VII-9.11(B)

UMB Policy on Pay Administration for Exempt Positions

Human Resources   |   Approved September 7, 2023

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Responsible VP/AVP

Dawn M. Rhodes, DBA, MBA

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Applies to Staff

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Revision History

Revised October 1, 2011, July 1, 2010, January 2, 2000

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Purpose

The purpose of this Policy is to establish pay administration criteria and procedures for compensation for jobs in the exempt group. 

This policy applies to all regular exempt employees and Contingent II exempt employees, including those appointed as Associate Vice President, Assistant Vice President, Associate Dean, or Assistant Dean (collectively, in these Procedures, the A/AVPD group).  

These Procedures do not apply to Associate and Assistant Deans who are employed as faculty and have a secondary administrative appointment which are subject to separate policies or procedures applicable to Faculty.

Policy Statement

University Human Resources (Central HR) supports the University of Maryland, Baltimore (UMB or “University”) by developing job descriptions, salary structures, and procedures that encourage the recruitment and retention of a highly skilled work force. Central HR regularly reviews market data and adjusts pay structures or placement of jobs in pay ranges in order to maintain University compensation that is competitive with the external market.  

This Policy fulfills the requirement in the University System of Maryland (USM) VII-9.11 USM Policy on Pay Administration for Exempt Positions that the University adopt procedures to implement that policy. The definitions in this policy are subject to change based on approved State law and/or guidelines from USM or the University. Such guidelines are available on the UMB HR website.  

UMB is required to report defined pay actions that are required to the UMB President and USM Chancellor as identified in the annual USM Chancellor’s Compensation Guidelines. 

PAY PRINCIPLES  

All compensation decisions are based on consideration of the three UMB Pay Principles: Equity, Competency, and Market data salaries for comparable jobs. Managers are responsible for complying with any budgetary, decision-making, or approval requirements prior to submitting salary action requests to Central HR for consideration. 

1. Equity (Individual Pay)– Employees will be paid according to each UMB’s job value and the employee’s contribution to the UMB’s mission. Salary approvals for pay actions are made by establishing that pay differences for employees are equitable. An inequity exists when there are pay differences in similar jobs that cannot be explained by: 

a. Differences in amount of time in the job. 

b. Differences in responsibilities, scope, and complexity of work. 

c. Differences based on subordinate-supervisor compensation. 

d. Differences in skills, abilities, experience, and education.  

e. Differences in requirements for increasingly responsible experience in the job family or subfamily. 

f. Differences in performance. 

g. Unique circumstances related to university service. 

h. Other lawful criteria.  

2. Competency (Internal Job Value) – Assignment of jobs to pay ranges will reflect the relative value of jobs within UMB.   

a. All employees must meet the minimum qualifications outlined in their job description.  

b. Minimum qualifications for all jobs within the exempt pay program are based on industry standards and University practice.      Job descriptions define educational and experience requirements and indicate whether substitution of experience for education is allowed.  

3. Market Data (Market Based) – Pay ranges and structures shall be appropriately competitive within UMB’s employment market. The relevant market is defined as a broad mix of industries in the regional marketplace and public institutions of similar size or composition to the University and is different based upon each job.  

a. UMB targets the market range for each exempt job to fall within the 80th percentile to 120th percentile of median market.  

b. UMB’s goal is to pay all exempt employees at least at the 90th percentile of median market if UMB departmental budget and sponsor agreements permit.    

SALARY DETERMINATIONS 

General salary actions include Salary upon hire, Salary for Reinstated Employees, and Salary for Re-Employed or Rehired Employees 

1. Salary for New Hires  

Starting salary offers must be within the assigned exempt pay range, meet FLSA requirements, are determined based on the employee’s qualifications, internal equity and three UMB Pay Principles. Central Human Resources has authority to approve salary actions reflected in offers for new hires, promotions, or lateral moves. 

2. Salary for Reinstated Employees  

Reinstatement is the return to USM employment after a break in service of less than three (3) years. A reinstated employee shall receive full credit for prior USM and/or State service. 

a. Salary for a reinstated employee is evaluated the same way as salary for a new hire. Salary must be within the assigned exempt pay range, meet FLSA requirements, and be determined based on the three UMB Pay Principles. 

3. Salary for Re-Employed or Rehired Employees 

Reemployment or rehire is the return to USM employment after a break in service of three (3) or more years. Exempt Staff employee who returns to USM service after a break in service of three or more years shall be considered a new employee. 

 a. Salary for a re-employed employee is evaluated the same way as salary for a new hire. Salary must be within the salary range of the assigned exempt pay range, meet FLSA requirements, and be determined based on the three UMB Pay Principles. 

