UNM   DIVISION OF HUMAN RESOURCES
COMPENSATION GUIDELINES FOR STAFF EMPLOYEES
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1. Introduction
2. New Positions
3. Replacement Positions
4. New Hires
5. Internal Equity Adjustments
6. Promotions
7. Reclassifications
8. Compensations for Additional Duties
9. Voluntary or Negotiated Demotions
10. Lateral Transfers
11. Interim Assignments
12. Mass Salaary Update Increases
13. Market Based Increases
14. Vertical Career Ladders
15. In-Range Career Ladders
16. Extra Compensation
17. Shift Allowances
18. Standby Pay
19. On-Call and Temporary Employees

1. Introduction
The following guidelines are meant to help managers and employees understand the processes involved in job classification and salary administration as they relate to regular staff employees.  If after studying these guidelines you have specific questions or concerns on particular topics, you may refer to Fast Info or contact your Human Resources Consultant.

2. New Positions
A new job title for a position may be established when  a) an additional position has been newly budgeted and the role is demonstrably different in nature from other positions in the immediate work unit, or  b) when an existing position is changed substantially to the degree that a different job classification is required. In most cases existing positions change in such a way that a reclassification into another existing job title is all that is required.

When a new title is requested, the hiring department completes either a Job Analysis Questionnaire (JAQ) or a position description that is detailed enough to identify the role and evaluate it for appropriate classification. This documentation is submitted initially to the Division of Human Resources. The Division of Human Resources then evaluates the request and sends a job classification approval back to the HR Consultant and the requesting department manager, along with classification details and a new job description, where appropriate. 

The hiring department manager then fills out an Employee Requisition Form (REQ) and attaches a copy of job classification notice to the REQ and sends to the Human Resources Consultant for posting, along with a recruitment form and any other necessary paperwork.

3. Replacement Positions
When an employee vacates a department, the same position classification is typically posted to replace the vacancy. If, however, the duties of the position have changed to the extent that the primary duties and responsibilities no longer match the classification description for the current title, the department may request a new or revised position classification. (See New Positions above).

4. New Hires
The first quarter of a pay range is considered the range of fair value for a newly hired employee meeting the standard specifications of the job. New employees are typically hired in the first quarter of the range.  However, in establishing appropriate starting rates the hiring department should consider factors such as education and experience beyond the minimum requirements for the position, directly related unique skills and competencies, strength of the relevant job market, and internal equity within the department.  Please consult your Human Resources Consultant for guidance when establish salary rates for new employees.

Departments that are starting new employees between April 1 and June 30 should take into consideration the annual mass salary increase as part of the salary offer. 

For bargaining unit employees, please refer to the appropriate union bargaining agreement.

5. Internal Equity Adjustments
When a job candidate is being hired into a department, the prospective new employee's starting salary should typically not exceed the current salary of any employee in the department with the same job title who has comparable or greater qualifications.  If it becomes necessary to offer a job candidate a higher rate of pay under these conditions, then the University’s Internal Equity Policy applies (see UBPP 3500, para 3.1). 

Hiring officials should in any case contact their Human Resources Consultant before making a salary offer to a prospective employee to determine whether or not the offer will generate an internal equity situation and, if so, to determine appropriate compliance with the Internal Equity policy.

For bargaining unit employees, please refer to the appropriate union bargaining agreement.

6. Promotions
A promotion is the progression, through the competitive process, of an employee into a pre-existing position with increased responsibility (and higher pay grade) relative to the employee's present position. Promotions are typically accompanied by a pay increase.  Guidelines for promotional increases are as follows:

• The employee's new pay rate must be at least at the new range minimum.

• When setting salary rates for promotions, the department should follow the parameters of the New Hire Guidelines (see above).
• All salary considerations should be reviewed in the context of equity with similar positions in that department.

 

For competitive promotions occurring between April 1 and June 30 the hiring department should consider the annual mass salary increase as part of the offer to the employee.

For bargaining unit employees, please refer to the appropriate union bargaining agreement.

