsibility of (a) directing and/or conducting the process of job evaluation, and (b) assessing the success with which the job worth hierarchy has been developed. 5

7 HECCP History and Key Terms (continued) Purpose of Classification Specifications Class specifications are broadly written summaries of work that provide a systematic method of grouping positions with similar essential functions. A class specification includes: Description of the type and level of work, including career level distinctions, where appropriate; Description of the characteristics which distinguish this class from others which may be in the same occupation or at the same level of authority and responsibility; Information which indicates standards (or guidelines?) for recruiting and selecting staff, determining appropriate pay, defining career growth opportunities, identifying performance expectations and complying with the Americans with Disabilities Act (ADA). Classification Specifications are not: Created or used to reward individual employees; Detailed descriptions of the duties and responsibilities of each individual employee in a class. Classification specifications describe the collective responsibilities of all employees that are allocated to that job. 6

8 Classification General Policies To ensure proper maintenance, the HECCP must adhere to the following policies. Policy 1: Broad Classes The first policy determines how the organization will shape its classification structure in order to support its organizational objectives. Depending upon the organization's strategy they may adopt narrow, broad, or somewhere in between narrow and broad descriptions to classify their jobs. The HECCP has followed a broad approach to the design of the classification structure that utilizes career levels to accommodate classifications with large numbers of employees that exhibit a large range of responsibilities and essential job duties. Policy 2: Job Family A job family groups related classes into a hierarchy differentiated by level of decision-making, responsibility and accountability (reference previous definition of Job Family ). An example of a job family is: 1. Administrative Clerk 2. Administrative Specialist 3. Administrative Supervisor Policy 3: Distinguishing Characteristics Each level of a job family must be distinguished from other levels by distinct differences in level of decisionmaking, responsibility, and/or accountability. Determining the distinguishing characteristics between levels in a class series requires judgment and knowledge of the work performed. Look for identifiable, large breaks between levels. Factors that distinguish levels: To be a separate and a higher class, a group of positions should require some or all of these: Significantly different and more complex mental or physical processes. Significantly higher impact from the class s decisions, both positive and negative. Significantly higher accountability. Accountability can be measured in terms of accomplishment of objectives, internal or external customer satisfaction, and control over work. 7

9 Classification (continued) Factors that do not distinguish levels: Some factors which, as a sole measure, do not distinguish lower-level from higher-level classes in a series are: Existing rates of pay. Level or position in the organization s hierarchy. Number of people reporting to the position. Volume of work (of the same type and level). Number or variety of specific assignments. Employee's longevity in a current position. Policy 4: Essential Functions or Typical Class Responsibilities Essential functions are basic duties for which the job was created; they make up the major purpose of the job consistent with the requirements of the American s with Disabilities Act. Essential functions normally cannot be transferred to another position without disruption in the flow or process of work. The list of essential functions on a class spec is meant to be illustrative only and not inclusive of every task that could possibly be assigned to a position. Policy 5: Career Level Career levels will be established for classifications that exhibit a significant range of responsibility, decisionmaking authority, autonomy, complexity or other job related characteristics, but are not significant enough to warrant separate classifications. Placement within career levels is a function of percentage of time spent performing work at the different levels. For example, an Administrative Specialist who on average, spends 50% of their time or more performing career level 2 type work, should be classified as a CL2 Administrative Specialist. Policy 6: Knowledge and Skills The knowledge and skills listed on a class spec are required at entry to the class. Knowledge refers to the possession of concepts and information gained through experience, training, and/or education. Skills refer to proficiency that can be demonstrated. All knowledge and skills required on a class spec must relate to an essential function. For example, knowledge of personal computers implies possession of the concepts for their use. Skill in personal computers implies proficiency in their use. 8

