UMUC Policies

The purpose of this policy is to outline those managerial actions that may result in the adjustment of an employee's rate of pay.

In making the salary decision the responsible administrator, in consultation with the Office of Human Resources, has an obligation to determine a fair salary that recognizes both the forces of the external labor market as well as internal equity. Salary changes are defined as follows:

2.1 Merit Adjustments - Merit adjustments are changes to an employee's base pay rate based on performance.   Factors considered in determining merit-based wage adjustments include:

1. employee performance as rated in the annual performance appraisal
   
   
2. employee's Comp Ratio (salary as a percentage of midpoint of the salary range)
   
   
3. other salary increases the employee may have received during the performance cycle

Annual merit-based wage and salary adjustments shall not be based on length of service or general wage inflation. Merit adjustments are usually determined during the annual salary adjustment process based on overall guidelines established by the USM and by the UMUC President.

2.2 Promotional Increases - Promotional increases are changes to an employee's base pay rate to recognize assignment of the employee to a higher level of responsibility and/or a different type of work which results in a change to a higher salary grade. Promotional increases shall generally not exceed 10% of the employee’s current base salary.

2.3 Reclassification- Reclassification increases are changes to an employees base pay rate when the job grade the persons position is assigned is changed by raising it to a higher class without a competitive recruitment. Reclassifications are based on significant and substantial changes in the position's primary duties that have evolved or when structured changes occur in the position. A position may or may not have incumbent at the time of a reclassification. Reclassification increases shall generally not exceed 6% of the employee’s current base salary.

2.4 Reductions in Pay as the Result of Demotion - A demotion occurs when an employee is assigned to a job which is in a salary grade lower than the one to which the employee's current job is assigned. Demotions may result in a lower rate of pay. The specific amount shall be determined in consultation with the Office of Human Resources.

2.5 In-Line Adjustments – An in-line adjustment may be initiated at any time to address specific cases of salary inequity, incorrect slotting, or other salary equity problems identified by management. Special salary adjustments shall be approved by the department administrator, the Associate Vice President of Human Resources and the UMUC President if required.

2.6 Lateral Transfer - A lateral transfer occurs when an employee is reassigned to or applies for and receives a position that is in the same salary grade as his/her current position. When such a situation occurs, there is rarely a change in salary

2.7 Sequence of Simultaneous Adjustments – When more than one salary adjustment is scheduled to occur with the same effective date, the sequence of adjustments shall be as follows: adjustment to range minimum, COLA, merit increase, promotion increase, equity adjustment.

A completed Personnel Action Form with the appropriate approval signatures and attachments is required to implement any pay change or position reclassification. Salary changes that result in more than a 15% increase or decrease to the employee's base pay require the additional approval of the appropriate Executive Officer and System Chancellor.

The Personnel Action Form must be received by the Office of Human Resources one week prior to the beginning of a pay period. Any salary change will be effective the first day of the pay period following the appropriate approvals.

Retroactive adjustments are strongly discouraged and shall be accompanied by justification for the delay in the action.

Comp Ratio - The relationship of an employee's salary to the midpoint of the respective salary range. The comp ratio is calculated by dividing the employee's salary by the midpoint of the respective salary range.

Salary Range Minimum - The lowest rate UMUC would generally pay for a particular job. It is intended to be competitive with the external market.

Salary Range Midpoint - A point equidistant between the minimum and maximum of the salary range. It generally reflects the typical or average current market rate for representative jobs in the salary category.

Salary Range Maximum - The highest rate UMUC would generally pay for jobs assigned to the salary range.

The signed original document initiating any job classification or salary-related action becomes part of the employee's personnel file. Written notification of the change should be provided to the employee.

The Associate Vice President of Human Resources is responsible for the content and communication of this policy. Officers are responsible for ensuring equitable administration of salaries within the requirements of this policy. All managers and supervisors are responsible for administering salaries within any directions received from their Officer and the requirements of this policy.