Classified Compensation Administration

Georgia Tech strives to ensure that compensation decisions are made as objectively as possible without consideration of a person’s race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age, disability or genetic information. Our compensation system will be supported by reliable market data, internal equity reviews, and performance evaluations. Implementation of policies and procedures pertaining to payment of salaries is contingent upon funds being available.

AVP-HR
Responsible for design and oversight of all Human Resources programs, including compensation. Ensure all hiring managers are aware of the policy. Provide guidance management on appropriate application of the policy. Ensure that an appropriate process or institutional level policy is in place to facilitate fair and equitable evaluations of requests to extend offers above the minimum of a salary range. Ensure requests are properly evaluated and administered in accordance with policy and applicable federal and state laws. Ensure appropriate documentation is maintained when necessary.

Georgia Tech Human Resources (GTHR) Compensation Department
GTHR’s Compensation team provides consultation services regarding interpretation and use of market data, compensation program design, and salary/equity studies. To ensure consistency of application, only market data reviewed and incorporated into GTHR databases will be used in making market determinations.

Responsible for monitoring consistent application and interpretation of compensation policy and procedures covering staff positions.  The Office of Human Resources will conduct an independent analysis of salary survey data, internal equity considerations, recruitment, retention, and turnover statistics; and compile and analyze any additional information considered beneficial in determining whether there is sufficient justification for approval of the request.

1. Application of the job evaluation system in determining value of each staff position in the organization relative to all other staff positions;
2. Developing, recommending, and revising structures and ranges to adapt to markets where Georgia Tech competes for talent;
3. Monitoring and reporting on external markets relative to internal compensation practices;
4. Maintaining job titles, job descriptions, and job families in alignment with GT career and pay philosophy;
5. Providing management with guidelines regarding the administration of compensation at the department/school level, and;
6. Ensuring compliance with Federal, State and local regulations.

Departmental Human Resources Representatives
Responsible for local administration of this policy within unit(s) supported.

Supervisors and Managers
Responsible for implementing and supporting the Institute’s compensation program and policy. Supervisors/managers are responsible for the following:

1. Differentiating levels of performance demonstrated by employees, and recognizing differences through performance evaluations.
2. Maintaining accurate, up-to-date documentation on employee performance to support the performance review cycle and possible merit increases.
3. Communicating the following information to their subordinate employees:

• The performance management process,
• The relationship of performance to pay,
• Salary potential for the employee’s position,
• Eligibility to receive overtime payments based on exempt or non-exempt status under the FLSA designation determined by job evaluation,
• Job descriptions and the employee’s strategic objectives supporting the organization.

General Considerations for All Pay Actions
Salary and wage adjustments will generally be awarded to employees at the Institute upon promotion to a higher level position, upon reclassification to a higher level position, when an equity or administrative adjustment is deemed necessary, and on an annual basis provided performance warrants the adjustment. The annual increase will be in the form of a merit increase and developed in conjunction with the budget development process. Equity adjustments may also be developed in conjunction with the budget development process. All adjustments are contingent upon available funding.

For all pay and grade transactions, the local Human Resources representative and department manager will collaborate to develop an appropriate salary recommendation within the new grade, based on factors such as an employee's skill, knowledge, experience, and performance, criticality of the role, budget, and market data. GTHR Compensation will work with the local Human Resources representative and department to facilitate a pay action reflective of other employees in the unit, as well as across campus for similarly classified jobs.  The effective dates of the pay action will be aligned with a future pay period begin date corresponding with the individuals pay frequency.

All market adjustments and equity adjustments are subject to Georgia Tech Human Resources approval as well as budget constraints. Additional guidelines are available for hiring managers to assist in determining the appropriate pay for employees within the market reference ranges. Collaboration with Human Resource Business Partners and Compensation Team is recommended when establishing pay.

