Pay Adjustments

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Policy Number:
UW-5023
Old Policy Number:
10.01
Responsible Office:
Office of Human Resources

University Policy

Rationale/​Purpose:

It is critical that UW–Madison develop and implement a “total compensation” (pay and benefits) approach that is fair, equitable, and competitive with other employers; and also rewards performance. The components of this approach include developing a compensation structure that balances internal equity and market competitiveness, accommodates cost-of-living adjustments, and provides mechanisms to reward performance for all Faculty, Academic Staff, University Staff, and Limited appointees.

In line with Regent Policy Document 6-3, the UW System Board of Regents has delegated authority to the UW System President to approve personnel transactions for positions in which the salary does not exceed 75 percent of the System President's salary. On June 27, 2000, the System President extended this same delegated authority to the Chancellors.

Wis. Stat. § 36.09(1)(e) sets forth the basic statutory authority of the Regents to set salaries.

Wis. Stat. § 36.115(3) requires the chancellor shall develop to develop a personnel system that is separate and distinct from the personnel system under Chapter 230 for all system employees assigned to the University of Wisconsin–Madison.

Section 36.09 of the Wisconsin Statutes authorizes the Board of Regents to grant salary increases (other than the annual pay plan) only for four reasons: job reclassification (change in duties), promotion, salary inequity, or competitive (market) factors.

Definitions:
Base-building adjustment
a salary increase (may be temporary or permanent).
Exigent circumstances
any significant campus-wide event or occurrence that creates a need for the University to drastically reduce financial expenditures for personnel including, but not limited to, a decline in the University’s financial resources, substantial decline in enrollment, funding reduction, temporary or permanent closure of campus operations, or unanticipated major expense or capital need.
Lump-sum payment
a one-time payment to an employee that does not increase the employee’s base salary.
Market
the comparison that employers use for UW–Madison job salaries (may be local, regional, national, or international depending on the job).
Scope:

Faculty, Academic Staff, Limited appointees, and University Staff.

Policy:

 

Policy Summary

The policy describes methods to provide temporary, permanent and lump-sum salary adjustments to UW-Madison staff. Such adjustments allow the campus to address market and equity concerns, recognize changes in position duties, and reward staff for performance. Refer to the Overload Policy for more information on when payments for additional work that is not part of the employee's normal job responsibilities may be appropriate.

Section A- Overview

The available pay adjustments for use outside of an annual pay plan (i.e., across-the-board increase or merit awards) are described below. OHR must approve all pay adjustments outside the pay plan before they are awarded, unless they are delegated to a division. All base-building pay adjustments (permanent or temporary) are subject to the maximum of the pay range for that position. Some of the pay adjustments are available as a one-time lump sum payment (see “Type of Adjustment” below).   

  1. Equity (HRS Reason Code 006)

    1. Type of adjustment – base-building.
    2. An equity base-building adjustment may be used to correct an inequity (for individual employees or a group of similarly situated employees) identified through analyses of the compensation of staff with comparable training, experience, and responsibilities. A division may submit an equity adjustment request when significant inequities are created by hiring new employees at rates higher than those of existing staff, provided that the pay rates for the new employees are necessary to recruit well-qualified candidates. However, equity adjustments cannot be used to correct inequities which have resulted from either the employing unit’s distribution of past discretionary increases, or base adjustments driven by the need to be competitive for talent (these inequities can be addressed as market adjustments).

  2. Market (HRS Reason Codes 022, 080, 081)

    1. Type of adjustment – base-building.
    2. There are three reasons for market base-building adjustments: outside offer, retention, or competitive factors. It is essential that the division provide evidence supporting the need for a market adjustment. OHR is required to annually report all market adjustments to the Board of Regents.
      1. Outside offer. This adjustment is a salary increase to retain an employee who has received an outside offer of employment (for a job with comparable duties and responsibilities) at a rate higher than the employee’s current rate. In the rare case that a division requests a salary higher than the outside offer, it must provide additional justification explaining why this is necessary. The position offered must be from an employer outside the UW System.
      2. Retention. This adjustment is a salary increase to retain one or more employees who have not received outside offers, but there is evidence of a serious retention problem. This can include a recent pattern of employees in the same discipline/unit leaving UW for positions with comparable duties and responsibilities at higher pay levels, or when other employees in the same discipline/unit have received outside offers. Units should use this type of adjustment only to retain employees with exemplary performance and highly-valued expertise.
      3. Competitive. This market adjustment is a salary increase to retain one or more employees when there is no outside offer or specific example of current retention problems, but there is evidence of a potential retention problem due to the market.

