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Compensation Review

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Title: Compensation Review


1
Compensation Resource Guide Staff Employees
Revised August, 2013
2
Table of Contents
Page Number
  • Overview ...
  • The Big Picture
  • Employment Value Proposition ...
  • Total Compensation Philosophy ..
  • Compensation Strategy.
  • Compensation Structure
  • Job descriptions..
  • Schedule of pay grades and ranges
  • Updating the pay structure ......................
    ......................................
  • Job evaluation/reclassification
    ........
  • Employee Pay
  • New hire guidelines ...
  • Performance management ..........................
    .................................
  • Base pay increase guidelines ......
  • Red-circled employees ...............
    ........
  • Green-circled employees...
  • Promotion, transfer and demotion.....
    ..
  • One-time payments ..........................
    ...........................
  • Fair Labor Standards Act.

3 5 7 8 10 11 12 13 15 16 17 18 19 20 22 2
3
3
Overview
The Tulane University Staff Compensation Resource
Guide was developed to provide guidelines for
compensation administration for staff employees
at all campuses. All staff employees, regardless
of temporary or regular status regardless of
full-or part-time status and regardless of
salary funding source, are covered by this Guide.
Some exceptions exist where funding sources or
other regulations dictate salary administration
procedures for certain employees. This Guide is
dynamic, intentionally designed to be responsive
to changes in the market affecting the assignment
of job titles and classifications. Although
Tulane intends to maintain formal compensation
programs indefinitely, the University has the
right to modify the Guide at any time. Employees
may access the Guide via the Compensation link on
Tulanes WFMO homepage. If internet is
inaccessible, employees may contact the
Compensation department in WFMO at 865-5280. The
right of employees to be free from discrimination
in their compensation is protected under several
federal laws, the Equal Pay Act of 1963, Title
VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act of 1967, and
Title I of the Americans with Disabilities Act of
1990.
4
Overview(continued)
The Compensation Resource Guide is organized in a
manner to acquaint you with the big picture
first, and then to delve into the details of our
compensation programs.
Description of how the total work experience at
Tulane is superior to that at other organizations.
Employment Value Proposition
Articulates the goals of the compensation program
and the role each element plays in the
attraction, retention, recognition and
development of our employees.
Compensation Philosophy
Rules that guide the design, implementation and
administration of an organizations compensation
programs.
Compensation Strategy
  • Compensation Structure
  • Job descriptions
  • Schedule of pay grades and ranges
  • Updating the pay schedule
  • Job evaluation/reclassification

Specific tools and processes that help determine
the value of a job to Tulane, and to ensure that
jobs are paid fairly relative to one another and
to the marketplace.
  • Employee Pay
  • New hire guidelines
  • Performance management
  • Base pay increase guidelines
  • Red-circled employees
  • Green-circled employees
  • Promotion, transfer and demotion
  • Call back pay
  • One-time payments

The processes and procedures that help determine
how to fairly compensate, recognize and reward
individuals throughout their career at Tulane.
5
Our Employment Value Proposition (EVP) is a
description of how the total work experience at
Tulane is superior to that at other
organizations. It emphasizes the fact that there
are many features other than pay that attract
good people to the University. Following are
comments made by employees about what makes the
work experience at Tulane University unique.
Employment Value Proposition
1. Engagement I have a lot of pride in the
University because of its involvement in the
community and its community service requirement
for students. I am proud of the role Tulane
is playing in helping the community. People
work at Tulane because of the Vision- Tulane does
right for the City. Tulane is now inter-twined
with the community. New Orleanians stop Tulane
employees on the streets and thank them for their
support. 2. Community We are a place that
cares about employees. Tulane is a loyal
community of people. Tulane has tolerance for
unique needs, be they child-rearing or having an
elder at home. We offer a forgiving
environment. The catalyst to our pride was
paying employees for the five months that we were
closed. We proved that we are part of a family
that cares. One of the biggest shocks I had was
getting paid when I wasn't working. That did more
for my morale than anything. It was
unbelievable. We're a family. We come together
if someone has a problem. We think of ways to
pick each other up. There is camaraderie. We are
a family. 3. A Sense of Place and Tradition I
work here because of the rich heritage and
tradition of Tulane University. The prestige,
research and quality of the students keep me
here. You have unlimited access to University
life- culture, academics, sports, libraries,
education, grounds, festivals, conferences. The
Business Week ranking, the sports teams- I always
email all of the positive Tulane stories to my
friends. The kids here keep you feeling
youthful. This is a nice physical environment,
trees and greenery. The staff is hard-working,
dedicated and very proud of the university proud
to be Tulanians. There is a cachet in the
community to say that you are working for
Tulane. Tulane is an elite research
institution. Administrative staff know and
appreciate that. 4. Challenge and
Growth You'll never be disappointed with your
job's challenge at Tulane. It's never dull around
here. Jobs here are exciting, complex and
interesting. Most jobs here are very
challenging and there is a broader variety of
activity than at other organizations in the
marketplace. I like the autonomy you have at
Tulane. Tulane gives you the opportunity to
work with great people from around the
country. We have a very rich and diverse work
environment. Tulane is a competitive place. We
want to advance and do well, push to get ahead.
But it's a healthy competition.
6
Employment Value Proposition continued
  • The following Employment Value Proposition was
    developed based upon what employees today are
    saying about the work experience at Tulane.
    Contained within the value proposition are some
    of the reasons our people choose to commit
    themselves to the organization.

