This policy provides a compensation philosophy and outlines the methods for determining salaries for SPA employees in graded positions. It applies to all probationary, permanent, or time-limited university employees subject to the State Personnel Act (SPA). Establishing salaries for employees in banded positions is addressed in the Salary Adjustments for Career Banding Salary Administration Plan. (HR 08.340)

Compensation Philosophy

It is the philosophy of the University of North Carolina at Wilmington to compensate employees assigned to classified positions at a level that promotes work behavior which contributes to UNCW’s mission and business strategies, emphasizes demonstrated skills linked to the department’s goals, reinforces high standards of performance and maintains the labor market competitiveness necessary to recruit, retain and develop a competent and diverse work force.

1. Salaries of other UNCW employees (equity)

2. University or department business need

3. Employee qualifications

4. Duties and responsibilities

5. Availability of funds

6. Employee performance

7. Labor market

When setting salaries, the department should consider workgroup salaries and the average salary of UNCW employees in the same classification if equity, funds, and the employee’s qualifications permit. Salaries in excess of 10% of the average salary of UNCW employees in the same classification should be reserved for employees who either have unique skills or responsibilities or make an exceptional contribution to the university.

For the purpose of using the State In-Range Policy, a “salary inequity” is defined by the Office of State Personnel as a situation where the salaries of employees in positions of the same classification differ by more than 10% when considering factors such as education, skills, related work experience, length of service and performance level. Internal equity considerations (other than In-Range requests) may be smaller than 10%.

Divisions are responsible for funding any salary adjustments, regardless of funding source, except those specifically approved by the Chancellor’s Cabinet for the allocation of university funds (hereafter termed “university funding”).

A new appointment is the initial employment to a position or the re-employment of an individual with a break in service of over 12 months. The employee shall be appointed as a probationary/trainee/permanent or time-limited status and the salary is established by considering the employee’s qualifications, funding availability, and equity. If an employee is qualified (i.e. not a trainee) the following apply:

1. The salary must be at least the trainee rate, minimum of the salary grade, or authorized special minimum rate (SMR) of the position.

2. The salary may be above the minimum or special minimum rate based on employee qualifications above the minimum recruitment standards, subject to internal equity and availability of funds. When a hiring unit recommends a salary above the minimum, state regulations allow for up to 5% above the minimum rate or SMR for each qualifying year of directly related experience or education above the minimum recruitment standards.

3. The salary cannot exceed the maximum of the range or any maximum salary indicated in the vacancy announcement.

4. The employee’s salary may be limited if the applicant has separated from state government within the previous 12 months.

Human Resources is responsible for approving the requested salary commensurate with the pay factors and EEO. Human Resources approval must be received before promising a salary to a prospective employee.

The employee’s salary is funded by the division hiring the individual.

Legislative Increases

Salary increases granted by the N.C. General Assembly for SPA employees are typically classified as Cost of Living Adjustments, Career Growth Recognition Awards, or Performance Bonuses. Eligibility and other factors are determined in accordance with legislation and interpretive guidance provided by the State Personnel Commission and the Office of State Personnel without regard to funding source.

Salary adjustments for appropriated positions are funded by the legislature through the State Budget Office. Salary adjustments for grant and receipt positions are funded by the respective UNCW unit.

Promotion

Promotion is the movement of an employee to a position at a higher salary grade. This policy applies to permanent, probationary and time-limited SPA employees and also applies to SPA employees transferring to UNCW from other universities or agencies.

This may be a permanent or temporary “acting” appointment for a specified period of time with the salary reverting to the original level upon completion of the assignment. When an employee is promoted, the following minimum salary adjustment, optional salary adjustments and exclusions will apply:

1. The salary must be adjusted to the minimum or special minimum rate of the higher salary grade, or 5%, whichever is greater.