Maximum Salary Administration
Each year, the University System Office of Fiscal Affairs issues a salary administration statement that provides guidelines for awarding salary increases for that fiscal year.  Salary increases which result in a cumulative fiscal year adjustment equal to or exceeding ten percent above the USG’s annual salary and wage guidance percentage, and do not require the Chancellor’s approval, must be approved by the President or his/her designee.

Cumulative fiscal year adjustments include all pay actions such as merit adjustments, promotions, position reclassification, counter-offers, in-range adjustments, temporary pay.

USG employees shall be paid exclusively by the USG institution(s) from state appropriations and/or other appropriate fund sources held by the institution for work performed on behalf of their USG position.

Incentive Programs
The Institution may establish incentive compensation programs consistent with state law, Board Policy, and applicable procedures, however, institutional incentive compensation programs must be reviewed and approved by the USG Offices of Fiscal Affairs and Georgia Tech Human Resources.

Starting Pay
To ensure internal equity, starting salaries for external hires are determined based on the applicant’s prior experience, skills or education directly related to the position. 

For starting pay purposes, external hires includes transfers from other USG schools.  Temporary and student workers transitioning to a regular staff or faculty role will be subject to salary increase administration rules for current employees.

Starting pay must not be communicated to the candidate prior to gaining required approvals.

New employees must start at no less than the minimum of the salary range for the position into which they have been hired.

Starting pay that is above the midpoint of the salary range must gain prior approval from GT Human Resources. 

Job Evaluations
Georgia Tech Human Resources determines market rate, pay grade, title, and exemption status for each job by conducting a job evaluation. A job evaluation determines the level of a new or existing job and may be requested by a unit manager/supervisor and Human Resources representative when circumstances warrant.

Refer to the Compensation Section of the GTHR website for the process related to job evaluations:
http://www.ohr.gatech.edu/compensation

When a Human Resources representative and manager agree a job evaluation is warranted, they must complete a job (re)evaluation request form (Job Evaluation Tool) and obtain necessary departmental and budget approvals. The request is forwarded to the GTHR Compensation team for review.

The salary change tool helps management think through how to appropriately set an employee’s salary taking into account various criteria. After plotting each of the criteria, a pattern will develop which pattern will help in developing an appropriate increase recommendation.

Salary and Career Growth Opportunities
The compensation program is designed to reward staff members for developing skills and competencies in their current jobs. It also supports career development by giving a staff member the opportunity to move into a different job within a career path.

Many who join the Institute enjoy long and successful careers. The staff compensation program helps to make this possible by providing opportunities including the following:

• Salary growth—rewarding staff monetarily for significant contributions and increased skills/competencies while working in their current job—based on changes related to the individual
• Career growth—recognizing and promoting staff for meaningful or significant job changes with increasing job responsibilities—based on changes related to the job

Promotion
A promotion is the shift of an employee from one job title or position to another having an increased level of responsibilities associated with a different pay grade with a higher minimum rate of pay. To be promoted, the employee must meet the minimum job qualifications or minimum hiring standards required by the new job title.

Departments will adhere to the Maximum Salary Administration guideline.

Definitions

• Promotion: A shift of an employee from one role to another having an increased level of responsibility associated with a higher pay grade or if across salary structures, associated with a range with at least a 10% higher minimum rate of pay.
• Minimum Hiring Standard: The minimum threshold of education and experience required to perform a given job.
• Reclassification: A change in a role that results in the employee and/or position being assigned to a different job title and job code. For the purposes of this policy, a reclassification that results in the employee being assigned to a classification level that is assigned to a higher pay grade or if across salary structures, assigned to a range with at least a 10% higher minimum than the former role is considered a promotion.
• Reorganization: The restructuring of an organizational unit, which may result in one or more of the following:  addition or elimination of responsibilities that impact the structure and scope of the unit, change(s) in reporting relationships within the unit that impact occupied positions, a significant increase in the number of positions, or a reduction in force. As part of a reorganization, a result may be a position assumes additional responsibilities such that the position is reclassified to a higher level or movement of an employee to a higher level position in accordance with reorganization plan.