10 Classification (continued) Policy 7: Supervisory Classes Supervisory classifications are used only in situations where the incumbent is regularly responsible for the supervision of one or more full-time equivalent employees. Supervisory duties generally include: prioritizing and assigning work; conducting performance evaluations; developing policies and procedures; ensuring that employees follow policies and procedures; ensuring staff are trained; maintaining a healthy and safe working environment; and making hiring, termination, and disciplinary recommendations. Policy 8: Classification Titles Classification titles should be easily understood by employees, applicants, other organizations, and the public. All classifications will follow a standard titling convention that indicates the general level of authority of the classification. If a new classification title in required, the following titling rules should be followed: Short (e.g., Violinist, rather than Stringed Instrument Musician - Violin ) Descriptive of the (e.g., Planners should plan; Engineers should require engineering Work credentials) Common to the (e.g., Printing Press Operator, rather than Reprographic Media Technician II ) industry Policy 9: Working Titles The University System must approve working titles for individual positions as a matter of business necessity. A working title is a customized, descriptive title that provides greater understanding of an individual employee s responsibilities and job scope within the context of an assigned classification title. Working titles are generally based on current industry/professional standards. If working titles are necessary, the University will approve them on a case-by-case basis using the following guidelines. Titles should be consistent with other titles used throughout the University System; therefore they must be approved by the Human Resources Department. Titles should describe the position responsibilities and reflect the job family to which it is assigned. Titles should be short and should communicate an immediate understanding of the position. 9

11 Classification (continued) Titles should not include any descriptive words that would suggest the individual position is performing work at a higher level than the assigned classification title. For example, words such as manager and director should not be used in a working title unless the position has the authority of a manager or director. Titles will be used on business cards, job postings and other relevant documentation. Working titles will appear on internal forms in addition to classification titles. Titles will not replicate an existing classification title. Policy 10: Campus (or Job) Specific Responsibilities The Typical Class Responsibilities reflect the essential duties of the classification. However, in some classifications, where the range of work covers several jobs, these essential duties may be expressed too broadly, making it difficult for employees to clearly see themselves in them. In this case, campuses should use this section (and this template xxx) to supplement the Typical Class Responsibilities with a clear and complete list the essential duties performed in jobs on their campus. This is an important step in supporting performance management and the requirements of ADA. The UMS seeks to attract and retain well qualified, productive employees through a total compensation philosophy 10

12 Classification (continued) Reclassification Reclassification occurs when an employee or supervisor requests (using the Request for Position Review form in Appendix A) a position review because of a belief that it belongs in a new or different classification, or a different career level within an existing classification. Requests for reclassifications are also known as appeals. When should a reclassification be requested? A reclassification request should be submitted when: Substantive changes in the duties and responsibilities of individual positions occur due to changes in organization, work, staffing requirements, or technology. A classification to which a position is assigned is inappropriate or was initially incorrectly classified. If you are uncertain, you can discuss the options with your Human Resources representative. You may also want to review the existing classification specifications. A job analysis must be performed before a reclassification can be completed or a job evaluation rating can be assigned. Question for WG Should alternative processes be developed for within-class and out-of-class requests. For example, do we need a separate policy for career level challenges versus new position development? Job Analysis Job analysis is a systematic way of collecting data and making judgments about the duties and nature of a specific job. The job analysis provides the Analyst and Job Evaluation Committee with the information they need to allocate the position to an existing classification, or to develop a new classification. When will a job analysis be performed? The Analyst will review the Request for Position Review and make a determination as to whether circumstances warrant further review, including job analysis. Examples of requests that typically warrant further review include: A new position is created in the organization; The position's or classification s essential duties have substantially changed; typically, this means that 30% or more of the duties have changed. If the duties have not substantially changed, the process is complete and there is no basis for a job analysis or appeal. 11

