FY16 UAB Compensation Guidelines

UAB Academic/Administrative Compensation Guidelines
FY16
Published June 2015
As we continue to assess how to best invest limited institutional resources, it is imperative that we implement and promote faculty and staff compensation practices that effectively support our most important asset, our people. To assist our academic and administrative units with these decisions, the following Compensation Guidelines are provided for the FY16 budget year.

Due to the lack of incremental funding for UAB again in FY16, there will be no university wide merit pool program this year. However, merit pools not to exceed 3% will be allowed for the college/school/departments that are able to fund a merit increase. For those unable to fund merit increases, the exceptional performance program (EPP) remains in place as a way to recognize those faculty and staff who have exhibited extraordinary performance during past year. We are providing the option of a one-time lump sum payment to those Schools/units that have identified resources and put forth a distribution plan that focuses on recognizing only unique performance excellence and meets other guidelines set below. All payout plans associated with this program will require prior approval from the Provost or Vice President for Financial Affairs and Administration. 

For October 1, 2015
  • Faculty Promotion/Tenure
    • Faculty promotions may be funded if endorsed by appropriate College/School/Library Dean.
    • All faculty promotions will be effective 10/1/2015.
  • Pay Ranges
    • UAB General Pay Range Structure will not be adjusted for FY16.
    • Faculty Ranges will not change for FY16.
  • Salary Distribution Planning
    • No later than 7/15/2015, each college/school/department must declare to the Provost or the VPFAA intent to either:
      • Provide a merit pool and the estimated amount (FIPs are included), or
      • Provide limited EPP adjustments
      • Note: Employees are not allowed to receive both a merit increase and an EPP payment.
  • Merit Increases – For those school/college/units that elected to give merit-increases
    • Each College/School/Unit must submit a merit-based, salary increase “Plan” for review and approval to the Provost/VPFAA no later than 8/1/2015. Plans should include total salary pool dollars to be made available (with % of total salary base this represents), planned ranges for individual increases (e.g. 1-5%), and planned distribution strategy (e.g. 20% of merit recipients to receive 5%, 40% to receive 2-4%, etc.). All Plans should identify funding sources utilized.
      • Note: Faculty promotions and market/equity adjustments will be considered outside of the merit pool.
    • All Plans must require that individual, merit-based salary increases align with level of performance reflected in annual evaluations.
    • Any market equity components of plan need to be identified.
    • Employees must have completed their six month probationary period in order to be eligible for a merit increase.
    • Individual salary increases of more than 15% under Plan will require prior Provost/Vice President for Finance and Administration (VPFAA) approval.
  • Exceptional Performance Payment (EPP) Program - For those school/college/units that elected this option
    • The Exceptional Performance Payment program is designed to recognize faculty and staff for exceptional performance with a lump sum payment.
    • EPPs may not be used as across-the-board lump sum payments.
    • EPPs must be funded at department level and approved by the Provost or the Vice President for Finance and Administration (VPFAA).
    • Eligible faculty and staff must meet the following criteria:
      • Most recent performance review (within last 12 months) must reflect higher than satisfactory performance and must be documented and on file.
      • Employee is not in probationary period.
      • For those faculty and staff paid from sponsored projects, EPP payments must be spread out and paid in equal installments over 6-12 months. Further instruction will be provided regarding how to process these payments.
    • Plans for EPPs must be submitted via Compensation Request Form (CRF) for Human Resources (HR) review prior to Provost/VPFAA approval. Submissions are due 8/1/2015 with an effective date of 10/1/15.
  • Market, Internal Equity, and other Adjustments
    • Due to increasing external pressures to increase the starting salary levels of many jobs, some local organizations are moving to $10 and $11 per hour as their minimum wage, all school/college/departments are asked to provide special focus on any employees whose base rate is lower than $9.00 per hour. Efforts should be made to make market adjustments to all employees below $9.00 per hour.
    • All College/Schools/Units may fund market adjustments and/or internal equity adjustments where appropriate and when current satisfactory performance review is on file.
    • Plans for market and internal equity adjustments must be submitted via Compensation Request Form (CRF) for Human Resources (HR) review prior to Provost/Vice President for Finance and Administration (VPFAA) approval. Submissions are due 8/1/2015 with effective date of 10/1/15.
      • Market adjustments address pay differences as compared to markets external to UAB. Since range midpoints generally reflect market averages, salaries considered below market are only those between pay range minimum and pay range midpoint.
      • Equity adjustments address pay differences as compared with others internal to UAB. Requests for equity adjustments should consider all like employees in a School/Unit (i.e. similar titles, grades, etc.).
      • Base salary increases for employees who are above range maximums will not be considered.
      • Base salary increases for employees who are between pay range midpoints and maximums will be considered in limited cases where there are recruitment and/or retention issues and employees have extensive related experience.
      • Across-the-board base salary or one-time increases for all College/School/Unit employees will not be considered. 
For October 1, 2015 and Beyond