The Tulane University work experience can be set
apart from others, by the unique combination of
  • Engagement. Our employees are motivated by the
    difference they make at Tulane and in the greater
    communities of which the university is part. We
    will encourage you and support you to maximize
    your contribution to both.
  • Community. You arent just a Tulane employee,
    you are a member of the Tulane community. You
    belong to an organization that understands that
    loyalty and commitment are two-way streets.
  • A Sense of Place and Tradition. An environment
    of intellectual curiosity, learning and research,
    infused with the energy of campus life, will
    inspire you with endless opportunities to
    stimulate your life and mind.
  • Challenge and Growth. The breadth of activity
    performed at Tulane University provides you with
    a wide range of opportunities to contribute. You
    have the opportunity to grow your job and to
    pursue new directions as you grow, in a dynamic
    organization that goes beyond traditional
    limitations.

7
Total Compensation Philosophy
  • Tulane University has established a Total
    Compensation Philosophy to articulate the goals
    of its compensation program and the role each
    element plays in the attraction, retention,
    recognition and development of our employees. Our
    total compensation program is intended to
    encourage employees to perform at the highest
    level by acquiring superior skills and
    competencies, and understanding their role in the
    Universitys success.
  • Guideposts
  • Our Total Compensation Philosophy is shaped by
    the following guideposts.
  • Understandable. The effectiveness of the total
    compensation program is dependent on manager and
    staff understanding and acceptance. We will
    commit to provide the necessary resources to
    design, communicate, simplify and administer the
    program to promote understanding and acceptance
    by all of our employees.
  • Flexible. We will provide a mix of programs
    flexible enough to adjust to changing economic
    conditions and to employee needs. The base
    salary portion of total compensation will
    continue to be significant, and we will consider
    introducing variable pay elements in the future
    that will be tied to individual and University
    performance results.
  • Equitable. Total compensation will be
    allocated to each individual based upon 1) the
    expected contribution of the job to Tulane 2)
    the individuals skills, abilities, competencies
    and results and 3) the pay for comparable jobs
    in our recruiting markets.
  • Career-driven. Our concept of career will have
    no rigidly defined starting or ending points. We
    will strive to be the type of organization where
    consistent superior performers can grow and
    develop for their entire working career.
  • Goals and Outcomes
  • The University will endeavor to use its total
    compensation programs to accomplish the following
    goals.
  • Encourage and reward employees to exceed
    performance expectations.
  • Pay each employee fairly in comparison to the pay
    for similar jobs in other peer organizations.
  • Recognize the increasing work levels of employees
    who seek new responsibilities or who step up in
    understaffed situations.
  • Provide employees at the lowest grade levels with
    a respectable living wage.
  • Pay each employee fairly in comparison to the pay
    for similar jobs within Tulane.
  • Link employee pay to the success of Tulane in
    achieving its mission.

