Handbook of Operating Procedures

I. POLICY AND GENERAL STATEMENT

This policy serves as the general salary administration policy for The University of Texas Health Science Center at Houston (“University”) and provides information regarding salary administration for (1) classified employees, (2) management administrative and professional (“management A&P”) employees, (3) academic administrative and professional employees (“academic A&P”), (4) general administrative and professional employees (“general A&P”); (5) faculty members, and (6) key executives.

II. DEFINITIONS

Classified Employees: Support staff positions.

Management A&P Employees: Administrative leadership positions.

Academic A&P Employees: Faculty positions with an administrative or clinical leadership component.

General A&P: Employees who hold professional positions within a school or other unit.  Positions generally require a terminal degree, and may (but are not required to) include clinical, research and/or teaching duties.  Employees in these positions do not hold concurrent salaried faculty, academic A&P, or management A&P positions.  Examples of job titles within this job family include Staff Physician and Staff Scientist.  

Faculty Members:  Employees who have a primary faculty appointment in one of the six schools at the University.

Key Executives:  Executive leadership positions that report directly to the University’s President or to the Senior Executive Vice President & Chief Operating and Financial Officer.

Total Annual Compensation:  Base salary, salary augmentation payments, salary supplements, incentive payments, and unpaid deferred compensation. This number excludes employer-provided insurance, expense allowances, employer contributions to the Teacher Retirement System of Texas or the Optional Retirement Program, and other fringe benefits.

III. PROCEDURE

A.  Determining Initial Compensation

If the total annual compensation offered to an employee is $500,000 or more, the approval procedures in The University of Texas System, Rules and Regulations of the Board of Regents (BOR) – Rule: 20204 must be followed in addition to the requirements below.

1.  Management A&P and Classified Positions

Compensation Services in the Human Resources Department maintains the Management A&P and Classified Personnel Pay Plans which contain salary ranges.  Hiring authorities will consult with Compensation Services and Talent Acquisition when creating a new management A&P or classified position to determine the appropriate salary range.

2.  All Other Employee Positions

In determining initial compensation for non-classified and non-management A&P positions, the following factors will be considered: 

• the nature of the duties of the position, including level of responsibility;
• the need of the organization for the services of the person whose compensation is being determined;
• the person’s background, experience, knowledge in the field, accomplishments, salary history, and time with the University (if applicable);
• the employee’s contributions to the University’s goals, objectives and success;
• the levels of compensation paid to similarly qualified people performing comparable duties in organizations in the market from which normally recruited (e.g., local, regional, national);
• the nature of the unit to which the person is being recruited (e.g., purpose, size, and complexity); and,
• the relationship to the compensation of other employees.

In all initial compensation decisions the hiring authority will document the factors considered in setting initial compensation.  Human Resources will maintain this documentation for key executive positions.  The hiring authority will maintain this documentation for academic A&P, general A&P and faculty positions. All documentation will be maintained in accordance with the University’s Records Retention Schedule.  

a.   Key Executive Positions

For key executive positions, the hiring authority will consult with Compensation Services to obtain data to support the proposed compensation prior to making an offer to a candidate.

b.   Faculty, Academic A&P and General A&P Positions

For faculty, academic A&P and general A&P positions, the hiring authority is responsible for obtaining data to support the proposed compensation prior to making an offer to a candidate. 

The University's Faculty Compensation Guidelines provide guidance to all schools on faculty compensation. Faculty compensation decisions will also be guided by the applicable unit’s Compensation Plan (“plan”).  Each unit’s plan will set forth its compensation policies, procedures and methods, subject to the availability of funds.  The Dean of each unit will make the plan known and available to the unit’s faculty members. 

At least every two years, the Dean of each unit will coordinate a review of the unit’s plan in accordance with the review procedures contained in the plan.  If any changes are made as a result of this review, the revised plan will be forwarded to the President, and The University of Texas System, as applicable, for approval.  The approved plan will be filed with the Office of Faculty Affairs and Development for record-keeping.

B.  Adjustments to Compensation

Those adjustments to compensation that are linked to performance should be considered in the context of the employee’s most recent performance appraisal.  (HOOP 25, Performance Management and Appraisal for Management A&P, General A&P, and Classified Employees and HOOP 111, Faculty Review).