  • Incentive Plans
    • Previously-established compensation incentive plans must be submitted via CRF for recertification as required by existing UAB incentive program guidelines by 9/1/2015.
    • New incentive plan proposals must be submitted via CRF by 9/1/2015 to be considered for implementation in FY16.
    • Please refer to UAB incentive plan guidelines for further information or contact your HR Consultant or HR Compensation.
  • Lateral Transfers
    • Salary adjustments for lateral transfers greater than 10% should be submitted/reviewed by HR with support/approval by the applicable College/School/Department VP, Dean, or Library Director. HR will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.
  • New Hires
    • New hires may proceed in accordance with established UAB and departmental policies provided funding is available. New Hires do not require HR approval if within a pay range. Internal equity must be considered when determining new hire pay rates.
  • New Positions/Position Reclassifications
    • New positions/reclassifications may be requested under established HR procedures via CRF. These will be reviewed by HR Compensation to determine appropriate job title and pay grade for position. These requests require approval from applicable College/School/Department, VP, Dean or Library Dean. Please note: once a position has been reviewed for reclassification, it is not eligible for review again for a minimum of 12 months.
  • Retention Salary Adjustments
    • Retention salary adjustments will be reviewed on a case-by-case basis. Review and approval is required from College/School/Department, VP, or Dean.
  • Salary Adjustments
    • Salary Adjustments for probationary, job rate and established step rate programs (including graduate assistantships/stipend increases, resident progression and student salary adjustments) may proceed in accordance with established UAB and departmental policies provided funding is available. These adjustments must be funded by College/School/Department and approved by appropriate VP or Dean.
  • Supplemental Duties – Additional Pay
    • Requests for additional compensation for supplemental duties must be approved by College/School/Unit VP, Dean, or Library Dean prior to submission via CRF for HR review. Please note: additional/supplemental duties should be temporary in nature (less than six months). 
Following is a summary of review and approval process for FY16 compensation actions:

VP/Dean/Library Dean Approval only. Requires no review by HR:
  1. Graduate assistantship with annual stipend increase
  2. Lateral transfer with increase of 10% or less
  3. New hire with proposed salary within pay grade
  4. Merit increases
  5. Probationary increase of 10% or less
  6. Resident progression increase
  7. Salary share adjustment between two or more funding sources where the total salary does not change (e.g. HSF/UAB/VA/UABHS)
  8. Staff promotion of 15% or less or to range minimum
  9. Student salary adjustment
VP/Dean/Library Dean Approval after initial review/approval by HR:
  1. Probationary increase greater than 10%
  2. Reclassifications
  3. Requests for new positions
  4. Staff promotions greater than 15%, if higher than range minimum
  5. Supplemental duties additional pay
  6. Retention salary adjustments less than 10%
UAB senior administrator (Provost/VPFAA) approval after full HR review/approval and endorsement by appropriate VP/Dean/Director:
  1. Faculty tenure/promotions
  2. FIPs
  3. Incentive Plans – new or previously approved
  4. Equity/Market Adjustment/Exceptional Performance Payment Plan (with justification)
  5. Exceptional Performance Payment (EPP) Program payments
  6. Lateral transfers with increases greater than 10%
  7. Merit-based salary increase Plan
    1. Must include any market equity component
    2. Must include justification for any merit greater than 15%
  8. Retention salary adjustments greater than 10%
Any questions or concerns regarding these guidelines should be directed to your HR Consultant or HR Compensation.

FY14 Compensation Guidelines

UAB Academic/Administrative Compensation Guidelines FY14

Published June 2013 REVISED July 2013

As we continue to assess how to best invest limited institutional resources, it is imperative that we implement and promote faculty and staff compensation practices that effectively support our most important asset, our people. To assist our academic and administrative units with these decisions, the following Compensation Guidelines are provided for the FY14 budget year:

  • Faculty Promotions
    • Faculty promotions may be funded if endorsed by the appropriate College/School, Dean, or Library Director.
    • Faculty promotions for all schools, including the School of Medicine, will be effective 10/1/2013.