Promotional Increases
When an employee is promoted or reclassified to a position in a higher classification, the employee will normally be awarded a promotional/reclassification increase. Determinations of the actual increase should consider relevant factors such as internal pay relationships and the individual’s qualifications and experience for the position. Promotional and reclassification increases are subject to availability of funding.

Each employee situation is unique, so it is important to consider multiple factors when making pay decisions related to promotions. The Human Resources representative and department manager will collaborate to develop an appropriate salary recommendation within the new grade, based on factors such as an employee's skill, knowledge, experience, performance, criticality of the role, budget, and market data. Not all promotions will result in a pay increase. Promotions may come in the form of reclassification, reorganization, or through competitive recruitment.

Departments will adhere to the Maximum Salary Administration guideline.

Promotional increases above 9.9% percent, or the minimum of the new pay range, will require additional justification and review and approval by HR.

Increases will be capped at the pay range maximum and are subject to management review and approval, department budget and Human Resources.

Newly promoted or hired employees are generally ineligible for a subsequent promotion or a lateral move (unless within their own unit) until completion of one year of continuous service in that position. Newly promoted individuals’ salaries should align within Tier 1 of their corresponding salary structure.

Exceptions to this policy are as follows:

1. The individual’s current work is to be curtailed.
2. All available employees with at least one year of service have been considered and rejected for the position.
3. Situations in which the unit leadership of two groups mutually agree to a transition to the benefit of the Institute.

Equity and Market-Based Salary Adjustments
Market Adjustment – Market adjustments are salary adjustments for an employee or group of employees that have fallen behind in base salary as compared to similar positions on campus and/or in the market. Market adjustments do not occur in conjunction with a change in title, grade, or FLSA status. Rationales for considering an equity adjustment are:

• Consideration of a more appropriate alignment between the salaries of similarly situated employees performing work at the same family, sub-family, career stream and career level, with similar levels of experience, background, and performance. OR:
• Consideration of a more appropriate alignment between the salaries of a supervisor and their direct reports. OR:   
• Consideration of a more appropriate relationship between the salaries of existing employees and the relevant market. Any adjustment that is given to bring employees in line with the external market is subject to internal equity. Adjustments will not be made if differences are explainable based on qualifications, type or length of experience (both internal and external to the Institute), the work itself, and/or performance and productivity.

All market adjustments are subject to Human Resources approval as well as budget constraints. Additional guidelines are available for hiring managers to assist in determining the appropriate pay for employees within the market reference ranges. Collaboration with Human Resource Business Partners and Compensation Team is recommended when establishing hiring pay.When this occurs, engage a GTHR Compensation Consultant for guidance.

Departments will adhere to the Maximum Salary Administration guideline.The recommended salary is subject to HR review. Official Institution sanctioned salary survey data and the employee’s personnel record, experience and credentials will be evaluated.

Increases will be capped at the pay range maximum and are subject to management review and approval, department budget and Human Resources.

Administrative Adjustments
In order to correct an administrative oversight, and subject to funding availability, the Director of Human Resources or his/her designee may approve a corrective adjustment to an employee’s rate of pay.

Retention
Internal:
Employees may seek employment offers within the Institute. The Institute discourages employees from seeking employment offers with the specific goal of obtaining a counteroffer from the Institute. Counteroffers from Georgia Tech should be rare and unusual, and in all cases, will require approval of the Vice Provost, Vice President, Dean, similar level title, or higher (depending upon circumstance) and the AVP of Human Resources or designee.

• If approved, the employee's current department may make a counteroffer up to the hiring department's salary offer for a similar level role, with prior approval at the organization level.
• Neither the employee's current department nor the hiring department can offer more than the hiring department's original salary offer. The employee then determines if they want to accept the hiring department's offer or accept the counteroffer to remain in current position and department.

