June 12, 2017
Last Revision Date
All Staff. This policy does not apply to the awarding of or determination of faculty salaries, see Faculty Handbook.
To define the types of Compensation Actions and outline the University’s guidelines for administering compensation, defining the types of bonuses and extra pay allowable. All compensation and pay noted is in the employee’s paycheck and is taxable income and will be taxed in accordance with IRS regulations.
Marymount University (“University”) values its employees and strives to compensate them in a fair and equitable manner based on market and internal factors. The University adheres to the following principles when administering its compensation guidelines:
- Foster understanding of pay decisions and responsible pay practices.
- Maintain a fair and transparent process for compensation decisions.
- Recognize and reward exceptional performance based on an employee’s individual achievement and contribution to the growth and success of the University.
- Develop equitable and consistent compensation for work requiring equal skills, abilities, and responsibilities.
- Use competitive salary practices through comparison of appropriate talent markets.
- Support, reinforce, and align compensation decisions with budgetary and financial strategies along with the goal of growth and sustainability.
1.1 Acting Role
An employee temporarily assuming some responsibility or duties of a vacant position.
1.2 Base Salary
Compensation paid by the University for the duties associated with an employee’s appointment. Usually calculated on an annual basis.
1.3 External Competitiveness
Consistent pay opportunities throughout the university based on competitive market analysis.
1.4 Hourly Rate
The rate paid to non-exempt hourly employees for every hour worked.
1.5 Interim Role
An employee temporarily promoted into another position and assuming all Regular Duties of the position.
1.6 Internal Equity
Consistent position range assignments across all divisions and locations of the university.
Pay based on individual performance
1.8 One-Time Payment Plan
An action in Workday Compensation to pay an employee in one lump sum.
1.9 Pay Grade
An established range of compensation based on target markets and positions with work requiring similar knowledge, skill, and ability. Pay Grades contain target ranges designed to distinguish between differing levels of experience, individual contribution, and employee type.
1.10 Period Activity Pay
The action in Workday Compensation to pay on an ongoing basis with a begin date and an end date.
1.11 Position Description
The position description specifies the objectives, position duties, responsibilities, and specific knowledge, skills and abilities required for a position.
1.12 Regular Duties
Recognized institutional duties, commonly outlined in a job description or faculty workload statement.
2.0 Position Classification
The responsibilities and duties that appear on an employee’s position description serve as the basis for placing the job within one of the university’s compensation groups. When analyzing classifications, Human Resources analyzes the level and percent of work, decision-making, level of independence and problem solving, among other factors, to make a classification determination. Human Resources evaluates the position and recommends a title and grade.
2.1 Position (Job) Descriptions
- An updated position description is required when a request is received to consider an increase in pay.
2.3 Not Considered
- Areas not directly related to job duties do not impact the classification of a position. Examples of areas not considered in a classification decision include:
- an increase in volume of work;
- adding more of the same level of duties;
- performance issues (either good or poor);
- the skill or background level of an employee;
- temporary duties assigned such as on a fill-in basis during vacations or medical absences;
- who or what department the employee reports to, and
- pay needs of the employee, or a
- department’s budget restrictions or availability.
3.0 Base Pay Compensation
Describes how Base Salary is calculated and may be changed.
3.1 Determining Pay
- Marymount University uses a “Market Referenced” program staff compensation and classification. In a “Market Referenced” system, job content and role (i.e., body of work) of a position is compared with other jobs in the appropriate market externally.
- Pay for these jobs are compared to similar jobs in other universities, colleges, companies, locally and nationally depending on the job in which we compete for talent.
- In a market-referenced system, funding required to pay our staff employees competitively is determined and those funds are allocated across jobs in a manner that produces the best business results.
3.2 Market/Equity Adjustments
- A market/equity adjustment addresses a compensation inequity due to internal or external market impacts, and/or to correct an inequity among positions of comparable value within the University (e.g., equivalent knowledge, skill, ability, and responsibilities).
- A market/equity adjustment must not be used to compensate an employee for an increase in workload, responsibilities, longevity, or for a geographic pay differential.
- An employee must have a current performance evaluation rating of “Satisfactory” or better.
- Any request for a market/equity adjustment must include a written justification and must be reviewed and approved by Human Resources. If the adjustment is greater than twenty-five percent (25%) of the employee’s current compensation, the adjustment must be approved by the Provost, the appropriate Vice President, or the President.
3.3 Merit Increase
- A merit increase may be awarded to an employee who meets one or more of the following documented criteria:
- A current performance evaluation rating of “Satisfactory” or better.
- Contribution that is consistently above what is normally expected and required of the position. Refer to the Managing Pay within Grade Tool.