SALARY ADJUSTMENTS (WITH JOB CHANGE) 

Movement from a current job to a higher job role level, lateral job role level, or lower job role level can be done through competitive recruitment, reevaluation, or reassignment if the criteria are met. 

All salary decisions resulting in movement to another job role level are made according to the three UMB Pay Principles and does not require a pay adjustment, with the exception ensuring that the employee is paid at least at the minimum of the salary range of the new job.

 1. Competitive Recruitment allows an employee to move to another job by participating in an open recruitment, including applying, interviewing, and being selected for that position.  

2. Position Reevaluation is the assignment of a position to a different job role level. Human Resources bases this change on the evaluation of duties, responsibilities, scope, impact, and minimum qualifications of the position.   

a. A reevaluation review may result in:  

i. A promotional increase that moves an employee from to a higher job role level and/or pay grade.   

ii. Assignment to lateral job in the same job role level and/or pay grade as their current job. 

iii. Assignment to lower job role level and/or pay grade as their current job. 

iv. No change to the staff member’s job role level 

v. A salary/hourly rate level change through:  

• • • • An internal equity adjustment to align their salary/hourly rate with those of others in the department, School/Center, or university who are performing similar work at a similar level, and who possess similar skills and experiences that are directly relevant to the position.  
      • An external-market-based adjustment to their salary/hourly rate.  

b. Re-evaluation Criteria: 

I. There must be an authorized and necessary significant increase or decrease in that position’s scope, impact, complexity, responsibilities, and accountability whereby the incumbent is required to exercise greater judgment and discretion and rely on a larger and more specific skill set than previously necessary in order to perform the work successfully.  

II. The position reevaluation must be FTE neutral. This means the change in position does not create a need to fill an FTE position or a need to create a new FTE. The current duties and basic essential functions of the current position must be absorbed into the position that is being changed/revaluated. The current position must then be abolished. 

III. The employee must meet the minimum qualifications of the reevaluated job and have satisfactory performance.  

IV. Generally, there should not be other employees in the same unit who qualify for the reevaluated position.  

V. A staff member must have at least 12 months of continuous service in their current position for the position to be eligible for a reclassification review.  

c. Actions that do not meet all the evaluation criteria may be handled through other personnel actions including competitive recruitment, layoff (reduction in work), reassignment or other performance management mechanisms.  

d. All reevaluations require direct supervisor’s review and approval prior to submission to Central HR. Central HR will not approve a reevaluation request unless it meets the conditions of this Policy.  

e. It is the responsibility of the supervisor to identify the significant changes in job responsibility, to initiate a reclassification review, and to comply with reclassification procedures (that documents the additional duties and responsibilities and continuation of duties identified in current job description for each request and the documentation is justifiable and defensible and does not circumvent recruitment actions). 

f. A request to reevaluate to a job in the Associate/Assistant Vice President or Dean (A/AVPD) group requires the President's approval.  

i. If a position reevaluation results in an exempt employee moving to a position on the President’s approval list the employee must be informed of this change. All Associate and Assistant Vice Presidents, Associate and Assistant Deans, and Associate and Assistant Provost positions are all included on the President’s approval list.  

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3. Acting/Interim Appointments to a Higher-Level Job  

A temporary base salary adjustment may be warranted when a current employee assumes higher level duties for a period of no more than a year. A current employee may be appointed in an acting or interim capacity to fill a current vacancy due to another employee’s absence, resignation, or unavailability for an extended time for any reason.  

a. An employee appointed to a job in an acting or interim capacity must meet the minimum qualifications for the assigned new job or an intermediate job between the employee’s job and the assigned job. 

b. The salary increase should reflect the type and duration of the higher level additional to be completed by the employee and based on the three UMB Pay Principles within the pay range for the job being filled on an Acting or Interim basis. 

c. Acting or interim capacity appointments are limited to one year. Written justification for extending the acting or interim capacity beyond one year requires the approval of the Associate Vice President, Human Resources. 

d. A request for acting or interim capacity appointment to an Associate/Assistant Vice President or Dean (A/AVPD) job requires Presidential review and approval. 

e. When the acting or interim capacity appointment ends, the employee’s salary reverts to the salary prior to acting or interim capacity appointment, plus any merit or COLA percentage increases given during that appointment, with those increases being applied only to the old salary prior to the acting capacity appointment. 

f. Any merit or COLA awarded during the period that the employee is in an Acting or Interim capacity appointment will be applied to the Interim Acting job’s salary. 

g. Consideration of acting or interim capacity for a nonexempt bargaining unit employee to an exempt job must be approved by Central HR. 

h. Jobs that have been filled by acting or interim capacity assignments will require competitive recruitment to hire as a regular position basis. 

