Non-Represented Staff Compensation Plan

EFFECTIVE JULY 1, 2002

*Established by Northern Michigan University Human Resources Department March 1, 2001

TABLE OF CONTENTS

INTRODUCTION

This document establishes the compensation guidelines for all non-represented staff of Northern Michigan University.  All compensation actions pertaining to Academic Department Heads, Coaches, Deans, Executives (except the President which is overseen by the Board of Trustees), Senior Administrators and Senior Management personnel, will be considered and approved in accordance with the guidelines stated within this Plan.    The University is committed to implementing and maintaining a fair and equitable compensation program that compliments the required duties of each position as well as the performance of an individual within each position.   The Human Resources Department has been designated as the Plan Administrator, which includes the following: 

  1. Implementing, managing, and revising the Plan.
  2. Scheduling and coordinating all periodic reviews as directed by this Plan or the President.
  3. Evaluating and establishing salary ranges for newly created positions.
  4. Evaluating and approving all salary determinations for newly hired individuals.
  5. Evaluating and approving all salary adjustment requests for all positions.

Supervisors, who request evaluation action, as noted in items 3 through 5 above, will be advised by the Human Resources Department of the evaluation outcomes prior to finalizing their action.  In addition, the Human Resources Department, prior to finalizing all salary actions, will provide to each Vice President and the President the results of all completed compensation evaluation requests for their review, and action if necessary.

Questions pertaining to this plan can be directed to the Director of Human Resources at 227-2330.

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COMPENSATION PHILOSOPHY

Northern Michigan University’s Compensation Philosophy is based on key values of the University.  The values are: (1) high ethical standards to ensure fair treatment of all members of the University community, (2) respect for existing and potential strengths of individual employees, (3) the University’s role in the region’s cultural and economic environment, (4) knowledgeable and competent staff, (5) high performance standards, (6) respect for diversity, and (7) clear communications.

Compensation

Compensation includes both direct (cash) and indirect (employee benefits) and recognizes the essential intrinsic value of employee recognition.

Internal Equity

NMU is committed to fair and equitable pay practices for each individual employee regardless of position, role, gender or cultural background, and within and across all University divisions, employee groups and departments.

Competitive Market Compensation and Indexing

To ensure attraction and retention of the most knowledgeable and qualified employees for NMU, fair and equitable pay practices will be established with a compensation framework which is competitive with similar positions within local, regional or national markets.

Base Pay Structure

The base pay architecture will be non-traditional in structure.  Each position will be evaluated against comparable positions from various market salary data sources that will assist in determiningan adequate compensation range to accommodate varying levels of experience and merit-based performance within each position.

Variable Pay

Variable pay is salary provided to an individual that is not added to the individual’s base pay.  This may include merit pay, bonuses, monetary awards, etc.

Base Pay Policies, Performance and Adjustments

The process of initially establishing the base pay for a new employee must be flexible within the parameters of the position and recognize the extent of the individual’s background and experience.  The University’s performance management process will include the establishment of performance factors that are linked to the goals of the University, division, and/or department and the communication of those factors prior to each performance period.  The process will provide for periodic review and monitoring of actual performance relative to established performance factors.  Ongoing base pay adjustments and variable pay will be merit-based and directly reflect the individual’s performance and contribution during the performance period.

Administration

Based on policies and practices approved by the President and Board of Trustees, adherence of actual pay practices and adjustments to established compensation guidelines and ethical principles will be monitored by Human Resources. This office will also provide ongoing support to managerial personnel entrusted with the evaluation of individual employee performance relative to established standards and expectations.

Communications

The University will provide timely substantiation for and clear communications of compensation plans, practices, and policies that it adopts or modifies.

Innovation and Change

The University’s compensation approach is not static; NMU will monitor and evaluate internal changes and external market factors and trends that might impact the University’s approach to compensation planning.  As appropriate, modifications to existing practices will be introduced after due consideration of their consistency with and representation of the key values of the University stated in this document. 