  3. Performance (HRS Reason Code 091)

    1. Type of adjustment – base-building or lump-sum payment (e.g., bonus).
    2. An adjustment may be awarded for exceptional performance.
    3. Exceptional performance criteria include:
      1. Length or frequency of the exceptional performance
      2. The regularity of the exceptional performance or unique contribution (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)
      3. Whether the employee has achieved additional qualifications (e.g., education, certifications), which are both specialized and critical in carrying out the permanent functions of the position
    4. Exceptional performance is evidenced by a favorable annual performance evaluation.
    5. Employees responsible for supervising staff must be up-to-date on performance evaluations to be eligible for this type of increase. See Performance Management for Managers and Supervisors for more information on performance evaluations.
    6. Employees on probation or serving in an evaluation period are not eligible for a performance increase.

  4. Permanent Change in Duties or Reclassification (May or May Not Include Title Change – HRS Reason Code 001)

    1. Type of adjustment – base-building.
    2. A permanent adjustment may be requested when an employee’s duties and responsibilities substantively change (up to 49 percent). The change has to be a qualitative (i.e., change in responsibilities) rather than quantitative (i.e., doing more of the same work).
    3. Such changes must be permanent job duties or responsibilities of growing importance to the operational unit that are either newly assigned or have evolved from the job’s original functions. The new duties should be of greater scope, impact or complexity compared to the previous functions.
    4. The change in duties does not necessarily lead to a change in the position’s title. If the change in duties equals or exceeds 50 percent, this is considered a new position and recruitment is required.

  5. Title and/or Salary Range Change Due to Career Progression (HRS Reason Code 003)

    1. Type of adjustment – base-building.
    2. A permanent adjustment can result from a natural career progression. That is, the process through which Academic Staff, Faculty or University Staff can be expected to gain successively greater experience, expertise, and responsibility and progress in the employee’s specialty area and job title series.
    3. Annual Pay Progression Adjustments for Certain University Staff
      1. All University Staff employees in positions listed in (B) below will be eligible for a progression adjustment, except as follows:
        1. Employee has a base pay rate equal to or greater than the appropriate threshold stated in (B) below.
        2. The employee has received an unsatisfactory performance evaluation within six months prior to the granting date. The denial of a progression adjustment based on unsatisfactory performance is not grievable. Employees must be notified of the unsatisfactory performance in writing and will receive a new performance evaluation within six months, or before the next scheduled progression adjustment date, whichever is sooner.
        3. The employee has previously received the maximum number of progression adjustments in the same classification, except that progression adjustments received while in a classified project or Fixed-term Finite appointment will not count toward the progression adjustment eligibility for a permanent position or another Fixed-term Finite position.
      2. Amount
        1. An eligible employee in a position allocated to one of the following classifications will receive a one-time progression adjustment of $1.20 per hour on the granting date, subject to the pay range 81-03 minimum.
          • Budget and Policy Analyst-Agency
          • Budget and Policy Analyst-Division
          • UW Human Resources Manager
        2. An eligible employee in a position allocated to Payroll and Benefit Specialist will receive a two-time progression adjustment of $1.00 per hour on the granting date, subject to the pay range 81-04 minimum.
        3. An eligible employee in a position allocated to one of the following classifications will receive a two-time progression adjustment of $1.20 per hour on the granting date, subject to the pay range 07-03 minimum.
          • Accountant
          • Auditor
          • Equal Opportunity Specialist
          • IS Business Automation Analyst
          • IS Comprehensive Services Professional
          • IS Data Services Professional
          • IS Network Services Professional
          • IS Systems Development Services Professional
          • IS Technical Services Professional
          • Program and Policy Analyst
          • University Grants and Contracts Specialist
        4. An eligible employee in a position allocated to one of the following classifications will receive a one-time progression adjustment of $1.20 per hour on the granting date, subject to the pay range 07-03 minimum.
          • Printing Technician
          • University Benefits Specialist
          • Workers Compensation Examiner
      3. Granting Date
        1. Progression adjustments will be awarded based on an eligible employee’s continuous service date. For progression adjustment purposes only, continuous service dates will be adjusted for absence from employment of more than 174 work hours during the period between continuous service dates, approved leaves of absence, layoff, and resignation. The hiring division has the discretion to waive adjustment of continuous service for the aforementioned reasons.
        2. Progression adjustments will take effect on the first day of the pay period following the employee’s continuous service date. If the employee’s continuous service date occurs on the first day of a pay period, the progression adjustment will take effect on that date.
    4. Law Enforcement Dispatcher Progression Employees in positions allocated to the classification of Law Enforcement Dispatcher are eligible for a one-time $1.00 per hour base pay progression adjustment, subject to the maximum of the pay range. Eligible employees will receive the adjustment on the first day of the pay period following one year in the classification.
    5. Schedule 14 and 15 Progressions
      1. Eligible: Except as noted in (B) below, University Staff employees in positions allocated to certain entry level classifications assigned to pay ranges 14-14, 14-15 and 15-04 whose base pay rate is less than the applicable threshold (Point C for Construction Representative, Facility Designer, and Hydrogeologist, Point E for all others) are eligible for semi-automatic adjustments as specified in (C) below.
      2. Ineligible: The following employees are not eligible for a semi-automatic progression adjustment:
        1. Employees serving the first six months of a probationary period.
        2. Employees who have received an unsatisfactory performance evaluation before attaining the next progression level and who have not received written notification that they have corrected the unsatisfactory performance. Employees must be notified of unsatisfactory performance in writing.
        3. Employees who have received an unsatisfactory performance evaluation will receive a new performance evaluation within six months, or before the next scheduled progression adjustment, whichever is sooner.
        4. The supervisor will provide the employee written notice of satisfactory performance before the next scheduled progression adjustment when the employee successfully completes goals and expectations. The employee will receive the next scheduled adjustment in accordance with (D) below.
      3. Effective Date.
        1. Except as provided in (iii) below, semi-automatic progression adjustments for eligible employees will be awarded at six month intervals based on the employee’s time in the classification series. Time in the classification series will be adjusted for absences from employment of more than 174 work hours per six month progression interval (excluding approved annual leave), approved leaves of absence, layoff, and resignation.
        2. Semi-automatic progression adjustments will take effect on the first day of the pay period following the employee attaining the next progression interval. If the employee attains the next progression interval on the first day of a pay period, the semi-automatic progression adjustment will take effect on that date.
        3. Employees whose pay rate is below point A of the applicable progression schedule will receive their adjustment to point A after one year of service in the classification series. Subsequent progression adjustments will be in accordance with (i) and (ii) above.
      4. Amount.
        1. Except as provided in (ii) below, on the effective date of the semi-automatic progression adjustment, an employee’s base pay rate will be increased to the pay rate which is closest to but greater than the current base pay rate, in accordance with the applicable progression schedule.
        2. If eligible, an employee whose semi-automatic progression adjustment has been previously denied due to circumstances described in (B)(ii) above, and Fixed-term Finite employees formerly ineligible for an adjustment, will receive an increase to the greater of the following rates on the effective date of the next scheduled semi-automatic progression increase: the pay rate that is closest to but greater than the employee’s current base pay rate or the pay rate that corresponds to the employee’s time in the classification series.

