Human Resources Manual

Policy No.: 7-1 This policy applies to:
Policy Name: Salary Administration Non-exempt staff
Effective Date: 08/01/04   Exempt staff
Revised: 08/01/11   Faculty

Policy

It is the policy of Loyola University New Orleans to establish and maintain salary levels which reflect position responsibilities, are competitive with the external market, and are capable of attracting, retaining, and motivating competent employees who are qualified to contribute to attaining the University’s mission.

Loyola’s Salary Administration Program establishes and maintains sound, practical guidelines and procedures for effective salary administration. These guidelines and procedures are designed to create a better understanding of the principles of salary administration and to permit delegation of authority and responsibility for the administration of salaries within the framework of the salary policy.

Loyola’s Salary Administration Program strives to provide:

  • a job classification system based on a market pricing model which systematically results in fair and consistent assignment of job bands;
  • a program that is understood and supported by top administrators;
  • a program that is easily explained and justified to employees and supervisors within a system of checks and balances;
  • a system that considers employment practices and trends in the competitive labor market; and
  • a system that is easy to administer.

Elements of Salary Administration Program

  • The basic elements of Loyola’s Salary Administration Program consist of:

Position Definition

  • Establishes written position descriptions which define the duties and responsibilities of each position.

Salary Ranges

  • Establishes the minimum and maximum dollar limits to be paid for each position classified within a given band based on competitive salary information and the relative value of each position to the university.

Salary Reviews and Adjustments

  • Establishes the criteria and procedures for employee salary reviews and salary adjustments.
  • All salary administration decisions are subject to budgetary considerations.

Procedure

To ensure the successful implementation and administration of the Salary Administration Program, the following have been assigned specific areas of responsibility:

Vice President for Finance & Administration

  • Annually approves salary structure and salary increase budgets.
  • Reviews and approves adjustments to the salary band structure.
  • Reviews and approves all exceptions to salary policies, as appropriate, for all positions.
  • Reviews and rules on disputed new position band or re-classification requests.

Director of Human Resources

  • Coordinates development, implementation and administration of the program.
  • Works with departments to ensure that compensation policies are communicated, understood and applied. All exceptions will be brought to the Vice President for Finance & Administration at designated times for approval.
  • Reviews and approves (or disapproves) all recommended changes in the bands of current jobs and assignment of new jobs into bands.
  • Ensures that individual employee annual and promotion increases are within authorized guidelines. Reviews and evaluates out-of-policy salary activity in coordination with the Vice President for Finance & Administration and makes recommendations to the President.
  • Reviews and recommends annual salary structure adjustments and salary increase budgets.

Managers and Supervisors

  • Maintain a thorough knowledge of salary administration policies and procedures and apply them in recommending adjustments.
  • Keep employees informed on a timely basis of all aspects of the Salary Administration Program and related procedures.
  • Consider performance of each subordinate as part of the compensation review process.
  • Advise Human Resources of significant changes in the scope or responsibility of subordinate positions.
  • Conduct an annual formal performance review for each employee under their supervision.
  • Discuss all salary increases individually with each employee under their supervision, connecting performance to salary increase.