7. RECLASSIFICATIONS
It is the responsibility of department management to request a review and evaluation of the job duties of an employee.  Requests originating directly from an incumbent employee will not be reviewed by Human Resources without written concurrence and support from the department’s Director or equivalent authority.

7.1 Eligibility for Reclassification Consideration
A job is eligible for re-evaluation when its primary duties either increase or decrease in scope and complexity and the position changes substantially by more than 40% (2 days out of 5). In other words, acquiring more of the same type of work will not qualify a job for re-evaluation.

Employees who are in positions that are in “Pre-Approved” career ladder families do not typically qualify for a reclassification, but normally follow the Career Ladder process (see Vertical Career Ladders below) for progression into the higher position classification.

7.2 Reclassification Procedure
Once a major change in an incumbent employee’s job responsibility has been identified by the department, the employee and manager jointly complete a Job Analysis Questionnaire (JAQ), available at the following web site.

The manager then obtains the appropriate signatures and a letter of support for the review from the director or other designated point of authority. This package is then submitted initially to the Division of Human Resources.  Human Resources then evaluates the request and sends a Notification of Job Classification Reviewback to the requesting department manager along with classification details and a new job description where appropriate. 

It is the responsibility of the department manager then to discuss the determination with the employee.  Human Resources processes all necessary implementation paperwork.

7.3 Reclassification Salary Adjustments
A reclassification may result in a salary adjustment if the new position assignment is one or more grades higher than the incumbent employee’s current grade assignment.  If a salary adjustment is warranted, the salary is typically effective as of the date of the next payroll cycle. The effective date is noted on the Notification of Job Classification Review.

If a pay increase is deemed appropriate for a reclassification, the rule-of-thumb for the increase up to 10% per grade or to at least the new salary range minimum.  Actual pay increase decisions for reclassifications are also dependent on other factors, such as internal equity concerns and budget constraints within the department.  Reclassification increases do not typically exceed 20% unless a greater amount is needed to reach the new range minimum.

If a classification review determines that there is insufficient need for a higher-graded classification, but identifies significant increases in duties and responsibilities within the current or a same-grade classification, the Division of Human Resources may, at its discretion, recommend an appropriate increase in salary for the incumbent within current pay range, depending on the evaluated work value of the expanded duties (also see Compensation for Additional Duties below).

Employees who are reclassified or who receive a job-based in-range salary adjustment between April 1 and June 30 remain eligible for year-end salary increases through the annual MSU.

7.4 Downward Reclassifications
A classification review may result in a position being moved to a lower level classification, based on current and future job responsibilities needed in the department.
An employee who accepts the downward reclassification will be subject to the New Hire guidelines regarding salary placement (see above).  If it is determined that a decrease in salary is required, the department must provide the employee written notification at least 90 days prior to the implementation of the reclassification.

8. Compensation for Additional Duties
If it is determined through a re-evaluation conducted by the Division of Human Resources that an employee has gained on-going responsibility for additional duties but not to the extent that warrants a new position or grade increase based, a small (typically 3-7%) increase may be approved at the discretion of the Division of Human Resources.

9. Voluntary or Negotiated Demotions
A voluntary demotion is the movement of an employee from a position to a lower-graded position initiated at the stated request of the incumbent employee.  A negotiated demotion typically occurs as a result of a formal agreement (mediated or otherwise) between the employee and hiring department management.  In the case of voluntary or negotiated demotions, treatment of base pay is as follows:

• The employee's new salary rate should be determined based on employee qualifications in comparison with the minimum requirements of the new position classification.
• Internal equity, department budget constraints, and employee performance evaluations may be used as factors in salary rate determination.
• A voluntary or negotiated demotion should not result in a salary increase in any case.

 

For bargaining unit employees, please refer to the appropriate union bargaining agreement.

10. Lateral Transfers
A lateral transfer is the movement of an employee to another job within the same pay grade as his or her present job. Non-competitive lateral transfers should be accomplished without an increase in salary. Competitive lateral transfers should follow the New Hire Guidelines.