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Section 1:  Establishing A Salary Range

The first step of implementing this plan involves establishing a salary range for each current non-represented position.  To accurately determine a salary range, each non-represented position must have a current management questionnaire that accurately reflects all required duties of the position.  Utilizing the questionnaire, the Human Resources Department (H.R.) will compare and evaluate all stated duties of the position against similar positions from various market salary data sources to identify a comparable position.  Due to the number and variety of market salary data sources available, H.R. will use the following data sources in the order stated in determining salary ranges:

  1. CUPA-HR
  2. MiCUPA-HR
  3. Others related data sources when positions are not noted in sources listed above.

After identifying a comparable position, H.R. will obtain from a market salary data source the median salary which will be utilized as the starting point in developing the salary range for Northern’s positions.  The identified midpoint salary amount may be adjusted to take into account any recent NMU annual adjustments.  Utilizing the adjusted midpoint rate, a range of 42% below and 42% above the midpoint will establish the salary range for the position rounded to the nearest $100.

Positions that incorporate multiple job functions (e.g., Communications & Development) into one position requires consideration of each job function when establishing the position’s salary range.  In determining a salary range for this type of position, H.R. will evaluate and identify the primary job function based on the amount of time required in performing the assigned duties.  Once the primary job function has been identified, a comparable position from the market salary data source will be identified and the process of establishing a salary range would occur as noted in the previous paragraph above.  In those situations, where the job functions are equal, the comparable position listed in the salary data source with the highest salary median will be identified as the median salary amount for Northern’s position.

In the event that salary data was unavailable due to the fact that a position was not listed in any market salary data source or the duties of the position far exceeded the duties description in the various market salary data sources, H.R. will evaluate and determine a salary range utilizing the guidelines stated in Appendix A of this plan.

Upon implementation of this Plan, each non-represented individual will receive from H.R. a statement (figure 1) reflecting the salary range of their position including the market salary data source and the comparable position that was utilized in determining the salary range for their position.

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Section 2:  Newly Created Positions

As future positions emerge, a critical element of the development process must include the salary range determination.  After receiving and processing a management questionnaire for a newly created position, H.R. will initiate the salary range determination process for the position by implementing the same salary range determination process as noted in Section 1 above.  This includes determining salary ranges for positions having multiple functions as well as positions in which salary data is unavailable.

The process of establishing a salary range for a newly created position must be completed prior to initiating any recruiting actions for the new position.  To prevent from having to re-advertise postings and to provide flexibility during the recruiting process, supervisors are encouraged to state the on the job announcement the phrase “commensurate with experience” when providing salary information.  Supervisors desiring to define the salary information must coordinate their request with Human Resources.  The use of a defined salary range must be within the minimum to mid-point range of the salary range for the position. 

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Section 3:  Vacant Established Positions

Current established vacant positions must undergo a review and, if needed, the supervisor must update the management questionnaire prior to the initiating any recruiting actions.  To initiate a recruiting action, the supervisor, upon completion of their review, will either, 1) contact H.R. stating that the current questionnaire is still valid, or, 2) will initiate and forward to H.R. a revised questionnaire.  H.R. will also validate or revise, as needed, the established salary range for the position.  To prevent from having to re-advertise postings and to provide flexibility during the recruiting process, supervisors are encouraged to state the on the job announcement the phrase “commensurate with experience” when providing salary information.  Supervisors desiring to define the salary information must coordinate their request with Human Resources.  The use of a defined salary range must be within the minimum to mid-point range of the salary range for the position.

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Section 4:  Establishing A Salary Amount

In determining a salary amount for a newly hired individual, all salary requests will be submitted to H.R., via e-mail, for consideration and approval prior to extending any offer of employment and will be evaluated on the following:

  1. Experience and skills possessed by the individual
  2. The duties of the position
  3. Market data from one of the various market salary data sources
  4. The University’s available resources 

Starting salary amounts will not exceed the position’s stated mid-point amount unless approved by the President.  All final salary determinations will be provided to the Vice Presidents and the President for their review prior to extending an offer of employment.

