UTMB FY08 Merit and Salary Administration Planning Guide by guy26

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									           UTMB FY08 Merit and Salary Administration Planning Guide
                      Classified and A&P Employees


UTMB’s compensation program for classified and A&P employees is designed to
attract, retain, develop and motivate our employees to effectively achieve the
organization’s mission. Our salary administration and total rewards program, coupled
with training and development opportunities and recognition programs, emphasizes
rewarding employee performance through our Performance Management Program with
employee accountability for work outcomes and behaviors.


FY08 CLASSIFIED PAY PLAN AND UNDER MINIMUM ADJUSTMENTS

Based upon an extensive market analysis of UTMB classified and A&P jobs (over 1,200
market matches) to ensure market competitiveness of our salary range midpoints, new
salary ranges for FY08 were approved for certain positions. The new FY08 classified
salary ranges are available in the FY08 Classified Pay Plan and are effective on
January 1, 2008.

With the new salary ranges, it is UTMB’s policy to bring employee salaries to the new
minimum salaries of the ranges. Employees whose current salaries are below the
approved FY08 salary ranges must receive salary increases (under minimum
adjustments). Human Resources will provide instructions for processing these under
minimum adjustments early in the new fiscal year.

MERIT INCREASES

For FY08, the overall merit increase budget at the entity level must be 4% of classified
and A&P salaries.      FY08 merit increases for classified employees, including both
regular merits and non-recurring merits, may begin effective 9/1/2007 and may occur
no more than every 6 months. All merit increases must be accommodated within
existing budget targets.

Merit awards should tie closely to performance and therefore should be meaningful to
employees. Higher performers should receive higher increases than other employees
and award amounts should be differentiated by performance results. Some methods for
determining the highest performers include:

      Employees with the most positive significant outcomes, behaviors, and
       accomplishments during the performance period;
      Employees with the majority “Exceeds Expectations” on their performance
       evaluations; and/or
      Employees with high potential for promotional opportunities in the unit,
       department or division based on outcomes, behaviors and accomplishments
       during the performance period.



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When determining the amounts of the merit awards within budget targets, the following
methods may be used:

      Merit grid based on performance outcomes and position in range;
      Merit awards by percentage to high-performing employees and solid performers;
       and/or
      Differentiation of employees based on number of “Does Not Meets” on their
       performance evaluations.

Contact your Human Resources Consultant for more information regarding merit award
planning.




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OTHER SALARY ADMINISTRATION

Salary administration other than merit increases includes market adjustments, equity
adjustments, required under minimum adjustments and other salary increases due to
promotions and reclassifications.

      o Market Adjustments. A market adjustment may be needed if the employee’s
        salary relative to the salary range midpoint changes due to labor market
        conditions. This can occur if the salary range midpoint has moved due to
        market conditions. It is typical to have some employees in the same job
        below the midpoint and other employees above the midpoint, based upon job
        performance (behaviors and work outcomes), years of relevant work
        experience, job knowledge and skills, education, and professional credentials
        and licensure. The method for measuring an employee’s salary relative to the
        market is a comparison of the salary to the range midpoint (compa-ratio) as
        defined below:

             Compa-ratio = the employee’s salary divided by the midpoint x 100%

           Compa-Ratio (Market
            Position of Salary)                            Action
             104% or Higher         Seasoned and high-performing employees
                                    with the requisite knowledge, skills, abilities, and
               Above Market         prior relevant work experience to perform
                                    responsibilities with minimal guidance and
                                    direction; market adjustment may be needed if
                                    compa ratio is less than 100%, depending on
                                    relevant work experience and performance level;
                                    base salary may not exceed the maximum of the
                                    salary range

                92% to 104%         Typical position in range for solid-performing
              (100% = Market)       employees; market adjustment may be needed:
                                        if compa ratio is less than 100%,
             At or Near Market            depending on relevant work experience
                                          and performance level; or
                                        if salary compression is occurring due to
                                          increasing in-hire rates of less
                                          experienced employees

           Between 85% and 92%      Position in range is appropriate for:
                                           employees new in role and still
               Below Market                   developing job content expertise; and
                                           employees whose skills and relevant
                                              work experience are comparable to
                                              other employees in the department/area
                                              in the 85% to 92% compa ratio position
                                              in range

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                                      Market adjustment may be warranted with
                                      consideration of the employee’s performance
                                      level
                  Below 85%           Position in range is appropriate for:
                                             inexperienced employees with newly
             Significantly Below                developing job content expertise; and
                    Market                   employees whose skills and relevant
                                                work experience are comparable to
                                                other employees in the department/area
                                                with compa ratio less than 85%

                                      Market adjustment may be warranted with
                                      consideration of the employee’s performance
                                      level; base salary may not be below the minimum
                                      of the salary range


      o Equity Adjustments. Equity adjustments may be needed to ensure equitable
        pay for comparable performance in similar jobs. These salary adjustments
        may be needed as a result of new hires with less experience causing salary
        compression due to increasing in-hire market rates or adverse impact studies
        where gender and/or ethnicity pay disparities exist.

Your Human Resources Consultant is available to assist you in determining a plan for
market and/or equity adjustments in your area if pay disparity and/or low salary
competitiveness exists.

STAFF INCENTIVE PLANS

Staff Incentive Plans are an available variable pay program designed to provide team
incentives based on fiscal year or area productivity goals. Well-designed staff incentive
plans reduce expenses and improve outcomes. Generally, staff incentive plans in other
healthcare and general industry organizations are provided for exempt employees, and
more commonly, management levels.

Staff incentive plans require entity leader approval as well as Human Resources and
Finance approval before they may be implemented and communicated. More
information regarding UTMB’s group incentive program is available from your Human
Resources Consultant.




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