SPP 403–08: Salary Administration
To define the types of salary offers and adjustments administered in connection with hiring, position changes, performance, retention, and university sponsored salary programs
Arizona Board of Regents Policy Manual - 6–901
All regular classified employees, university staff, and non-faculty administrators
The university provides and maintains a salary administration adjustment process for determining individual salaries.
All salary adjustments will be communicated to affected employees in writing, identifying the employee’s present salary, salary adjustment amount, new salary, and effective date of the adjustment. This notification will be under the signature or electronic approval of the employee’s supervisor or higher authority. Departments should also maintain a copy for their records. University-wide salary adjustment programs will follow this same procedure; however, signature authority is the university’s Chief Human Resources Officer (OHR).
Salary offer principles are as follows:
A performance-based increase is an individual pay action initiated consistent with the results of a performance evaluation. Performance-based increases may be provided when appropriated by the legislature or the university and authorized by the university.
Performance-based increases usually occur at the start of a fiscal year or as otherwise determined by the university president or as designated by the legislature.
Performance-based increases for regular classified employees, university staff, and non-faculty administrators should not exceed the top end of the assigned market zone. A vice president’s or dean’s support for an increase to exceed the maximum of the zone must be included when requesting final approval.
Performance-based increases are based on the performance period specified by the university. An employee whose performance evaluation is level 1 (fails to meet the performance expectations) or level 2 (inconsistently fulfills performance expectations) is not eligible for a performance-based increase. Recognition of an employee’s performance contribution through an increase should be aligned with the guidelines developed by the university at that time to ensure that the strongest performing employees receive an increase appropriate to their contribution over the evaluation period.
In-category promotion adjustments occur in recognition of significant development of competencies and/or increases in responsibilities supported through achievement of career development objectives that include movement into a classification within the same category.
Salary adjustments in recognition of demonstrated capabilities, skills, and/or competencies may vary taking into consideration other employees within the same position and/or department consistent with a pay for performance strategy. The Compensation department of OHR is available to assist. Recommendations for in-category promotion adjustments require prior approval as appropriate, and should not be communicated to the employee until receipt of approval.
An internal equity adjustment is a salary increase that is intended to correct a pay disparity within a job classification. Factors that may be considered in determining equitable pay relationships are employee credentials and experience, salary history at the university, and documented employee work performance. Colleges, departments, and work units are responsible for establishing and maintaining equitable pay relationships within their work units. When a pay inequity problem is discovered, an internal equity adjustment may be recommended. Administrators/direct supervisors should work directly with the Office of Human Resources (OHR) to determine an appropriate internal equity adjustment when a pay disparity exists.
Recommendations from OHR must be approved by leaders prior to implementation.
A market adjustment may be initiated as the result of a compensation study. Market adjustments occur when the assigned Market Reference Point (MRP) of the job classification is adjusted and the affected incumbent’s current salary falls below the lower end of the new MRP. If additional correction is warranted based on an assessment of the employee’s salary compared to the job’s market zone, taking into consideration performance and experience, administrative officials and OHR should work together in partnership to determine appropriate in-zone adjustments.
Market adjustments or job reclassifications resulting in upward zone or category movement with associated financial impacts must be reviewed and finalized by OHR. Once finalized, the recommendations from OHR must then be approved by leaders prior to implementation.Retention
Retention adjustments may be determined appropriate to retain critical, key talent and/or highly recruited staff. Individual retention adjustments may vary based on the circumstances. Requests for a retention adjustment should provide supporting documentation when presented to the vice president or dean for review and support with final approval reserved to the provost of the university, the executive vice president, treasurer, and chief financial officer (CFO), or designees.
Salary administration terms, as they relate to this policy, are as follows:
Competitive (Associated with a Recruitment)
A competitive promotion occurs when an opening is filled through a candidate selection process and the selected candidate is internal (a current active employee of ASU), with the candidate moving into a classification in a higher category.
A noncompetitive promotion occurs when an employee’s current job classification is changed to reflect a significant change in the scope (duties and responsibilities) and a higher category that is a result of an organizational need or to recognize the increased skills and competencies that the employee has demonstrated in the prior classification.
For information on salary administration references and guidelines, please see “Manager’s Guide, Compensation and Salary Administration.”
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