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Compensation & Classification
Contents
Compensation and Classification
Compensation refers to the monetary value of a job: the wages and benefits.
Classification encompasses the job title, duties and responsibilities
of the job, and based upon those, the pay range in which the job is placed.
At FSU our role is to make sure that compensation and
classification are aligned appropriately, reflecting our compensation
and classification program philosophy. FSU's system is job-based: we determine
the compensation and classification of a position based on what the job
requires, not the degrees or experience an applicant or incumbent may
possess.
In administering our compensation and classification
program, we adhere to the following philosophy:
- The compensation and classification system is market-based.
Pay ranges and structures are reviewed every two years.
- To ensure objectivity and consistency, jobs are evaluated
in relation to one another.
- Compensation is based on the market value of the job,
its value to the institution, and its relationship to other jobs requiring
similar knowledge, skills, and abilities.
- Any revision to the pay structure will reflect the
current State of Maryland Living Wage.
Types of Positions
The Fair Labor Standards Act (FLSA) requires
that employers classify employees as either nonexempt or exempt.
Nonexempt Positions - The minimum wage and overtime
provisions of the FLSA cover nonexempt positions. In its simplest form,
this means a nonexempt employee must be paid no less than the Federal
Minimum Wage that the employee is entitled to claim overtime if he or
she works more than 40 hours in a week.
Exempt Positions - The minimum wage and overtime
provisions of the FLSA do not cover exempt positions. This means an exempt
employee is not entitled to claim overtime if he or she works more than
40 hours in a week.
The Pay Program at FSU
At FSU, we manage nonexempt and exempt pay programs.
Nonexempt Pay Program
The USM nonexempt pay program implemented July 1, 1996 consists of two
major components: the pay structure and the job specifications. Information
on these components can be found on the website links below.
USM
Nonexempt Pay Program
USM
Job Specifications
All USM institutions are required to use the nonexempt pay structure and
job specifications as they are written. Changes can be made only by USM
following a review and recommendation by the system-wide Compensation
and Classification Committee. Since 1996, a number of revisions have been
made to both the pay structure and the job specifications to ensure that
both reflect the current job market.
Exempt Pay Program
Unlike the nonexempt pay program, the exempt pay program does not have
common job specifications or classifications that are used throughout
the University System of Maryland (USM). The diverse and complex nature
of exempt jobs prohibits the development of job specifications applicable
to all USM institutions and programs. Consequently, each USM institution
has the flexibility to develop and manage its exempt pay program as appropriate
to its mission, size, and location so long as it remains consistent with
the afore-referenced compensation philosophy.
Exempt pay structures, however, do exist. UMB, UMBI,
and UMUC use Traditional Salary Ranges. Traditional ranges are typically
narrow and reclassification of a position usually means moving it to a
higher or lower salary range. FSU, along with BSU, CSU, SU, TU, UB, UMBC,
UMCES, UMCP, UMES, and USMO, uses a form of broad-banding referred to
as Wide Salary Ranges. Broad-banding, as the title implies, is a system
of fewer broad bands, each divided into three or more narrow ranges. Reclassification
may result in movement from one range to another within the broad band
or movement to another broad band. The presence of two pay structures
in a system like USM reflects the difference in market expectations of
the respective institutions (visit the USM
Office of Human Resources web site for more details).
Job Specifications vs. Job Descriptions
A job specification is a generic statement of duties and responsibilities
for a job. As noted above, USM provides job specifications for all nonexempt
positions while each institution is responsible for the creation of its
own exempt job specifications. Each generic job specification should be
supported by a detailed job description. While the specification is a
summary of job duties applicable to a particular class of jobs, a job
description details what an individual job does.
Reclassification
A reclassification review is a process whereby an employee
and/or the supervisor or department head initiates a request for a position
to be reviewed. To qualify for review, significant and substantial changes
must have occurred in the position's primary objectives, duties, and responsibilities.
To determine whether changes have occurred in the position, the initiator
submits a Reclass
Request Form (RRF) signed by the Divisional Vice President as well
as a Position Information Form/PIF (PIF
exempt form/PIF
nonexempt form) to the Office of Human Resources. Any RRF submitted
without the Vice President's signature will be returned to the initiator.