  • Merit Increases
    • All UAB units must provide a merit-based salary option to reward performance and keep UAB salaries competitive.
    • Each College/School/Unit must submit a merit-based, salary increase “Plan” for review and approval to the Provost/VPFAA no later than 7/15/2013. A Plan with a 3% total pool for salary distribution among faculty and staff must be submitted. Plans should include total salary pool dollars to be made available (with % of total salary base this represents), planned ranges for individual increases (e.g. 1-5%), and planned distribution strategy (e.g. 20% of merit recipients to receive 5%, 40% to receive 2-4%, etc.). All Plans should identify funding sources utilized.
    • The 3% pool for College/School/Unit Plans may also include market equity considerations as part of allocation and distribution methodologies. Each College/School/Unit considering a Plan with market equity component should fully discuss with HRM before submitting.
    • All Plans must require that individual, merit-based salary increases align with level of performance reflected in annual evaluations.
    • Employees must have completed their six month probationary period in order to be eligible for a merit increase.
    • Individual salary increases of more than 15% under Plan will require prior Provost/Vice President for Finance and Administration (VPFAA) approval.
    • Effective Dates
      • With the exception of the School of Medicine and Joint Health Sciences, merit pool increases for all colleges/schools and administrative areas will be effective on 10/1/2013 for faculty and monthly paid staff and 9/22/2013 for bi-weekly paid staff.
      • In order to better align with UAB Medicine, the School of Medicine and Joint Health Sciences will be able to submit Plans that implement merit increases effective 1/1/14 for faculty and monthly paid staff and 12/29/13 for bi-weekly paid staff.

  • Fixed Increment Payments (FIP)
    • Requests for FIPs will be considered for FY14.
    • FIPs are one-time, non-recurring lump sum salary payments used in limited cases where an employee is at or above the pay range maximum and a merit-based payment is justified.
    • FIPs may also be used to reward individual performance in unique or unusual significant special projects of limited duration that require extensive time and effort above and beyond regularly assigned job duties (note: a 12-month payment distribution schedule may be required for employees receiving FIPs that are funded on federally-sponsored projects).
    • Submission Dates
      • FIP recommendations (other than School of Medicine and Joint Health Sciences) must be submitted no later than 7/15/2013 to Compensation via Compensation Request Form (CRF) who will compile and submit to the Office of the Provost/VPFAA.
      • FIP recommendations for the School of Medicine and Joint Health Sciences must be submitted no later than 11/15/2013 to Compensation via Compensation Request Form (CRF) who will compile and submit to the Office of the Provost/VPFAA.
    • Effective Dates
      • Approved FIPs will be effective 10/1/2013 with the exception of the School of Medicine and Joint Health Sciences.
      • Approved FIPs for the School of Medicine and Joint Health Sciences will be effective 1/1/2014.

  • Pay Ranges
    • UAB General Pay Range Structure will not be adjusted for FY14.
    • Faculty Ranges will not change for FY14.

  • Incentive Plans
    • Previously-established compensation incentive plans must be submitted via CRF for recertification as required by existing UAB incentive program guidelines by 7/15/2013.
    • New incentive plan proposals must be submitted via CRF by 7/15/2013 to be considered for implementation in FY14.
    • Please contact your HRM Consultant or HRM Compensation further information, if needed.

  • Lateral Transfers
    • Salary adjustments for lateral transfers greater than 10% should be submitted/reviewed by HRM with support/approval by the applicable College/School/Department VP, Dean, or Library Director. HRM will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.

  • New Hires
    • New hires may proceed in accordance with established UAB and departmental policies provided funding is available. New Hires do not require HRM approval if within the pay range. Internal equity must be considered when determining new hire pay rates.

  • New Positions/Position Reclassifications
    • New positions/reclassifications may be requested under established HRM procedures via CRF. These will be reviewed by HRM Compensation to determine the appropriate job title and pay grade for the position. These requests require approval from the applicable College/School/Department VP, Dean or Library Director. Please note: once a position has been reviewed for reclassification, it is not eligible for review again for a minimum of 12 months.

  • Retention Salary Adjustments
    • Retention salary adjustments will be reviewed on a case-by-case basis. Initial review and approval is required from the College/School/Department VP, Dean, or Library Director. Once approval is obtained, departments should submit the request and approval to HRM if the request if greater than 10%. HRM will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.