4. Reassignment  

 A reassignment is a transfer of an employee from one position to another similar or comparable position, transfer from one department to another, or transfer from one supervisor to another, or a combination of the above.  

a. Reassignments shall be made with consideration of the employee’s knowledge, skills, abilities, and salary, and based on operational need and/or organizational necessity. 

b. Reassignments do not result in a salary action.  

c. A change in assigned workplace is not a sufficient basis for a salary adjustment, regardless of impact on commuting costs or other personal matters.  

d. If a department requests a salary adjustment due to reassignment resulting in significant and substantial change in responsibilities, the position reevaluation or acting/interim appointment process should be used.  

e. The President or designee shall provide an employee with a minimum two-week written notice of reassignment prior to the effective date of the action. A change in work schedule or location shall require a minimum two-week notice. 

f. Failure to report to the reassigned position shall be considered an immediate voluntary resignation. 

SALARY ADJUSTMENTS (NO JOB CHANGE) 

Salary Adjustment or within pay range adjustment allows for an adjustment to base salary without a change in position or pay range. This includes COLA’s, performance-based/merit Increases, equity adjustments, retention bonuses, and non-accumulative cash bonuses. 

1. Cost of Living Adjustment (COLA) 

All regular employees shall receive COLA adjustment as appropriated by the State Legislature, USM policy and guidelines, and UMB policy and guidelines. 

 a. Regardless of whether or not an employee's salary is at or above the maximum pay range, the employee receives the COLA increase. 

b. COLA for a Contingent Category II employee is at the discretion of the department. The department must indicate COLA eligibility on the contract form.  

 2. Performance-Based/Merit Salary Increases  

When UMB is authorized by the state legislature and the Chancellor, employees who consistently meet the standards of performance for their position are eligible to receive a performance-based salary increase. 

a. When authorized, the University administers the distribution of merit awards and compliance with USM or UMB guidelines. Annual salary guidelines/directives for distribution of merit adjustments are developed by legislation, USM, and UMB leadership.  

b. Decisions regarding the distribution of merit adjustments are based on UMB guidelines, typically based on performance and budget. 

c. When an employee's salary is at or above the maximum of the pay range, the employee will receive a merit increase in a lump sum merit payment for any amount above the maximum. Base pay will not be adjusted.   

d. Managers are responsible for complying with any budgetary or other guidelines established in their individual school or administrative divisions.  

e. Merit for a Contingent Category II employee is at the discretion of the department. The department must indicate merit eligibility on the contract form.  

 3. Equity adjustment  

Equity adjustments address pay differences for employees within the same job are equitable or difference in employee’s salary compared to the median market salary of the job. If an inequitable situation is identified, an equity adjustment can be used to attain pay equity based on the established market equity threshold or to ensure internal salary equity. An inequity exists when there are pay differences in similar jobs that cannot be explained by: 

a. Differences in amount of time in the job. 

b. Differences in responsibilities, scope, and complexity of work. 

c. Differences based on subordinate-supervisor compensation. 

d. Differences in skills, abilities, experience, and education.  

e. Differences in requirements for increasingly responsible experience in the job family or subfamily. 

f. Differences in performance. 

g. Unique circumstances related to university service. 

h. Other lawful criteria.  

 4. Retention bonus or adjustment  

When a department is at imminent risk of losing an operationally critical employee, a retention bonus or base salary adjustment may be considered and should be based on the three UMB Pay Principles.  

a. An employee is operationally critical if:  

I. The employee is in a job in which the unit has experienced retention problems in recent years, OR  

II. The employee has specialized experience that could not be replicated by the recruitment of a new employee without increasing compensation costs or significantly disrupting critical operations of the unit, OR  

III. The loss of the employee would cause a loss of federal or sponsored research funds or seriously compromise the ability to compete for such funds in the future.  

b. A retention request requires an employee to:  

I. Have a written offer from another employer, OR  

II. Have written evidence that the employee is currently being recruited by another employer at a compensation exceeding the employee's current compensation level in similar job, OR 

III. There is other compelling evidence that the institution is at imminent risk of losing the employee without a retention adjustment. 

