NON-REPRESENTED STAFF COMPENSATION PLAN
FOR
NORTHERN
EFFECTIVE
*Established by
Introduction
Section
1, Establishing a Salary Range for Current Positions
Section
2, Establishing a Salary Range for Newly Created Positions
Section
3, Reviewing Vacant Established Positions
Section
4, Establishing a Salary Rate
Section
6, Maintaining Salary Ranges
Section
7, Special Pay for Academic Administrative Positions
Section
8, Compensation for Additional Assignment/Duties
Appendix
A, Salary Range Determination for Positions with Unavailable Salary Data
Appendix
B, Salary Ranges for all Current Non-Represented Position
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This document establishes the compensation guidelines for all
non-represented staff of Northern Michigan
University
The University is committed to implementing and maintaining a fair and equitable compensation program that compliments the required duties of each position as well as the performance of an individual within each position.
The Human Resources Department has been designated as the Plan Administrator, which includes the following:
1. Implementing, managing, and revising the Plan.
2. Scheduling and coordinating all periodic reviews as directed by this Plan or the President.
3. Evaluating and establishing salary ranges for newly created positions.
4. Evaluating and approving all salary determinations for newly hired individuals.
5. Evaluating and approving all salary adjustment requests for all positions.
Supervisors, who request evaluation action, as noted in items 3 through 5 above, will be advised by the Human Resources Department of the evaluation outcomes prior to finalizing their action. In addition, the Human Resources Department, prior to finalizing all salary actions, will provide to each Vice President and the President the results of all completed compensation evaluation requests for their review, and action if necessary.
Questions pertaining to this plan can be directed to the Director of Human Resources at 227-2330.
COMPENSATION PHILOSOPHY
Compensation
Compensation
includes both direct (cash) and indirect (employee benefits) and recognizes the
essential intrinsic value of employee recognition.
Internal Equity
NMU
is committed to fair and equitable pay practices for each individual employee
regardless of position, role, gender or cultural background, and within and
across all University divisions, employee groups and departments.
Competitive Market Compensation and Indexing
To
ensure attraction and retention of the most knowledgeable and qualified
employees for NMU, fair and equitable pay practices will be established with a
compensation framework which is competitive with similar positions within
local, regional or national markets.
Base Pay Structure
The
base pay architecture will be non-traditional in structure. Each position will be evaluated against
comparable positions from various market salary data sources that will assist
in determining an adequate
compensation range to accommodate varying levels of experience and merit-based
performance within each position.
Variable Pay
Variable
pay is salary provided to an individual that is not added to the individual’s
base pay. This may include merit pay,
bonuses, monetary awards, etc.
Base Pay Policies, Performance and Adjustments
The
process of initially establishing the base pay for a new employee must be
flexible within the parameters of the position and recognize the extent of the
individual’s background and experience.
The University’s performance management process will include the establishment
of performance factors that are linked to the goals of the University,
division, and/or department and the communication of those factors prior to
each performance period. The process
will provide for periodic review and monitoring of actual performance relative
to established performance factors. Ongoing base pay adjustments and variable pay
will be merit-based and directly reflect the individual’s performance and
contribution during the performance period.
Administration
Based
on policies and practices approved by the President and Board of Trustees,
adherence of actual pay practices and adjustments to established compensation
guidelines and ethical principles will be monitored by Human Resources. This
office will also provide ongoing support to managerial personnel entrusted with
the evaluation of individual employee performance relative to established
standards and expectations.
Communications
The
University will provide timely substantiation for and clear communications of
compensation plans, practices, and policies that it adopts or modifies.
Innovation and Change
The
University’s compensation approach is not static; NMU will monitor and evaluate
internal changes and external market factors and trends that might impact
the University’s approach to compensation planning.
As appropriate, modifications to existing practices will be introduced
after due consideration of their consistency with and representation of the
key values of the University stated in this document.
Section 1:
Establishing A
The first step of implementing this plan involves establishing a salary range for each current non-represented position. To accurately determine a salary range, each non-represented position must have a current management questionnaire that accurately reflects all required duties of the position. Utilizing the questionnaire, the Human Resources Department (H.R.) will compare and evaluate all stated duties of the position against similar positions from various market salary data sources to identify a comparable position. Due to the number and variety of market salary data sources available, H.R. will use the following data sources in the order stated in determining salary ranges:
1. CUPA-HR
2. MiCUPA-HR
3. Others related data sources when positions are not noted in sources listed above.
After identifying a comparable position, H.R. will obtain from a market salary data source the median salary which will be utilized as the starting point in developing the salary range for Northern’s positions. The identified midpoint salary amount may be adjusted to take into account any recent NMU annual adjustments. Utilizing the adjusted midpoint rate, a range of 42% below and 42% above the midpoint will establish the salary range for the position rounded to the nearest $100.
Positions that incorporate multiple job functions (e.g., Communications & Development) into one position requires consideration of each job function when establishing the position’s salary range. In determining a salary range for this type of position, H.R. will evaluate and identify the primary job function based on the amount of time required in performing the assigned duties. Once the primary job function has been identified, a comparable position from the market salary data source will be identified and the process of establishing a salary range would occur as noted in the previous paragraph above. In those situations, where the job functions are equal, the comparable position listed in the salary data source with the highest salary median will be identified as the median salary amount for Northern’s position.