8
Compensation Strategy
While a well-defined Total Compensation
Philosophy ensures that a compensation program
supports an organizations mission, strategy,
goals and culture, a compensation strategy is the
more specific rules that guide the design,
implementation and administration of an
organizations compensation programs. Definition
of Total Compensation The Universitys total
compensation package is comprised of three
elements 1) base pay, 2) base pay increases and
3) benefits. The University will consider each
element of total compensation, individually and
collectively, so that each element receives its
proper emphasis. 1. Base pay. Base pay is the
fixed pay that employees can expect to earn on an
hourly, weekly, monthly or annual basis. It is
designed to provide each employee with reliable
wages to ensure a standard of living commensurate
with the incumbents duties and responsibilities
within geographic and industry norms. Base pay
will reflect a) the expected contribution of the
job to the University based upon current job
requirements, b) competitive base pay information
for similar jobs at peer organizations, and c)
individual knowledge, skills and competencies
that relate to success on the job. 2. Base pay
increases. Base pay increases are designed to
advance an employees base pay according to
his/her growth and advancement at Tulane. A base
pay increase is an indication that Tulane expects
the employee to contribute at a higher level in
the future. In the long run, four factors will
influence an employees base pay increase.
  • Change in job accountabilities. The supervisors
    assessment of changes in the scope, complexity
    and responsibility of an employees job over the
    course of the year. Supervisors will be
    accountable for updating formal job descriptions
    when job content (duties, activities,
    accountabilities, etc.) changes by 15 or more.
  • Change in knowledge, skills and competencies. The
    supervisors assessment of the advancement of the
    individuals capabilities over the year.
  • Range penetration. Base pay increases will
    parallel the learning curve, advancing base pay
    to the fully competent (midpoint) level and then
    tapering off.
  • Change in market pay for the job. Base pay
    increases may be used to address inequities that
    arise relative to a jobs pay compared to the
    market.

NOTE Bonus payments. In the future, performance
incentives may be designed as bonus payments
(variable pay) rather than as a guaranteed
portion of total compensation. Variable pay
programs will be developed and implemented
thoughtfully over time, and will provide
participants with the opportunity to earn pay
levels above the average in the marketplace for
above average performance.
9
Compensation Strategy(continued)
  • 3. Benefits. The benefits program is designed to
    secure the employees standard of living by
    reducing the employees concerns about financial
    catastrophe in the event of a medical emergency,
    disability, death, or retirement. Through its
    paid time off policy, Tulane also hopes to
    support a healthy and productive workforce by
    encouraging a proper work-life balance with ample
    time off for holidays, vacation, time to heal and
    time to tend to personal concerns. Tulane will
    maintain a benefits program that is aligned with
    industry peers and University affordability. We
    will strive to provide benefits that are
    perceived as fair, and that recognize and
    encourage longevity with Tulane.
  • Competitive Position
  • Using high quality, current and comprehensive
    market pay surveys, Tulane will establish base
    compensation levels that reflect marketplace
    practices. The competitive labor market in which
    the University competes for talent, will vary by
    employee group, as follows.
  • Executives/Management- Target pay levels for
    fully competent performance will be at the median
    of University or nonprofit peer companies
    nationally.
  • Professional Staff- Target pay levels for fully
    competent performance will be at the median of
    University or General Industry peer companies in
    the Region.
  • Nonexempt- Target pay levels for fully competent
    performance will be at the median of General
    Industry in the greater New Orleans area.
  • Communication Objectives
  • Tulane is committed to providing employees with
    knowledge of their pay and benefits that will
    contribute to their career decisions and provide
    them with reasonable pay expectations. We would
    like employees to understand enough about the pay
    program that they trust in the pay delivery
    processes and do not spend their own valuable
    time on pay administration issues. In short,
    employees should
  • Have a good understanding of how their base pay
    is determined.
  • Know their pay range minimum and maximum, and
    know the pay range for their next
    progression/promotion.
  • Understand the criteria and process for
    determining pay increases
  • Understand any changes that are made to their
    compensation or benefits program.
  • Understand the role and value of their
    benefits.