Each new non-represented employee will receive from H.R. as soon as practical a statement (figure 1) reflecting the salary range of their position including the market salary data source and the comparable position that was utilized to determine the salary range for their position.

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Section 5:  Salary Adjustments

Annual adjustments, as directed by the President, normally occur at the end of the fiscal year associated with the annual performance evaluation process.  Annual adjustments may consist of across-the-board, merit, and market adjustments.  However, there may be instances during the year in which a salary adjustment may be considered and approved.  The following are examples of reasons that may justify a salary adjustment:

  1. Promotion
  2. Transfer from one position to another
  3. The addition/deletion of duties to an individual’s existing job description
  4. Performance (beyond that noted on the most recent annual performance evaluation)

In those instances where a salary adjustment may be appropriate, a written request via e-mail to H.R. must be submitted stating the reason for the adjustment request.  For those positions with newly added or deleted duties, an updated management questionnaire will be required prior to evaluating and processing any salary adjustment request.  H.R. will evaluate and process the request for approval taking into consideration the following:

  1. Experience and the skills possessed by the individual, if required
  2. The addition/deletion of duties for the position
  3. Market data from various market salary data sources
  4. The University’s available resources

A salary adjustment that places an individual above the maximum of their salary range will have the amount exceeding the maximum rate paid as a bonus (bi-weekly payments).  This bonus will not be added to the base salary

As noted above, and prior to notifying the individual of the adjustment, all salary adjustment requests must be submitted to and approved by H.R.

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Section 6:  Maintaining Salary Ranges

H.R. will initiate and conduct a market salary study of all non-represented positions periodically.  This process will include updating/adjusting salary ranges based on market analysis, a study summary reflecting all positions updated/adjusted as a result of the study, and notification to each affected individual on the findings obtained from this study as it pertains to the position in which the individual is assigned. 

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Section 7:  Salary Determinations for Academic Department Heads

Effective July 1, 2002, Academic Department Heads’ salary ranges and salary determinations will be determined in the following manner:

1.      When establishing a salary range for a Department Head position, H.R. will initially conduct a market analysis by identifying a comparable faculty position by discipline from a salary survey data source (e.g., CUPA-HR’s National Faculty Salary Survey).  Upon identifying a comparable faculty position, H.R. will obtain from the salary data source the median salary of the comparable position.  H.R. will then adjust the median salary rate from the salary data source to incorporate NMU’s most recent non-represented annual across-the-board adjustment.  This new adjusted rate will establish the mid-point for the salary range for the discipline. 

2.      Once the mid-point amount has been established as noted in previous paragraph above, a salary range for the discipline will be determined.  Using the same process noted in Section 1 above for non-academic positions, a range of 42% below and 42% above the midpoint will be utilized to establish the salary range for the position rounded to the nearest $100.  This range will be communicated to the Provost and Dean by H.R.

3.      Determining a salary rate for an individual assigned to a Department Head position will comprise of two elements.  The first element establishes the 9-month faculty equivalent base pay utilizing the salary range as noted in the previous paragraph above.  Element two establishes the compensation rate for the duties as a Department Head. This is determined by the Provost in conjunction with the respective Dean, who will establish a factor for each Department based on their evaluation of the scope of responsibility, the size, and the complexity of the department.  Based on the established factor, the individual assigned as the Department Head will receive a base pay adjustment of 15%, 20% or 25% of the 9-month faculty equivalent base pay.  While all Department Heads will have a 12-month assignment, there are variations in the Department Head teaching load requirements across departments.  Department Head teaching loads will be determined by the Dean and reviewed by the Provost.

4.      The authority for determining final salary offers for an individual selected to serve as an Academic Department Head resides with the Provost and Vice President for Academic Affairs.

5.      An individual who relinquishes the duties as a Department Head and returns to the faculty rank will encounter a salary decrease equal to the second element of adjustment noted in paragraph 3 effective on the date the individual is no longer identified as a department head.