  • Salary Adjustments
    • Salary Adjustments for probationary, job rate and establish step rate programs (including graduate assistantships/stipend increases, resident progression and student salary adjustments) may proceed in accordance with established UAB and departmental policies provided funding is available. These adjustments must be funded by College/School/Department and approved by the appropriate VP, Dean or Library Director.

  • Supplemental Duties – Additional Pay
    • Requests for additional compensation for supplemental duties must be approved by the College/School/Unit VP, Dean, or Library Director prior to submission via CRF for HRM review. Please note: additional/supplemental duties should be temporary in nature (less than six months).

The following list summarizes the review and approval process for FY14 compensation actions:

VP/Dean/Library Director Approval only. Requires no review by HRM:

a. Graduate assistantship with annual stipend increase
b. Lateral transfer with increase of 10% or less
c. New hire with proposed salary within the pay grade
d. Merit increases
e. Probationary increase of 10% or less
f. Resident progression increase
g. Salary share adjustment between two or more funding sources where the total salary does not change (e.g. HSF/UAB/VA/UABHS)
h. Staff promotion of 15% or less or to range minimum
i. Student salary adjustment

VP/Dean/Library Director Approval after initial review/approval by HRM:

a. Probationary increase greater than 10%
b. Reclassifications
c. Requests for new positions
d. Staff promotions greater than 15%, if higher than range minimum

e. Supplemental duties additional pay

UAB senior administrator (Provost/VPFAA) approval after full HRM review/approval and endorsement by appropriate VP/Dean/Director:

a. Faculty promotions
b. FIPs
c. Incentive Plans – new or previously approved
d. Lateral transfers with increases greater than 10%
e. Merit-based salary increase Plan
a. Must include any market equity component
b. Must include justification for any merit greater than 15%
f. Retention salary adjustments greater than 10%

Any questions or concerns regarding these guidelines should be directed to your HRM Consultant or HRM Compensation.

Incentive Plan Proposal Guidelines

An incentive plan proposal should include the following:
  • Situation or background summary
  • Objective or purpose of the plan/program
  • Proposal, program or recommendation
  • Analysis of the advantages and potential adverse consequences
  • Cost justification
  • Timing of payouts

Some things to think about when developing an incentive plan:
  • Simple
o   No more than five elements
o   Calculation on each element musts be easy to communicate and understand

  • Controllable
o   Majority of participants must be able to impact each element
o   Participants must have a high level of direct control over the elements

  • Measurable
o   Must have an objective systematic measure
o   Must be able to administer program at location level

  • Meaningful
o   Reasonable goals that ensure a strong participation rate
o   Targeted bonus amount must be motivational
o   Goals must be set prior to implementation

  • Sunset/Plan Changes
o   Must have start and end dates
o   Must be reviewed periodically and enhancements made as needed subject to executive and compensation approval

Incentives are intended to be self-funded and are intended to be consistent with the total compensation levels of the external labor market. Overall, we want to ensure fairness to employee, return on investment, effective motivational qualities and goal congruency between the system and the employees.

UAB Employee Compensation Guidelines
June 2010

As we continue to assess how to best invest institutional resources in times of fiscal restraint, it is imperative that we implement and promote to UAB-wide employee compensation policies that effectively support our most important asset – our workforce.  To assist our academic and administrative units with these decisions, the following Employee Compensation Guidelines are provided for the FY 10-11 budgetary year:

