(This supersedes Memo No. 10 dated 10/1/77)
It is the policy of the Institute to pay fair, equitable and competitive wages and salaries in order to attract, retain and motivate competent employees. An effort is made to recognize the relative values of the various jobs, to adapt realistic wage and salary ranges and to make comparative studies of area rates and changing job conditions to assure that the wage structure is current.
a. General - The classification method emphasizes the grouping of jobs using similarity of duties and types of activities as criteria. The plan adopted by the Institute is purposely generalized. It allows maximum flexibility for department action, and provides for recognition of the individual, but establishes boundaries to insure equal treatment of all employees.
b. Classifications - Jobs are separated into five major classifications, based on similarity of duties and activities. They are:
A - Administrative and Supervisory
E - Research and Engineering
O - Office and Stores
S - Service
T - Technical and Trades
(1) Levels - These five classifications are divided into levels based on relative difficulty of the jobs, measured by factors such as: Knowledge, problem complexity, responsibility, skills and abilities, consequence of error and training and experience.
(2) Classification and level designations are:
A-01 through A-12
E-01 through E-13
O-01 through O-07
S-01 through S-05
T-01 through T-09
c. Classification Procedure - Creating, changing and reclassifying job titles and job levels is the responsibility of the Compensation and Records Office of the Human Resources Department and is accomplished using the following procedure:
(1) Job descriptions are written for staff jobs in a standard format based on questionnaires and interviews with employees and supervisors.
(2) After the job description has been reviewed by the employee and the employee's supervisor, the Human Resources Compensation Office establishes the proper classification and level by comparing the scope and complexity of the job with other similar existing jobs.
(3) The Human Resources Compensation Office then assigns the applicable classification, level, job title, and job code.
a. Rate Ranges - A minimum and maximum rate are assigned to each level of each classification. These are published in Personnel Memoranda #10-1. The rate range for each level is established and then confirmed on the basis of information gathered in periodic wage and salary surveys of comparable jobs in similar institutions and in local businesses and government agencies. Individuals will be paid at a rate within the rate range according to their ability, training, experience and performance as rated by their supervisor in periodic salary reviews and internal equity subject to the approval of the Human Resources Compensation Office.
b. Start Rates - Before an employment offer is made to an outside candidate or a transfer applicant, the classification and starting rate must be approved by the Human Resources Compensation and Employment Offices. (See Personnel Memoranda #9 for details).
Rate or Rate Range Adjustments - Periodic surveys and job studies and other analyses conducted by the Human Resources Compensation Office may indicate that changes should be made in rate ranges. These changes will usually be made and published effective October 1. Rate adjustments may be made outside the regular salary review period when area rates are significantly higher than rates being paid at the Institute for comparable jobs.
(1) Rate adjustments may be applied uniformly to all employees within a particular job level or job classification.
(2) Employees whose performance is not up to standard may be given less than the amount designated in order to realign their rates more equitably with their performance.
The recognition of and reward for individual achievement is fundamental to good wage and salary administration. The Institute has established regular periods for the purpose of reviewing each employee's salary in relation to job performance, years of service and total experience.
a. Salary Reviews
(1) Salary reviews may or may not result in recommendations for pay changes. Salary improvement is not automatic; it must be earned.
(2) Salary increases will normally be made effective only during the periods of September/October or March/April and only on the appropriate Monday payroll effective date.
(3) All new employees will be reviewed during their probationary period. After performance on the job has been observed, a probation completion increase may be recommended. (See Personnel Memoranda #9 for details).
(4) All employees will be reviewed annually after probation completion at one of the two regular salary review periods.
(5) Total annual (fiscal year) salary increases, excluding probation completion increases, for any one employee will normally not exceed 15 percent of base pay per fiscal year.
b. Special merit increases (SMI's) may be given to individuals for sustained exceptional job performance or for significant professional achievement or contribution.
(1) These increases may be given outside of the regular merit review periods.
(2) Increases will be decided on the merits of each individual situation.
(3) No more than one special merit increase may be given in sequence.
(4) Such increases will not exceed 10 percent.
A special salary adjustment may be recommended when:
a. An individual attains a degree or an advanced degree related to the position held or another similar significant achievement.
b. The Compensation office of Human Resources determines the rate of pay of the employee is out-of-line with internal pay structure and/or labor market conditions.
c. These increases may be given outside of the regular salary review periods and may not exceed 10 percent.
All rates and personnel changes are subject to prior approval of the Human Resources Compensation Office. Proposed changes should be communicated to the employee only after this approval has been granted.
Any exception to this policy requires the approval of the Vice President for Business and Finance or designee.