External:

• Current department is provided a signed offer letter or e-mail from an authorized representative of the competing external employer.
• Employee’s current organization and department determine if a counteroffer will be made.
• Approvals will follow the salary approval matrix.
• No counteroffer may exceed the amount of the external offer.
• The department can negotiate with the individual, offering up to amount approved by GTHR.
• Employee determines if they want to accept external offer or internal counteroffer.
• If external offer changes, the same process for approval of salary rate (described above) will still apply.

Departments will adhere to the Maximum Salary Administration guideline.

Temporary Pay and Interim Appointments
The Institute recognizes the need to assign additional responsibilities of another position to an employee on a temporary basis and to make interim appointments. Reassignments as described in this policy shall normally be for no less than one month and no more than twelve months and shall only occur when the responsibilities being undertaken by the employee are those of another position that is vacant or because of temporary sufficient change in the duties and responsibilities of a filled position.

Interim appointees are accountable for effective performance of the full scope of a leadership interim role identified by their manager at the time of the appointment. The interim assignment includes moving to a new title and position.  When filling a role in this manner, the date exiting the interim assignment is to be determined at the onset of appointment and entered into the HR system via PSF by the local Human Resources representative. At the end of assignment, the unit may elect to remove the interim status of the individual and replace with another sourced candidate.  If the employee is chosen through the recruiting process for the role on an on-going basis, transitioning from interim status requires removing the interim increase and then processing a promotional increase.  If such a transition should occur, a GTHR Compensation Consultant should be engaged for guidance. If a non-exempt employee is chosen for an exempt interim assignment, we will not change their pay frequency or exemption status for the best outcome for the employee. We will use temporary pay instead of interim assignment in this instance.

A temporary pay increase does not include a change in position or title and may be made when a significant change in duties and responsibilities occurs. Such pay increases may only be made if funding is available. The pay increase should be consistent with additional responsibilities assigned and with institutional salary guidelines; and should be approved by GTHR.

Temporary pay increases will require justification and review and approval by HR.

Department managers/supervisors initiating temporary duties or an interim appointment in their area of responsibility must submit a written proposal to the local Human Resources representative explaining the reason for the additional duties or appointment, the expected duration, resources required, method for evaluating successful performance, and criteria for selecting the employee.

Departments will adhere to the Maximum Salary Administration guideline.

• Duration of reassignments as described in this policy shall normally be for no less than one month and no more than 12 months.
• Reassignment shall only occur when responsibilities undertaken by the employee are those of another position that is vacant or because of temporary, sufficient change in the duties and responsibilities of a filled position.
• A temporary pay increase may be made when a significant change in duties and responsibilities occurs. Such pay increases may only be made if funding is available.
• The pay increase should be consistent with additional responsibilities assigned and Institute salary guidelines.
• The pay increase should generally be at least the minimum of the salary range for the position for which the interim appointment is made.
• The former rate of pay will be re-assigned when the interim appointment or temporary duties are completed.

Demotions
On occasion, an employee may be reassigned to a position in a lower grade. Demotions can occur for several reasons, but typically fall into two categories: voluntary or involuntary. A demotion may also occur for developmental reasons (e.g., gaining experience in another area), or can be as a result of performance in the current job.

Voluntary:
If the downgrade is voluntary (e.g., bidding on a lower level job), and the employee’s current salary is within the new salary range, no change is necessary. If the current salary of an employee bidding on the job is above the new salary range maximum, their salary will be decreased to no more than the maximum salary rate for the new job on the effective date of the new job. Regardless of where the individual is in the new salary range, responsibilities, internal equity, and budgetary considerations will be considered and may result in a salary placed lower in the new salary range. No pay increases are allowed with a demotion.

Involuntary:
Performance-related demotions occur when employees demonstrate inability to perform their existing job duties at an acceptable level, and management determines the employee’s skills may be more effectively used in a lower level job. On such occasions, if the employee’s salary is above the salary range, the salary shall immediately be reduced to a level within the salary range of the new grade. Additionally, responsibilities, internal equity, and budgetary considerations will be considered and may result in a salary placed lower in the new salary range for any demotion. No pay increases are allowed with a demotion. Engage a GTHR Compensation consultant for guidance for demotions

Same Structure Demotions: A demotion within a structure is a movement to a lower grade within the structure, (e.g., A6 to A4).