  1. After two years without a general salary increase plan, UAB is making available a merit-based salary option to reward performance and keep UAB salaries competitive.  Each College/School/Unit electing to participate must submit a merit-based, salary increase “Plan” for review and approval to the Provost/VPFAA no later than 7/16/10.  UAB’s institutional target is for College/Schools/Units to submit Plans with a 3% pool for merit-based distribution among faculty and staff (if funding is available).  Plans should include total salary pool dollars to be made available (with % of total salary base this represents) and planned ranges for individual increases (e.g. 1-5%).  All Plan submissions should identify appropriate sources of sustainable funding.  College/School/Unit Plans may also include market equity considerations as part of allocation and distribution methodologies.  Each College/School/Unit considering a Plan with market equity component should fully discuss with HR before submitting.  All Plans must require that individual, merit-based salary increases align with level of performance reflected in annual evaluations.  Plans may consider annual evaluations from the previous two years when no general salary plan was available.  Individual salary increases of more than 10% under Plan will require prior Provost/Vice President for Finance and Administration (VPFAA) approval.  Once approved, all Plans must complete salary pool distributions and implement salary adjustments for faculty and monthly paid staff effective 10/1/10 and bi-weekly paid staff effective 9-26-10.
  2. The UAB General Wage Structure and Faculty Ranges will not be adjusted.
  3. Salary adjustments for probationary, job rate and establish step rate programs (including graduate assistantships/stipend increases, resident progression and student salary adjustments) may proceed in accordance with established UAB and departmental policies provided funding is available.  These adjustments must be funded by College/School/Department and approved by the appropriate VP, Dean or Library Director.
  4. College/Schools/Units with previously established compensation incentive plans must submit these plans for recertification as required by existing UAB incentive program guidelines by 7/16/10.  College/Schools/Units proposing new incentive plans must submit these plans by 7/16/10 to be considered for implementation in FY 10-11.  Please refer to the UAB incentive program guidelines for further information.
  5. College/Schools/Units will be permitted to continue to fund faculty promotions for FY10-11.  Staff promotions into pre-approved positions will also be permitted.  Salary adjustments for promotions must be endorsed by the appropriate College/School/Department VP, Dean, or Library Director.
  6. College/Schools/Units may request new positions for FY 10-11 under established HR procedures.  New positions will be reviewed by HR Compensation in order to determine if the classification desired is appropriate.  All new positions will require approval from the applicable College/School/Department VP, Dean or Library Director.
  7. Position reclassifications will be permitted on a limited basis.  All requests for position reclassifications should be carefully considered in light of current budget restraints and evolving program needs.  Please note: once a position has been reviewed for reclassification, it is not eligible for review again for a minimum of 12 months.  Reclassifications will require approval from the applicable College/School/Department VP, Dean, or Library Director.
  8. Shared salary adjustments between two or more funding sources where the total salary does not change (e.g. HSF/IAB/VA/UABHS) may be approved at the appropriate VP, Dean, or Library Director level after review by HR.
  9. Salary adjustments for UAB employees who make lateral transfers should be carefully considered in light of relative College/School/Unit Salary Plans, current budget restraints and evolving program needs.  Increase less than 10% should be submitted/reviewed by HR with support/approval by the applicable College/School/Department VP, Dean, or Library Director.
  10. Requests for salary adjustments as part of a competitive retention package will be reviewed on a case-by-case basis.  Initial review and approval is required from the College/School/Department VP, Dean, or Library Director.  Once this approval is obtained, departments should submit the request and approval to HR.  HR will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.
  11. Requests for additional compensation for supplemental duties must be approved by the College/School/Unit VP, Dean, or Library Director prior to submission for HR review.  Please note: additional/supplemental duties should be temporary in nature (less than 6 months).
  12. Departments requesting salaries for New Hires with proposed salaries above the midpoint of the range require review/approval by the appropriate VP/Dean/Director after HR review/approval.  This includes persons moving from student or temporary initiated positions into permanent/full-time or part-time positions.
  13. Fixed Increment Payment (FIP) requests will be considered for FY 10-11.  FIPs are one-time, non-recurring lump sum salary payments used in limited cases where an employee has reached maximum wage in a pay band and a merit-based payment is justified.  FIPs may also be used to reward individual performance in unique or unusual significant special projects of limited duration that require extensive time and effort above and beyond regularly assigned job duties (note: a 12-month payment distribution schedule may be required for employees receiving FIPs that are funded on federally-sponsored projects).  FIP recommendations must be submitted to the Office of the Provost/VPFAA no later than 7/16/10.  Approved FIPs will be effective 10/1/10.

The following list summarizes the review and approval process for FY10-11 compensation actions:

VP/Dean/Library Director approval after initial review/approval by HR:

  1. probationary increases
  2. requests for new positions
  3. staff promotions
  4. reclassifications
  5. lateral transfers with increases of less than 10%
  6. salary share adjustments between two or more funding sources where the total salary does not change (e.g. HSF/UAB/VA/UABHS)
  7. graduate assistantships with annual stipend increases
  8. resident progression increases
  9. elements for additional and/or supplemental duties
  10. new hires with proposed salaries above the midpoint of the range
  11. student salary adjustments

UAB senior administrator (Provost/VPFAA) approval after full HR review/approval and endorsement by appropriate VP/Dean/Director:

  1. merit-based salary increase Plan (including any market equity component)
  2. FIPs
  3. merit increases and/or lateral transfers with increases of 10% or more
  4. faculty promotions
  5. competitive retention packages
  6. established and previously approval incentive Plans

Any questions or concerns regarding these guidelines should be directed to your HR Representative or HR Compensation.

 

 

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