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5. Non-Cumulative Cash Bonuses 

A non-cumulative cash bonus is as a one-time lump sum non-cumulative cash award that may be granted to a regular employee for an extraordinary contribution, which substantially benefits the University. Non-cumulative cash bonuses must be pre-approved by the Chancellor. Bonus payments shall not be considered part of the employee’s base salary.  

 a. Payment of non-cumulative cash bonuses is permitted where authorized by UMB’s Policy on Bonuses for Exempt Staff. 

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6. Supplemental Pay for Exempt Staff 

Supplemental Pay allows for an employee to be compensated for increased responsibilities associated with specific projects or tasks performed, and such appointments are limited to one year. Written justification for extending the supplemental pay beyond one year requires additional approval. 

a. Supplemental Pay Criteria: 

I. Exempt Staff employee who is full-time 

II. Authorized before the work is performed. 

III. Must be for department, administrative unit, or academic unit different from the employee's regular unit. Work that is customarily provided to other units by the employee's regular unit is not eligible for supplemental compensation. 

IV. Must be performed outside of the employee's normal work hours and without impact on availability to perform normal responsibilities. 

GENERAL 

1. Position Description Development 

A position description is a document that describes the essential functions, specific duties, responsibilities, minimum qualifications, and skills, knowledge, and abilities of a specific position, and assists with establishing compensation.   

a. All employees must have an established position description before a job or salary action can be requested.  

b. New Associate/Assistant Vice President or Dean (A/AVPD) position descriptions requires Presidential review and approval. 

c. Central HR is responsible for assisting with the development and finalization of the position description. Based on the position description, Central HR will assign a pay range, internal job and market value, and the job role level.  

 2. JOB EVALUATION 

 The Central Human Resources administers the pay administration and staff compensation system.  

a. Jobs are evaluated by: 

I. Determining the grade of each position based on knowledge, skills, required education and experience, and job responsibilities. 

II. Benchmarking positions to the market. 

III. Comparing the complexity and scope of positions relative to comparable University positions. 

 3. SALARY STRUCTURE AND PROCESSING SALARY 

When the exempt salary structure is adjusted by the UMS Board of Regents, the University shall adjust the salary of the employees affected. 

a. Minimums and maximums of the pay range. All employees must be paid within the minimum or maximum of the pay range for their established job. 

b. Increase in Pay range. When the pay range of a job is adjusted to a higher minimum salary level, the salary for employees below the new minimum will be moved to the new minimum of the pay range of their established job.  

c. Exceptions to Exceeding the Maximum. Salaries may exceed the maximum pay range when the employee receives COLA, bringing their salary above maximum. Salaries may exceed the pay range's maximum when it is the result of a wage adjustment required by an approved H1-B Visa sponsorship.  

 

4. Priority for Processing Simultaneous Pay Transactions  

When two or more pay transactions are to occur simultaneously, the order for processing is as follows: Salary structure adjustment, Salary range adjustment, COLA Increase, Performance/Merit Increase, Other employee actions (i.e., promotions, reevaluations) 

 5. Policy Administration 

 a. Additional or other compensation payments not covered above or by any other USM/UMB policy or MOU (Memorandum of Understanding) must be reviewed and authorized by the President. Review of requests must include an evaluation by the University Counsel that payment of the compensation is allowed by State law and relevant policies. This requirement applies to compensation, no matter how it may be described.  

b. Exceptions to this Policy require the prior written approval of the President. Exceptions will be made only to address extraordinary circumstances, and only upon presentation of documentation establishing strong business justification for a requested action. 

Related Policies

• VII.1.01 USM Policy on Recruitment and Selection of Staff Employees 
• VII.1.01(a) UMB Policy on Recruitment and Selection of Staff Employees  
• VII.9.61 USM Policy on Reemployment and Reinstatement for Regular Status Nonexempt and Exempt Staff Employees 
• VII.9.61 USM Policy on Reemployment and Reinstatement for Regular Status Nonexempt and Exempt Staff Employees 
• VII.1.22 USM Policy on Separation for Regular Exempt Staff 
• VII-9.50 USM Policy on Temporary Assignments and Acting/Interim Appointments for Regular Status Nonexempt and Exempt Staff Employees 
• VII.9.51 Policy on Reassignment of Regular Exempt Staff Employees 
• VII.9.20(a) UMB Policy on Bonuses for Exempt Staff 
• VII.9.11(a) UMB Policy on Increased Responsibilities and Supplemental Compensation for Exempt Staff