A reclassification review may result in one of the following
actions:
Job is reclassified to a higher or lower level.No change
in the job classification and pay range, i.e. the job is determined to
be properly classified.Job is re-titled, but the pay range remains the
same.
Criteria in Reclassifying a Job
The decision to reclassify a position
is based on significant changes that have occurred in the knowledge, skills,
and abilities required to meet the essential functions of the position:
what these changes are, how they occurred, organizational changes that
occurred resulting in (or as a result of) the position changes, and whether
or not these changes are significant. It should be noted that volume of
work, length of service with the university, and employee performance
are not factors in reclassifying a position.
Salary Determination
A salary determination is made for a
new or vacant position, or a request to adjust an employee's pay due to
promotion or reclassification. In all cases, a Position Information Form/PIF
(PIF exempt
form/PIF
nonexempt form) is required. To request a salary adjustment for an
employee, in addition to the PIF, a Reclass
Request Form is required.
Frequently Asked Questions
- I have been authorized to fill a vacant/new position
and want to know the salary.
Complete a Position Information Form/PIF (PIF
exempt form/PIF nonexempt
form) and submit it to the Office of Human Resources to make a salary
determination.
- My job has changed and I want to request a reclassification.
Complete a Reclass
Request Form and a Position Information Form/PIF (PIF
exempt form/PIF nonexempt
form) and submit them to the Office of Human Resources. Both forms
require your supervisor's signature; the RRF also requires the Divisional
Vice President's signature. Either or both may signify agreement, disagreement,
or remain neutral concerning your request. A signature merely ensures
that the request has been reviewed.
- The Vice President approved my request for a reclassification.
Why did the Office of Human Resources deny it?
No decision on a reclassification request is made until the Office of
Human Resources thoroughly reviews and analyzes the position. The fact
that the Divisional Vice President signed the RRF does not guarantee
that your position will be reclassified. The Vice President's signature
authorizes the Office of Human Resources to review the position. The
decision whether to reclassify your position rests with the Office of
Human Resources.
- I have been asked to complete a PIF. Why is this
necessary?
A PIF is specific documentation of your job. It is important to have
one for several reasons:
- In job classification, a PIF is used to determine whether your job
is properly classified.
- In performance management, a PIF is used to establish the knowledge,
skills, and abilities necessary to perform your job.
- In the daily performance of your work, your PIF is your guide to where
to go, what to do, and how to do it.
- A PIF is a communication tool whereby you and your supervisor can
discuss your work: how it is done, why it is done, and how you are performing
the required duties and responsibilities.
- I have a bachelor's degree. Why does my job
only require a high school diploma?
Your level of education and what your job requires are two separate
things. The educational requirement of your job is based on the knowledge,
skills, and abilities required to perform the essential functions of
the position. All jobs have minimum requirements. The fact that you
have a bachelor's degree does not change the fact that someone with
a high school education may adequately perform the essential functions
of this particular job.
- I have not had a pay raise in three years. A reclassification
is one way to get an increase. Should I file a request for reclassification?
Reclassification is about the job, not about providing you with a salary
increase. See Criteria in Reclassifying A Job.
- I have been working at the university for many
years. I need a reclassification of my position.
Length of service with the university is not a reason to request a reclassification.
A reclassification is about the job. See Criteria in
Reclassifying A Job.
- My employee does excellent work and is extremely
loyal. Her performance has been exemplary. I would like to request a
reclassification of her position.
Employee performance is not a reason for requesting a reclassification.
Job performance is covered under the Performance
Management Process (PMP). See Criteria in Reclassifying
A Job.
- My office has too much work. This keeps my employees
busy. Their positions should be reclassified.
Workload alone is not a reason for reclassification. See Criteria
in Reclassifying A Job.
USM Committees Charged with Oversight
of Compensation and Classification
The System Human Resources Committee (SHRC) is comprised of directors
of human resources from all institutions within the USM. It meets monthly
to make policy and procedural decisions and recommendations, and to discuss,
deliberate, and work to resolve a variety of human resources issues facing
USM.
The Classification and Compensation Committee (CCC) is a subcommittee
of the System Human Resources Committee (SHRC) comprised of classification
and compensation analysts from various institutions within the USM. Its
responsibility is to review and recommend changes to USM pay programs.
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HR Contact for
Compensation Information:
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