10
JobDescriptions
  • A job description provides details about the
    requirements, job responsibilities, duties, and
    performance standards of a position. To be a
    fair representation of the job, the description
    must include a statement indicating the function
    of the position within the department, the
    minimum requirements, and the essential duties
    and responsibilities. In order to facilitate
    comparison between different positions and to
    ensure consistency, all job descriptions must be
    in the same format.
  • There are many advantages of thoughtful,
    well-organized job descriptions. The most
    important are
  • Employment and Selection Based upon the job
    description and the educational and experience
    requirements, recruiting efforts can be designed
    to match the essential requirements of the job.
    A good job description can be utilized to measure
    an applicants qualifications for the job as
    well.
  • Employee Understanding Upon hire, a job
    description can help new employees to understand
    the specific duties and responsibilities of their
    new position. Employees can refer to their job
    description to measure whether or not they are
    performing satisfactorily and meeting
    expectations. If written properly, job
    descriptions can help employees understand how
    they fit in the organization and how their work
    helps achieve the organizations goals.
  • Training and Development Gaps between required
    skills, knowledge, and job experiences versus
    preferred skills, knowledge, and job experiences
    can provide a basis for constructive training and
    development activity.
  • Performance Management Job descriptions may
    provide employees with an explanation of their
    job in the organizations operation and the
    performance that is expected of them while they
    occupy the job. In addition, the description can
    be utilized as a basis for evaluating employee
    performance over a period of time.
  • Wage and Salary Administration WFMO staff
    members use job descriptions to compare one
    position to another. The comparisons assure that
    job classifications, pay decisions, and benefit
    allocations are fairly and accurately handled.
    Tulane also uses the descriptions for matching
    jobs on surveys so that it can determine how pay
    stacks up against that of other employers.
  • Legal/Regulatory Compliance Job descriptions
    provide a basis for determining whether a job is
    exempt or non-exempt from the Fair Labor
    Standards Act and assist in determining the
    proper EEO classification. Additionally, the job
    description allows Tulane to meet its obligation
    to define "essential" responsibilities and job
    demands as required by some laws, such as the
    Americans with Disabilities Act (ADA).

11
Pay Grades and Ranges
  • Tulane administers base pay by using a pay
    structure composed of a series of pay grades and
    ranges. As an administrative practice, a job is
    placed into a grade and a target pay level is
    established for the position (the midpoint or
    market rate), along with a specific minimum (the
    hiring rate) and maximum (limit on the rate an
    employer will pay for each job).
  • The minimum of the pay range is the rate paid an
    employee who is assigned to a position for which
    he/she possesses minimal qualifications and who
    is expected to be able to perform basic duties
    and responsibilities after normal training.
  • Organizations using this scheme are said to
    manage to the midpoint that is, a fully
    job-knowledgeable employee who consistently meets
    expectations or who has continued to learn and
    grow in the job for several years will be paid
    at midpoint. This midpoint is the proxy for the
    targeted market rate for the job. In theory, only
    employees who consistently exceed performance
    standards on a sustained basis might expect a
    salary above midpoint. The pay ranges serve as a
    key cost-control mechanism for Tulane.

12
  • In order to maintain a competitive pay structure,
    Tulane may adjust its pay ranges every year in
    accordance with annual salary budget surveys. The
    primary source utilized in determining an
    appropriate adjustment will be the WorldatWork
    Annual Salary Budget Survey.
  • In accordance with policy, a comprehensive market
    review will be performed every two to three
    years. This review will involve the collection of
    market data for approximately 200 benchmark jobs
    and then pay structure adjustments made to
    reflect the findings of this comprehensive
    review.
  • Note Pay structure adjustments do not change the
    grades to which positions are assigned and do not
    result in automatic changes to individual
    salaries. Salary structure adjustments are
    normally effective January 1st of each year. All
    structure increases are contingent upon the
    financial resources of the University.

Updating the Pay Structure
13
Job Evaluation/ Reclassification
  • Work measurement provides a systematic process
    for measuring job content that enables an
    organization to establish the relative value of
    jobs across all levels within the organization,
    to compare jobs to the external marketplace, and
    to satisfy tests of fairness and reasonableness.
    Work measurement concerns itself only with job
    size/complexity. The process assumes fully
    competent performance and does not evaluate
    organization or incumbent performance.
  • The oldest and most widely accepted job
    evaluation methodology is the Hay Guide
    Chart-Profile Method of work measurement. This
    system examines three primary factors 1) the
    knowledge required to do a job 2) the kind of
    thinking required to solve problems commonly
    faced and 3) the responsibilities assigned to a
    job.
  • In order to assess the relative value of each
    staff job, Tulane uses a streamlined job
    measurement tool rooted in the fundamentals of
    the Hay methodology and other well-established
    job analysis methodologies, and comprised of the
    following four factors.
  • Complexity is the total knowledge and thinking
    required in the job. Knowledge can be attained
    through formal education or technical training,
    experience, on-the-job training, or any other
    effective sources. Knowledge can include
    understanding processes, technical skills, and
    conceptual expertise in one or more fields of
    education, management or science. Thinking is
    the application of knowledge in the job.
    Thinking ranges from choosing from among
    well-defined choices to using innovation and
    creativity to overcome difficult and complicated
    challenges.
  • Interpersonal Demands measures the nature of the
    jobs person-to-person relationships with job
    contacts, both internal and external (referred to
    as constituents). Interpersonal demands are
    not determined by the frequency of contact,
    rather by the type of interpersonal interactions
    required and the interpersonal skills needed for
    the incumbent to be successful in his/her job.
  • Results Impact is the jobs influence on Tulanes
    strategic plan and objectives. It measures the
    jobs role in the Universitys decision making
    hierarchy, and the requirements of the job in
    making changes and/or achieving results.
  • Management measures the extent to which the job
    is required to bring together, harmonize, and
    integrate various aspects of Tulanes operations
    in order to drive high levels of service,
    quality, innovation, effectiveness and
    efficiency.

