Compensation Administration

Handbook of Operating Procedures 5-3140

Compensation Administration

University of Texas SealEffective June 03, 2019
Executive Sponsor: Senior Vice President and Chief Financial OfficerPolicy Owner: Associate Vice President for Human Resources
I. Policy Statement 

Attracting and retaining outstanding employees advances the mission of The University of Texas at Austin ("University"). To meet institutional staffing needs and priorities, the compensation system has the following objectives:

  • Establish compensation levels for positions on the basis of their relative internal worth and external competitiveness within relative labor markets
  • Reward employees on the basis of work performance
  • Administer pay equitably and consistently
  • Establish a compensation policy that is consistent with the judicious expenditure of funds entrusted to the University
  • Ensure accountability for compliance with The University of Texas System Board of Regents' Rules and Regulations and statutory requirements
II. Reason for Policy 

To provide guidelines for the consistent and equitable administration of the University's compensation program.

III. Scope & Audience 

This policy applies to all University employees.

IV. Definitions (specific to this policy) 
Classified Job Title:

job titles that are subject to the salary administration and classification guidelines of and included in the classified pay plan. The titles are typically for positions that do not entail significant instructional responsibilities or responsibilities for the administration of instructional or research organization. Titles are descriptive of the work performed and their relative level. Job titles may be generic or specific and can use numerical indicators, letter designations, or descriptive adjectives.

Merit:

a salary increase that is discretionary financial recognition of an employee who has demonstrated increased productivity, improved efficiency and/or exceptional quality of work performance above and beyond that which would be considered standard performance of duties. It is distinguished from job classification or reclassification, which is a statement of the responsibilities, duties and compensation of a classified position.

Part-time:

an employee who is normally scheduled to work less than 40 hours a week.

Pay Plan:

a structure for classifying positions into occupational families, which provides a framework for the assignment of job codes, job titles, Fair Labor Standards Act ("FLSA"), O*NET On-line Standard Occupational Classification ("SOC") codes and salary ranges.

V. Website (for policy) 
https://policies.utexas.edu/policies/hop/5-3140
VI. Contacts 
Contact Details Web
Human ResourcesPhone:512-475-7200Website:
VII. Responsibilities & Procedures 

A.  Maintenance of Pay Plan

 

  1. The Associate Vice President for Human Resources will establish and maintain a compensation plan for classified titles, which will consist of:
  1. a schedule of ranges of pay in monthly amounts;
  1.  a schedule showing the range of pay to which each title is assigned; and
  1.  policies regarding the interpretation and application of the schedules of ranges of pay.

B.  Salary Pay

 

Establishing Base Pay:

 

As a standard practice, employees will usually be paid on a monthly basis. However, if the nature of the work is intermittent or temporary, employees may be paid on an hourly basis. The hourly rate is determined by dividing the employee's annual gross salary by 2080, which is the number of working hours in the standard workweek over a full year of employment. The appropriate title and salary rate must be verified and approved by Human Resources ("HR").

 

C. Compensation for Part-Time Employment

 

Employees who are appointed at less than 100% and routinely work for a period less than the regularly established forty (40) hour work week,  will be paid a rate proportional to the rate authorized for full-time employment. The appropriate title and salary rate must be verified and approved by Human Resources.

 

D.  Salary Increases

 

  1. Any increase to a currently established salary rate for the current fiscal year that does not include a change in classification or position may not  be effective prior to the first day of the month in which the required final approval of the rate change is obtained. 
  1. A salary rate increase resulting from an appointment to another classification or to a position involving new and different duties may be made effective to the time of the first performance of duties under the new appointment.
  1. The effective date of an appointment is the date on which the individual is first to perform services for the University under that appointment.
  1. Changes in classification/position should be documented and approved within the pay period in which they occur.
  1. All approvals of pay decisions must have two levels of approval, typically the employee’s supervisor with the documented concurrence of the next level supervisor. Additionally the pay decision must be final approval by HR.

E. Merit Salary Policy

 

  1. Recommendations for merit salary increases should be based on performance above and beyond that normally expected or required by the employee as evaluated and determined by the supervisor and departmental official.
  1. A merit salary increase may be recommended for an employee who has worked for the University at least six months, but there will be no "automatic" merit increase at the six (6) month anniversary or anytime thereafter.
  1. Effective Date of Merit Increases: Normally, a merit salary increase may be granted no more than once in a fiscal year for an individual employee and is expected to be granted on September 1 or when determined by the president. Merit salary increases may also be granted at mid-year (March 1) if funding was not available on September 1, if an employee was not eligible for a merit increase on September 1, or in other exceptional cases. All merit increases are subject to review and approval by HR.
VIII. Forms & Tools 

None.

XI. History 

Origination Date: May 2019