2. The hiring official (subject to division budget authority) may recommend a promotional salary adjustment of more than 5% consistent with the pay factors (above) not to exceed the guidelines for New Appointment Salaries (IV.B. - above). [Human Resources is responsible for approving the recommended salary commensurate with the pay factors and EEO. Human Resources approval must be received before promising a salary to an employee.]

3. The employee’s salary may not exceed the maximum of the range or a maximum salary amount indicated in the vacancy announcement.

4. The employee’s salary increase may be limited if a reduction in grade has occurred within the previous 12 months.

The employee’s salary increase and full salary are funded by the division.

Lateral Transfer

A lateral transfer is the movement of an employee from one position to another position of the same salary grade. This policy applies to all SPA employees including those transferring in from other universities or agencies.

Reassignment

1. Reassignment is a change in status resulting in an assignment to a position with a lower salary grade and job duties. The salary may remain the same or be reduced.

a. Involuntary Reassignment is a result of organizational needs, such as reorganization or to avoid RIF. When the employee's salary is above the maximum of the range for the lower class, the salary shall be reduced at least to the maximum of the lower range, otherwise the salary shall remain unchanged.

b. Voluntary Reassignment is a result of a mutual agreement between the employee and employer or other mutually agreed upon arrangement. When the employee's salary is above the maximum of the range for the lower class, the salary shall be reduced at least to the maximum of the lower range. If the employee’s salary falls within the range of the lower class, it may be reduced to a level commensurate with other employees’ salaries.

2. In both cases, if an employee has been promoted or reallocated upward and is being demoted within one year, other guidelines may apply.

 

Demotion

Demotion is a change in status resulting in an assignment to a position with a lower salary grade and job duties, as a result of inefficiency in performance or as a disciplinary action.

When the employee's salary is above the maximum of the range for the lower class, the salary shall be reduced at least to the maximum of the lower range. Furthermore, the salary is typically reduced to a level commensurate with other employees’ ` salaries.

If a demotion is made to a position within the same field of work, the employee automatically qualifies. However, if a demotion is made to a different field of work, the employee must meet the minimum recruitment standards, or their equivalent, as set forth in the class specification, and qualify for the recommended salary.

If an employee has been promoted or reallocated upward and is being demoted within one year, other guidelines may apply.

Reclassification

Reclassification is the assignment of a position to a different classification. The reclassification (for graded positions) can be upward, downward or lateral. Any reclassification increases implemented are funded totally by the respective division.

1. Reclassification Upward. If an employee’s position is reclassified to a higher grade, the employee’s salary:

a. Must be increased to the minimum or special minimum rate of the new salary grade.

b. The unit leader (subject to division budget authority) may recommend a salary adjustment above the minimum or special minimum rate consistent with the pay factors (above). The salary may be determined using the same guidelines for New Appointment Salaries (above). [Human Resources is responsible for approving the recommended salary commensurate with the pay factors and EEO; such approval must be received before communicating with an employee regarding a potential salary.]

c. The employee’s salary may not exceed the maximum of the range.

d. The employee’s salary increase may limited if a reduction in grade has occurred within 12 months.

This may be a permanent or temporary reclassification for a specified period of time with the salary reverting to the original level upon completion of the assignment.

The respective unit is responsible for funding the employee’s salary increase.

2. Reclassification Downward. Salary adjustments made when an employee's position is assigned a lower grade are based on the reasons for reclassification:

a. When the reclassification is based on position design due to program changes or reorganization, with Office of State Personnel approval the salary of the employee may remain above the new maximum, as long as the employee remains in the same position.

b. When the reclassification is based on changes in the employee's motivation, capability, or lack of performance, the salary shall be reduced at least to the maximum of the lower range. Furthermore, the salary is typically reduced to a level commensurate with other employees’ salaries.

c. Lateral Reclassification. When an employee's position is reclassified to the same grade level, the employee's salary remains unchanged.