13 Classification (continued) In order to determine if the position's duties have substantially changed, the Analyst will ask the following questions: In what ways has the job changed? In what ways has the job become more complex? In what ways has the job increased its level of decision making? What new duties are being performed? o Is the addition of new duties a short- or long-term change? For example, if another employee is on short-term leave and these extra duties will only last for a short period of time, there is no need for an appeal, although additional compensation may be awarded for their efforts and extra duties while they exist. o Are the new duties related to job characteristics that are currently listed in the Typical Class Responsibilities and/or Career Level Specific Responsibilities sections of the classification specifications? o Could the new duties be added to the existing classification specification to more clearly incorporate and reflect the work being performed and do so without compromising the integrity of the system? o Could the new duties be represented in the campus-specific responsibilities? If the position is a new position or has satisfied the requirements for a reclassification, a job analysis should be performed to determine if the position falls within an existing classification or if a new classification should be written. If a new classification should be written or if the existing classification should be updated, it will be written or updated reflecting the 9 policies of the job classifications referenced above. 12

14 Classification (continued) Job Evaluation Job evaluation is the formal process used to create a job worth hierarchy within an organization. There are two basic approaches to job evaluation, one using market data and a second using job content. The HECCP utilizes the best of both approaches valuing jobs by blending the elements of job content evaluation with market pricing to create a structure that reflects internal equity and external competitiveness. It is a system that assigns the most appropriate job level in the context of how jobs with similar duties and responsibilities are paid in the relevant market. As depicted in Figure 1, job analysis is the first step in a process aimed at developing a job worth hierarchy and market structure. Job analysis provides the essential information on the nature and level of work and minimum qualification requirements that allow the JEC to effectively evaluate the relative internal and external value of jobs. Job content evaluation The Decision Band TM (DBM) method of job evaluation has been selected to establish a job worth hierarchy for the HECCP. The DBM method is based on the following principles: The value of a job should reflect the importance of the job to the University System; The importance of a job is directly related to the decision-making requirements of the job; Decision-making is common to all jobs, and; Decision-making is measurable. Step 1 - Banding The DBM method is a three-step process that begins with the categorization of jobs into one of six broad decision Bands. These six Bands accommodate the decisionmaking requirements of all jobs in an organization (from the entry-level clerical support to the Vice Presidents and President). The six Bands are defined as follows (see chart on following page): 13

15 Classification (continued) The decision-making authority of a job must be examined to determine which of the six Bands is most appropriate. Although the DBM method is not a determinate of a job s FLSA exemption status, it has generally been found that Band A and B jobs are non-exempt, while those evaluated at Bands C and above may qualify as exempt. Step 2 Grading Once a job has been placed into one of the six decision Bands, the next step in the DBM process is called Grading. The Grade assignment of a job is essentially a measure of its coordinating or supervisory responsibility. Jobs with supervisory responsibility for other jobs within the same Band are placed in the higher of two Grades. If a job does not have supervisory responsibility for other jobs within the same Band, it would fall into the lower of two Grades. The following chart identifies the labeling of these Grades in relation to the six Bands: 14

16 Classification (continued) Step 3 Subgrading By the time we reach step 3, all jobs will have been designated to one of twelve possible Band/Grade ratings. The final step in the DBM process involves the subdivision of jobs into different Subgrades within each Band/Grade combination. It is important to note that the margin for error during the Subgrading process is limited to within each Band/Grade rating. Subgrading is based on the following principles: The greater the difficulty of the decision-making requirements of the job within a Band & Grade; The more valuable the contribution of the job to the organization, therefore; The higher the Subgrade of the job. The Subgrading of HECCP jobs is accomplished by integrating the broad classifications and career levels with market compensation data. For jobs with multiple career levels, the Subgrading will generally follow the established career levels. For example, a classification with three career levels and a Band/Grade rating of B2 would be Subgraded as B21, B22, and B23. In situations where only one career level exists, the job would be initially assigned to the lower Subgrade. 15