Any adjustment that brings an employee’s total annual compensation to $500,000 or more must be approved in accordance with the procedures outlined in The University of Texas System, Rules and Regulations of the Board of Regents (BOR) – Rule: 20204 in addition to the requirements detailed below.

1.  Merit Pay

Merit pay is a salary change warranted by meritorious job performance.  Meritorious job performance is defined as a consistently high level of job performance over a sustained period of time. Merit pay may be awarded to classified personnel and management A&P subject to the criteria listed below. Students, fellows, summer hires, casual and temporary employees in classified positions are not eligible for merit awards.

          a.   Types of Merit Pay

Two types of merit pay may be awarded:

• Merit Increase Added to Base Pay (“Regular Merit”):  A merit award added to an employee’s base pay.  Merit increases added to base pay may not exceed the salary range maximum for that employee’s position.
• Lump Sum Merit:  A lump sum merit is a one-time award, not added to base pay, that may be awarded to an individual for meritorious job performance. An employee cannot be guaranteed in advance a payment of a lump sum merit for achieving performance targets. A lump sum merit award is not considered compensation for purposes of the overtime calculation for Fair Labor Standards Act non-exempt employees (HOOP 154, Overtime Pay and Compensatory Time Off).   A lump sum merit may be paid from any allowable fund source. Payment from grant funds will be determined by each individual granting agency’s policies. A lump sum merit award is considered compensation for purposes of inclusion and contributions for Teachers Retirement System or Optional Retirement Program. Lump sum merit awards are included in the Tax Sheltered Annuity calculation.

An important part of base pay management is the maintenance/monitoring of an employee's base salary and progression through the salary range. Managers are encouraged to award the regular merit increase as an additive to base pay if the employee's current pay is below the salary range midpoint and permanent funding is available.

Should a total proposed regular merit award exceed the salary range maximum for that job, the merit award must be two separate, simultaneous transactions:  merit added to base pay up to the salary range maximum and the remainder in a lump sum non-recurring merit payment.  Base pay may not exceed the salary range maximum.

          b.   Criteria for Award of Merit Pay

• A classified employee may not receive a merit award during a probationary period (HOOP 152, Probationary Period - Classified Employees).
• An employee must have completed 6 months of continuous service with the University prior to any merit award.
• The total amount of merit awards of either type may not exceed the percentage amount indicated in the budget instructions for that fiscal year.
• The effective date of the merit award must be at least 6 months after the effective date of the employee’s last merit increase, promotion, hire or rehire. This requirement does not apply to a one-time merit payment if the Senior Executive Vice President, Chief Operating and Financial Officer authorizes in writing a one-time merit payment in relation to an employee’s performance during a natural disaster or other extraordinary circumstance.
• A current, written performance appraisal conducted within the last 12 months must be on file.

2.  Temporary Supplements

A temporary supplement may be paid for specific situations when a FLSA-exempt classified or management A&P employee assumes substantial additional responsibilities on an interim basis for an extended period of time.  The temporary supplement is discontinued when the employee is no longer responsible for the additional responsibilities. The temporary supplement is not applied retroactively.

          a.   Classified and Management A&P

Classified and Management A&P employees may receive up to 15 percent of base salary as a temporary supplement. Human Resources must review and approve all classified and management A&P temporary supplements prior to implementation.

The specific situations in which temporary supplements may be warranted include, but are not limited to, additional duties assigned as the result of the following:

• temporary assumption of job duties due to the extended leave of a peer (does not include vacation or short term absence coverage of six weeks or less);
• interim leadership of an organizational entity while a search process for a permanent leader is in progress; and,
• assignment to a special project with additional duties typically not expected or associated with the employee’s current position.

Specific situations that are not eligible for temporary supplements include, but are not limited to, the following:

• leave or search situations where the duties of one position are assigned to three or more employees;
• cross-training responsibilities; and,
• responsibilities intended for employee development.

A temporary supplement should generally not exceed one fiscal year. The head of the applicable operating unit and Human Resources must approve continuation of a temporary supplement beyond one fiscal year. 

The award of a temporary supplement must be documented in the employee’s personnel file by the employee’s supervisor.  The employee should have a copy of the documentation to ensure understanding of the non-permanent nature and reason for the supplement.