Salary Range Revisions

Salary range revisions are actions to change the salary grade associated with a classification. They are recommended by the Office of State Personnel and approved by the State Personnel Commission. They are intended to maintain pay ranges that are competitive with market ranges in the private sector and other segments of the public sector. When a range revision is implemented:

1. An employee’s salary below the new minimum or special minimum rate is moved to the new minimum or new special minimum rate. University funds are used to fund any such increases for appropriated positions; however, divisions are responsible for funding required increases for positions funded by receipts or grants.

2. An employee’s salary above the new minimum or special minimum rate may receive an optional increase. Such optional increases may be requested by the unit management. The Office of State Personnel issues guidance on the maximum allowable increase, which is normally equal to the dollar difference between the new minimum and old minimum of the two pay ranges. Optional range revision increases are funded by the respective divisions.

Special Minimum Rate Increases (SMR)

When critical recruitment or employee retention problems are documented and recognized by the State Personnel Director, but salary range revisions are not necessary, feasible or practical (i.e., when range minimums are not competitive, but maximums are adequate), the Director may authorize a Special Minimum Rate.

Special Minimum Rates are implemented for certain classes to establish a competitive rate at the minimum of the range. When authorized by the Office of State Personnel, and implemented by the university, Human Resources prepares worksheets that indicate employees eligible for special entry rate increases. An employee’s salary below the new special minimum rate (or minimum budgeted value) is moved to the new special minimum rate (or minimum budgeted value).

University funds are used to raise salaries to the new Special Minimum Rate for appropriated positions. Divisions are responsible for funding increases for positions funded by receipts or grants.

When a Special Minimum Rate is implemented, an employee’s salary that is already above the new Special Minimum Rate (or minimum budgeted value) may receive an optional special entry rate increase. The Office of State Personnel issues guidance on the maximum allowable increase, which is normally equal to the dollar difference between the special minimum rate and the minimum of the pay range. The division is responsible for funding the optional special entry rate increases.

Retention Adjustments

Retention salary adjustments are subject to approval of the State Personnel Director. In the extreme cases where such adjustments are the only means by which to retain a key employee who has a written offer for a similar job outside state government, the Office of the State Personnel requires UNCW to:

1. Provide a copy of a bona fide written job offer (indicating similar responsibilities for higher pay) from an employer outside of state government.

2. Certify that no current employee with substantially equal qualifications is available.

3. Certify that serious salary inequities among existing available employees would not be created.

4. Certify that the position’s duty assignments are key to mission accomplishment.

5. Certify that established personnel policies are not a feasible alternative.

6. Certify that other management alternatives are not possible or feasible.

Any retention adjustments are funded by the division.

In-Range Adjustments

The in-range adjustment policy provides eligibility criteria for in-range adjustments. In-range adjustments:

1. May not exceed 10% in a 12 month period.

2. May not exceed the maximum of the range.

In-range adjustments may be designated as “temporary”, typically to recognize the assignment of additional temporary duties that add variety and complexity to the employee’s job. At the end of such temporary adjustments the employee’s salary must revert to his/her previous salary when the assignment is complete. If there is an intervening salary adjustment (such as a legislative increase) before the assignment is complete, the employee’s salary is determined by applying all salary increases to the employee’s previous salary.

The division is responsible for funding in-range adjustments.

Labor Market Increases

Human Resources monitors the labor market and may recommend university- wide salary adjustments in certain situations. When funds are available, the university may choose to fund salary increases for employees (in appropriated positions) in critical labor market situations.

The respective division is responsible for funding such salary increases for employees in receipt and grant funded positions. To the extent receipt and grant and funding is available, the implementation of this type of increase will adhere to the UNCW principle of consistent application without regard to a position funding source. For example, the same eligibility and process will be used for receipts or grant funded positions as is done for appropriated positions.

If the employee’s salary is higher than the position’s salary budget, university funds will be used to fund the difference if the position is funded from appropriations. The division is responsible for funding the difference for receipt and grant funded positions.