17 Classification (continued) Once the Subgrades have been initially established for all classifications and career levels, adjustments may be necessary based on available market data. This is accomplished by matching the market value of a job to the nearest DBM salary range in the market compensation structure. Market pricing The technique of gathering wage data on the "going rate" for benchmark jobs in the relevant labor market. The relevant labor market is the State of Maine for all UMS hourly positions. Guidelines for selecting survey sources include: Conducted by a reputable salary survey firm Survey process includes descriptive information outlining how the data are reviewed and verified as accurate Survey data is not self reported Survey is conducted on a continual basis; i.e. not a one-time event Survey reports its data sources and the effective date of the data Survey provides job summaries to match job Mathematical modeling and evaluation [add more on linear regression model and evaluation of correlation using least squares] Job-worth hierarchy Use of the Decision Band Method of job content evaluation combined with market pricing, the UMS Job- Worth Hierarchy shown in Appendix C should reflect an equitable and competitive basis for grouping similar jobs together and establishing a market structure. Classification (continued) 16

18 Market structure [add more on data driven structure; insert proposed single structure] MARKET STRUCTURE - SYSTEM STANDARD DBM Minimum Midpoint Maximum Range Spread A11 $18,027 $23,436 $28,591 60% A12 $20,492 $26,639 $32,786 60% A13 $22,956 $29,842 $36,729 60% B21 $25,427 $33,056 $40,684 60% B22 $27,892 $36,259 $44,626 60% B23 $30,356 $39,462 $48,569 60% B31 $33,442 $43,474 $53,506 60% B32 $37,142 $48,284 $59,426 60% C41 $40,227 $52,296 $64,364 60% Note: A11minimum $9.50/hr ($19,760 annual) would be maintained for regular staff Compensation 17

19 New Classifications to the Salary Structure In order to carry out the goals and objectives of UMS, it is sometimes necessary to add new classes or to modify the organizational structure. This often results in responsibilities being redistributed. The evaluation of new classes for placement in the appropriate pay scales should be done at the time the class is added to the classification structure. The Office of Human Resources is responsible for the evaluation process in reviewing job changes. Please note that in the case of reorganization or redistribution of duties and responsibilities, that duties added to one position are most often accompanied by a reduction in responsibilities to another position. Reclassifications and changes in grade assignment will be made both upward and downward in this instance. DBM Evaluations and Job Slotting When the development of a new classification is warranted, it will be necessary to Band and Grade the classification using the DBM job evaluation method. Once the evaluation is completed, the Analyst will slot (level) the classification into the salary structure. Following are the steps that will be followed when slotting classifications into a market-based salary structure. Available market data will be examined to determine if an appropriate market match can be made. If sufficient market data are available, the market actual salary for the classification should be matched to the closest midpoint within the salary structure to determine the appropriate sub-grade. If market data are not available, the classification should be slotted in accordance with its overall responsibility level and location within the classification structure. Factors to consider when slotting the classification could include; responsibility level, decision making authority, level of experience, education, and degree of impact on the organization. Within fiscal resources and in compliance of all applicable rules and laws, the goal is to provide compensation that is competitive with similar positions in the relevant labor markets and is internally equitable. Compensation (continued) 18

