Compensation Management Toolkit
- New Hires
- Job Change
- Performance Merit
- Reward and Recognition
- Temporary Pay
- Strategic Compensation Alignment
- Differential Pay
- Incentive Pay
Market ranges assigned within the UVA Job Structure are used to determine competitive starting pay for both internal and external candidates accepting new positions.
The University utilizes a holistic set of compensable factors to inform salary decisions, including determining initial offers. This allows managers to consider salary decisions systematically, resulting in more consistent and equitable decision-making across Grounds. The factors are:
- Qualifications (education, experience, unique skills)
- Job content and individual performance contributions
- The position of the employee’s pay in the market pay range
- Employee’s pay relative to similar jobs at UVa
- Pay history
Promotion pay is available to University Staff in the form of a base pay increase. A holistic review of compensation factors is used to support salary decisions. There are no state-mandated limitations on the amount of a promotion pay increase, subject to the availability of funding. If the employee is above the top of the market pay range, the increase is typically provided as a bonus rather than a base salary increase.
Promotion pay may be granted for:
- On-the-job application of new skills documented in the employee’s Career Development Action Plan
- Significant changes in job duties and responsibilities with no change in UVA job title
- Significant changes in job duties and responsibilities with an increase in market pay range and change in UVA job title
Base pay adjustment which varies based upon an employee’s overall performance contribution as measured by the annual performance evaluation. If an employee’s base pay is at or above the upper reference for the pay range, the merit amount may be provided as a one-time payment, rather than as a base pay adjustment, or a combination of both. Each year, the University’s Board of Visitors will review and approve a merit increase budget recommendation developed by the University Human Resources Department. Once approved, guidelines for annual merit increase adjustments will be distributed to the schools and departments on an annual basis.
Bonuses, non-monetary awards, and recognition leave provided to employees in recognition of an employee’s contributions to the overall objectives of the University. These rewards are typically provided to employees in recognition of teamwork, special project completion, identification/implementation of new or modified business practices, exemplary effort, and employee appreciation. Additionally, an employee who completes the acquisition of additional knowledge, skills, abilities and/or competencies as outlined in the Learning Plan is eligible for a promotional one-time payment in recognition of the completion of the designated action(s). The amount of reward and recognition payments are at the discretion of the School or Department, but are limited to the Policy maximum of $2,000 per employee per fiscal year (for Classified Staff) or $3,000 or 10% of salary, whichever greater, per employee per fiscal year (for University Staff).
Temporary pay (referred to as “Acting Pay” in HRMS) is a management-initiated temporary supplemental adjustment to an employee’s pay for assuming new duties and responsibilities on an interim basis. If duties and responsibilities assumed by the employee are in the same market pay range, management can pay 0-10% above the employee’s current pay and is provided for up to one year. If an employee assumes the duties and responsibilities from a role in a higher market pay range, management can pay 0-15% above current salary. Exceptions must be approved by University Human Resources.
A Justification May Include:
- A description of the employee’s new duties and responsibilities, specifying the reason for the Temporary (“Acting”) Pay request. Added duties and responsibilities should be significant, and circled on the updated job description.
- If duties are being performed temporarily due to a vacant position, please provide the name of the former employee, position number, and date of resignation.
- If duties are being performed temporarily due to the posting of a new position, please provide the position number of the new position.
- Is the employee continuing to perform her/his current duties in addition to the new duties? If not, describe the duties and percentage of the workload that have been temporarily removed from the position.
*NOTE: The Federal Fair Labor Standards Act (FLSA) specifies that for classified and university staff employees whose FLSA exemption status is “non-exempt”, temporary pay must be included in the calculation of the employee’s regular rate of pay for the purpose of determining the proper overtime rate. Example: John Doe is a non-exempt semi-monthly paid employee with an annual salary of $20,000. He is approved for a 10% temporary pay for three months. If he works overtime during the three months in which he is receiving temporary pay, the amount of the temporary pay must be included in the calculation of the regular rate of pay to determine the proper overtime rate. Calculation: Annual Salary of $20,000 plus annualized temporary pay of $2,000 = $22,000 / 2080 = $10.58 per hour. The Overtime Time and Half rate would be $10.58 x 1.5 = $15.87.
A strategic compensation alignment is a base pay adjustment provided to retain employees critical to the work of the University. Salary adjustment decisions are made using a holistic approach where multiple relevant factors (including the market-based pay range, employee skills and competencies, competitive counter-offers, and performance) are considered in support of sound pay decision-making. All Strategic Compensation adjustments and In-Band adjustments must have the approval of the appropriate Vice President or Dean.
Differential Pay is a base pay adjustment that usually reflects specified job conditions (shift, hazards, etc) and/or makes salaries competitive with the market. Differentials may be applied to jobs, geographic locations, or individual positions in the University. All differential pay is approved by UHR.
Incentive Pay includes items such as a sign-on bonus, retention bonus, project based bonus plans, or other variable pay options intended to assist with the recruitment and retention of exceptional or mission-critical employees.