The following information should be included in the documentation:

• employee’s job title;
• title of the position whose responsibilities are being assumed; or a description of the special project;
• effective date the employee assumes new responsibilities which should coincide with the effective date of the administrative supplement;
• employee’s current rate of base pay;
• dollar amount of temporary administrative supplement and percent it represents of the employee’s base pay; and,
• anticipated end date of additional duties and pay supplement

          b.  Faculty, Academic A&P and General A&P

Faculty, academic A&P employees and general A&P employees may also be eligible for a supplement upon the assumption of substantial additional duties and responsibilities beyond those required for the institutional annual base salary.  Such supplements are discontinued when the employee is no longer responsible for the additional duties.

Determination of the need for a supplement, the amount of the supplement and the individual to whom one is awarded shall be proposed by the designated budgetary official, subject to review and approval by the Dean.  The amount of a supplement may change, based on personal and/or departmental performance parameters. See also Faculty Compensation Guidelines.

3.  Other Adjustments to Classified and Management A&P Personnel Compensation

The criteria for and the administration of adjustments, other than merit and temporary supplements, to classified and management A&P compensation are found on the Compensation Services website.

4.  Other Adjustments to General A&P and Academic A&P Compensation

Requests for compensation adjustments for general and academic A&P employees are submitted as part of departmental and/or operating unit budget requests.  Requests for compensation increases outside this process are made to the head of the affected unit or designee and are subject to budgetary constraints and approval by The University of Texas System administration, as applicable.

Promotions or reclassification from one academic A&P or general A&P position to another may also be requested and accomplished through the operational budget process.  Requests for such actions outside this process should be made to the head of the affected operating unit or designee and are subject to budgetary constraints and approval by The University of Texas System administration, as applicable.

5.  Adjustments to Faculty Compensation

Adjustments to faculty compensation will be made in accordance with the applicable unit’s plan and the Faculty Compensation Guidelines. 

Requests for compensation adjustments for faculty are submitted as part of departmental and/or operating unit budget requests.  Requests for compensation increases outside this process are made to the head of the affected unit or designee and are subject to budgetary constraints and approval by The University of Texas System administration, as applicable.

6.  Adjustments That Do Not Conform to Applicable Criteria

Adjustments that do not conform to applicable criteria require written documentation and justification, including a summary of the following factors, as applicable:

• the reason the adjustment request does not conform to applicable criteria;
• the nature of the duties of the position, including level of responsibility;
• the need of the organization for the services of the person whose compensation is being determined;
• the person’s background, experience, knowledge in the field, accomplishments, salary history, and time with the University;
• the levels of compensation paid to similarly qualified people performing comparable duties in organizations in the market from which normally recruited (e.g., local, regional, national);
• the employee’s contributions to the University’s goals, objectives and success;
• the nature of the unit in which the individual works (e.g., purpose, size, and complexity); and,
• the relationship to the compensation of other employees.

For classified and management A&P employees and key executives, the appropriate budgeting official for the school, general administration department, center or hospital must send the request with written documentation and justification to Human Resources Compensation Services for review and approval.  If approved, the requesting department may forward a personnel action request to the System Data Resources Team (SDR). SDR will send the personnel action request to Human Resources Compensation Services for approval.

For faculty, academic A&P and general A&P employees, the budgeting official must send the request with written documentation and justification to the appropriate Dean, or designee, for review and approval.  The appropriate hiring authority will maintain the compensation decision support data.

C. Confidentiality of Compensation Information

The University will not terminate or in any other manner discriminate against an employee or applicant because he or she has inquired about, discussed, or disclosed his or her own compensation or the compensation of another employee or applicant.  

However, employees who have access to the compensation information of other employees or applicants as a part of their essential job functions cannot disclose the compensation of other employees or applicants to individuals who would otherwise not have access to such information, unless the disclosure is a) in response to a formal complaint or charge; b) in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the University; or c) consistent with the University’s legal duty to furnish information.

IV. CONTACTS

• • Human Resources - Compensation Services (questions pertaining to classified, management A&P and key executives)
  • 713-500-3130
  • http://www.uth.edu/hr/department/compensation/index.htm
• • Applicable Dean's Office (questions pertaining to faculty, general A&P and academic A&P)
• • Office of Faculty Affairs and Development
  • 713-500-3062
  • https://www.uth.edu/evpara/contact-us/faculty-affairs--development.htm

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