In the event that salary data was unavailable due to
the fact that a position was not listed in any market salary data source or the
duties of the position far exceeded the duties description in the various
market salary data sources, H.R. will evaluate and determine a salary range
utilizing the guidelines stated in Appendix A of this plan.
Upon implementation of this Plan, each non-represented
individual will receive from H.R. a statement (figure 1) reflecting the salary
range of their position including the market salary data source and the comparable
position that was utilized in determining the salary range for their position.
Section 2: Newly Created Positions
As future positions emerge, a critical element of
the development process must include the salary range determination. After receiving and processing a management
questionnaire for a newly created position, H.R. will initiate the salary range
determination process for the position by implementing the same salary range
determination process as noted in Section 1 above. This includes determining salary ranges for
positions having multiple functions as well as positions in which salary data
is unavailable.
The process of establishing a salary range for a newly
created position must be completed prior to initiating any recruiting actions
for the new position. To prevent from
having to re-advertise postings and to provide flexibility during the recruiting
process, supervisors are encouraged to state the on the job announcement the
phrase “commensurate with experience” when providing salary information.
Supervisors desiring to define the salary information must coordinate
their request with Human Resources. The
use of a defined salary range must be within the minimum to mid-point range
of the salary range for the position.
Section 3: Vacant Established Positions
Current
established vacant positions must undergo a review and, if needed, the
supervisor must update the management questionnaire prior to the initiating any
recruiting actions. To initiate a
recruiting action, the supervisor, upon completion of their review, will
either, 1) contact H.R. stating that the current questionnaire is still valid,
or, 2) will initiate and forward to H.R. a revised questionnaire. H.R. will also validate or revise, as needed,
the established salary range for the position.
To prevent from having to re-advertise postings and to provide
flexibility during the recruiting process, supervisors are encouraged to state
the on the job announcement the phrase “commensurate with experience” when
providing salary information.
Supervisors desiring to define the salary information must coordinate
their request with Human Resources. The
use of a defined salary range must be within the minimum to mid-point range of
the salary range for the position.
Section 4: Establishing A Salary
Amount
In determining a salary amount for a newly hired individual, all salary requests will be submitted to H.R., via e-mail, for consideration and approval prior to extending any offer of employment and will be evaluated on the following:
1. Experience and skills
possessed by the individual
2. The duties of the position
3. Market data from one of the
various market salary data sources
4. The University’s available
resources
Starting salary amounts will not exceed the
position’s stated mid-point amount unless approved by the President. All final salary determinations will be
provided to the Vice Presidents and the President for their review prior to
extending an offer of employment.
Each
new non-represented employee will receive from H.R. as soon as practical a
statement (figure 1) reflecting the salary range of their position including
the market salary data source and the comparable position that was utilized
to determine the salary range for their position.
Annual adjustments, as directed by the President,
normally occur at the end of the fiscal year associated with the annual
performance evaluation process. Annual
adjustments may consist of across-the-board, merit, and market
adjustments. However, there may be
instances during the year in which a salary adjustment may be considered and
approved. The following are examples of
reasons that may justify a salary adjustment:
1. Promotion
2. Transfer from one position
to another
3. The addition/deletion of
duties to an individual’s existing job description
4. Performance (beyond that
noted on the most recent annual performance evaluation)
In those instances where a salary adjustment may be
appropriate, a written request via e-mail to H.R. must be submitted stating the
reason for the adjustment request. For
those positions with newly added or deleted duties, an updated management questionnaire
will be required prior to evaluating and processing any salary adjustment
request. H.R. will evaluate and process
the request for approval taking into consideration the following:
1. Experience and the skills
possessed by the individual, if required
2. The addition/deletion of
duties for the position
3. Market data from various
market salary data sources
4.
The University’s available resources
A salary adjustment that places an individual above
the maximum of their salary range will have the amount exceeding the maximum
rate paid as a bonus (bi-weekly payments).
This bonus will not be added to the base salary
As noted above, and prior to notifying the individual
of the adjustment, all salary adjustment requests must be submitted to and
approved by H.R.
Section 6:
Maintaining
H.R. will initiate and conduct a market salary study of all non-represented positions periodically. This process will include updating/adjusting salary ranges based on market analysis, a study summary reflecting all positions updated/adjusted as a result of the study, and notification to each affected individual on the findings obtained from this study as it pertains to the position in which the individual is assigned.
Section
7: Salary Determinations for Academic
Department Heads
Effective
1.
When establishing a salary range for a Department
Head position, H.R. will initially conduct a market analysis by identifying a
comparable faculty position by discipline from a salary survey data source
(e.g., CUPA-HR’s National Faculty Salary Survey). Upon identifying a comparable faculty
position, H.R. will obtain from the salary data source the median salary of the
comparable position. H.R. will then
adjust the median salary rate from the salary data source to incorporate NMU’s
most recent non-represented annual across-the-board adjustment. This new adjusted rate will establish the mid-point
for the salary range for the discipline.