20 Hiring Salaries In general, starting salaries should be at the minimum of the assigned range for the classification and/or career level. Starting salaries higher than the minimum of the assigned range may be acceptable for a combination of reasons such as qualifications which exceed stated minimum requirements, previous years of directly related experience, a competitive market situation, and/or a special and specific talent. This policy allows for a flexible and effective compensation program. Of course, the salaries and years of service of current incumbents in the same salary grade and similar positions throughout the organization should be considered. Starting salaries beyond the midpoint should require special consideration, such as extreme market or recruitment conditions. A continued practice of hiring employees beyond the midpoint usually causes severe employee morale issues with existing employees, and/or is a sign that the compensation system is not competitive with the market. Promotional Increases (both within and across classifications) A person promoted to a classification or career level in a higher range should receive an immediate increase. This increase is separate and distinct from any annual salary adjustment. A policy of providing an adjustment that places the salary at a point that provides at least an increase of 5% to 10% is recommended, given that a comparison is made with the salaries and similar positions in the organization. In determining the promotional increase, two other guidelines should be used: An employee's salary should be increased at least to the minimum rate of the new salary range, and In no case should a promotional increase place an employee's salary above the maximum of the assigned range. Annual Employee Increases Across the Board (ATB) - ATB increases grant the same percentage salary increases to all employees regardless of seniority, length of service, or performance. [FLA suggests that board increases are inappropriate in our environment. With a proper performance evaluation system and career development program, across the board increases convey the opposite message that these programs are trying to send. They recommend that UMS utilize a process whereby the merit budget is adjusted each year by the WorldatWork merit budget projections. This number is an index of merit budget increases and is a better indication of labor cost movement than a cost of living index. Once the merit budget is determined, individual pay adjustments will need to be made based on performance, longevity, and/or career development attainment.] Compensation (continued) 19

21 Performance Based (PB) PB increases differentiate pay based on performance level. High performing employees receive more than average performers. Below average performers receive no increase. o Step program o Open range o Open range and Steps Work in a Higher Job Classification In situations where the assignment or scheduling of work requires an employee to perform in a higher level classification (higher pay grade or pay range), a temporary pay rate may be established for the period of that assignment or work schedule. For example, a policy could be established that an employee must be working in the higher classification at least 50% of the time for a minimum of 60 days. The effective hourly rate of pay should be within the pay range for the salary grade of the temporary assignment, and should be determined using the same considerations, as noted above, for a promotional increase. This action should only take place when a prior approval is given. This policy should not apply to situations of vacation replacement. Leave of Absence Salary increases are not earned while on unpaid leave of absence. Upon reinstatement, the employee shall be paid at the same rate he/she had prior to the leave of absence. If, during the absence, a merit increase had been provided, the salary of the incumbent should be reviewed at the time he/she returns for any pay action. Involuntary Transfer to a Lower Grade When an employee is given an involuntary transfer, not resulting from a demotion, to a new classification with a range that is less than the range of the employee's present grade (e.g., abolition of a job and the consequent reassignment of a position with a lower grade), no immediate salary reduction should occur. If the employee's salary is above the maximum of the lower grade, the following guidelines should apply: Grant no salary increments or general structure increases until the maximum for the new grade equals or exceeds the employee's salary. or Reduce the incumbent's salary to the new range maximum (ceiling) within a defined time period (but no less than one year) after the involuntary transfer, if the incumbent's salary continues to exceed the new grade. 20

22 Compensation (continued) Lateral Transfers When necessary, UMS may change an employee or group of employees from one job to another within the same pay grade. This will happen when UMS deems this to be in the interest of efficiency and meeting objectives. When an employee(s) is transferred to a position of comparable value or worth, he or she will not receive an adjustment in pay. Market Premiums A situation may arise in which the market compensation level is not consistent with the established salary grade. In those cases, UMS should apply a market premium or differential to the established salary grade for the job classification in question. Market premiums or differentials should only be used when the average market compensation level exceeds the established midpoint for the classification by a minimum of 1.5 times the difference between the midpoint and the maximum of the range. In those instances, a market premium amount should be established for the class by UMS. The premium amount is then added to the minimum, midpoint and maximum of the salary range. In practice, the following steps will occur: A problem will occur with either recruitment or retention of employees in a particular job class or job family. Problems will become evident when UMS recruits to fill a position or positions within a class and is unable to find an acceptable number of qualified applicants and the perceived reason is the compensation level for the class. Alternatively, the turnover rate for positions in a class or job family is unacceptably high and the reason cited for the turnover is the compensation level for the class. In either case, UMS will initiate a market compensation study of the class to determine how UMS compares to other employers in its defined labor market. It is extremely important to recognize that turnover will occur for a variety of reasons; compensation is only one reason. Recruitment of qualified individuals to fill specialized positions also involves more than compensation. Consequently, UMS will have to assess each situation on its own merit to determine whether the problem is compensation or whether other factors exist. A determination is made by UMS through a market compensation analysis that UMS s established salary range for a classification, or a position within a broad classification, is 1.5 times the difference between the midpoint and the maximum of the range or more below market levels. This determination should be supported by valid and current market compensation data. As stated above, UMS will initiate a market compensation study of the class to determine how UMS compares to other employers in its defined labor market. UMS must exercise caution in using generic data or data for only a limited market segment as there will always be employers who pay more than UMS. 21