  6. Temporary Change in Duties (HRS Reason Code 025)

    1. Type of adjustment-based building (temporary for length of the adjustment and then removed).
    2. This adjustment is for an employee who assumes temporary responsibilities such as an assignment while the unit is recruiting for a permanent hire; an unanticipated assignment of an unusual, short-term or nonrecurring nature; or a temporary administrative assignment. These adjustments are only intended to last while the employee performs the additional duties and are not guaranteed to be permanent. Additionally, this adjustment is used to match the rate in a limited position when a Faculty member is appointed to a part-time limited position.
    3. The UW-Madison overload policy should be considered before awarding an increase for a temporary change in duties.

  7. Temporary Adjustment End (HRS Reason Code 064)

    1. Type of adjustment-based-reduction.
    2. This adjustment is made at the end of the term of the Temporary Change in Duties (HRS Reason Code 025).

  8. Temporary Add-Ons (Not a Pay Reason Code in HRS Job Data—Entered as an Earnings Code in Payroll)

    1. Type of adjustment – add-on (done in payroll).
    2. A temporary add-on is a pay increase to recognize a special qualification, certification or job attribute. This tool may not be used for a qualification or certification required for the position. For example, a police officer may receive a temporary add-on for horseback duties performed on a seasonal basis. These adjustments are only intended for the time period in which the special qualification, certification or job attribute applies to the position. They are not guaranteed to become a part of the employee’s normal base pay. Temporary add-ons are entered though the HRS payroll system as an earnings code and do not impact base salary.

  9. Supplemental Lump Sum Payments (Not a Pay Reason Code in HRS Job Data – Performed by Payroll)

    1. Type of adjustment – lump-sum payment (e.g., bonus).
    2. This adjustment is for a successfully completed special assignment that is outside the scope of an employee’s normal job duties.