11. Interim Assignments
It is expected that an employee will occasionally perform duties above and below his or her grade or classification with no additional pay or reduction in pay.  However, if an employee primarily performs work at a higher level of responsibility over an extended period of time, typically greater than one month, the employee should be appointed to an interim assignment, subject to the following conditions:

• The employee must assume the majority (at least 70%) of the job responsibilities of the higher position.
• The employee must meet the minimum qualifications of interim position.
• The interim assignment may not exceed 6 months.

 

Upon commencement of an interim assignment, the employee's interim salary must be established at a level not less than the minimum of the new pay grade. If the salary is above minimum, the interim salary should be based on qualifications in relation to the minimum requirements of the new position.
A typical increase for an interim appointment ranges from 5% - 10% of salary.

A letter to the employee outlining the interim assignment should be attached to the Personnel Action Notice (PAN). The letter outlining the assignment should explain the length of the assignment and should make it clear that at the conclusion of the assignment the employee will be returned to his/her original classification at the original salary rate.

In cases where duties and responsibilities have been temporarily added to an employee’s current position, but not to the extent that an interim assignment is warranted, a temporary in-range adjustment may be awarded within the employee’s current classification.  The typical increase rate for such an adjustment is 3-7%, depending on the level and extent of the extra duties assumed.  Procedures, constraints, and approval processes are the same as for interim assignments.

 

For bargaining unit employees, please refer to the appropriate union bargaining agreement.

 

12. Mass Salary Update Increases
Each year an allocation of budgeted funds for general pay increases for employees is considered by the Board of Regents.  When made available by the Board, these funds are distributed to employees at the beginning of the following fiscal year in a process known as a “Mass Salary Update” (MSU).

The Division of Human Resources establishes and disseminates University-wide guidelines for the internal distribution of the annual MSU allocation approved by the Board, provided such an allocation is forthcoming that year.

It is the responsibility of management to distribute the MSU allocation in accordance with these guidelines and within established budget parameters.  Employee performance, position in range, and equity with other employees in the work unit should be considered by management as factors in the MSU allocation.

Departments who have questions or issues related to individual salary increase allocations or the MSU “Salary Planner” process should initially contact their Human Resources Consultant for guidance.

 

13. Market-Based Pay Increases
The University may on isolated occasions provide for extraordinary salary adjustments to a defined population of employees who are in positions that have been determined by the Division of Human Resources to be acutely critical to key institutional operations. Such adjustments are made in response to unusually competitive conditions observed in the external job market for similar positions and the resulting degree of assessed risk to the institution.

Market-based pay increases are exceedingly rare and are considered to be outside the normal Staff Compensation process.  The standard University approach to job market parity is to adjust salary grades for affected position classifications and then to deal with individual compensation issues through use of the Internal Equity Policy (see UBPP 3500).

14.  VERTICAL CAREER LADDERS
A “vertical” Career Ladder provides another avenue for a regular staff employee to advance in classification and grade. This program consists of a formal agreement between an employee and unit management for employee development over a period not less than 6 months into an identified higher position.  The competitive process is not required for an employee to advance through a vertical Career Ladder.

14.1 Employee Eligibility
Employees are eligible for vertical Career Ladders under the following conditions:

• The employee must be a regular full or part time member of staff
• The employee must have successfully completed the probationary period.
• The employee’s most recent performance review must reflect overall performance that "meets job standards" or above.
• The employee must not be currently subject to disciplinary action.
• The employee must not have already completed 2 vertical Career Ladders within the directorate or equivalent operating component to which s/he is assigned.

 

If the employee’s position is classified as a true manager or higher, the employee is not eligible for a vertical Career Ladder.

14.2  Job Preconditions
The primary precondition for vertical Career Ladder availability is the demonstrated business need for someone to perform the duties and responsibilities stated in the Position Classification Description for the proposed higher position.

For a position to be available for a vertical Career Ladder it must also meet the eligibility requirements determined by the Office of Equal Opportunity (OEO) and Human Resources, based on current utilization, which means that internal targeted minority representation for the position classification is at levels expected within the community.
For more information on the Office of Equal Opportunity please refer to their website.