23 Compensation (continued) Whether or not a Market premium is warranted can be determined by applying the following two steps: 1. Calculate the difference between the established midpoint and maximum, and multiply times Add this product to the midpoint Maximum minus (-) Midpoint = $ Difference Times (x) 1.5 Plus (+) Midpoint = Result If this result is less than the market median actual salary, a market premium is warranted If this result is more than the market median actual salary, then no market premium is warranted If a market premium is warranted, then the market median actual salary becomes the midpoint of the new market premium salary range An example of a situation warranting a market premium is shown below: Market Premium Warranted: o Market median actual salary: $50,000 o Salary range maximum for the class: $45,000 o Salary range midpoint for the class: $39,000 o Difference between max. & mid.: $ 6,000 o 1.5 times above difference: $ 9,000 o Above amount added to midpoint: $48,000 Maximum minus (-) Midpoint = $ Difference Times (x) 1.5 Plus (+) Midpoint = Result $45,000 - $39,000 =$6,000 x 1.5=$9,000 + $39,000 =$48,000 Is market median actual salary ($50,000) larger than result ($48,000)? YES, premium warranted New midpoint for the class: $50,000 New maximum for the class: $57,692 (calculated at same range spread of previous salary range) 22

24 Compensation (continued) Above the Salary Range (i.e. Red Circled Employees) There may be situations in which an employee s current pay exceeds the maximum of their assigned salary range. These are generally referred to as red circled employees, as their pay is circled for further/future consideration. Employees may be paid beyond their assigned salary range maximum for any of the following reasons: Transition from a different compensation plan Labor supply/demand Longevity Recruiting issues Special skills Job change/transfer Misclassification Etc. All red-circled employees should be reviewed to ensure that they properly classified. If it is determined that the employee is correctly classified and is performing work that is consistent with the requirements of the classification, UMS may consider the following options: Freeze the employee s pay until such time that the annual movement of the salary range catches up with their current pay. If the employee is currently meeting or exceeding expectations, UMS may provide lump-sum payments in lieu of merit increases which do not increase base pay. This allows the employee to be compensated for their efforts, but does not perpetuate the red circle effect. Conduct a special market study to determine if a market premium is warranted for the classification (See the discussion on Market Premiums, p.20 ). Assign the employee to a different classification if warranted by the duties being performed. 23

25 Compensation (continued) Market Structure Updates Annual Updates In order to reflect necessary increases in the minimum and maximum rates appropriate for each job, the salary structure should be reviewed annually. The annual review of the pay scales includes a thorough analysis of factors identified above. FLA can provide UMS with the average percentage increase for employee salaries and salary structures on an annual basis, or UMS may use a labor market index. The respective starting rates and maximums will be increased by a percentage that reflects the market trends and UMS s hiring experience. The use of a dollar amount increase would compress the structure over time. Long-Term Updates UMS will reevaluate its overall structure at regular intervals (e.g., 2-3 years depending upon market movements) to ensure that its salary levels are consistent with the marketplace. This will involve conducting a salary analysis every 2-3 years to make sure that UMS s pay scales and employee salaries remain competitive. 24

