Policy Number: 193

Salary Administration

Subject:

Salary Administration

Scope:

Faculty, A&P and Classified Employees

Date Reviewed: May 2012

Responsible Office: Human Resources and Applicable Dean's Office

Responsible Executive: Vice President and Chief Human Resources Officer; Applicable Dean

I.     POLICY AND GENERAL STATEMENT

This policy serves as the general salary administration policy for The University of Texas Health Science Center at Houston (“university”) and provides information regarding salary administration for (1) classified and management academic and professional (management A&P) employees, (2) academic administrative and professional employees (academic A&P), (3) faculty members, and (4) key executives.

II.     DEFINITIONS

Classified and Management A&P Employees: Administrative leadership and support staff positions.

Other Employees:

Academic A&P Employees: Faculty positions with an administrative component or clinical leadership positions.

Faculty Members:  Employees who have a primary faculty appointment in one of the six schools at the university.

Key Executives:  Executive leadership positions which report directly to the university’s President and to the Senior Executive Vice President & Chief Operating and Financial Officer.

Total Annual Compensation:  Salary or wages, employer contributions to the Teacher Retirement System of Texas and the Optional Retirement Program, practice plan salary supplements, incentive plan payments, and unpaid deferred compensation, excluding employer-provided insurance, expense allowances, and other fringe benefits.

III.     PROCEDURE

A.  Determining Initial Compensation

If the total annual compensation offered to an employee is $500,000 or more, the approval procedures in UT System Policy 144 – Establishing Compensation for Highly Compensated Employees must be followed in addition to the requirements below.

1.  Management A&P and Classified Positions

Compensation Services maintains the Management A&P and Classified Personnel Pay Plan which contains salary ranges.  Hiring authorities will consult with Compensation Services when creating a new Management A&P or classified position to determine the salary range which may be used.

2.  All Other Employee Positions

In determining initial compensation for non-classified and non-Management A&P positions, the following factors will be considered: 

the nature of the duties of the position, including level of responsibility;

In all initial compensation decisions the hiring authority will document the factors considered in setting initial compensation.  Human Resources will maintain this documentation for key executive positions.  The hiring authority will maintain this documentation for academic A&P and faculty positions. All documentation will be maintained in accordance with the university’s Records Retention Schedule. 

2a.   Key Executive Positions

For key executive positions, the hiring authority will consult with Compensation Services to obtain decision support compensation data prior to offering a salary to a candidate. 

2b.   Faculty and Academic A&P Positions

For faculty and academic A&P positions, the hiring authority is responsible for obtaining decision support compensation data prior to offering a salary to a candidate. 

Faculty compensation decisions will also be guided by the applicable unit’s Faculty Compensation Plan (“plan”).  Each unit’s plan will set forth its compensation policies, procedures and methods, subject to the availability of funds.  The Dean of each unit will make the plan known and available to the unit’s faculty members. 

Periodically, the Dean of each unit will coordinate a review of the unit’s plan in accordance with the plan’s review procedures.  If any changes are made as a result of this review, the revised plan will be forwarded to the President, and The University of Texas System, as applicable, for approval.  The approved plan will be filed with the Office of Academic Affairs for record-keeping.

B.  Adjustments to Compensation

Those adjustments to compensation that are linked to performance should be considered in the context of the employee’s most recent performance appraisal.  For more information on performance management and appraisal refer to HOOP Policies 25 Performance Management and Appraisal and 111 Faculty Review.

Any adjustment to compensation which brings an employee’s total annual compensation to $500,000 or more must be approved in accordance with the procedures outlined in UT System Policy 144 – Establishing Compensation for Highly Compensated Employees in addition to the requirements detailed below.

1.  Merit Pay

Merit pay is a salary change warranted by meritorious job performance.  Meritorious job performance is defined as a consistently high level of job performance over a sustained period of time or the successful completion of an assigned project that had a significant impact on the department or the university. Merit pay may be awarded to classified personnel, faculty, and A&P personnel subject to the criteria listed below. Students, fellows, summer hires, casual and temporary employees in classified positions are not eligible for merit awards.

