These pay guidelines are to help ensure that The University of Alabama complies with all Federal, State and Local legislature pertaining to pay. All personnel actions that involve the establishment or change in compensation are subject to the review of the Department of Human Resources and the appropriate University of Alabama Vice President and/or President.
Hiring Rates
The hiring official should determine an appropriate starting pay rate based on the candidate’s experience and skills, existing pay rates for current employees and the availability of funds. For candidates who are current employees, consideration needs to also be given based on whether the hiring action will be a promotion, lateral transfer, or demotion for the employee. Specific guidelines related to each of these situations are defined in the next few sections.
New Hire Salaries
A New Hire is defined as an external candidate who has been selected for a vacant staff position. Candidates meeting the minimum qualifications will typically have a starting rate of pay at the minimum of the position’s pay grade. The hiring official may not start a candidate at a rate of pay that is less than the minimum of the pay grade for the position. The hiring official may request to start a candidate at a rate of pay between the minimum and midpoint of the position’s pay grade if the candidate exceeds the position’s minimum qualifications.
For pay requests between the minimum and the midpoint of the assigned pay grade, the following factors should be considered:
(1) qualifications of the candidate,
(2) relevant market data for the position,
(3) cost, difficulty, and length of time associated with the recruiting campaign, and
(4) relevant salaries of other employees with the same job title and/or in positions within the same pay grade who possess similar qualifications as the candidate.
Starting rates of pay between the minimum and the midpoint of the assigned pay range must be reviewed and approved by the HR Business Partner and/or Talent Acquisition Team, and to analyze internal equity and pay compression issues.
Pay rate requests above the midpoint of the assigned pay range will be evaluated on a case-by-case basis and must consider the factors noted above and be approved by the Director of Talent Acquisition & Compensation and/or the Senior Associate Vice President for Human Resources/Chief Human Resources Officer (CHRO), and the applicable VP or designee. Such requests will be limited to the third quartile.
Any exceptions to the above must receive approval from the President.
The rate of pay to be offered to a candidate is subject to the availability of funding and shall not exceed the maximum of the pay range.
Giving a post-introductory period pay increase is at the discretion of the hiring official; however, it should be approved by the appropriate dean, director or department head at the time the initial offer is approved. It should be clearly communicated to the candidate that they may be eligible for a post-introductory pay increase based on job performance, but a pay increase is not guaranteed.
** A recommendation from the Department of Human Resources should be obtained prior to obtaining approval from the Vice President or President.
Promotional Increases
A promotion is defined as the advancement of a current, active staff employee to a position in a higher pay grade than the employee’s present position, or movement from a classified position to a non-classified position with an increase in pay. A promotion can result from the reclassification of a position assigned to a higher pay grade or when an employee applies and is selected for a different position in a higher pay grade.
Promotions may result in a salary increase determined by the HR Business Partner and/or Talent Acquisition Team in consultation with the hiring official. This increase should be the minimum of the new pay range, or an increase may be considered up to the midpoint of the pay range based on the same factors used to evaluate New Hire salaries. A promotional increase above the midpoint of the assigned pay range will be evaluated on a case-by-case basis and must consider the factors noted in the New Hire section and requires approval from the Director of Talent Acquisition & Compensation and/or the CHRO, and the appropriate Vice President or designee. Promotional increases shall not exceed the maximum of the pay range.
Any exceptions to the above must receive approval from the President or designee.
The rate of pay to be offered to a candidate is subject to the availability of funding and shall not exceed the maximum of the pay range.
Salary Following an Internal Transfer
An internal transfer is defined as the transfer of a current, active employee to a position in the same pay grade as the employee’s present position.
Upon transfer to another position in the same job title or a job title with the same pay grade, an employee’s rate of pay will normally remain the same. An employee may voluntarily accept a lower rate of pay if the new position is budgeted for an amount lower than the employee’s current pay rate. An increase to pay is possible if the employee would have qualified for a higher rate of pay for the position had the employee been a New Hire. The department must have sufficient funds to cover the increase.
Considerations for rate of pay increases following an internal transfer to a job in the same pay grade include employee qualifications, market value of the new position, and internal equity. Internal transfer increases above the midpoint of the assigned pay range will be evaluated on a case-by-case basis and must consider the factors noted in the New Hire section and requires approval from the Director of Talent Acquisition & Compensation and/or the Senior Associate Vice President for Human Resources/Chief Human Resources Officer CHRO, and the appropriate Vice President or designee. Transfer increases shall not exceed the maximum of the pay range.
Any exceptions to the above must receive approval from the President.
A downgrade is defined as the movement of a current, active employee to a job title in a lower pay grade than the employee’s present job title.
Salary adjustments related to downgrades will be handled as follows:
- When the downgrade is for cause, it is considered a demotion and a reduction to pay is required. The amount of the proposed reduction will be determined by Human Resources with the Director of Talent Acquisition & Compensation and/or the CHRO, the assigned HRBP, and the Director of Employee Relations or an Employee Relations representative providing input.
- When the downgrade is the result of a reorganization or reduction in force, the employee’s existing rate of pay may be continued subject to the budgetary limitations. However, when internal equity issues are identified, a reduction to pay may be identified and required by the Director of Talent Acquisition & Compensation and/or the CHRO.
- When the downgrade is the result of an employee applying for a position at a lower pay grade, a reduction to pay is generally expected. However, such situations are evaluated on a case-by-case basis and the same factors used to evaluate new hire starting pay rates will be considered. The employee’s salary shall not be reduced to below the minimum of the new pay range.
- When a downgrade is occurring for any reason and the employee’s current rate of pay is at or above the new position’s maximum of the pay grade, the employee’s rate of pay must be reduced to fit within the new range.
- The Human Resources department must conduct a review of internal equity and pay compression and consider this information when determining a change to an employee’s rate of pay.
All rate of pay adjustments related to downgrades will be handled on an individual employee basis and must be approved by the Department Head, the Director of Talent Acquisition & Compensation and/or the CHRO, and the appropriate Vice President or designee. Employee Relations will be included when appropriate.
Any exceptions to the above must receive approval from the President.
Salary Following a Reclassification
When an employee’s position is reclassified to a position in a job title with a higher pay grade, the guidelines for promotion will apply.
When an employee’s position is reclassified to a position in a job title at the same pay grade, the guidelines for an internal transfer will apply.
When an employee’s position is reclassified to a position in a job title at a lower pay grade, the guidelines for a downgrade will apply.
Effective Dates of Reclassification
The effective date of a reclassification will be at the beginning of a pay period following the reclassification date.