14
Job Evaluation/ Reclassification (continued)
A reclassification may be appropriate if the
content of a job has changed significantly (e.g.,
the responsibilities have changed by more than
15). The following reclassification process
should be followed by employees who believe that
their position is not classified correctly 1.
Any department requesting a reclassification of
an employee should submit the following to their
dean or respective Senior Officer employee's
name, current title and current salary current
job description and a revised job description
with new/additional duties highlighted proposed
new title a current organization chart for the
department and a proposed organization chart for
the department, post-reclassification a written
justification for the reclassification, including
the proposed source for any salary adjustments to
be made to the employee's salary and the
department's basis of assumption for the new
salary. If the dean or Senior Officer approves
the reclassification, he/she will forward the
request and attendant paperwork to the Vice
President for Administrative Services. 2. The
Vice President for Administrative Services will
review the proposed reclassifications once every
four months in consultation with the Chief
Operating Officer, the Provost and the Senior
Vice President for Operations and Chief Financial
Officer. The appropriate senior officer for the
department requesting the reclassification, if
not included in the aforementioned group, will be
consulted. 3. All approved reclassification
requests will be sent to WFMO for completion of
the reclassification review by the Compensation
department. Documentation must be reviewed by
OIE. 4. The requesting department will be
notified of the approval and the impending
review. Departments will be notified of those
reclassification requests that are not
approved. 5. If the reclassification results in a
higher grade, the employees salary will be
increased to at least the new pay grade minimum.
If the reclassification results in a lower grade
level assignment, the employees new salary may
not exceed the new pay grade maximum. Changes in
job content and definition that arise from the
temporary assignment of duties or from typical
growth in a job should not be addressed with
reclassification, but through the performance
management/performance appraisal process.
15
New Hire Guidelines
  • For purposes of this policy, new hires are
    defined as employees who have never been employed
    by Tulane, a former employee who has been
    separated from the University for more than 30
    days due to voluntary resignation, or a former
    employee who was laid-off for more than one year.
  • Starting salaries for new hires should reflect
    the value of the job and current allowable hiring
    ranges. Department heads are responsible for
    considering internal pay equity regarding a
    proposed new hire salary.
  • Tulane hiring rates for jobs will be dependent
    upon the skills and progressive job experience of
    the candidate. Typical candidates who have
    minimal up to five years of experience should be
    hired at 80 up to 90 of the salary range
    midpoint. Those with more than five years of
    progressive experience in a comparable job, who
    can demonstrate superior past performance can be
    hired at 90 up to 100 of the salary range
    midpoint.
  • It is not appropriate to offer a low starting
    salary with the promise of an increase after the
    introductory period, and such requests for salary
    increases will be denied.
  • Any agreements, whether written or verbal, that
    promise an increase at the end of the
    introductory period, or at any time during the
    fiscal year in which the employee was employed,
    are not recognized or supported by University
    policy for staff employees. Therefore, all
    employment offer letters must be submitted to
    WFMO for review and approval prior to delivery to
    the new employee.