26 Appendix A Request for Position Review REQUEST FOR POSITION REVIEW Employee or supervisor should complete this form, obtain the necessary signatures, and forward to campus Human Resources Office. EMPLOYEE INFORMATION Employee s Name Date Supervisor s Name Department Present Job Title and Wage Band Proposed Job Title and Wage Band REASON FOR REQUEST (Summarize major duties currently performed that are not covered by the current job title and description if this request for a position review is approved, you will be asked for more detailed information later) AUTHORIZATION FOR POSITION REVIEW (campus to determine which of the following signatures are needed to authorize the review) Signature Date Approved Disapproved Comments Employee Supervisor Chairperson Director/Dean Vice President Other Appropriate Campus Reviewing Official * NOTE TO SUPERVISORS OF COLT STAFF: The collective bargaining agreement between the University of Maine System and the Maine Teachers Association covering the clerical, office, laboratory and technical staff requires that a supervisor process a request for a position review within 20 working days from the date the employee submits it to the supervisor. Updated 08/05 25

27 Appendix B Position Description Questionnaire 26

28 Appendix C Job-Worth Hierarchy ID Job Family Classification Series Career Level DBM Rating 1 Academic Records Academic Records Specialist 1 of 2 CL1 B21 2 Academic Records Academic Records Specialist 2 of 2 CL2 B22 3 Accounting Support Accounting Support Technician 1 of 3 CL1 B21 4 Accounting Support Accounting Support Technician 2 of 3 CL2 B22 5 Accounting Support Accounting Support Technician 3 of 3 CL3 B23 6 Administrative Support Administrative Clerk 1 of 5 Level A12 7 Administrative Support Administrative Specialist 2 of 5 CL1 B21 8 Administrative Support Administrative Specialist 3 of 5 CL2 B22 9 Administrative Support Administrative Specialist 4 of 5 CL3 B23 10 Administrative Support Administrative Support Supervisor 5 of 5 Level B31 11 Child Care Child Care Assistant 1 of 1 Level A13 12 Community Programming Community Education Assistant 1 of 2 CL1 B21 13 Community Programming Community Education Assistant 2 of 2 CL2 B22 14 Data Management Data Management Technician 1 of 2 CL1 B21 15 Data Management Data Management Technician 2 of 2 CL2 B23 16 Equipment Operations Equipment Operator 1 of 2 CL1 A12 17 Equipment Operations Equipment Operator 2 of 2 CL2 A13 18 Facilities Maintenance Facilities Maintenance Worker 1 of 6 CL1 A11 19 Facilities Maintenance Facilities Maintenance Worker 2 of 6 CL2 A12 20 Facilities Maintenance Senior Facilities Maintenance Worker 3 of 6 CL1 B21 21 Facilities Maintenance Senior Facilities Maintenance Worker 4 of 6 CL2 B22 22 Facilities Maintenance Facilities Maintenance Supervisor 5 of 6 Level B31 23 Facilities Maintenance Facilities Maintenance Manager 6 of 6 Level C41 24 Farm Operations Farm Operations Technician 1 of 2 CL1 B21 25 Farm Operations Farm Operations Technician 2 of 2 CL2 B22 26 Financial Aid Financial Aid Specialist 1 of 2 CL1 B21 27 Financial Aid Financial Aid Specialist 2 of 2 CL2 B22 28 Food Services Food Services Assistant 1 of 5 Level A11 29 Food Services Food Services Technician 2 of 5 CL1 B21 30 Food Services Food Services Technician 3 of 5 CL2 B22 31 Food Services Food Services Technician 4 of 5 CL3 B23 32 Food Services Food Services Supervisor 5 of 5 Level B31 33 Information Technology IT Technician 1 of 4 Level B21 34 Information Technology IT Specialist 2 of 4 CL1 B22 35 Information Technology IT Specialist 3 of 4 CL2 B23 36 Information Technology IT Specialist 4 of 4 CL3 B31 37 Inventory Control Inventory Control Clerk 1 of 4 A11 27

