Compensation for Academic Professional and Administrative Employees

Policy Statement

This policy governs compensation for the academic professional and administrative (P&A) employee group, with the exception of senior leaders and professionals-in-training. Within the P&A employee group, the University compensates academic professionals for their responsibilities enhancing the research, teaching, and service functions of the University. The University compensates academic administrators for their responsibilities in policy development or execution, or in directing, coordinating, or supervising activities within the University. Total compensation for P&A employees includes their annual base salary plus the value of their fringe benefits, including retirement, health and dental coverage, life and disability insurance, and other benefits as provided by the University. In some instances, units may augment a P&A employee’s annual base salary through internal sources, such as when the individual temporarily takes on additional responsibilities or a set of administrative duties, or through payment received by sources outside the University as in the case of approved external consulting.

Units negotiate a P&A employee's initial annual base salary at the time of hire. The annual salary program seeks to reward contributions of P&A employees. The assessed meritorious performance of duties and responsibilities associated with the position and performed by the position holder serves as the basis of annual merit-based salary increases or rewards. Increases to annual base salary for P&A employees may also occur in other ways such as the following: (1) in conjunction with a promotion; (2) in conjunction with the awarding of indefinite continuous appointment (3) through acceptance of a retention offer that includes a pay increase; (4) through base pay market adjustments; and (5) in addressing documented internal salary inequities. The Board of Regents approves parameters for compensation increases based on recommendations of the administration.

Any salary determination process at the University must be non-discriminatory. Initial salary offers, periodic increases, and retention offers may not be based on considerations related to the race, color, creed, religion, national origin, gender, age, marital status, familial status, disability, public assistance status, membership or activity in a local commission created for the purpose of dealing with discrimination, veteran status, sexual orientation, gender identity, or gender expression of the person affected.

Units should consult with their with unit academic professional and administrative (P&A) employees  when developing:

• the annual review process for unit P&A employees and
• the unit annual compensation strategy which includes the awarding of merit pay based on performance.

Units must make available in writing documentation of the unit’s process for the annual review of performance of P&A employees to every employee to whom it applies.

Reason for Policy

This policy implements Board of Regents Policies: Employee Compensation and Recognition, Employee Group Definitions, Employee Performance Evaluation and Development, and Employee Recruitment and Retention. The University strives to attract and retain a high performance workforce. As a part of this effort, the University works to achieve and maintain a compensation structure that, when combined with benefits and other rewards, is competitive relative to institutional peers and other appropriate labor markets.

Procedures

Forms/Instructions

Appendices

Frequently Asked Questions

Contacts

Definitions

Augmentations

Temporary increases to an employee’s salary during the time when the individual assumes administrative responsibilities.

Annual Base Salary

The fixed compensation paid annually to an employee for performing specific job responsibilities. It does not include variable pay such as bonuses or incentive pay.

Senior Leaders

Individuals specified as senior leaders in Board of Regents Policy: Reservation and Delegation of Authority. This includes the executive vice president,senior vice president, chancellors, vice chancellors, vice presidents, provost, general counsel, University librarian, chief auditor, deans (on all campuses), athletic director (Twin Cities), and others as directed by the Board, to include the Executive Director and Corporate Secretary, Board of Regents and the Chief of Staff, Office of the President.

Responsibilities

Unit Administration

Involve the P&A employee in developing information and guidelines for merit review and salary determination process.

Responsible Administrator/Supervisor

• Determine salary at the time of initial hire and subsequent annual salary increases.
• Review annually the performance of the P&A employee, as a determinant of merit increase.
• Follow process for adjusting salary mid-year or making other pay adjustments.

P&A Employee

Provide input when the unit develops the process for annual performance review and merit adjustment to salary.

Related Information

• Board of Regents Policy: Employee Compensation and Recognition
• Board of Regents Policy: Employee Group Definitions
• Board of Regents Policy: Employee Performance Evaluation and Development
• Board of Regents Policy: Employee Recruitment and Retention
• Administrative Policy: Appointments of Academic Professional and Administrative Employees
• Administrative Policy: Performance Reviews for Academic Professional and Administrative Employees
• Administrative Policy: Hiring Faculty and Staff
• Administrative Policy:  Senior Leader Compensation and Separation
• Salary Plans (see Academic Salary Floors and Compensation Instructions for current year)

History

Amended:

October 2018 - Comprehensive Review, Minor Revisions: 1. Incorporates new items under salary offer considerations. 2. Updates senior leader titles and responsibilities.

Amended:

October 2012 - Excludes senior leader compensation from coverage under this policy. It is now covered under Board of Regents Policy: Employee Compensation and Recognition and Administrative Policy: Senior Leader Compensation and Separation.

Amended:

May 2008 - Policy converted to the new University-wide format for administrative policies. The Administrative Policies: Academic Professional and Administrative Staff Compensation, Salaries Policy for Administrative Officers, Salary Setting and Salary Support for Central or Campus-Level Administrators, and Securing Salary Offer Approval were combined into this one policy with updates based on current practice.

Adopted:

October 1992 - Approved by the Academic Staff Advisory Committee (ASAC) on October 12, 1992.

Effective:

October 1992