Salary Administration Policy

Human Resources Policy HR 81 05

A. Purpose: To define a salary administration plan that establishes salary increase adjustment goals and identifies funding priorities.

B. Scope: Employees subject to the State Personnel Act (SPA) with permanent, time-limited permanent, or trainee appointments.

C. Policy: It is the policy of The University of North Carolina at Pembroke (UNCP) to grant salary adjustments to SPA employees, regardless of age, disability, national origin, race, religion, or gender, in a fair and consistent manner. A salary adjustment is a change in an employee's salary within the current salary range based on a state mandated salary range revision, special entry rate adjustment, in-range adjustment or career progression salary adjustment and within a higher salary range based on a promotion, reclassification or career band salary adjustment. The salary administration policy may be adjusted once salary reserve and budget strategies have been identified by executive officers.

D. Responsibilities

The Chancellor and Vice Chancellors are responsible for determining overall priorities concerning all salary administration programs and assuring that these programs are conducted in a fair and consistent manner.

Financial Managers (FM), in consultation with Human Resources, are responsible for communicating the salary administration plan to employees by ensuring employees attendance at related HR training, determine the best approach to recognize permanent significant job change, resolve bona fide inequitable salary relationships, identify appropriate role competencies and consistently apply pay factors as defined in the Career Banding policy, or respond to unique labor market conditions for equitable determination of employee salary recommendations.

The Director of Human Resources/EEO/AA Officer is responsible to ensure that the program is administered on a non-discriminatory basis and all necessary components are in place for an effective program.

Human Resources is responsible for administering the salary administration policy in conjunction with other related HR policies, providing consultation and oversight of all program areas including communication, employee and manager training, and program evaluation. Salary Administration training is part of the required “core” training program for staff development.

E. Salary Administration Priorities & Funding

1. assures that funds are being expended wisely,
2. confirms that increase amounts are consistent across the organization,
3. establishes a procedure for updating and revising the plan in response to changing budgetary and organizational priorities.

The priority ranking listed below will guide the implementation of salary adjustment options:

1. State mandated salary range revisions
2. Promotional increases
3. New hire salaries
4. Reclassification increases (Policy)
5. Career Band or Progression Salary Adjustments (Policy)
6. Special Entry Rates
7. In-Range Adjustments (Policy)

When an employee’s position is moved to a higher grade through a promotion, or reclassification, UNCP policy is to award a 5% salary increase for the first grade and 2 ½% for each additional grade, up to a maximum of 20% or to the minimum of the new grade whichever is greater while ensuring internal equity is maintained by occupational category.

When an employee’s position is career banded and a competency evaluation, including pay factor analysis review, indicates a career band or career progression salary adjustment is appropriate, the salary adjustment award may range from a minimum of 5% up to a maximum of 20% salary increase during a calendar year, while ensuring internal equity is maintained by job family.

Approved salary increase amounts will be effective with the first pay period following the approval date if funds are available and if there are no current performance or personal conduct issues involved. If the desired amount of increase for approved career banded salary actions is greater than 20% and/or not given on the effective date, increases, up to the full allowable amount, may be given at later dates on a current basis.

If funding required to fully implement salary adjustments exceeds the availability of salary reserves salary adjustment requests from that point forward during the fiscal year will be held until March 1. The Human Resources Director will not approve further salary adjustment actions from that point in time. As of March 1, if additional amounts have been escrowed in the salary reserves funds they will be distributed per the priority ranking defined in this policy on a first received and first funded basis. Salary increases will be awarded on a current basis on the first day of the pay period following identification of funding. Departments may elect to fund salary increases when insufficient salary reserve funds are available to award approved salary adjustment actions.

F. Procedures

The procedures to submit a salary adjustment request are defined in the related HR Policy on Career Banding, In-Range, or Reclassification.

G. Salary Adjustment Approval Authority

The Chancellor, appropriate Vice Chancellor, and Human Resources Director will exercise final institutional approval authority for salary adjustments based on documented competency structures, salary equity, job changes, journey market reference rates, or labor market conditions.

H. Review Process

Step 1: Department

The FM or the employee may initiate requests for salary adjustments based on the Career-Banding, In-Range, or Reclassification policy, as appropriate, by completing the related documents and submitting requests through the appropriate administrative channels to Human Resources together with all required documentation.

The FM makes the first determination as to forwarding an employee’s request for approval(s) and/or to Human Resources for consideration. If the FM denies the employee’s request at the department level a denial letter must be provided to the employee within 10 days of the decision. A copy of the denial letter should also be provided to Human Resources.

Step 2: Employee

Upon receipt of a denial to process an employee's request, the employee may file a written request to meet with the FM to discuss the reason(s) for the denial. Such a request must be made within 10 days of receipt of a denial letter. The purpose of the meeting may also be to discuss what direction the employee might need to take in order to improve the possibility for future salary adjustments. The FM will provide a written report to the employee and Human Resources within 10 working days following the meeting.

If the employee is not satisfied with the decision of the FM and wishes to have the action reviewed further, they may submit a written request to the Human Resources Director within 10 working days from the date the FM report is received. The purpose of the request would be to have the decision reviewed at the next level.

Step 2: Human Resources Director

If a salary adjustment request is denied by Human Resources and the applicant wishes to discuss the decision, the FM or employee may submit a written request within 10 working days from the date the notice is received to the Human Resources Director.

Upon receipt of such a request, the Human Resources Director has 15 working days to convene a meeting that may include the employee, the appropriate FM, director, and vice chancellor.
The purpose of such a meeting is to discuss the written request and reason(s) for Human Resources' decision. The Human Resources Director will provide a written report of the decision within 10 working days with all parties.

Step 3: Chancellor

Should the employee wish to pursue this matter further, they have 10 working days to request a meeting with the Chancellor. Upon review of all the information available pertaining to the matter and after meeting with the employee, the Chancellor shall render the final decision. The Chancellor will have 10 working days after the meeting to file a decision with all parties.

Any disputes resulting from salary administration actions will be tracked and independently reviewed by Human Resources and Office of State Personnel in accordance with the established process and time limits.

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