Glossary of Terms

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Additional Duties:
 Temporary new duties and responsibilities that significantly broaden the type of work the employee performs and requires the employee to exhibit new job skills and/or perform more complex tasks that are beyond their previous standard-level job scope. An increase in volume to an employee’s normally assigned duties generally does not meet the definition of additional duties.

Classifying a New Position: The process of establishing a position number and job classification for a department.

Compression: Occurs when there is little difference in pay between jobs or employees regardless of differences respective to job market value or minimum requirements of knowledge, skills, experience or abilities.

Equity: A method of eliminating discriminatory factors when establishing and maintaining wage and salary decisions. Pay equity also identifies and supports specific and bona fide reasons for pay disparities, such as job scope, employee performance and employee seniority.

Equity Adjustment: A salary adjustment that addresses pay differences as compared with other employees internal to UAB.

Exceptional Performance Payment (EPP): A lump sum payment in recognition of exceptional performance associated with documented unexpected or unassigned duties and responsibilities that significantly impacted departmental operations. An EPP can also be a lump sum payment in lieu of merit only where reoccurring funding of a base rate merit increase is an issue.

Fair Labor Standards Act (FLSA): A federal law that ensures employees are treated fairly and are accurately compensated for their time worked. The FLSA determines the exempt or non-exempt status of jobs, and establishes standards for minimum wage, overtime pay, recordkeeping, child labor, and nursing mother breaks and facilities.

Fixed Increment Payment (FIP): A merit-based lump sum payment awarded in lieu of, or in combination with, a merit increase. A FIP is based on individual performance of job duties during a defined review period and used when the individual reaches the maximum of the pay range. In merit-approved years, a FIP can also be used to replace a merit increase where reoccurring funding is an issue, such as a set grant.

Incentive Plan: A compensation plan used to motivate and reward employees for exceeding normal job expectations in support of departmental and institutional goals. Incentives plans are not special pay plans that provide a flat award, differential or premium pay. Incentive plans result in a taxable compensation award to an employee. Incentive plans contain SMART goals that are Specific and understood, Measurable with performance data, Achievable, but also challenging, Relevant to the participant’s job and UAB initiatives and Time bound with a specific start and finish date.

Job Description: A summary of the most important features of a job — it should describe and focus on the job itself and not on any specific individual who might fill the job. Job descriptions have a number of uses, including:

  • ✓ Developing a job-worth hierarchy
  • ✓ Identifying performance standards
  • ✓ Organizational design uses
  • ✓ Salary survey exchanges
  • ✓ Legal defenses
  • ✓ Job assignments
  • ✓ Selection/recruitment
  • ✓ Establishing career paths/succession planning

Job Roles: A foundational classification model that helps categorize different jobs into profiles with similar competencies and/or expectations that are specific to that job grouping. Similar to Job Families, such as Nursing or Accounting, Job Roles categorize jobs leadership groupings and serves as a direct communication channel to Job Roles with similar characteristics.

Lateral Transfer: Occurs when an employee applies and is selected for a posted position with the same or lower job grade regardless of title. Lateral transfers may occur within the employee’s current department or when an employee moves to a different department.

Market Adjustment: A salary adjustment that addresses job specific pay differences as compared to markets external to UAB. Market adjustments are reviewed separately from equity adjustments and merit increases.

Merit Increase: A base pay rate increase awarded to an individual based on the performance of their job duties during a defined performance review period.

Merit Matrix: A table created to help managers equitably allocate their merit pool dollars across their employee population. A merit matrix provides broad range merit increase bands that are based on the merit budget and employee job performance. It is a guide to help managers distribute the department’s merit pool equitably based on individual performance.

New Hire: Occurs when an external or prospective employee applies and is selected for a posted vacant position.

Pay Range: Established to set guidelines for minimum and maximum compensation rates for jobs.

Pay Structure: A family of pay ranges in order of value.

Promotion: Occurs when an employee applies and is selected for a posted position with a greater pay range midpoint. A promotion may occur within the employee’s current department or when an employee moves to a different department.

Reclassification: The process of changing the job classification associated with a vacant or filled position within the same department.

Refill Vacancy: Utilized when using the same job classification (job title, job grade, etc.) associated with a vacant position number within the same department.

Retention Salary Adjustment: A salary adjustment related to an employee who is being actively recruited outside of the department or where there is compelling evidence that a pre-emptive action, such as matching an offer, is necessary to prevent the loss of a valued employee.

Special One-Time Payment: A single lump sum payment or award generally not associated with customary work performance or job expectations.

Working Title (Functional Title):  An unofficial job title that may be used to describe the function of a position in even greater detail or in more easily recognized terms in both internal and external communications, when a more specific title would serve the unit’s operational interest.