B.4 Salary Administration

Policy No. B. 4.00

Date of Issue 7/2/2014

The university determines compensation levels by analyzing market data for comparable positions as well as reviewing internal equity. Compensation decisions are made without regard to race, color, gender, sexual orientation, national origin, ancestry, age, physical or mental disability, or veteran status.

Union employees are governed by the applicable provisions of the appropriate labor agreement. Their wages are determined through collective bargaining and are published in the contract.

4.01	Human Resources has the authority and responsibility to: Develop and recommend policies with regard to administrative, professional, technical and clerical staff salaries and union wage administration. Recommend salary and/or merit adjustment guidelines to be effective during each fiscal year. Evaluate individual positions and assign those positions to specific wage and hour classifications, consistent with applicable law, and salary levels. Conduct continual reviews of wages and salaries as compared with other appropriate employers and recommend adjustments to maintain fair and equitable policies. Work with each department to ensure that all positions have a written job description that states the basic function, duties and responsibilities, supervision exercised and qualifications.
The following are definitions of pay adjustments and corresponding guidelines associated with each such adjustment.
4.03	Demotion Demotion occurs when an employee moves to a position that requires less responsibility than the current position. A salary reduction may result following a demotion. A demotion may occur within a department or between departments.
4.04	Equity Adjustment An adjustment based on a market analysis of a position and/or internal equity issues that substantially affect the ability to recruit and retain employees with specialized skills. Internal equity refers to the alignment of compensation and responsibilities of similar jobs across a department or the university.
4.05	Lateral Transfer Lateral transfer occurs when an employee moves to a position that is substantially equal in responsibility with the current position. A transfer can occur within a department or between departments. Internal equity and market issues will be considered when determining the appropriate salary level; however, lateral transfers do not ordinarily result in a salary adjustment.
4.06	Merit Increase An adjustment based on sustained performance during the rating period. The percentage adjustment shall be in direct proportion to the performance level achieved, as measured by the performance appraisal program. Merit increase guidelines will be developed each fiscal year.
4.07	Promotional increase An increase in salary when an employee moves to a position with a higher level of responsibility. Market benchmarks, internal equity and departmental budgets are considered when determining promotional increases.
4.08	Recognition Award An award tied to an established IIT recognition program. The university may at any time establish or discontinue staff recognition programs that reward staff on specific performance and/or results.

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