Compensation and Classification Redesign Project - Responses to Frequently Asked Questions (FAQ)
(last update 6/16/2009)
- How will the compensation and classification redesign project affect me?
- Some of the current job classifications are used for a broad array of job duties and responsibilities as applied to different work settings across the University. How will this be addressed in the new system?
- Many long term staff members have held multiple positions at the University and have broad knowledge of University jobs. How can these individuals be involved in the design of the new system?
- Will the redesign of the compensation and classification system impact my career status?
- When will my salary be impacted by the new classification and compensation system?
- Will the implementation of the redesigned compensation and classification system lead to salary increases or possibly decreases?
- Will the implementation of the compensation and classification redesign result in additional salary increases? Will the University have the money to pay for these?
- Will the University need additional salary money to implement the new compensation system?
- Will the new salary structure recognize the salary rates paid to University employees represented in collective bargaining?
- How does the University currently recognize market values?
- What is comparable worth?
- Is there a basic conflict between market value and the concept of “comparable worth?”
- How does this study of the compensation and classification system relate to the University’s strategic plan, or the recent “Working at Iowa” survey?
How will the compensation and classification redesign project affect me?
There will be several ways in which you will be affected by the redesign project:
- You may have a new job classification title in the University system, or at the least, it will be reviewed to be sure it is the best fit for what you do.
- Your job classification may be updated to accurately reflect your current duties and responsibilities.
- You will be able to see the relationship of your job with other University job classifications, as your job classification is put into a structure with other job classifications.
- The new job classification structure will provide a way for you to look at potential career paths and the types skill development that may best serve you in advancing at the University.
- When the compensation structure is built, the market zones will be based upon market data for similar jobs at other employers. At that time, you will be able to assess the relationship of your current salary and the market zone. This will indicate whether you are behind, ahead, or similar to the market rate of pay. The impact of the market relationship could cause your salary to increase more quickly, more slowly, or have no effect. In any case, your job performance will also be a fundamental consideration, along with the availability of funds. The earliest that the new pay structure will be available to be used for salary increase decisions will be FY2011.
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Some of the current job classifications are used for a broad array of job duties and responsibilities as applied to different work settings across the University. How will this be addressed in the new system?
Expert panels will examine each job function area, and define the job families within that function, to the extent that they know them. Later in the project, individuals will be asked to describe their work, and if the job families are not sufficient to recognize all the positions described, the job families may be modified again before the system is implemented.
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Many long term staff members have held multiple positions at the University and have broad knowledge of University jobs. How can these individuals be involved in the design of the new system?
For each job function, expert panels will be formed to identify job families within the job function, and the progression of jobs in a series, for placement in the new system. Please contact the Senior HR Representative for your college or division, or a representative of Staff Council if you are interested in serving on an expert panel. With approximately twenty job functions, we will need as many teams of experts to develop job family progressions for each function.
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Will the redesign of the compensation and classification system impact my career status?
No. Individuals that are currently covered by the career status system will continue to be covered. The career status policy itself is not a part of the compensation and classification redesign.
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When will my salary be impacted by the new classification and compensation system?
Based upon a current timeline, it is expected that salary decisions will not be made under the new system until at least July 1, 2010, for FY 2011. This timeline could change if the design and implementation process takes longer than anticipated.
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Will the implementation of the redesigned compensation and classification system lead to salary increases or possibly decreases?
The new compensation system will draw upon market data in determining market zones for University positions. Future July 1 salary decisions will be guided by these market zones, however, job performance will continue to be the key driver for individual salary increases. No salaries will be reduced because of the new market zones.
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Will the implementation of the compensation and classification redesign result in additional salary increases? Will the University have the money to pay for these?
Individual salary increase decisions will continue to be influenced by individual job performance. In addition, the rate of increase will also consider the market zone for their pay level. The new system is anticipated to be implemented no sooner than FY2011, and will not result in salary increases outside of the normal July 1 increase.
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Will the University need additional salary money to implement the new compensation system?
In the study phase of the project, the consultant report noted that the University allocation of funding support for salary increases had been at or above market. The issues arising from how these funds have been allocated under the current system will be addressed through the compensation and classification system redesign.
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Will the new salary structure recognize the salary rates paid to University employees represented in collective bargaining?
While a specific definition of “market” has not yet been determined, it is clear that the salary rates paid to contract covered employees will factor into the market considerations for Professional and Scientific positions, when there is a relationship between the duties and responsibilities of similar contract covered positions.
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How does the University currently recognize market values?
Historically, market salary rates have been recognized in setting starting salaries, but not in the salary rates for existing staff. Over time, advanced hiring rates have caused the need for equity adjustments to bring existing staff in line with market rates paid to new staff. Market adjustments have also been made in the form of counter offers to documented offers of employment outside of the University, in order to retain individuals and talent within the University. Finally, certain classifications in healthcare and research have moved to “specialty” pay grades, when the market rates exceeded the value of their existing pay grades, and where recruitment and retention problems have been documented. In summary, the recognition of market has been through an increasing number of exceptions to the current compensation structure.
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It is a provision within Iowa law that establishes the policy that public employers: “…shall not discriminate in compensation for work of comparable worth between jobs held predominately by women and jobs held predominately by men. “Comparable worth” means the value of work as measured by the composite of the skill, effort, responsibility and working conditions normally required in the performance of work.” It is one form of internal equity between like jobs within the University.
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Is there a basic conflict between market value and the concept of “comparable worth?"
The consultant report suggests there are ways in which market valuation and comparable worth can co-exist within a compensation system and that these are not mutually exclusive concepts.
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How does this study of the compensation and classification system relate to the University’s strategic plan or the recent “Working at Iowa” survey?
The compensation study directly supports the Iowa Promise in that compensation is an important component in our ability to attract and retain the talents of staff members necessary to achieve the strategic goals of the University and the various units within it. The “Working at Iowa” survey highlighted the importance of communication on issues important to staff, and that compensation is clearly an important issue for the campus community.
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