EFFECTIVE DATE: February 01, 2019
ISSUE #: 3
PRESIDENT: Juan Sánchez Muñoz
PURPOSE
This PS provides a general framework for establishing and maintaining a fair, equitable,
competitive, and flexible salary administration program for the University of HoustonDowntown (UHD) staff.
DEFINITIONS
2.1 Staff: An employee employed on a regular basis for a period of at least four and onehalf months, excluding students employed in positions that require student status as a
condition for employment and those holding a teaching and/or research position
classified as faculty. For the purposes of this policy, the term employee(s) is used to
define all staff.
2.2 Job Descriptions: All staff covered by the staff compensation program shall have a
generic job description that includes the official UHD job title, job code, a general job
summary, a list of major duties and responsibilities, and job requirements. The job
description is used to evaluate and classify jobs to determine appropriate internal
position relationships and to provide job information that can be used to determine
competitive pay relationships in the labor market.
2.3 Job Evaluation Process: A process that determines the relative value of jobs based on
internal position relationships and external, market-based data, in order to provide fair
and competitive compensation. This process may result in reassignment of the job to a
higher or lower pay grade as a result of significant changes in duties, responsibilities
job requirements and/or market value.
2.4 Staff Salary Structure: A framework that helps ensure parity with other employers by
establishing a series of pay ranges. Jobs are classified by pay grade, each grade having
a respective pay range with a defined salary minimum, midpoint, and maximum.
2.5 Pay Range: The range of pay rates, from minimum to maximum, established for a pay
grade or class. Typically used to set individual employee pay rates.
2.6 Quartiles: The four equal parts of the pay range. Typically, an employee’s pay position
in the pay range is related to factors such as performance and years of service.
2.7 Hiring Range: The range of compensation new hires are allowed to receive. This
should fall between the minimum and midpoint of the respective pay grade. The hiring rate chosen from the range must be commensurate with the new employee’s level of
education, skill/knowledge, experience, and/or competency.
2.8 Internal Equity Hiring: A guideline designed to maintain internal equity by not
allowing a new employee’s hiring salary to be more than an incumbent’s within the
same job in the same department
2.9 Promotion: The movement of an employee from one pay grade to a higher pay grade
within the same pay grade structure. If moving to a different pay grade structure (i.e.,
from staff pay structure to IT pay structure), the move will be considered a promotion
when the new grade has a higher midpoint
2.10 Demotion: A change in duty assignment from a job in one classification to a job in
another classification in a lower pay grade. Such a demotion may involve a decrease in
compensation.
2.11 Lateral Transfer: The movement of an employee to a position with the same pay
grade. If moving to a different pay grade structure (i.e., from staff pay structure to IT
pay structure), the move will be considered a lateral transfer when the new grade has a
comparable midpoint.
2.12 Fair Labor Standards Act (FLSA): A federal law governing minimum wage, overtime
pay, child labor and recordkeeping requirements.
2.13 Non-Exempt Employees: Employees who are paid hourly, in accordance with FLSA
standards.
2.14 Exempt Employee: An employee in a position that is not subject to the overtime
provisions of the Fair Labor Standards Act (FLSA). Exempt employees include
professionals, administrators, and executives, who are paid on a monthly basis.
2.15 Career Ladder: The progression of jobs in specific occupational fields ranked from
highest to lowest based on level of responsibility and pay.
POLICY
3.1 UHD has established and maintains a salary administration program, which is
structured to be externally competitive, internally equitable and fairly administered. In
order to provide fair and competitive compensation, UHD utilizes a competitive
approach by analyzing market salary data from within and outside the university
environment, as available.
3.2 UHD has established and maintains salary ranges for all positions that fairly reflect the
value of each position, relative to all other positions at UHD.
3.3 External competitiveness of UHD salaries for jobs is determined by comparing its pay
rates and practices with local, regional, and national market survey data reflecting
salaries paid to positions by other comparable employers. Factors such as recruiting
locale, availability of relevant market data, and market demand for position typically
determine source of market data.