Demotions between structures: When a demotion results in movement between salary structures (e.g., A7-I2), a decrease may be necessary to align pay within the new grade. When this occurs, engage a GTHR Compensation consultant for guidance.

Salary will be capped at the pay range maximum and are subject to management review and approval, department budget and Human Resources.

Reorganizations and Job Reclassifications
Involuntary downgrades can also occur when a job is reassigned to a new grade due to reorganization or restructuring. The individual's salary may initially remain the same, but will be managed to the new grade salary range of the new job within a period of 1 year. Responsibilities, internal equity, and budgetary considerations will be considered and may result in a salary placed lower in the new salary range. No pay increases are allowed with a demotion.

The local Human Resources representative and department manager will collaborate to develop an appropriate salary recommendation within the new grade based on factors such as: an employee's skill, knowledge, experience, and performance, criticality of the role, budget, and market data. The salary change tool outlines these factors and is to be used to formulate a recommendation.

Transfers
The Institute supports an environment that values the pursuit of career mobility and encourages employees who express an interest, and have the abilities, to pursue appropriate vacancies to foster their career development. To that end, employees’ efforts to transfer from one position to another will be supported.

Transferring to another position is an opportunity for an employee to expand their depth of knowledge and increase their career development opportunities. Individuals asked to transfer for career development or business need purposes may be eligible for an increase.

An employee may apply for a posted position in another department, at another University System of Georgia (USG) institution, at the USG office, or be identified for transfer when appropriate. Institutions shall have the discretion to transfer an employee when deemed appropriate.

The employee will normally be awarded a promotional/reclassification increase when promoted or reclassified to a higher classification subject to the availability of funds. Considerations may be provided to remedy salary issues such as external market salary pressure in high demand skills, internal equity or salary compression, and/or countering an external offer.

Justification must accompany a department’s request for such adjustments, including specific outside salary offers in cases of retention, or a specific analysis of salary relationships in cases of correcting salary inequities.The increase request should consider relevant factors such as internal pay relationships and the individual’s qualifications and experience.

The recommended salary is subject to HR review. Official Institution sanctioned salary survey data and the employee’s personnel record, experience and credentials will be evaluated.

Increases will be capped at the pay range maximum and are subject to management review and approval, department budget and Human Resources.

For the purposes of this policy, there shall be two types of transfers as follows:

Internal Transfer 
The shift of an employee from one position to another within the same institution.  For internal transfers to a position of the same grade or similar grade level across structures. 

External Transfer
The movement of an employee from a position at one institution within USG to a position at another USG institution or to or from the University System Office is an external transfer. Since institutional compensation practices may differ due to market conditions, the transfer may be to a position at a different pay range.  For compensation purposes, the external transfer is considered an external hire. For benefits, vacation and sick accruals, see employment policies.

Merit Adjustments
Each year, the University System of Georgia’s Office of Fiscal Affairs issues a salary administration statement providing guidelines for awarding possible salary increases for that fiscal year. Merit is contingent upon available funding. Merit increases are typically authorized at the beginning of a fiscal year and are subject to salary limitations and guidelines established each fiscal year. Annual salary increases are merit-based, reflecting each employee’s performance as evaluated by their supervisor. Merit increases will generally be distributed on a percentage basis around the average percentage increase as provided for by state appropriations. Merit salary increases that exceed the range established by the salary administration statement must be documented on an individual basis and must be approved according to the guidelines for that year’s merit process.

The Institute’s compensation programs are designed to recognize and reward staff members based on individual performance. Most salary actions, including merit increases, salary adjustments and position reviews, will typically occur on a coordinated basis during the annual Salary and Performance Management Review Process. Funds available for merit increases vary from year to year depending upon budgetary considerations, salaries paid in the identified marketplace, and economic conditions.