16
  • Performance management is the process by which
    employee growth and related accomplishments on
    the job are formally evaluated. To facilitate
    this process, all supervisors are responsible for
    communicating to their employees what the job
    expectations, annual goals and annual development
    plan will be. At the time of employment, each
    employee is to be given a copy of his/her job
    description, and there will be a discussion
    between supervisor and employee to ensure an
    understanding of the required job duties and
    responsibilities. Ongoing communications should
    also occur throughout the year between employees
    and supervisors regarding job expectations and
    performance.
  • Between January 1 and no later than March 1 of
    each year, the supervisor and employee together
    will review a performance appraisal form
    completed by the supervisor, along with the
    employees job description (see appendix for
    sample form). In this process, the employees
    progress regarding personal goals and
    contributions to department objectives for the
    new fiscal year will be discussed and
    performance standards for each key responsibility
    indicated on the job description will be updated,
    if necessary. If the employee is not performing
    all duties in a satisfactory manner, the
    supervisor and employee will work together to
    develop a strategy to ensure performance
    improvement. Completed performance appraisals
    and accompanying job descriptions, both in the
    prescribed format, must be submitted to WFMO by
    March 15 of each year. This written process will
    apply to all exempt and non-exempt employees
    whose positions are classified in this Guide.

Performance Management
17
Base Pay Increase Guidelines
  • Tulane will consider four factors in determining
    an appropriate base pay increase for an employee.
  • Performance . Creating a high performance culture
    starts with paying-for-performance and ensuring
    that Tulane retains its highest performers.
    Therefore, performance ratings will be considered
    in allocating pay increases.
  • Market deficiencies. In order to effectively
    compete for talent and to pay in a manner
    consistent with market practices, Tulane will
    examine those job categories that are the
    furthest below market in considering pay increase
    allocations.
  • Living wage. The significant rise in the cost of
    living in New Orleans has impacted all Staff
    employees. However, nowhere has the pain been
    greater than among those that earn the least.
    These are the individuals who have had the
    greatest proportion of their income diverted to
    living cost increases. Therefore, in allocating
    pay increases, Tulane will consider those
    employees who have the greatest challenge in
    fulfilling the most basic of their needs.
  • Over time, as Tulane revises its performance
    management practices, and trains supervisors and
    managers in proper performance planning and
    development, the following factors will determine
    base pay increases
  • Change in job accountabilities. The supervisors
    assessment of changes in the scope, complexity
    overall workload and responsibility of an
    employees job over the course of the year.
  • Change in knowledge, skills and competencies. The
    supervisors assessment of the advancement of the
    individuals capabilities over the year.
  • Range penetration. Base pay increases will
    parallel the learning curve, advancing base pay
    to the fully competent (midpoint) level and then
    tapering off.
  • Change in market pay for the job. Base pay
    increases may be used to address inequities that
    arise relative to a jobs pay compared to the
    market.

18
Red-Circled Employees
  • A red-circled salary is one that is greater than
    the maximum of the range in which the job is
    located. Under the new schedule of salary grades
    and ranges, any employee who is above their
    salary range maximum, and therefore red-circled,
    will already be paid at least 20 above midpoint
    (market). Because these employees are receiving
    salaries higher than the market value of their
    jobs, their base salaries will be frozen until
    future revisions of the salary structure catch
    up.
  • Those red-circled employees who are deemed to
    perform at the very highest level will be
    eligible to receive a lump sum payment,
    contingent upon financial resources and
    administration policies. The maximum amount of
    this lump sum payment will be a percentage of
    base pay equal to the same percent as Tulanes
    overall salary increase budget.

19
Green-Circled Employees
  • A green-circled salary is one that is less than
    the minimum of the pay grade in which the job is
    located. Because employees with these salaries
    are being paid an amount less than the market
    value of their jobs, the University has committed
    to bringing these salaries up to the range
    minimums. These increases are called equity
    adjustments and will be considered each fiscal
    year, contingent upon available funding.