3.4 Within the University’s staff salary structure, there are several pay grade structures,
which incorporate minimum, midpoint and maximum salary levels. The pay grade
structure defines the salary range by pay grade for specific job groups, such as
Information Technology (IT), Police, and other staff (non-IT and non-Police).
3.4.1 The minimum represents the lowest rate of pay for a job within its grade. It is
the rate that normally would be paid to a UHD staff who is new to the position,
and who meets the minimum requirements for the position. It represents the
typical marketplace “entry” rate. All employees must be paid at least at the pay
grade minimum.
3.4.2 In most cases, the first quartile is considered the range of value for a newly
hired employee who meets the minimum qualifications of the job. Thus, most
new employees should be hired within the first quartile of the range, but hiring
managers have full authority to hire or promote into jobs at rates up to
midpoint.
3.4.3 The midpoint represents the middle of a given salary range or pay grade. It is
typically the competitive “going rate” in the marketplace for a fully qualified
employee. Employees who have extensive work experience, are highly
competent professionally, and may have a significant number of years of
experience are generally paid between the midpoint and the maximum of the
pay range.
3.4.4 The maximum is the highest level of pay for a job within its grade. An
employee at or above the maximum of his/her pay grade will be “red-lined”
until such time that the maximum of their pay grade is adjusted upward and the
pay grade structure reflects such change. Employees may not receive any salary
increases resulting in a rate of pay above the maximum. The only exception to
this rule is a state-mandated adjustment, unless approved by the University
President.
3.5 In order to maintain internal equity, hiring managers must adhere to the internal equity
hiring guideline by not allowing a new employee’s salary to be more than an
incumbent’s within the same job in the same department. An exception may be made
when a candidate’s knowledge and experience in the job-related field, and/or
education, exceeds the incumbent’s.
3.6 UHD’s Career Ladder Program assists employees and managers in the development of
individualized career plans and goals.
3.6.1 The Career Ladder Program will be used to improve staff retention, recognize
high performance, and aid in the development of training programs aimed at
addressing competency gaps in UHD’s succession efforts.
3.6.2 Job descriptions, which are key instruments in the Career Ladder Program,
contain education, experience, skills and competencies needed to advance to a
higher level job on the career ladder.
3.6.3 Employment Services and Operations (ESO) is responsible for administering
the Career Ladder Program in compliance with compensation rules and
regulations.
3.6.4 The Career Ladder Program does not guarantee job promotions,
reclassifications, or salary adjustments. All changes are based on an established
need for a change in the specific position, job analysis conducted by ESO, and
management approval. In addition, the funding source for any salary
adjustments must be identified and available prior to approval of any Career
Ladder Program job change. Employees must meet certain criteria, including
the minimum position requirements, to be eligible for a career ladder job
change.
PROCEDURES
4.1 All staff employed by UHD shall be assigned to a position which corresponds directly
to the established pay grade structure. The pay grade structure consists of pay ranges
(salary levels) that represent the value of groups of jobs. Midpoints of the pay ranges
represent UHD’s desired competitive position to the external market and are
determined by statistical calculation based on external salary survey data for
benchmark jobs in each pay grade. UHD uses the Staff Salary Structure, the IT Salary
Structure and the Police Salary Structure to establish compensation limits for jobs.
4.1.1 The Career Ladder Program organizes UHD staff jobs into several job families
and job sub-families creating a series of job levels where the nature of work is
similar. The job levels are determined by the job grades assigned during the job
evaluation process. Administrative procedures for the Career Ladder Program
are contained in a detailed Career Ladder Guide.
4.1.2 The Career Ladder Guide provides detailed information related to the UHD
Career Ladder Program and how it relates to the Staff Compensation Program at
UHD. Included in the Career Ladder Guide are definitions related to career
ladders, employee eligibility requirements, and administrative requirements for
submitting a job change request through the Career Ladder Program.