Two types of merit pay can be awarded:

An important part of base pay management is the maintenance/monitoring of an employee's base salary and progression through the salary range. Managers are encouraged to award the regular merit increase as an additive to base pay if the employee's current pay is below the salary range midpoint and permanent funding is available.

Should a total proposed regular merit award exceed the salary range maximum for that job, the merit award must be two separate, simultaneous transactions:  merit added to base pay up to salary range maximum and the remainder in a lump sum non-recurring merit payment.  Base pay cannot exceed the salary range maximum.

Criteria for Award of Merit Pay

2.  Temporary Administrative Supplements

A temporary administrative supplement may be paid for specific situations when a classified employee, A&P employee, or faculty member assumes substantial additional responsibilities on an interim basis for an extended period of time, generally not to exceed one fiscal year.  The temporary administrative supplement is discontinued when the employee is no longer responsible for the additional responsibilities. 

Classified and Management A&P employees may receive up to 15 percent of their salary as a temporary administrative supplement. Human Resources must review and approve all classified temporary administrative supplements prior to implementation.

The specific situations in which temporary administrative supplements may be warranted include, but are not limited to, additional duties assigned as the result of the following:

Specific situations that are not eligible for temporary administrative supplements include, but are not limited to, the following:

The temporary administrative supplement is not applied retroactively.  The head of the applicable operating unit and Human Resources must approve continuation of a temporary administrative supplement beyond one fiscal year. 

The award of a temporary administrative supplement must be documented in the employee’s personnel file by the employee’s supervisor.  The employee should have a copy of the documentation to ensure understanding of the non-permanent nature and reason for the supplement.

The following information should be included in the documentation:

3.  Adjustments to Classified and Management A&P Personnel Compensation

The criteria for and the administration of adjustments to classified and management A&P personnel compensation are found on the Compensation Services website.

4.  Adjustments to Academic A&P Compensation

Requests for salary adjustments for A&P employees are submitted as part of departmental and/or operating unit budget requests.  Requests for salary increases outside this process are made to the President or designee through the head of the affected unit and are subject to budgetary constraints and approval by The University of Texas System administration, as applicable.

Promotions or reclassification from one academic A&P position to another may also be requested and accomplished through the operational budget process.  Requests for such actions outside this process should be made to the President or designee through the head of the affected operating unit and are subject to budgetary constraints and approval by The University of Texas System administration, as applicable.

Salary increases greater than 10% of the employee’s current salary require written justification and approval by the President or designee.  The justification must include the information described in Section 6 below.

5.  Adjustments to Faculty Compensation

Adjustments to faculty compensation will be made in accordance with the applicable unit’s Faculty Compensation Plan. 

6.  Adjustments Which Do Not Conform to Applicable Criteria

Adjustments which do not conform to applicable criteria require written documentation and justification.  The documentation and justification must include a summary of the following applicable factors:

For classified, management A&P employees and key executives, the appropriate budgeting official for the school, general administration department, center or hospital must send the request with written documentation and justification to Compensation Services for review and approval.  If approved, the requesting department may forward a Personnel Action request to the System Data Resources Team (SDR). SDR will send the Personnel Action request for approval by Compensation Services.

For faculty and academic A&P employees, the budgeting official must send the request with written documentation and justification to the appropriate Dean, or designee, for review and approval.  The appropriate hiring authority will maintain the compensation decision support data.

IV.     CONTACTS

ContactTelephoneEmail/Web Address
Human Resources - Compensation Services (questions pertaining to classified, management A&P and key executives) 713-500-3130    

http://www.uth.edu/hr/department/compensation/index.htm

Applicable Dean's Office (questions pertaining to faculty and academic A&P)