14.3 Types of Vertical Career Ladders
Vertical Career Ladders fall into 2 categories:  (a) “Pre-Approved” Career Ladders, which occur within one of a number of defined job family series(current listing of Pre-Approved Career Ladder), and  (b) “Individual” Career Ladders, which occur between job families or between classifications that do not fall into in a pre-defined job family series.

14.4 Processes and Forms
The manager and the employee enter into a formal Career Ladder agreement by completing and signing a series of documents.  Copies of the signed Career Ladder and related documents must be submitted to the Division of Human Resources for approval both prior to commencement of the Career Ladder process and upon completion of the process.

For more detailed information and access to vertical Career Ladder forms and procedures, refer to the Human Resources web site (http://hr.unm.edu)

14.5  Career Ladder Duration
Generally, a Career Ladder can be expected to take between 6 and 12 months to complete. The actual length of time needed to complete a Career Ladder depends on the time it takes the employee to attain the minimum qualifications and the knowledge, skills and abilities required for the higher level classification, as well as the time it takes for the employee to demonstrate competency in the key duties and responsibilities of the higher-level classification. 

Career Ladder periods may not in any case be less than 6 months in duration.

14.6  Pay Increases upon Completion of a Vertical Career Ladder
A rule-of-thumb, the typical vertical Career Ladder increase is up to 10% of salary per pay grade to a maximum of 20%, dependent upon internal pay equity and budget constraints, with the proviso that in any case the employee's base pay must not be less than the minimum of the pay range for the higher level classification.

If an employee receives a Career Ladder pay increase between April 1 and June 30, that employee remains eligible for an annual pay increase through the Mass Salary Update (MSU).

 

15.  IN-RANGE CAREER LADDERS
In cases where a vertical Career Ladder is unavailable to an employee, it may be possible to establish an “In-Range” Career Ladder program.  The intent of this program is specifically to provide opportunities for professional development and associated salary advancement to valued employees who are willing and able to take on expanded work responsibilities but who, for various reasons, are blocked from participating in a vertical Career Ladder program.

In-Range Career Ladders do not count against the total number of “vertical” Career Ladders available to an employee. However, it is expected that there will be no more than one In-Range Career Ladder granted to any employee in a given position.

15.1  Eligibility for In-Range Career Ladders
Regular staff employees may participate in the program, provided that the following criteria are met:

• The business need for the assumption of higher duties has been established by management and confirmed in writing by the appropriate Dean, Director, or Chair.
• The assumption of higher duties have been formally agreed to in writing by both the employee and the manager, and countersigned by the Dean, Director, or Chair.
• The duties to be assumed by the employee are not being taken away from other employees in the unit.
• The proposed duties have been clearly established as being beyond the scope of the current position, as determined by the Division of Human Resources.
• The proposed duties will comprise at least 20%, but no more than 40-45% of the total FTE of the position.
• The employee is past probation, received a “Meets Expectations” or higher rating on his/her last performance evaluation, and is free from current disciplinary action.

15.2  In-Range Career Ladder Process and Forms
The process for establishing and completing In-Range Career Ladders closely parallels that of the vertical Career Ladder process; however the actual forms used are different.  These forms may be downloaded from the Human Resources web site (http://hr.unm.edu). 

Please contact your Human Resources Consultant initially for guidance in the establishment and processing of In-Range Career Ladders.

15.3  Pay Increases upon Completion of an In-Range Career Ladder
The rule-of-thumb salary increase for an In-Range Career Ladder is between 3-7%, depending on the nature and magnitude of the expanded duties assumed. The factors used to determine an appropriate increase are the same as those used for vertical Career Ladders.

If an employee receives a Career Ladder pay increase between April 1 and June 30, that employee remains eligible for an annual pay increase through the Mass Salary Update (MSU).

For more detailed information and access to In-Range Career Ladder forms and procedures, refer to the Human Resources web site(http://hr.unm.edu).

16. Extra Compensation
Extra Compensation is a form of non-standard payment awarded to employees in FLSA “Exempt” positions who, from time to time, provide occasional services to operating units other than their own. 

The following prerequisite conditions are required for an “Exempt” staff employee to be considered eligible for Extra Compensation:

• The employee must have already performed the work at the time of payment.

