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HR Item of Interest: Salary administration policy changes

by UofL Today last modified Jun 25, 2010 10:48 AM

(News from the University of Louisville Human Resources office.)

Provost Shirley Willihnganz recently approved a concept document from Human Resources (HR) for a new salary administration policy for professional, administrative and classified staff. It is designed to give departments more flexibility in setting salaries for new hires, internal promotions, lateral transfers and supplemental compensation.

Under the new policy, there will be no fixed percentage limits.

Instead of a “rule-based” policy, there will be a “judgment-based” system that will give salary approval to departments, while HR will assume an information-providing role.

The new policy will ensure public accountability and transparency in salary decisions because those decisions must

  • be based on facts and data;
  • be reasonably linked to market value;
  • take internal equity factors into consideration, but not be bound by them; and
  • be reasonably documented.

Once the policy is in place, Human Resources’ role will be only to provide information on salaries of like jobs in the public job market and to provide internal salary equity data. The information will help campus administrators make reasonable, consistent, market-based and equitable salary decisions.

Approval of salaries will rest with department chairs and directors, or with deans and vice presidents, depending on the circumstance.

The proposed changes in UofL’s salary policy and procedures have been endorsed by the Staff Senate, vice presidents and deans. The changes come after a review of existing salary administration policies by Human Resources, the Ad Hoc Salary Administration Review Committee and the Financial and Economic Welfare Committee of the Staff Senate.

More information is under the Salary Administration Policy Changes link on the Human Resources Items of Interest page. The changes take effect July 1.

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