- Any request for a merit increase must include a written justification and must be reviewed and approved by Human Resources. If the requested increase is greater than twenty-five percent (25%) of the employee’s current compensation, the increase must be approved by the Provost, the appropriate Vice President, or the President.
- When an employee is performing other work without changing the job profile, this is not a Promotion.
- Examples are:
- Additional job duties that do not change the job description by more than 50%.
- Does not change the pay grade.
- Interim Appointment (5.5).
- Temporary Work Increase (5.6).
3.5 Change in Hours
- When an employee increases or decreases their hours worked, a Base Salary Change must be made for Salary Exempt employees.
- Any change must be comparable to full-time work in the same pay grade.
- After changing Base Salary, proceed to:
- Data Change > Change Job Details > Change Scheduled Weekly Hours.
- Hours cannot be greater than forty (40) or less than one (1) and must be whole numbers.
Additional compensation defined as a One-Time Payment given to an employee on top of their regular earnings. Compensation > Request One-Time Payment.
4.1 Employee Referral Program (Refer a Saint)
Current employees may receive $100.00 for referring an external candidate for a position. The following criteria must be met:
- Excludes former employees, temporary and student positions.
- The referral must be done at the time of application.
- After the referred candidate successfully completes the ninety-day (90) introductory period, $100.00 will be issued to the referring employee.
- Compensation in recognition of special or distinguished service performed for the University. Recognized activities may include a lecture or seminar, a concert, speaking engagement, or appraisal of a manuscript for professional publication.
- Payment of an honorarium may not be made for the following:
- Independent consultant services;
- Independent contractor services;
- Performing research or other work that is considered regular duties of an employee; or
- Human subject research participants.
4.3 Incentive Pay
Incentive pay is compensation provided to an employee for meeting certain performance goals which is outlined in the employee’s offer of employment.
4.4 Performance Bonus
- A performance bonus is a lump sum which may be awarded to an employee for exemplary performance.
- Any request must include a written justification and must be reviewed and approved by Human Resources.
- The employee must have a current performance evaluation rating with an overall rating of “Satisfactory” or better.
- Human Resources may authorize multiple performance bonuses for the same employee during the course of a fiscal year. The maximum total amount any employee may be awarded per fiscal year is $2,000 or up to 3% or the employee’s Base Salary.
4.5 Recruitment Bonus
- For a position that a supervisor, in consultation with Human Resources, determines to be critical or difficult-to-fill, the supervisor may negotiate a lump-sum recruitment bonus with a Final Candidate.
- Prior to negotiating a recruitment bonus, the supervisor must submit a written document supporting the recruitment bonus request to the appropriate Vice President for review.
- The Final Candidate must agree to and sign a Recruitment Bonus Memorandum of Agreement prior to, or in conjunction with, a conditional offer of employment being extended. The Recruitment Bonus Memorandum of Agreement is available on the Human Resources website.
- The Recruitment Bonus Memorandum of Agreement includes the following:
- If the employee voluntarily leaves within the first year of employment, the bonus will need to be repaid and collected with their final paycheck. A prorated amount will be calculated for repayment.
- A statement that the University reserves the right to pursue all legal remedies to recoup all or part of the recruitment bonus in the event an employee voluntarily leaves prior to one year from date of hire.
- Employees must generally be new hires to be eligible for a recruitment bonus; however, an exception may be made if approved by the President or appropriate Vice President for hard to fill staff positions.
- Only one recruitment bonus may be paid to an employee.
- The maximum recruitment bonus amount allowed is 5% of base salary.
4.6 Relocation Funds
- Relocation funds are sometimes offered to faculty and administrative final candidates to help defray the cost of moving to the area.
- The amount shall be established as part of the employment negotiation process. The maximum aggregate relocation funds shall not exceed 10% of the employee’s base salary. Under extraordinary circumstances, an amount in excess of $15,000 may be allowed. Requests to negotiate or commit relocation funds in excess of $15,000 must first be approved by the Vice President for Finance and Operations prior to making the offer.
- The Final Candidate must agree to and sign a Relocation Funds Memorandum of Agreement prior to, or in conjunction with, a conditional offer of employment being extended. The Relocation Funds Memorandum of Agreement is available on the Human Resources website.
- The Relocation Funds Memorandum of Agreement includes the following:
- If the employee voluntarily leaves within the first year of employment, the relocation amount will need to be repaid and collected with their final paycheck. A prorated amount will be calculated for repayment.
- A statement that the University reserves the right to pursue all legal remedies to recoup all or part of the relocation funds in the event an employee voluntarily leaves prior to one year from date of hire.