• The additional work must have been performed outside of the employee's home department.
• The work must have been performed either outside of normal working hours or while on paid annual leave.
• The work performed must be outside the scope of employee's regular position classification.
• The compensation must be based on a reasonable level of pay in relation to the duties performed.

 

If all of the above criteria are met the department may request Extra Compensation for the employee by submitting a Non-Standard Payment form along with a record of hours worked, a statement of the nature and level of duties performed, and documented evidence that the work was performed either outside of normal hours or on annual leave, signed by appropriate department management.  All NSP forms should be submitted initially to the Division of Human Resources.  If there is any doubt as to whether or not an employee qualifies for Extra Compensation, please contact your Human Resources Consultant.

Non-Exempt employees do not receive Extra Compensation. These employees are typically paid for such work at their normal rate of pay via the normal payroll process, subject to FLSA overtime provisions.

17.  Shift Allowances
A shift allowance is an additional hourly pay rate applied to a non-exempt employee's base pay if, during a given pay period, at least half of total hours worked are on either a second or third shift.  Employees are paid at a 2nd Shift allowance rate if at least half their work hours are between 4:30 p.m. and midnight, and a 3rd Shift allowance rate if at least half their work hours are between midnight and 8:00 a.m.
(also see UBPP 3500).

IMPORTANT NOTE: 

A University-wide schedule of approved shift allowance rates has been established by the Division of Human Resources for non-exempt staff in non-bargaining unit positions.  Departments that employ shift staff should refer to the schedule on the following web site to determine appropriate shift allowance rates.                    
Shift allowance rates that do not conform to this schedule will be rejected by the HRPR system.

Employees in FLSA “Exempt” positions are not eligible for shift allowances.

For bargaining unit employees please refer to the appropriate union bargaining agreement.

 

18.  Standby Pay
At times employees may be required to make themselves available to work on an as-needs or “Standby” basis outside of their normal work hours.  Compensation for standby status will be determined by the degree to which an employee's free time is restricted.
The factors considered in determining if standby pay is appropriate are:

• the exemption status of the employee (see below)

• restrictions on the employee's location
• expected response time to return to work
• number of other employees available to be called
• frequency and urgency of calls received.

Employees who are asked leave a phone number or carry a pager but who are free to attend to personal matters without restriction are not eligible for Standby Pay. Employees are paid Standby Pay only if, while on standby, they are so restricted that they cannot pursue normal personal activities. 

Standby Pay rates for non-union employees are determined by the Division of Human Resources.  Please contact your Human Resources Consultant to establish appropriate Standby Pay rates for your area or to resolve any other issues related to Standby Pay for “non-exempt” employees.

Non-exempt,  non-union employees who are called to work while on Standby will be paid at their regular rate of pay for the hours actually worked, subject to FLSA overtime provisions. 

Employees in FLSA Exempt positions are not eligible for Standby pay.

For bargaining unit employees please refer to the appropriate union bargaining agreement.

19. On-Call and Temporary Employees
On-call employees are employed on an intermittent basis to work special events and peak work periods, to fill in for an absent employee, or in other occasional circumstances.  Hours worked are typically irregular and non-repetitive in nature.  On-call assignments should not exceed 520 (0.25 FTE) hours in a given calendar year (see below).

Temporary employees are employed to fill a specific departmental need for pre-defined period of time, not to exceed 6 months.  Hours of work may be either full-time or part-time, but are established and repetitive in nature throughout the period of employment.

Neither On-Call nor Temporary employees are eligible for UNM benefits; however all temporary employees must contribute to the ERA retirement plan through payroll deductions.  On-call employees who exceed 520 hours in a given year will be placed in the retirement plan at that time, and ERA deductions will be taken out of their pay from that point until their employment with the University ceases.

On-call and temporary employees who are active at the time of the annual mass salary update may, at the discretion of the department, receive an hourly pay increase at that time provided that the increase is within the guidelines established for regular employees.  In these cases the department must submit a separate request for each individual employee to the Division of Human Resources for approval.

Revised 12/15/2008; subject to change without notice.