Printed on: 10/15/2018. Please go to http://policy.umn.edu for the most current version of the Policy or related document.
Procedure

Determining Salaries for Academic Professional and Administrative Employees

Administrative Procedure

Initial Salary Setting

The initial salary for an academic professional and administrative (P&A) employee is negotiated at the time of hire. Typical factors considered include relevant credentials, strength of expertise, experience, and competitiveness of the discipline or field in the marketplace. In addition to complying with the established salary floor for the position at the time of hire, hiring authorities are expected to consider internal and external market data in determining the initial salary. They are also expected to comply with approval signatures required by the appropriate responsible administrator before a salary offer can be finalized.

Initial salary setting for administrative officers who also hold tenured faculty appointments or continuous academic professional appointments require documentation of a bifurcated salary. At the time of hire into the senior administrative position, the individual’s respective tenured faculty or continuous professional appointment salary must be established as a portion of the initial salary provided. This will serve as the “on paper” initiation of this salary which will be increased annually at the average increase to base of the person’s same-ranked collegiate peers. This “on paper” salary is considered the salary floor for the individual returning to their tenured faculty or continuous academic professional position at some time in the future and thus may be negotiated higher.

Annual Increases

The assessed meritorious performance of duties and responsibilities associated with the position and performed by the position holder serves as the basis of merit-based salary increases or rewards. Unsatisfactory performance, documented and communicated to the employee, 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 Vice President for Human Resources, outlines the principles and strategies for annual merit-based salary adjustments. The plan specifies the minimum percentage of the unit’s (i.e., college, campus, or administrative unit) salary pool that is used for awarding merit-based recurring increases to base salaries or giving one time (lump sum) performance awards, in any given year.

Documentation of the unit’s process for the annual review of performance of each P&A employee must be in writing and available to every employee to whom it applies. Initial development of, and/or modifications to, the standards, criteria, and procedures used in performance reviews and merit pay decisions should involve the input of P&A employees within the unit. This documentation should also be made available to new P&A employees during the hiring process.

The process for making annual merit-based salary decisions must assure that the responsible administrators/supervisors meet with P&A employees to review the past year’s performance in accordance with the Administrative Policy: Performance Reviews for Academic Professional and Administrative Employees.

Increases to Base Salary

Augmentations
Augmentations are temporary increases to an employee’s salary during the time when the individual assumes administrative responsibilities. A number of administrative appointments carry a negotiated administrative augmentation of the individual’s base salary for the designated term of the administrative appointment (e.g., A-term, B-term). This augmentation relates to the administrative position and not to the individual. Thus, as the administrative position is relinquished, 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 are related to the term of the administrative appointment. In the event that the administrative position is relinquished, 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 administrative post has been relinquished and the augmentation discontinued, the fringe benefits related to the augmentation are discontinued, as well.

Other reasons for increases
Reasons for increases outside of the awarding of annual performance-based merit pay and augmentations include promotions, market adjustments, internal equity adjustments, retention adjustments, lump sum payments, incentive pay, and special awards and recognitions.

  • Promotions involve a change from one classification to another classification that is at a higher level either within or outside of a formal promotional series. Generally an increase in pay is given.
  • Market adjustments refer to a salary adjustment that brings an individual to approximate market values, or targeted market percentage.
  • Internal equity adjustments refer to salary adjustments addressing documented inequities that bring an individual into an equitable pay relationship with others in the work unit. Review of performance, as well as credentials of current employees are considerations in making pay decisions.
  • Retention adjustments are salary increases awarded to counter a bona fide documented employment offer from outside the University.
  • Lump sum payments are a non-recurring payment consisting of a single sum of money awarded to the employee in recognition of meritorious performance.
  • Incentive pay is designed to reward the accomplishment of specific results. This form of compensation is usually tied to expected results identified at the beginning of the performance cycle.
  • Special financial rewards and recognitions are awarded to employees for outstanding contributions.

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