Free Sample Salary Administration Policy
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Sample Salary Administration Policy

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Salary Administration

The Employer ABC Salary Administration Program includes increases based on the performance, selection adjustments, and special adjustments.

Salary Improvement Pool

Based on the approval of Senior Leadership, each employee is eligible for an annual salary increase.  The salary increment guidelines will be formulated during the budgeting process and disseminated by HR.  The salary increase shall depend on the employee’s performance, but will also consider the employee's other salary increases within recent years, and the location of his/her current salary within the pay range.

Employees who not eligible for the performance increase shall receive a salary increase equal to the salary structure adjustment only so that the employee's relative salary location in the band is maintained.

Career Movement

Career movement occurs when an employee moves from one job title to another. To provide appropriate incentive for career movement and skills development, the supervisor shall establish the employee's new salary considering the following factors:

·         The candidate's qualifications, skills and related experience.

·         Location of the new salary in the new band.

·         Salaries, qualifications, skills, related experience, and performance levels of other employees in the same title, department and/or pay band.

Generally, the employee's new salary shall be within the new pay band's recruitment range. In special circumstances, Human Resources may approve a salary above the recruitment range.

Special Adjustment Increases

Special adjustment increases are pay increases based on position enhancement and/or equity considerations.

Position Enhancement

Position enhancement occurs when a supervisor has authorized a significant and ongoing increase in responsibilities that requires the employee to exercise greater judgment, ingenuity, initiative and skill within his/her current job.

Supervisors, in conjunction with Human Resources, may approve a pay increase of up to  of base pay to recognize the enhancement.  Increases must meet internal equity criteria (i.e. based on similar incumbent and position qualifications, performance, and pay levels).

Market or Equity Adjustments

When circumstances outside the salary administration program adversely affect an employee's salary, and when these issues cannot be resolved by a performance or promotional increase, a market adjustment may be authorized.

Market adjustment increases may be necessary when external or internal considerations affect an individual’s salary.  For example, the demand for a certain skill may far exceed supply, thereby necessitating the need to increase the salaries of those employees with these essential skills in order to retain them.

It may be necessary to provide an equity adjustment increase to an employee or group of employees to resolve a pay equity variance.

Documentation justifying these increases must be on file with Human Resources and the appropriate supervisor.  In addition, quarterly reports listing those individuals in receipt of these adjustments and the amounts must be submitted to the Human Resources.

Special Payments

There are three types of special payments:

·         Recognition of extraordinary accomplishments.

·         Recognition of acting appointments.

·         Location-based pay differentials.

Special payments do not affect base pay.

·         Extraordinary Accomplishment:

o    When an employee has performed well for a major period of time above the usual job expectations under extraordinary circumstances, the supervisor and Human Resources may authorize a special payment or temporary adjustment of up to  of base pay.  This payment does not affect the individual's base pay.  This is intended to address infrequent, unusual, and highly select cases when the usual performance increase does not suffice. These extraordinary circumstances must have a definite commencement and conclusion, and Human Resources must approve any exceptions. This does not address changes in workload arising from usual cyclical fluctuations. Documentation justifying these increases must be on file with Human Resources.

·         Acting Appointments:

o    When an employee is assigned to a higher position on a temporary basis of one to six months, a temporary pay increase may be available.  This adjustment does not affect the individual's base pay.  The salary adjustment should equal, but not exceed, the increase the employee would receive if promoted to that position.  Acting appointments of greater than six months must be reviewed and/or approved by Human Resources. The amount paid for all special payments shall be determined by internal equity considerations.

·         Location-Based Pay Differential Adjustments:

o    ABC employees working outside ABC locations shall be eligible for review of salary based on cost-of-living differentials. The employee's salary shall first be established equitably. Next, if the cost-of-living differential review indicates that the employee's salary should be adjusted, the supervisor shall approve such arrangement.  The differential payment shall be re-reviewed every six months.  If the employee returns to City ABC-based employment, her/his salary shall be reestablished equitably.

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