  10. Special Initiatives

    1. Type of adjustment – base building.
    2. OHR has administered the following programs in collaboration with UW–Madison leadership. Details on these programs are communicated to divisions when the programs are active. Examples of these programs include:
      1. High-demand fund (HRS reason code 078)
      2. Compression equity (HRS reason code 084)
      3. Post-tenure review increment (HRS reason code 083)
      4. Critical compensation fund (HRS reason code 079)

  11. Living Wage Adjustment (HRS Reason Code 090)

    1. Type of adjustment – base-building.
    2. The university will continue to match the City of Madison living-wage provisions for all University Staff and Temporary Employees. This standard requires a minimum wage higher than the federal minimum wage.

  12. Setting an External Rate (HRS Reason Code 011)

    1. Type of adjustment – base-building.
    2. A permanent adjustment used to match the prevailing wage as required by the United States Department of Labor. A rate change may be mandated when an employee has a change to their immigration status.

  13. Different Pay Basis (HRS Reason Code 015)

    1. Type of adjustment – base-building.
    2. A permanent adjustment used to convert an employee’s pay basis from one to another. This does not result in an increase or decrease to an employee’s rate of pay, rather a conversion based on the Salary Conversion Table.

  14. Temporary Voluntary Reduction (HRS Reason Code 004)

    1. Type of adjustment – base-reduction.
    2. In response to exigent circumstances and with the approval of the Office of Human Resources, employees may be offered the option to take a voluntary reduction in pay. The terms of the reduction in pay will be determined by the Office of Human Resources and the employee.

  15. Temporary Voluntary Reduction End (HRS Reason Code 055)

    1. Type of adjustment – base-building.
    2. This adjustment is awarded at the end of the term of the voluntary reduction in pay (HRS Reason Code 004).
    3. The amount of the adjustment will be the amount of the Temporary Voluntary Reduction plus or minus any intervening adjustments.

Section B - Process

  1. Effective date of salary adjustments

    Salary adjustments will be effective the beginning of the pay period following the date OHR receives the request. OHR may delegate effective receipt to the division dean’s or director’s office. The Wisconsin Constitution (Art. IV, § 26) prohibits retroactive salary adjustments. In addition, Wis. Stat. § 109.03(1) prohibits making payments before work is performed. For processing of adjustments, the effective date cannot be effective earlier than the first day of the pay period following the receipt of the request to the Dean/Director’s office as indicated by the Department Approved status in the Rate/Title change system. For JEMS CHRIS-HR, the adjustment must be received by the Division or OHR depending on the level of delegation the division has.

  2. Multiple salary adjustments on same date (order of application)

    Multiple salary adjustments effective on the same date will be applied in the following order:

    1. Reclassification or title change due to promotion
    2. Permanent or temporary change in duties
    3. Raise to FLSA Minimum
    4. Equity (including special programs)
    5. Market (including faculty-specific programs)
    6. Performance
    7. Raise to campus minimum*
    8. Pay plan
    9. Pay upon appointment

    *Raise to campus minimum must be applied first for faculty titles (C30NN and C20NN) when a promotion is being applied and the employee’s salary is below the minimum for the title they are moving to.

Consequences for Non-Compliance

If a school, college or division fails to comply with the Pay Adjustments policy, OHR may remove delegation for the approval of pay adjustments. Employees who receive pay adjustments that are not in compliance with this policy, Board of Regent policy, and/or Wisconsin State Statutes will have the adjustments removed from their base pay. These employees may be required to return payments made in error.

Responsibilities

Office of Human Resources (OHR)
  • Provides policy oversight to ensure compliance with campus policy
  • Conducts periodic reviews of the policy with campus human resources departments
  • Implements any needed changes to the policy
  • Manages the process to review and approve pay adjustments and enter them into the employee’s record
  • Works with divisions to delegate some base adjustments
College/School/Division HR
  • Ensures that all pay adjustments are made in accordance with this policy
  • Ensures administrators, supervisors, and hiring managers are aware of, and comply with, the pay adjustments policy
  • Serves as the records custodian for all pay adjustments in their employing unit
  • Defines consistent compensation guidelines for pay adjustments
  • Manages the pay-adjustment process so that adjustments are awarded equitably
  • Consults with International Faculty and Staff Services before making any changes to an international employee’s compensation
Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

Policy Administration

Approval Authority:
Vice Chancellor for Finance and Administration
Policy Manager:
Chief Human Resources Officer & Associate Vice Chancellor
Contact:
Director, Compensation Administration -- Meghan Owens, meghan.owens@wisc.edu, (608) 262-2346
Effective Date:
06-26-2015
Revised Dates:

5/13/2020

Retrieved:
10-28-2021 08:21:15