HR-205 Position Classification and Compensation

Summary

The University promotes classification and compensation strategies to maximize the recruitment, performance, and retention of quality employees. The following guidelines address position classification and reclassification, and the determination of pay rates for new and existing University employees. All position classifications and pay rates are subject to approval by the appropriate University, MU Health Care, or UM System Office of Human Resources.

HR Policy Provisions

Position Classifications and Reclassifications
1. Job classification is a systematic method used to match each position with the appropriate job title and pay grade level, involving such factors as conducting a job analysis and documenting job duties. The evaluation is based on the actual job content or work performed, not on how well an individual incumbent performs the job responsibilities. Positions with similar duties and responsibilities are grouped in the same job title.
2. To affect a strong compensation program, leaders should:
  1. Determine and document job responsibilities; and
  2. Work with applicable University, MU Health Care, or UM System Human Resources to ensure that positions and employees are correctly classified.
3. There are seven factors used to evaluate staff jobs.
  1. Functional Knowledge – measures the education, experience, and expertise required to perform the job’s responsibilities.
  2. University Expertise – measure the requirements of the job for knowledge and expertise about the University rather than about “technical expertise”.
  3. Leadership – measures the requirements of the job for providing leadership and guidance to others.
  4. Problem Solving – measures the level of active listening, analysis, creativity, critical thinking, and decision making are required to perform a particular role.
  5. Nature of Impact – measures the impact the job has on the University by identifying the overall responsibility associated with the job.
  6. Area of Impact – measures the impact the job has on the university by identifying where the impact occurs (e.g., team, department, division, campus, system).
  7. Interpersonal Skills – measures the level and type of interactions with others that are normally required to perform a particular role.
4. The process for collecting information on the factors to evaluate a job is through the Position Classification Questionnaire (PCQ). A PCQ is completed by a department requesting the classification assignment and submitted to Human Resources. Typically, University compensation evaluates the position based on the PCQ and returns a recommendation (e.g., job title, pay grade, and pay rate). The CHRO or designee may make an alternate decision based on business rationale. Human Resources notifies the department of the outcome of the request.
Salary Structure
1. The objective of a salary structure is to provide a framework for paying salaries that are externally competitive and internally equitable.
2. Market studies should be regularly performed to determine competitive alignment for our jobs and pay structure.
3. Salary structures, or individual job titles, may be adjusted to remain in alignment with the external market.
Pay Rate Determination and Effective Dates
1. Criteria – Job offers, annual increases, reclassification pay adjustments, and other pay rates should be determined based on the individuals’ experience and qualifications, market salary information, internal equity, budget, and other similar factors. The weight given to each criterion may vary in individual cases
  1. Promotions – Employees who are promoted to a higher pay grade should have their pay increased to, at least, the minimum of their new pay grade.
  2. Lateral transfer same title – Employees who transfer from one position to another in the same title and pay grade should typically remain in the same rate of pay.
  3. Lateral transfer different title – Employees who transfer or are reclassified from one position to another position with a different title in the same pay grade may have their pay adjusted within the new position’s pay range.
  4. Demotions – Employees who transfer or are reclassified to a position that has a lower pay grade, may be adjusted to a pay rate within the new grade. The newly adjusted pay rate should be within the minimum and maximum of the new grade range.
2. Approvals – pay rates for administrative, service and support employees (except for those positions identified as requiring presidential approval under Executive Order 6) may be approved by the chancellor or designee, or for employees in a UM System unit, a vice president or designee.
3. Effective dates
  1. Annual salary increases (e.g., merit increases, annual pay raises) are effective at the beginning of the pay period that includes September 1, or at another time as designated by Human Resources or other senior University leaders.
  2. Atypical increases provided during times other than annual/merit pay cycles are considered to be “off-cycle increases” or “mid-year increases” (e.g., transfers, reclassifications, temporary pay increases, market adjustments, etc.). These irregular increases are typically effective at the beginning of the pay period in which the transfer occurs or is processed by campus, hospital, or UM System Human Resources. Human Resources may approve an earlier effective date based on extenuating circumstances. This date should not typically exceed 30 days retroactive from the date the action occurs or reclassification is approved.
Pay reduction measures for academic and staff
1. Tenured faculty criteria-based salary reductions shall comply with CRR 320.030 Delegation of Authority.
2. Reductions to pay and FTE may occur at any time for at-will employees, and at the time of renewal for employees on term appointments, per CRR 320.020 and CRR 320.030.
3. For exempt employees, a pay reduction may not exceed an amount that would alter the employee’s University exempt pay status.
4. For non-exempt employees, a pay reduction may not bring the individual’s pay rate below the University’s established minimum wage.
5. For benefit-eligible employees, the reduction in FTE may not be less than 75% FTE.
6. Employees on a reduced FTE may use accrued leave per University policies, but accrued leave may not be used to increase an employee’s FTE level (i.e., accrued leave may not be used to “top off” an employee’s FTE level).

Summary

HR Policy Provisions

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