Determining Compensation

The responsibilities, skill requirements and market data for a job determine the assigned pay range. An individual's knowledge, skills, experience and performance inform the position within the range.

The illustration below demonstrates how pay should be managed within a pay range. All pay actions should consider these principles to ensure competitive and equitable pay across the university.

Managing Within Pay Ranges

Pay within the pay range is divided into quartiles, representing an employee’s career progression. The following tables provide the framework for how the assessment of knowledge, skills, experience and performance results in a recommended base salary. All pay decisions should consider this framework when administering competitive and equitable pay across the university.

Pay ranges may be considered to be minimum, midpoint or maximum, depending on the quartile they’re associated with:

• Minimum pay range: the entire first quartile and approximately half of the second quartile
• Midpoint pay range: the rest of the second quartile and approximately half of the third quartile
• Maximum pay range: the rest of the third quartile and the entire fourth quartile

Expectations of Individuals

First Quartile	Second Quartile	Third Quartile	Fourth Quartile
Entry-Level. This is the typical scope for entry-level workers. Individuals are expected to have on the job training and a learning curve.	Developing. In this scope, individuals demonstrate experience in most job responsibilities but are still developing skills needed for the role.	Experienced. Typically, not the scope for starting salaries. Individuals demonstrate clear understanding and have significant, direct job experience.	Mastery & Mentor. Rarely the starting scope for salary. Individuals demonstrate mastery of their discipline and can mentor less seasoned individuals.

Individual Characteristics

First Quartile	Second Quartile	Third Quartile	Fourth Quartile
Meets minimum qualifications of the job, however, may be new to the position or discipline.  Developing and learning the skills and knowledge to fully accomplish the requirements of the position. Demonstrates a strong commitment to the position and is working towards proficiency in all duties and responsibilities.	Possesses most of the knowledge and skill requirements for the position.  May need to develop further to demonstrate expertise in subject matter. Performs job responsibilities with increasing effectiveness.  Requires development in some aspects of the job.  Developing expertise to handle more complexity of the role and to work more independently.	Demonstrates significant, relevant experience and is versed in all knowledge and skills required for the position. Seasoned and proficient.  Consistently exhibits high-level of acumen in all aspects of the position and can work independently. Broad and deep subject-matter knowledge.  Demonstrates understanding of how position impacts related areas as well.	Has mastered all aspects of the position criteria.  Depth and scope of the experience is significant; individual demonstrates specialized skills that add value to the organization. Resource and mentor to less seasoned employees in the same classification.  Demonstrates exceptional expertise and contributes at high levels to the organization.

Additional Considerations

Below are additional criteria that should be considered when establishing placement within a range:

• Internal equity: Employees in similar roles or classifications within the department, college or division and across the university are considered to ensure pay equity.
• Equity/market: When comparing an employee’s placement in the range, determine if it appropriately reflects their education, experience, knowledge, skills, time on the job and performance.
• Knowledge/experience: For a new hire/promotion, consider an employee’s knowledge and skills as they relate to the market and not their current position. Years of experience in the field should also be considered.

Offers Above the Target Range

Offers made within the range can be made without justification. Offers above the target range must be reviewed and approved. Consult with Human Resource Services when considering an offer above the midpoint.

Most recruitments for new hires/promotions are written for the first or second quartile. Therefore, the target salary is established within those ranges. When hiring managers consider offers for employment or potential promotions and they recognize attributes that exceed the second quartile, they should consult with HRS to assess if a higher offer range is permissible and within the financial abilities of their unit.