20
Promotion, Transfer and Demotion
  • A promotion is the result of 1) an opening at a
    higher job level as a result of the current
    incumbent moving, or 2) a business need to create
    a job at a higher level. In both cases, there is
    a probable need to backfill the position of the
    promoted employee.
  • Supervisors are encouraged to promote qualified
    employees into vacant or new positions. An
    employee must have been employed with the
    University at least six consecutive months to be
    eligible for a promotion.
  • Procedures for Requesting a Promotion
  • 1. The department must submit the old and new job
    descriptions, an organization chart, cover memo,
    and proposed salary changes to the Compensation
    Analyst for review. If the department wishes to
    promote an employee from within, the department
    must prepare a memo addressed to the Vice
    President for OIE explaining why waiving search
    procedures is justified, and including the
    employees resume.
  • 2. Once the Compensation Analyst has reviewed the
    position for the classification purposes, the
    departmental documentation will be forwarded to
    the Vice President for OIE for review. Once a
    decision regarding the promotion has been made,
    the department will be notified in writing. A
    written response also will be forwarded to the
    department by the Compensation Analyst.
  • 3. If approved, the department must initiate the
    appropriate electronic paperwork via the Human
    Capital Management system to initiate the change.
    For all salary actions, the signature of the
    appropriate Senior Officer is required.
  • Supervisors may not ask employees to permanently
    assume the additional job duties or
    responsibilities of a higher level job until the
    employee has been formally promoted into that
    job.
  • Transfers
  • A transfer takes place when an employee applies
    for and is accepted into a posted vacant position
    in another department. There are several ways in
    which transfers will be addressed.
  • A lateral move occurs when an employee transfers
    from one position in a department to another
    position with the same job title and pay grade,
    either in the same department or in a different
    department. In such cases, the employees salary
    will remain unchanged, as long as the employees
    salary is at least the minimum of the grade.
  • If an employee transfers from one position in a
    department to a different position within the
    same grade in another department, the employees
    salary will remain unchanged, as long as the
    employees salary is at least the minimum of the
    grade.
  • If an employee transfers from one position in a
    department to a higher-level position in another
    department or within the same department (i.e.
    promoted), the employee may receive an increase
    in salary up to the midpoint of the new grade
    salary range.

21
Promotion, Transfer and Demotion(continued)
4. If an employee transfers from one position in
a department to a lower-classified position in
another department, the employees salary will be
decreased if it is currently above the maximum of
the new grade salary range. The employees new
salary must fall between the minimum and maximum
of the new grade salary range. At no time will
an employee receive a salary increase upon
accepting a lower-classified position in the same
or in another department. Note An employee who
moves from one budgeted position to a different
budgeted position within the same department with
no change in title or grade is not considered to
have transferred and is not eligible for a salary
increase upon the move. Demotions Voluntary or
involuntary movements by employees that result in
reassignment by the supervisor or department head
within the department to a lower pay or grade
status because of disciplinary actions or
inability to perform the job duties and
responsibilities of the position are considered
demotions. The employees salary will be reduced
to fall above the minimum of the salary grade of
the new position. At no time will an employee be
allowed to receive a salary increase upon
demotion. Individuals who may be moved to a lower
level job, at Tulanes request, to fill a
business need, will not have their salary
reduced. Demotions must be approved by WFMO and
OIE to ensure compliance with federal and state
job discrimination laws.
22
  • Tulane desires to evolve the compensation system
    towards a pay for performance culture. One-time
    payments, like Bonus payments, can assist in the
    creation of that culture provided the
    administration of same is consistent.
  • One-Time Payments Policy
  • One Time payments are awarded for specific
    services, events or deliverables that are clearly
    outside the employees established job duties,
    including annual goals and objectives. (One-time
    payments are awarded as the precipitating event
    concludes and require pre- and post-approval by a
    senior officer. Normally such payments may not
    exceed 5 of the recipients base salary (except
    in those cases where the one-time payment is made
    for the delivery of a service, such as serving as
    an adjunct.)
  • Examples of justifiable one-time payments
    include
  • Extraordinary service during an emergency
    situation or in connection with an event of
    paramount importance to the universitys
    operations
  • Continuing to provide services to ones former
    department on personal time in situations when
    the department cannot quickly fill a vacant
    position and needs the services. This service
    should only be for a predetermined fixed time
    frame.
  • Providing services in the universitys auxiliary
    operations or receiving payment for a class one
    teaches as an adjunct outside of core working
    hours.
  • One time payments are not appropriate in any
    other circumstance . They can not be used to
    retain employees, to address gaps between current
    salary and market basis for salary, or to reward
    employees for fulfilling the requirements of
    their position as described in their existing job
    description. Further, one-time payments are not
    to be used to reward employees, for change in job
    accountabilities or content, or changes in
    knowledge, skill or competencies. In the case of
    the aforementioned, supervisors should consult
    with the department of Compensation in WFMO to
    determine if such changes warrant a
    reclassification.

