Compensation Program Guide

6054 Drexel Avenue Chicago, IL 60637 Phone: 773-702-8900 Web site: hr.uchicago.edu

Table of Contents
Overview ................................................................................................................................................................................. 3 Staff Compensation Philosophy .............................................................................................................................................. 3 Classification System ............................................................................................................................................................... 3 New Job Coding System .......................................................................................................................................................... 4 Job Descriptions ...................................................................................................................................................................... 5 Market Data ............................................................................................................................................................................ 5 Compensation Procedures ...................................................................................................................................................... 6 1) 2) 3) 4) 5) 6) Classifications .............................................................................................................................................................. 6 Base Pay Adjustments ................................................................................................................................................. 7 Non-Union Incentives/Bonuses .................................................................................................................................. 8 Temporary Arrangements ........................................................................................................................................... 9 Local 743 Union......................................................................................................................................................... 10 Data Updates ............................................................................................................................................................ 11

Overview
The University of Chicago seeks to recognize the unique contributions of each employee by providing a competitive compensation package that ties the application of knowledge and skills to the achievement of the University's strategic goals. The Compensation Program strives to: Be competitive with the marketplace and promote equity within the University; Meet the University's business needs and follow the University's compensation philosophy; Be service oriented and easy to use for supervisors and employees; and Ensure compliance with federal and state laws and regulations through a streamlined and consistent set of job descriptions.

Staff Compensation Philosophy

The University of Chicago is committed to providing a comprehensive total rewards program to attract, retain, and reward highly qualified, diverse, and productive employees. The total rewards program emphasizes alignment of employee efforts to support the University's mission of discovering, improving, and disseminating knowledge. The components of the program include compensation, benefits, learning and development opportunities, work-life balance, and recognition of employee performance. The University strives to be externally competitive in relevant labor markets while encouraging internal equity. The program also promotes fiscally responsible pay decisions, encourages efficient use of University resources and ensures compliance with applicable legal and contractual requirements.

Classification System
The University of Chicago is a large, complex, and decentralized workplace. Such a unique work environment results in a large number of staff members, with a wide variety of skill sets, knowledge and experience, and a broad range and diversity of positions. The classification system provides a consistent structure that recognizes fluctuations in the market value of staff jobs and rewards high performance. The University of Chicago Compensation Program groups staff jobs requiring similar competencies into families based on their comparable functions and required skills. Similar staff jobs are aligned both hierarchically and across job families. The organization of the system is intended to assist University Managers in succession planning, and to recruit and retain staff employees. The system also allows staff employees to view position descriptions and target skills needed for advancement opportunities. Within the classification system, jobs have standardized descriptions and are organized into career tracks within larger job families. A job family is a group of jobs having the same nature of work but requiring different levels of skill, effort, responsibility, or working conditions. Career tracks are a series of progressive levels within job families where the nature of the work is similar and the levels represent the University's requirements for increased skill, knowledge, and responsibility as an employee advances along a career path. For example, the Accounting career track in the Finance job family contains the following jobs: Accountant 1, Accountant 2, Accountant 3, Accounting Supervisor, Accounting Manager, and Accounting Director. 3

New Job Coding System

A
Job Family and Job Search Criteria

B
Career Track within a Job Family

CD
Number of a Job within a Career Track EEO Level

F
Benefits Eligibility and FLSA Status

DIGIT A Job Family and Job Search Criteria

Digit A
A B C D E F G H I J K L M N P R S T

Job Family
Administration and Business Healthcare and Medical Services Communications Development & Alumni Relations Executive Facilities Customer Service and Sales Human Resources Information Technology Religious Services Library Legal & Regulatory Affairs Museum and Arts Administration Finance Police and Security Research Student Affairs and Services Teaching and Education

DIGIT B Career Track within a Job Family AZ DIGIT CD Number of a job within a Career Track 00 99 (Consider using 10s first 10, 20, 30, then split for additional jobs 15, 25, etc.) DIGIT E EEO Level Digit 0 1 2 3 4 5 6 7 8 9 EEO Category Executive/Senior Level Officials and Managers First/Mid Level Officials and Managers Professionals Technicians Sales Workers Administrative Support Workers Craft Workers Operatives Laborers and Helpers Service Workers DIGIT F Benefits Eligibility and FLSA Status (Placeholders: A-Exempt; B-Non-Exempt until identified with an employee) A Benefits Eligible/Exempt B Benefits Eligible/Non-Exempt C Benefits Ineligible/Exempt D Benefits Ineligible/ Non-Exempt E 8 Hour Shift/ Union F 8 Hour Shift/ Non-Union T Time & Attendance 4

Job Descriptions
Each staff job classification has a standardized job description that describes the work performed in general terms. A job description highlights the most important features of a job; it may not describe specific duties related to an employee's position. Job descriptions include a job title, job family and job family levels (if applicable), job summary, and minimum required qualifications. The standardized job descriptions are compliant with federal and state employment laws with special emphasis on the Fair Labor Standards Act, Affirmative Action & Equal Employment Opportunity laws, and the American with Disabilities Act. All standardized job descriptions are available on the UChicago Career Planner Website.

