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Human Resources

Human Resources Administrative Practice Manual:
Classification, Compensation, and Payroll

Print friendly Modified July 31, 2012

Salary Increase Administration Process

Citation Reference  
Official Title Policy on Salary Increase Administration Process
Abbreviated Title Salary Increase Policy
Volume Human Resources
Responsible Office Human Resources
Originally issued April 2009
Revised

Policy Statement

Salary and wage adjustments will generally be awarded to employees in the University System 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 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.

Reason for Policy

This policy ensures consistency in compensation practices among institutions of the University System while affording the appropriate level of flexibility needed at the institutional level.

Entities Affected By This Policy

All units of the University System of Georgia are covered by this policy.

Who Should Read This Policy

All Human Resources personnel within the University System of Georgia should be aware of this policy.

Contacts

Contact Phone Email/URL
Office of Human Resources 404-962-3235 usg-hr@usg.edu
Institution Chief Human Resources Officers See University System HR Officer Listing at http://www.usg.edu/hr/officers/
Institution Payroll Officer Refer to institution directory

Website Address for This Policy

None

Related Documents/Resources

Definitions

These definitions apply to these terms as they are used in this policy:

  • Board of Regents: The governing body of the University System of Georgia
  • Salary Range: The institutionally approved pay range for a position, usually designated by a minimum salary amount and a maximum salary amount.

Overview

Annual Merit Increases

Each year, the Office of Fiscal Affairs will issue a salary administration statement that provides guidelines for awarding salary increases for that fiscal year. Merit increases are normally 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 his/her 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.

Additionally, and subject to Board policy, institutions may make salary increases for promotions and reclassifications or to address issues of salary inequities, subject to the availability of funds. See BOR Policy Manual regarding Compensation Policy.

Promotional Increases/Reclassifications

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.

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.

Changes to Legislative Appropriations

The Board receives an annual appropriation from the General Assembly for all phases of its operations. This appropriation may be increased or decreased by the Legislature or the Governor during the period of any fiscal year. Expenditures for operation of the University System are therefore necessarily contingent upon legislative appropriations. In the event that the General Assembly or the Governor at any time reduces the amount of funds appropriated to the Board, the compensation of all employees and other operating expenses may as a consequence be correspondingly reduced. It shall, however, be the intent of the Board to maintain current salary commitments in so far as possible to every employee, and the Board will exert its composite influence and best efforts to that end (BR Minutes, 1976-66, p. 184).

Summary

Good compensation practices are needed to attract and retain good employees. When determining salaries, various factors should be taken into consideration, including but not limited to: internal alignment and equity, external market conditions, job responsibilities and required qualifications. Before employing an individual at a rate higher than the entry level salary, institutions are strongly advised to review the salary levels of all other current employees in the same or similar classifications.

Institutions are authorized to develop and administer a wage and salary administration program for utilization at the institutional level to ensure consistency in applying this policy.

Process/Procedures

Each institution shall establish procedures to implement this policy.

Responsibilities

The responsibilities each party has in connection with the Policy on Salary Increase Administration Process are:

Party Responsibility
Vice Chancellor for Human Resources, USG Maintain policy, provide guidance to institution human resources officers on effective utilization of policy, and monitor campuses for compliance.
Institution Chief Human Resources Officers 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.

Forms

None

Appendices

None


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