4.2 UHD shall conduct competitive market analysis, as needed, to benchmark a
representative sample of jobs in an effort to follow UHD’s desired proximity to
external market rates. Time in position shall be reviewed and tenure salary adjustments
addressed as needed. Both actions are dependent upon availability of funds.
4.3 UHD shall conduct a pay grade structure review every five years. Recommended
changes to the pay grade structures will be submitted to the University President for
approval.
4.4 UHD adheres to the following guidelines when administering the staff compensation
program:
4.4.1 New Hire Rate. All individuals who are new UHD employees and whose
knowledge, skills, abilities, and experience meet the minimum requirements of
the job should be hired at the minimum of the salary grade for the position being
filled. However, an employee may be hired at a higher starting salary based on
years of directly related and documented work experience, not to exceed the
midpoint for the respective position, provided the salary doesn’t exceed that of
an incumbent in the same job within the same department.
a. Any exception for hiring a new employee above an incumbent in the same
position within the same department must be approved by ESO. The hiring
manager must submit a memorandum to ESO’s compensation unit outlining
how the candidate’s knowledge and experience in the job-related field,
and/or education exceeds the incumbent’s.
b. Any exception for hiring a new employee above the midpoint must be
approved by ESO and the University President. The primary determinant
for any exception should be based on a combination of the following:
1) Demonstrated and documented need to fill a job
2) The sense of urgency to fill such a job
3) The unavailability of qualified individuals with the required level of
skills, knowledge, experience and competence
4) The documented competitive market pay required to attract and retain a
person under these exceptional circumstances
5) The impact on internal equity based on current incumbent(s) with
equivalent level of skills, knowledge, experience and competence
c. To request a hire rate above midpoint, the hiring manager must prepare a
memorandum requesting the exception, stating the rationale/justification taking into account the aforementioned determinants above (4.4.1.b). The
memorandum must be presented to the Vice President for Employment
Services and Operations (VPESO) for review and submission to the
President. After reviewing the request, the VPESO will present the request
to the UHD President for a decision.
4.4.2 Below Minimum of Range. All staff shall be paid within the pay range of an
assigned grade; no staff shall be paid below the minimum of their respective job
grades prescribed by the respective pay grade structure.
4.4.3 Maximum or Above Maximum of Range. Any staff at or above the maximum
of their respective pay grade shall receive no merit or across the board
increases, except for state-mandated raises, unless approved by the University
President.
4.5 Rehiring. Former UHD staff rehired within one year into the same job shall be given
their old rate of pay. In no case should the new salary of a rehired employee be above
their former salary unless there has been incremental change to the current salary
schedule, or the rehired employee has acquired new licensing, certification(s),
knowledge, and/or education that provide a value-added to the position; and under no
circumstances should the new salary exceed the maximum of the grade.
4.5.1 Former staff rehired after one year’s absence or rehired into a different position
shall be treated as new employees, i.e., paid up to the midpoint of the range for
the position for which they are being hired, dependent upon their level of
education, skill/knowledge, experience, and/or competency.
4.6 Reclassification. When a job is reclassified to a higher pay grade because a reevaluation indicates the major duties and responsibilities have increased significantly,
the job’s title and/or pay grade may change. If a salary increase is in order, the
resulting salary shall fall between the minimum and midpoint of the new grade, and
may not exceed the salary of an incumbent in the same position within the same
department, unless an exception is granted in accordance with section 4.4.1a.
4.6.1 With rare exceptions, personnel actions such as reclassifications and promotions
will not be permitted in July and August, while the institutional budget for the
upcoming academic year is finalized.
4.7 Promotion. To be considered for a promotion, the employee must meet the minimum
qualifications for the new position. Any UHD employee promoted to a new position at
a higher grade may receive a pay increase not to exceed 20% of their current base pay.