Market Data
To ensure salaries are competitive with the marketplacewith what people outside the University are earning for comparable jobsthe University reviews pay data from salary surveys covering universities and other organizations with whom it competes for employees. This market pricing approach provides a simplified compensation system that can more readily accommodate frequent organizational and job/role changes and employee skill growth, characteristic of today's workplace. It places greater emphasis on competitiveness with the external market and allows the University to align its pay practices more precisely with the market at the individual position level. Annually, pay data is obtained and reviewed for each job classification. In some cases, positions that are in very high demand are reviewed more often to ensure that we are keeping pace, as appropriate. The University determines what to pay for jobs by ensuring pay is competitive and fair internally and externally. Human Resources Administrators will be able to access internal and external salary data to ensure fair and competitive staff compensation rates.

Compensation Procedures
The processes for submitting staff compensation-related requests to Compensation can be found by referencing the following tables. In some instances, other Human Resource Services departments may be involved in the processing and approval of the request.
Category Sub-Category Definition 1) Classifications 1.1 New Position
1.1.1 A position not currently or previously held by an employee. Results in a hire, demotion, transfer, or promotion

1.2 Vacancy
1.2.1 Unfilled or soon to be unoccupied position that is already assigned a job classification.

1.3 Reclassification
1.3.1 An employee is slotted into a newly created position due to a departments reorganization resulting from new technology and/or developments in the field or because University/business needs have changed and/or to create greater workflow efficiency, AND there is only one employee in the department who is eligible, qualified and could be considered for the new position. If there are other employees similarly situated, and therefore possible candidates, the position must be posted and a competitive selection process must be completed.

Required Documentation Post in UChicago Jobs? Decision Criteria

UChicago Jobs Requisition Yes Newly created job Additional employees are requested because of a business need /reorganization Others in job code in department are eligible to apply

UChicago Jobs Requisition Yes An employee left the position and an employee is needed to replace him/her

UChicago Jobs Requisition No Job duties significantly changed and old job is not being filled (If old job is being filled, request is for a new position - see 1.1) Other employees similarly situated are not eligible to apply or there are no other employees similarly situated

Approver

Compensation

Compensation

Compensation

Category Sub-Category Definition

2) Base Pay Adjustments 2.1 Equity

2.1.1 Internal Equity: A change in an employee's base pay due to the pay relationships among positions in a job classification within a single unit in the University or among all positions in the University within the same job classification UChicago Jobs Requisition, including a rationale for request in the notes field No Pay in relation to others in job classification in unit and/or University Maintenance of Equal Employment Opportunity Education, experience, knowledge, skills, and abilities 2.1.2 External Equity: A change in an employee's base pay due to the relationship between the pay of a job and the prevailing, external market rates for comparable positions, as determined by market pricing UChicago Jobs Requisition, including a rationale for request in the notes field No Market data

2.2 Compensation for New Duties

2.2.1 A base pay adjustment for an employee based on the employee performing new duties on an ongoing basis

2.3 Counter Offer

2.3.1 A base pay adjustment for a current employee to retain him or her after receiving job offer from another company or another School/Division/Unit (not department)

Required Documentation

UChicago Jobs Requisition, including a rationale for request in the notes field No Job has changed but not significantly enough to warrant reclassification Other employees similarly situated are not eligible to apply or there are no other employees similarly situated Maintenance of Equal Employment Opportunity Compensation

UChicago Jobs Requisition, including a rationale for request in the notes field No Reasonableness of request

Post in UChicago Jobs? Decision Criteria

Approver

Compensation

Compensation

Compensation

Category Sub-Category Definition

3) Non-Union Incentives/Bonuses 3.1 Incentive/Bonus for Monthly Employees

3.1.1 Incentive for Monthly Employees: A pay plan that is designed to reward the accomplishments of specific results. An incentive payment is tied to specific results which are identified at the beginning of a performance cycle. An incentive plan is forwardlooking in contrast to a bonus; it is a nondiscretionary lumpsum payment in addition to an employees base pay. 3.1.2 Bonus for Monthly Employees: A pay plan that is designed to reward an employee's special efforts and high level of performance on projects or special assignments. A bonus is an after-the-fact discretionary lump-sum payment in addition to an employees base pay.

3.2 Incentive/Bonus for Non-union, Biweekly employees

3.2.1 Incentive for Nonunion, Biweekly Employees: A pay plan that is designed to reward the accomplishments of specific results. An incentive payment is tied to specific results which are identified at the beginning of a performance cycle. An incentive plan is forwardlooking in contrast to a bonus; it is a nondiscretionary lumpsum payment in addition to an employees base pay. 3.2.2 Bonus for Nonunion, Biweekly Employees: A pay plan that is designed to reward an employee's special efforts and high level of performance on projects or special assignments. A bonus is an after-the-fact discretionary lump-sum payment in addition to an employees base pay.