One-Time Payments
23
Fair Labor Standards Act
  • This federal legislation first enacted in 1938,
    established regular working hours, overtime pay
    at time and a half regular wages, and prohibited
    using minors in a number of occupations. It has
    been amended many times over the years, most
    importantly in August 2004.
  • Enforced by the Department of Labor, the Fair
    Labor Standards Act (FLSA) determines whether or
    not a position is exempt or non-exempt, and
    stipulates certain other guidelines for salary
    administration. Each job must be tested under
    the FLSA to ensure appropriate status
    classification. It is very important that all
    Tulane employees be classified correctly, as
    penalties may be assessed the University for
    violations.
  • Exempt Status
  • An exempt position is exempt, or excluded, from
    the overtime provisions of the FLSA. Basically,
    employees in these positions are required, on a
    regular basis, to use independent judgment and
    have the authority to make decisions regarding
    matters of significance, as defined by the FLSA.
    This responsibility must be greater than merely
    ensuring that policies and procedures are
    followed correctly. The Compensation Analyst
    performs a detailed test under the FLSA to
    determine if a position should be classified as
    being either exempt or non-exempt.
  • Since exempt employees are considered to be
    salaried and receive a given annual salary for
    satisfying the requirements and responsibilities
    of their positions, additional payment for any
    overtime work performed is not required.
  • If asked by the supervisor or department head to
    coordinate or participate in a special project
    for the department itself on a temporary basis
    which requires additional work on the part of an
    exempt employee and such duties or
    responsibilities normally are a part of the
    employees regular job duties, that employee will
    not be eligible for any additional remuneration
    either in the form of increased salary or lump
    sum payment.
  • Exempt employees may be eligible for additional
    remuneration in the form of a temporarily
    increased salary if the employee is asked by the
    supervisor or department head to assume at least
    25 percent of the duties and responsibilities of
    a different (exempt) position on a temporary
    basis, and such duties and responsibilities are
    not normally a part of that employees position.
  • If approved, an exempt employees new temporary
    salary should fall between the minimum and
    maximum of the established salary range of the
    new position. If an employees salary already
    falls within the new range, the department head
    may, at his or her discretion, grant additional
    remuneration if funds are available and is
    encouraged to do so in acknowledgement of the
    employees willingness to assume the different
    duties temporarily. At no time will this
    temporary increase exceed the maximum of the
    different position salary range. A memo
    providing justification for such a temporary
    reassignment must be forwarded to WFMO and to the
    Compensation Analyst for review and approval
    prior to making such assignment.

24
Fair Labor Standards Act(continued)
  • An exempt employee may be eligible for a one time
    payment only if the employee is asked to perform
    services for a department other than the
    department in which the exempt employee is
    officially assigned such duties are not normally
    a part of the employees job responsibilities
    and if the work is to be performed outside normal
    work hours (e.g. teaching a class).
  • Non-Exempt Status
  • A non-exempt position is not exempt (not
    excluded) from the overtime provisions of the
    Fair Labor Standards Act (FLSA). Therefore, an
    employee who works more hours than the full-time
    equivalent of his/her work week must receive
    overtime pay. Non-exempt employees typically
    provide assistance to others and do not have the
    authority to make independent decisions over
    matters that impact the department significantly,
    as defined by the FLSA.
  • Non-exempt employees are required to account for
    incremental days worked. For example, consider
    an employee scheduled to work 7.5 hours per day.
    If the employee works for 6 hours and then leaves
    early for non-medical reasons, the time sheet
    must be marked to show 6 hours worked and 1.5
    hours of vacation time for that day. Time taken
    off for medical reasons may be charged against
    sick leave accrual time.
  • If asked by the supervisor or department head to
    work additional hours as deemed necessary such
    duties and responsibilities are normally a part
    of, or similar in complexity to, the employees
    regular duties, that employee must receive
    additional remuneration for overtime hours worked
    at the employees regular rate of pay.
  • Overtime Pay
  • The Universitys standard work week will consist
    of 37.5 hours for full-time work in some
    departments, employees may be required to work a
    minimum of 40 hours per week due to the nature of
    the work being performed. For overtime purposes,
    the full-time equivalent will be the normal
    weekly hours worked for a particular position,
    whether it be 37.5 or 40 hours. A single work
    week is defined as any consecutive seven-day
    period of time.
  • A non-exempt employee who works a standard
    37.5-hour work week will be compensated overtime
    at the rate of 1.5 times the employees regular
    rate of pay for all hours worked in excess of
    37.5 hours in a single work week. A non-exempt
    employee who works a standard 40-hour work week
    will be compensated overtime at the rate of 1.5
    times the employees regular rate of pay for all
    hours actually worked in excess of 40 hours in a
    single work week.
  • Vacation and sick leave do not count as time
    worked in determining overtime. Each work week
    stands alone, and overtime may not be averaged
    out or carried over into another work week or
    another pay period.
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