The resulting salary must fall between the minimum and midpoint of the new grade,
and may not exceed the salary of an incumbent in the same position within the same
department. In isolated situations, if an individual’s base pay is at a higher level than
rates paid to incumbents, or above maximum of the new grade, an individual may be granted a promotion with no change in pay. All promotions must be approved in
advance by ESO.
4.8 Employees shall successfully complete the probationary period for their respective
position, i.e., six (6) months for non-exempt or twelve (12) months for exempt
employees, prior to becoming eligible for a reclassification/promotion.
4.9 Demotion. A demotion shall result in a reduction in the employee’s base pay when:
4.9.1 An administrative action is taken against the employee for poor performance in
the current position.
4.9.2 A job is evaluated as a result of management initiative and reassigned to a lower
job classification and pay grade.
4.9.3 Disciplinary action is taken against the employee for misconduct.
Any UHD employee demoted to a new position at lower grade shall receive a pay
reduction not to exceed 20% of their current base pay. Employees demoted for
misconduct will not be subject to the 20 percent maximum reduction in salary. All
demotions must be approved in advance by ESO.
4.10 Lateral Transfer. Normally, there is no change in the employee’s salary when a lateral
transfer occurs. Hiring managers who believe circumstances warrant additional
compensation above that which is outlined may seek review and approval for an
exception to the policy from the VPESO.
4.10.1 When an employee’s position is reclassified to a lower grade because a reevaluation indicates reduced duties (e.g., due to a program cutback) a salary
adjustment may occur to ensure compliance with UHD’s compensation plan. In
these circumstances, if the current employee’s pay is above the new maximum,
the employee’s pay will be “red-lined” and all increases, with the exception of
state-mandated increases, will be withheld until the compensation level is less
than the new maximum.
4.11 Interim Job Appointment. Exempt employees appointed to the acting capacity of a
supervisor or other management position for a temporary period, normally less than
180 days, may be given a salary adjustment for that period. The adjustment for the
interim job appointment may not exceed 20% of the salary of the appointee, as
recommended by the hiring manager and approved by ESO’s Compensation unit. This
adjustment is subject to available financial resources. Non-exempt positions may be
eligible for interim appointments on a case-by-case basis, as approved by the ESO’s
Compensation unit.
4.12 Merit Adjustments. Merit increases may be awarded at the beginning of the fiscal year
or midyear and must be within budget guidelines and based upon assessment of each
employee’s performance in accordance with University.
4.12.1 When merit adjustments are funded and authorized, ESO will prepare and
distribute detailed guidelines to division heads. The guidelines will include the
authorized merit increase budget, performance level required to be eligible to
receive a merit adjustment, and other program criteria.
4.12.2 In order for an employee to receive a merit increase, a current staff performance
appraisal must be on file in ESO. To qualify, the performance appraisal must
have been completed on the official university form within the time frame
designated in the guidelines and must meet the eligibility criteria designated for
merit increase participation.
4.12.3 Employees who do not complete the annual mandatory training by the published
deadline will not have met their job expectation and will, therefore, not be
eligible for merit increases.
4.12.4 Proposed merit increases will be reviewed, approved, and submitted in
accordance with the detailed guidelines distributed by ESO at the time of the
authorized merit increase. Merit increases require the approval of the Board of
Regents prior to implementation.
EXHIBITS
There are no exhibits associated with this policy.
REVIEW PROCESS
Responsible Party (Reviewer): Vice President for Employment Services and Operations
Review: Every three years on or before January 1.
Signed original on file in Employment Services and Operations.
POLICY HISTORY
Issue #1: 08/01/96
Issue #2: 09/04/08
Issue #3: 03/25/15
Issue #4: 05/10/18
REFERENCES
UH System Administrative Memorandum 02.B.01
UH System Administrative Memorandum 02.B.04
UH System Administrative Memorandum 02.B.06
UHD Staff Pay Grade Structure
UHD IT Pay Grade Structure
UHD Police Pay Grade Structure
UHD Administrative Pay Grade Structure
Career Ladder Guide