Required Documentation

Monthly Extra Service Payment Request Form, documentation to justify request

Monthly Extra Service Payment Request Form, documentation to justify request

Biweekly Additional Payment Form, documentation to justify request

Biweekly Additional Payment Form, documentation to justify request

Post in UChicago Jobs? Decision Criteria

No Documentation is sufficient to justify request Frequency of request is no more than 1 per person per project or year Amount is up to $2,000 and not a repeated request If amount is over $2,000, reasonableness of request is judged Incentive Plan has been approved by HRS

No Documentation is sufficient to justify request Frequency of request is no more than 1 per person per project or year Amount is up to $2,000 and not a repeated request If amount is over $2,000, reasonableness of request is judged

No Documentation is sufficient to justify request Frequency of request is no more than 1 per person per project or year Amount is up to $2,000 and not a repeated request If amount is over $2,000, reasonableness of request is judged Incentive Plan has been approved by HRS

No Documentation is sufficient to justify request Frequency of request is no more than 1 per person per project or year Amount is up to $2,000 and not a repeated request If amount is over $2,000, reasonableness of request is judged

Approver

Records

Records

Records

Records

Category Sub-Category Definition

4) Temporary Arrangements
4.1 Temporary Compensation for Additional Duties
4.1.1 Performing Additional Duties Outside Scope of Primary Job Responsibilities: A lumpsum payment (exempt employees) or hourly payment (non-exempt employees) that is used to recognize performance of unusual duties outside the scope of one's primary job responsibilities, but in the same unit Monthly Extra Service Payment Request Form (exempt employees) or Biweekly Additional Payment Form (nonexempt employees), documentation to justify request No 4.1.2 Performing Additional Duties for Another Unit: A lump-sum payment (exempt employees) or hourly payment (non-exempt employees) that is used to recognize performance of unusual duties/special projects outside the employee's unit 4.1.3 Performing Duties of a Vacant Position (Acting/Interim): A lump sum payment (exempt employees) or hourly payment (non-exempt employees) for a person who has temporarily assumed major responsibility for, and performance of, a vacant position (in addition to performing his/her regular job duties) Monthly Extra Service Payment Request Form (exempt employees) or Biweekly Additional Payment Form (nonexempt employees), documentation to justify request No

4.2 Temporary Employment

4.2.1 A request to hire an individual on a temporary basis

Required Documentation

Monthly Extra Service Payment Request Form (exempt employees) or Biweekly Additional Payment Form (nonexempt employees), documentation to justify request No

Temporary Employment Form, job description, new hire paperwork

Post in UChicago Jobs?

Only if requested by a department. This is typically done when a department needs to recruit for the position.

Criteria for Decision

Documentation is sufficient to justify request Work involves a special project or duties being performed more than 1 day per week Work was either requested or approved by the employee's supervisor Additional work is performed on a shortterm basis

Documentation is sufficient to justify request Work involves a special project or duties being performed no more than 3 days per month Permission to perform the duties was granted by employee's primary unit Additional work is performed on a shortterm basis

Rate should have a beginning and an end date Documentation is sufficient to support that someone has vacated a position and the work needs to be completed while the job search is being conducted Compensation corresponds to the percent of effort given to the secondary duties

Completeness of forms Pay requested is within pay range for classification If performing exempt duties, pay meets salary threshold

Approver

Records

Records

Records

Records (if the exemption status of a job is uncertain - Compensation)

Category Sub-Category Definition

5) Local 743 Union

5.1 Bonus for a Local 743 Employee 5.1.1 A type of lump-sum payment, separate from base pay, that is used to Labor Relations reward Local 743 employees for exceptional achievement, exceptional service, budget savings, or special projects 5.2 Local 743 Equity/Market Adjustment Request 5.2.1 An increase in the hourly rate of an employee to correct an internal wage rate inequity/compression which may have occurred between Local 743 employees in similar positions within the same unit or to attract or retain Local 743 employees with special skills or experience that is uniquely critical to the unit in comparison to the external market Local 743 Equity/Market Adjustment Request Form, memo detailing the reason for the request, including any other supporting documentation No 5.3 Local 743 Request in Schedule Workweek 5.3.1 A request to change a Local 743 employee's weekly work schedule from 37.5 hours to 40 hours

Required Documentation

Bonus Request Form - Local 743 Employees, documentation to justify request

Request for Increase in Scheduled Workweek Form

Post in UChicago Jobs? Criteria for Decision

No

No

Documentation is sufficient to justify request Amount is up to $500

Documentation is sufficient to justify request Pay in relation to others similarly situated Relevant experience Market data Local 743 Equity Committee (Submit to Labor Relations)

Completeness of form

Approver

Labor Relations

Labor Relations

10

Category Sub-Category

6) Data Updates
6.1.1 Personal Data Updates, Change in Hours in Proportion to Salary, Funding Distribution Changes General updates to employee/job information that do not require approval of Compensation PAF PAF

Definition

Required Documentation Post in UChicago Jobs? Criteria for Decision Approver

No

Request is submitted by deadline Information on PAF is accurate Records

11