The Institute develops merit increase guidelines which establish ranges for individual increases based on several factors:

• Individual performance during the most recently completed calendar year
• Individual’s current salary compared to the salary range for the job or place in range (PIR)
• Consideration of salaries and qualifications of peers in comparable positions

Available Budget
Merit increases are normally awarded on an annual basis during the Salary and Performance Management Review Process. Merit increases are recommended by supervisors based on their evaluation of performance and other salary considerations.

Staff members hired within the 6 months prior to the merit effective date will normally not receive a merit increase that year.

Increases will be capped at the pay range maximum and are subject to management review and approval, department budget and Human Resources.

Timing of Pay Adjustments
Retroactive pay adjustments impose significant risk and costs within the Institute and University System of Georgia Health Care System in terms of money, employee relations and administrative time. Therefore; the following types of transactions are not permitted:

• Retroactive adjustments to hourly or monthly rates of pay
• Retroactive effective date changes for position reclassification
• Retroactive transfers of employees between positions or departments
• Retroactive transfers of employees between the faculty/staff and biweekly payrolls as well as the faculty/staff and non-compensatory payrolls 

It is imperative that no commitments regarding the effective date for pay adjustments be made to employees until written authorization is received from the appropriate budgetary and human resource offices. All appropriate paperwork should be completed and processed in advance of the effective hire or status change date.  In all cases, the required adjustment should be effective with the beginning of the next pay period after written authorization has been received. Retroactive adjustments in funding sources (which do not impact pay rates or classifications) are not impacted by this change.

Rare exceptions to policy will be handled on an individual basis, and will require the approval of GTHR.  Approved pay adjustments of this rare occurrence type will be made in the following on-cycle pay period. 

Advanced Salary Increase Requests
Institutions may adjust employee compensation as a result of multiple factors to include merit adjustments, promotions, position reclassification, counter-offers, in-range adjustments, etc.

Employee compensation adjustments are an institutional decision and should be consistent with the approved institutional compensation plan. However, cumulative fiscal year adjustments greater than or equal to ten percent above the USG’s annual salary and wage guidance require advanced approval by the Chancellor other than the instances indicated below.

The following salary increases greater than or equal to ten percent above the USG’s annual salary and wage guidance do not require the Chancellor’s approval: 

• Results in a salary below $100,000.
• A promotional increase at or below the mid-point of the salary grade for the new job classification.

Salary increases which result in a cumulative fiscal year adjustment equal to or exceeding ten percent above the USG’s annual salary and wage guidance percentage, and do not require the Chancellor’s approval, must be approved by the President or his/her designee.

Each institution must have policies and procedures in place for the analysis and approval of all salary increases.  Documentation must include justification that explains in detail the purpose and amount of the increase requested and approval signatures.

The Office of Human Resources will conduct an independent analysis of salary survey data, internal equity considerations, recruitment, retention, and turnover statistics; and compile and analyze any additional information considered beneficial in determining whether there is sufficient justification for approval of the request.

All cumulative fiscal year adjustments approved at the institution which are greater than or equal to ten percent above the USG’s authorized annual salary percentage increase wage guidance must be reported on a quarterly basis to the USG Office of Human Resources.

Communicating Pay Adjustments
Supervisors or managers should not commit to any change in salary or compensation of an employee without concurrence of GTHR and the appropriate departmental, Institute, or USG level approval. The Institute is not bound to any agreement made by a supervisor who has not obtained proper approvals.

Exceptions to this policy may be approved in unusual circumstances by the head of GTHR Total Rewards and the AVP of Human Resources, with the support of the appropriate EVP, or Office of the President where the approval is given in writing and such exception does not violate other policy within Georgia Tech, the University System of Georgia, or related laws.

Background Checks
Any existing employee being transferred, reassigned, reclassified or promoted is subject to a background screening unless a background investigation conforming to this procedure has been performed within the past year. Employee Relations will be engaged to address background searches resulting in an adverse condition.