29 Level 38 Inventory Control Inventory Control Technician 2 of 4 CL1 B21 39 Inventory Control Inventory Control Technician 3 of 4 CL2 B22 40 Inventory Control Inventory Control Supervisor 4 of 4 Level B31 41 Library Library Specialist 1 of 3 CL1 B21 42 Library Library Specialist 2 of 3 CL2 B22 43 Library Library Specialist 3 of 3 CL3 B23 44 Mail Services Mail Services Assistant 1 of 3 CL1 A12 45 Mail Services Mail Services Assistant 2 of 3 CL2 A13 46 Mail Services Mail Services Supervisor 3 of 3 Level B23 47 Media Services Media Services Technician 1 of 3 CL1 B21 48 Media Services Media Services Technician 2 of 3 CL2 B22 49 Media Services Media Services Supervisor 3 of 3 Level B31 50 Police (Sworn) Police Officer 1 of 4 Level B21 51 Police (Sworn) Police Specialist 2 of 4 Level B22 52 Police (Sworn) Police Sergeant 3 of 4 Level B31 53 Police (Sworn) Police Lieutenant 4 of 4 Level C41 54 Police Services Police Services Dispatcher 1 of 2 Level A11 55 Police Services Police Services Supervisor 2 of 2 Level B21 56 Print Services Print Services Assistant 1 of 5 Level A12 57 Print Services Print Services Technician 2 of 5 CL1 B21 58 Print Services Print Services Technician 3 of 5 CL2 B22 59 Print Services Print Services Technician 4 of 5 CL3 B23 60 Print Services Print Services Supervisor 5 of 5 Level B31 61 Purchasing Logistics Purchasing Technician 1 of 2 CL1 B21 62 Purchasing Logistics Purchasing Technician 2 of 2 CL2 B22 63 Retail Operations Retail Services Assistant 1 of 3 CL1 A11 64 Retail Operations Retail Services Assistant 2 of 3 CL2 A12 65 Retail Operations Retail Services Supervisor 3 of 3 Level B21 66 Scientific Research Scientific Research Assistant 1 of 3 Level A11 67 Scientific Research Scientific Research Specialist 2 of 3 CL1 B22 68 Scientific Research Scientific Research Specialist 3 of 3 CL2 B23 69 Security Security Guard 1 of 2 Level A11 70 Security Security Guard Supervisor 2 of 2 Level B21 71 Skilled Trades (Electrical) Electrical Specialist 1 of 5 CL1 B21 72 Skilled Trades (Electrical) Electrical Specialist 2 of 5 CL2 B22 73 Skilled Trades (Electrical) Electrical Specialist 3 of 5 CL3 B23 74 Skilled Trades (Electrical) Assistant Electrical Supervisor 4 of 5 Level B31 28

30 75 Skilled Trades (Electrical) Electrical Supervisor 5 of 5 Level C41 76 Skilled Trades (Mechanical) Mechanical Specialist 1 of 5 CL1 B21 77 Skilled Trades (Mechanical) Mechanical Specialist 2 of 5 CL2 B22 78 Skilled Trades (Mechanical) Mechanical Specialist 3 of 5 CL3 B23 79 Skilled Trades (Mechanical) Assistant Mechanical Supervisor 4 of 5 Level B31 80 Skilled Trades (Mechanical) Mechanical Supervisor 5 of 5 Level C41 81 Skilled Trades (Structural) Structural Specialist 1 of 5 CL1 B21 82 Skilled Trades (Structural) Structural Specialist 2 of 5 CL2 B22 83 Skilled Trades (Structural) Structural Specialist 3 of 5 CL3 B23 84 Skilled Trades (Structural) Assistant Structural Supervisor 4 of 5 Level B31 85 Skilled Trades (Structural) Structural Supervisor 5 of 5 Level C41 29

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