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Section 8:  Compensation for Additional Assignment/Duties

Due to mission requirements, there will be instances that require an individual, while assigned to and performing duties of a position, to inherit and perform an additional assignment or duties from another position for a specific time frame.   The interim assignment or additional duties may justify consideration of an individual receiving a wage increase for the period of such an appointment. Salary adjustment requests based on an interim assignment or additional duties may be submitted to H.R. (e-mail preferred). The request will be evaluated on the following:

  1. The current duties of the individual
  2. The additional assignment or duties
  3. The amount of time required to perform such duties
  4. Market salary data of the additional assignment or duties
  5. The University’s available resources

Individuals that are appointed to a position, with a higher salary range, on an interim basis will be compensated at a rate not less than 10% higher than the rate they are earning prior to the appointment. 

Individuals given additional duties may be considered for a wage increase at a rate not to exceed 10% higher than the rate they are earning prior to the assignment of the additional duties.

At the time the interim assignment or additional duties are no longer required of the individual performing such duties, the individual will revert back to the former salary rate plus any University wide adjustments that were implemented during the appointment period.

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Appendix A:  Determining Salary Ranges for Positions Not Listed in Salary Data Sources

Purpose:  The Compensation Plan for Northern Michigan University requires each non-represented position to have an established salary range generated by the Human Resources Department (H.R.) based on market data available from various salary data sources (e.g., CUPA-HR, MICUPA-HR).  However, there are positions at NMU, due to duties and responsibilities of the positions, in which salary data is not comparable or not available within the various data sources.  This attachment, which supplements the Northern Michigan University Compensation Plan for all non-represented positions, provides guidance in determining salary ranges for unlisted positions. 

General Information: To maintain an effective compensation program, efforts will be directed at identifying and obtaining a viable salary data sources to support each non-represented position.  However, when a viable data source cannot be obtained to support a position, the procedures described below will be implemented.  In order to establish a salary range under this procedure, the following criterion must apply:

1.      Must have a current management questionnaire on file in the Human Resources Department and,

2.      Salary data for the position is not available in any salary data source utilized by NMU or the duties described within NMU’s job description far exceed the description stated within the various market salary data sources. 

Determination Criterion: Once a position has been identified as an unlisted position requiring a salary range determination, H.R. will compare the duties and the responsibilities of the position with other NMU non-represented positions with established salary ranges.  In comparing the positions, the following criteria may be considered:

1.      Similar in nature by title to a position(s) that have an established range (e.g., director, coordinator, manager)?

2.      Duties and responsibilities that are similar in nature to an established position(s) (e.g., manage a budget, coordinate activities)?

3.      Supervisory responsibilities similar to an established position(s) (does this position supervise any other non-represented positions)?

4.      Qualifications similar to an established position (e.g., education, experience)?

Finalizing the Range: The salary range of the established position that best compares to the unlisted position will be established as the salary range for the unlisted position.  There may be situations in which more than one established position equally compares to the evaluated position.  In this situation, a salary midpoint will be established by averaging the salary midpoints of up to the best three established positions. Using the midpoint average, the salary range will be established utilizing the process described in Section 1 of this Plan.

Historical Data: The Human Resources Department will initiate and maintain written documentation on each position for which a salary range was established utilizing this process.  This documentation will be maintained for the life of the position or until such time salary data becomes available through various salary data sources.

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Appendix B: Salary Ranges for All Non-Represented Positions

This section will contain the individual salary ranges for each non-represented position maintained in the Department of Human Resources.

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SALARY DETERMINATION NOTIFICATION

POSITION:___________________________________________________

EMPLOYEE GROUP:__________________________________________

ASSIGNED INDIVIDUAL:______________________________________

COMPARABLE POSITION:____________________________________

SALARY DATA SOURCE:______________________________________

SALARY DATA SOURCE NUMBER:___________      DATE OF REVIEW:_______________

ESTABLISHED SALARY RANGE

MIN                    25TH                     MID-POINT                    75TH                    MAX

YOUR CURRENT SALARY RATE:__________________________

LOCATION WITHIN SALARY RANGE:____________________

COMMENTS:______________________________________________________________________

___________________________________________________________________________________

FIGURE 1