- Employees must generally be new hires to be eligible for relocation funds; however, an exception may be made if approved by the President or appropriate Vice President.
4.7 Retention Bonus
- To retain an employee in a position designated as critical or difficult-to-fill, a supervisor may negotiate with an employee for a lump-sum bonus.
- To be eligible to receive a retention bonus, an employee must have at least six (6) months of satisfactory performance.
- Prior to negotiating a retention bonus, the supervisor must submit a written document supporting the retention bonus request to the appropriate Vice President for review.
- The employee must agree to and sign a Retention Bonus Memorandum of Agreement. The Retention Bonus Memorandum of Agreement is available on the Human Resources website.
- The Retention Bonus Memorandum of Agreement must include the following:
- The details outline the amount of the retention bonus and the agreed-upon length of time (a minimum of six months) that the employee will continue employment after receipt of the bonus.
- Verbiage outlining how the bonus will be repaid and collected if the employee voluntarily leaves during the designated period of time after receipt of the bonus.
- A statement that the University reserves the right to pursue all legal remedies to recoup all or part of the retention bonus in the event an employee voluntarily leaves prior to the agreed-upon date. Remedies include, but are not limited to deducting the bonus amount from an employee’s accrued vacation/annual leave funds.
- Only one retention bonus per fiscal year may be paid to an employee.
- The maximum amount for a retention bonus is $5,000.
5.0 Additional/Extra Compensation for Current Employees
Additional Pay or Extra Pay, is compensation paid to an employee that is above or beyond their base hourly rate or salary and is not considered a Bonus.
5.1 One-Time Extra Pay
5.1.1 Additional Duties. An employee asked to perform activities not directly related to their Regular Duties, for a fixed period of time. Pay is in addition to the employee’s base salary or hourly rate, and can be spread over multiple pay periods or a one-time payment. Paid as Period Activity Pay or One-Time Payment Plan in Workday.
- Non-exempt, hourly employees are not eligible for Additional Duties Extra Pay, they may receive overtime pay for extra work performed subject to the provisions of the Fair Labor Standards Act (FLSA).
5.1.2 Contract / Agreement Pay Out. Used for a payout for a separating employee, must have written documentation included in request. Paid as One-Time Payment Plan in Workday.
5.2 Cell Phone Allowance
Employees whose job duties include the frequent need of a cell phone or data device may receive a taxable allowance to cover business-related costs. Paid as a Cell Phone Allowance compensation change in Workday. See Cell Phone Policy.
5.4 Faculty Overload
A Faculty member may receive additional pay for work above and beyond Regular Duties, including those who participate in Dual Enrollment or Summer Courses. Paid as Period Activity Pay in Workday.
5.5 Interim Appointments
- An employee serving in an interim appointment should generally receive an increase to their base salary rate. If an increase is given, the interim rate should not exceed 95% of the rate of the person holding the position immediately before the need for an interim appointment. The interim rate increase should be based on the employee’s experience, expertise, and unique skills related to fulfilling the duties of the interim appointment.
- Compensation for the employee will revert to the rate of pay received in the position held before the interim appointment (plus any subsequent approved rate adjustments for which the employee would have been eligible).
- Compensation Change > Base Salary Change > Reclassification.
5.6 Temporary Work Increase
- A temporary work increase is a short-term, non-permanent increase to an employee’s Base Salary or Hourly Rate and may be granted to recognize and compensate an employee for short-term work assignments. May be known as taking on additional duties in an Acting Role capacity for a vacant role.
- A temporary work increase cannot be given in lieu of a performance bonus. The following conditions apply to all temporary work increases:
- Temporary work increases cannot be made retroactively.
- An employee receiving a temporary work increase must acknowledge in writing that the increase is temporary and their salary will be returned to the previous rate of pay at the completion of the temporary work increase period.
- Any permanent merit increase awarded while the employee is receiving a temporary work increase will be calculated and applied to the employee’s base rate of pay without consideration of the temporary work increase.
- A temporary work increase must be awarded for at least two (2) full pay periods and generally for no more than six (6) months, or thirteen (13) pay periods in duration.
- A Temporary Work Increase form must be signed by the employee and the supervisor and submitted to Human Resources prior to the effective date of the increase. The Temporary Work Increase form is available on the Human Resources website.
- Compensation Change > Base Salary Change > Reclassification.
- An employee who separates from employment while receiving a temporary work increase will be paid the temporary pay rate through their separation date. Any accumulated leave payout (unused vacation/annual leave, if eligible) will be paid at the employee’s regular pay rate.
6.0 Other Policies to Refer To
Holiday Pay – Leaves & Absence Policy
Wages & Hours Policy