SPP 403–10: Market Differentials

To provide a process by which classifications can be assigned to alternative salary grade minimums, midpoints, and maximums that reflect the prevailing labor markets in order to achieve recruitment and retention objectives

Arizona Board of Regents Policy Manual - 6-402

Classified employee positions

Subject to the availability of funding, a market differential may be applied to a job classification upon review and recommendation by Human Resources (HR) under the following conditions:

1. minimum 15 percent differential from state or Joint Governmental Salary Survey (JGSS) averages

   or

2. significant turnover, in excess of 20 percent

   or

3. demonstrated difficulty in hiring/lack of qualified applicants

   and

4. documented rejections of job offers.

A market differential review may be initiated by a department with approval from the appropriate vice president or designee or by HR to determine appropriate salary range assignments for a classification relative to its labor market.

HR will:

1. perform a market survey analysis of subject classifications
2. review the impact of an alternative salary range assignment on current incumbents

   and

3. recommend alternative salary range assignments to affected vice presidents.

When a market differential is warranted, salary grade minimums, midpoints, and maximums will be adjusted for that classification.

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