2.
Once the mid-point amount has been established as
noted in previous paragraph above, a salary range for the discipline will be
determined. Using the same process noted
in Section 1 above for non-academic positions, a range of 42% below and
42% above the midpoint will be utilized to establish the salary range for the
position rounded to the nearest $100.
This range will be communicated to the Provost and Dean by H.R.
3.
Determining a salary rate for an individual
assigned to a Department Head position will comprise of two elements. The first element establishes the 9-month
faculty equivalent base pay utilizing the salary range as noted in the previous
paragraph above. Element two establishes
the compensation rate for the duties as a Department Head. This is determined
by the Provost in conjunction with the respective Dean, who will establish a
factor for each Department based on their evaluation of the scope of
responsibility, the size, and the complexity of the department. Based on the established factor, the
individual assigned as the Department Head will receive a base pay adjustment
of 15%, 20% or 25% of the 9-month faculty equivalent base pay. While all Department Heads will have a
12-month assignment, there are variations in the Department Head teaching load
requirements across departments.
Department Head teaching loads will be determined by the Dean and
reviewed by the Provost.
4.
The authority for determining final salary
offers for an individual selected to serve as an Academic Department Head
resides with the Provost and Vice President for Academic Affairs.
5. An individual who relinquishes the duties as a Department Head and returns to the faculty rank will encounter a salary decrease equal to the second element of adjustment noted in paragraph 3 effective on the date the individual is no longer identified as a department head.
Section 8: Compensation for Additional Assignment/Duties
Due to mission requirements, there will be instances that require an individual, while assigned to and performing duties of a position, to inherit and perform an additional assignment or duties from another position for a specific time frame. The interim assignment or additional duties may justify consideration of an individual receiving a wage increase for the period of such an appointment. Salary adjustment requests based on an interim assignment or additional duties may be submitted to H.R. (e-mail preferred). The request will be evaluated on the following:
1. The current duties of the individual
2. The additional assignment or duties
3. The amount of time required to perform such duties
4. Market salary data of the additional assignment or duties
5. The University’s available resources
Individuals that are appointed to a position, with a
higher salary range, on an interim basis will be compensated at a rate not less
than 10% higher than the rate they are earning prior to the appointment.
Individuals given additional duties may be
considered for a wage increase at a rate not to exceed 10% higher than the rate
they are earning prior to the assignment of the additional duties.
At the time the interim assignment
or additional duties are no longer required of the individual performing such
duties, the individual will revert back to the former salary rate plus any
University wide adjustments that were implemented during the appointment period.
APPENDIX
A: DETERMINING
Purpose: The Compensation Plan for
General
Information: To maintain an effective compensation program, efforts will be
directed at identifying and obtaining a viable salary data sources to support
each non-represented position. However,
when a viable data source cannot be obtained to support a position, the
procedures described below will be implemented.
In order to establish a salary range under this procedure, the following
criterion must apply:
1. Must have a current
management questionnaire on file in the Human Resources Department and,
2. Salary data for the position
is not available in any salary data source utilized by NMU or the duties
described within NMU’s job description far exceed the description stated within
the various market salary data sources.
Determination
Criterion:
Once a position has been identified as an unlisted position requiring a salary
range determination, H.R. will compare the duties and the responsibilities of
the position with other NMU non-represented positions with established salary
ranges. In comparing the positions, the
following criteria may be considered:
1. Similar in nature by title
to a position(s) that have an established range (e.g., director, coordinator,
manager)?
2. Duties and responsibilities
that are similar in nature to an established position(s) (e.g., manage a
budget, coordinate activities)?
3. Supervisory responsibilities
similar to an established position(s) (does this position supervise any other
non-represented positions)?
4. Qualifications similar to an
established position (e.g., education, experience)?
Finalizing the Range: The salary range of the
established position that best compares to the unlisted position will be
established as the salary range for the unlisted position. There may be situations in which more than
one established position equally compares to the evaluated position. In this situation, a salary midpoint will be
established by averaging the salary midpoints of up to the best three
established positions. Using the midpoint average, the salary range will be
established utilizing the process described in Section 1 of this Plan.
Historical
Data:
The Human Resources Department will initiate and maintain written documentation
on each position for which a salary range was established utilizing this
process. This documentation will be
maintained for the life of the position or until such time salary data becomes available
through various salary data sources.
APPENDIX B:
This
section will contain the individual salary ranges for each non-represented
position maintained in the Department of Human Resources.
SALARY
DETERMINATION NOTIFICATION
POSITION:________________________________________________________________________
EMPLOYEE
GROUP:__________________________________________________________________________
ASSIGNED
INDIVIDUAL:_____________________________________________________________________
COMPARABLE
POSITION:_______________________________________________________________________
SALARY
DATA SOURCE:________________________________________________________________________
SALARY
DATA SOURCE NUMBER:___________ DATE OF REVIEW:_______________
ESTABLISHED
MIN 25TH MID-POINT 75TH MAX
YOUR
CURRENT SALARY RATE:__________________________
LOCATION
WITHIN
COMMENTS:______________________________________________________________________
___________________________________________________________________________________
FIGURE 1