University of Minnesota  Administrative Policy

Compensation for Academic Professional and Administrative Employees

Policy Statement

This policy governs compensation for academic professional and administrative (P&A) employees with the exception of senior leaders and professionals-in-training.

Initial Salary Setting

When determining the initial salary, supervisors should consider the applicant’s years of experience and education as well as how the new employee is expected to perform relative to others. Salary ranges for job postings should be set within the established salary range or above the salary minimum for those roles with only a salary floor. Salary offers should be within the posted salary range for the position and approved by the appropriate leader within the unit who has granted authority to make salary decisions. 

When a faculty member or an employee holding a continuous academic professional appointment assumes a leadership role, the unit needs to delineate and document the portion of the new salary that applies to the faculty or continuous academic appointment and the portion associated with the leadership role. The salary identified as the faculty or continuous academic professional portion at the time of entry into the leadership appointment is the minimum rate at which the employee may be paid upon returning to the tenured faculty or continuous academic professional appointment though the rate may be negotiated higher.

Annual Increases

The annual salary program seeks to reward contributions of P&A employees. Determinations of an employee’s annual salary increases should be based on performance. Documented and communicated unsatisfactory performance may serve as the basis for withholding an annual increase to the base salary or any other forms of financial rewards linked to job performance.

The annual compensation plan memo, jointly issued from the Executive Vice President and Provost and Executive Vice President of Finance and Operations, outlines the principles and strategies for annual merit-based salary adjustments. The plan specifies the minimum percentage of the college, campus, or administrative unit’s salary pool that is used for awarding merit-based salary increases in any given year.

The standards, criteria, and procedures used in performance reviews and merit pay decisions should be communicated to the P&A employees within the unit in advance. The process for making annual merit-based salary decisions must ensure that the responsible administrators/supervisors meet with P&A employees to review the past year’s performance in accordance with the Administrative Procedure: Conducting Annual Performance Reviews of Academic Professional and Administrative Employees.

Other Changes to Salary

Changes to a P&A employee’s salary may also occur through various means, including, but not limited to: Administrative or Additional Pay Augmentations, promotions or reclassifications, indefinite continuous appointments, retention adjustments, market adjustments, incentive pay, and lump sum payments.

Administrative Augmentations

A number of administrative appointments carry a negotiated administrative augmentation of the individual’s base salary for the designated term of the administrative appointment. When the individual relinquishes the administrative position, the individual’s salary reverts to the base amount. Any salary adjustments during the term of administrative office are appropriately divided between the base and the augmentation.

All fringe benefits relate to both the base salary and the augmentation. Fringe benefits paid during the period of office in an administrative post relate to the term of the administrative appointment. In the event that the individual relinquishes the administrative position, the fringe benefits will subsequently be based on (1) the appointment and base salary then assumed by the individual and on (2) the term of that appointment. When the individual relinquishes the administrative post and the unit discontinues the augmentation, the unit will discontinue any fringe benefits related to the augmentation as well.

Additional Pay Augmentations

In some situations, an employee may be asked to assume significant additional responsibilities for a limited time subject to leader discretion and available resources. Augmentations may be warranted when an employee takes on significant additional duties that are anticipated to extend for a meaningful timeframe but have an anticipated end date. Examples include but are not limited to the following: a role has been vacated and is being refilled; a team member is on an extended leave of absence; or when a business reason requires an employee to perform significant duties at a higher level than those in their assigned classification. Supervisors should consult with their Human Resources department prior to pursuing an augmentation.

Typically augmentations have defined end dates and are used for time periods up to 12 months in duration. Supervisors should consult with their Human Resources department if an augmentation needs to extend beyond a 12-month period to determine feasibility.

Promotions

A promotion is a job change that involves movement to a position with a higher salary range within the employee’s current job family, or into a salary range in a different job family where the midpoint of that range is at least 4% higher than the midpoint of the employee’s current salary range. Generally an increase in pay is given for a promotion.

Retention Adjustments

Retention adjustments refer to salary increases awarded to counter a bona fide documented employment offer from outside the University. 

Market Adjustments

When a P&A employee’s salary is lagging the rates of others performing similar work in the external or internal labor market, a market adjustment may be considered. Market adjustments will be made contingent upon the availability of funds within the college’s or administrative unit’s budget.

Incentive Pay

Incentive pay drives specific results and outcomes in accordance with a formal incentive plan document. This form of compensation is governed closely by the University and used only in limited situations. When considering the need for an incentive program, supervisors should consult with their Human Resources department.

Lump Sum Payments

Lump sum payments refer to non-recurring payments consisting of a single sum of money awarded to an employee to recognize special achievements such as special project completion or outstanding service. When considering a lump sum payment, supervisors should consult with their Human Resources department.

Non Discrimination

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 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.

Procedures

Forms/Instructions

Appendices

Frequently Asked Questions

Contacts

SubjectContactPhoneEmail
General Information or Procedural Assistance
  • Primary: Responsible administrator/supervisor
  • Secondary: Local campus, college, or administrative unit HR administrator
  • Other (as needed): Office of Human Resources specialist or consultant
612-624-UOHR (8647); 800-756-2363[email protected]
Document ProcessingOffice of Human Resources Call Center612-624-UOHR (8647)[email protected]
Responsible Individuals
Responsible Officer Policy Owner Primary Contact
  • Vice President, Office of Human Resources
  • Senior Director - Total Rewards
  • See Contacts Table above

Definitions

Augmentations

Augmentations are provided in two different situations.

  • Academic Administrative Augmentation (AAA): Provided as a temporary increase to an employee’s salary during the time when the individual assumes administrative responsibilities.
  • Additional pay augmentation: Provided when an employee temporarily assumes responsibilities of a higher classification

Annual Base Salary

The fixed compensation paid annually to an employee for performing specific job responsibilities. It does not include variable pay or awards, such as academic administrative augmentation, faculty administrative augmentation, increments, bonuses, and regents' professorship pay.

Senior Leaders

Individuals specified as senior leaders in Board of Regents Policy: Reservation and Delegation of Authority.

Responsibilities

Unit Administration

Inform  P&A employees about the unit’s 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 the performance of the P&A employee annually , as a consideration when determining merit increases.
  • Follow processes for making other pay adjustments.

P&A Consultative Committee

Provide feedback about the process for annual performance reviews and merit adjustments to salary.

Related Information

History

Amended:

December 2025 - Comprehensive review. Combined policy and procedure language into the policy and organized for improved clarity. Removed outdated references to align with current practices.

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