Human Resources Manual

Policy No.: 7-3 This policy applies to:
Policy Name: Salary Ranges Non-exempt staff
Effective Date: 08/01/04   Exempt staff
Revised: 08/01/11   Faculty

Policy

Loyola University New Orleans establishes and maintains salary ranges that reflect the market value and market movement of salaries as evidenced by relevant comparisons with salary survey data. The Vice President for Finance & Administration approves salary ranges that reflect current competitive rates of pay each year in the relevant competitive labor market.

Procedure

Jobs of similar or equal value are grouped into salary bands through the classification process. Each band has an associated salary range with a minimum and maximum level. Salary ranges are further broken down into pay for experience and performance levels, as follows:

Minimum of Range

The minimum will be sufficiently high to attract competent applicants to fill the jobs within the range. Employees who possess the minimum qualifications for the job will generally be paid at least the minimum salary for the range.

Midpoint

The midpoint of a salary range indicates the average market value of jobs in that band as determined by market comparisons and salary surveys. An individual paid at or near midpoint should be fully experienced and qualified to perform the job.

Salary or Range Maximum

The maximum of the range represents the maximum dollar value the university is willing to pay for the services represented by that job.

“Red Circle” Rates

It is generally not a good practice to increase an employee’s salary above the maximum for the band, as this indicates the university is paying a substantial premium above market for that position. Employees hired after August 1, 1998 who are paid at or above the salary band maximum will not receive salary adjustments as long as their salary remains above the band maximum. Careful consideration should be given to increases above the maximum irrespective of hire date.

Updating Salary Bands

In order to maintain a competitive salary structure, trends in salary levels will be researched each year. The Human Resources Department will review as many jobs as possible. Competitive salaries for jobs will be measured among a combination of national, regional, local, and industry competitors. Salary ranges may be adjusted as needed, based on data obtained in the market place.

Salary Range Revision Procedure

The procedure for revision of the salary ranges is based upon:

  • competitive data gathered by the Human Resources Department
  • recommended adjustments to the salary structure prepared by the Director of Human Resources, and submitted to the Vice President for Finance & Administration for consideration and approval of the President.

If the data indicate the general salary line has shifted, the salary structure as a whole may be revised. It is important to note that adjustments to the salary structure are not passed on to employees in the form of a general increase or decrease or an across-the-board salary adjustment. Individual salary increases are to be awarded based on the employee’s individual performance as defined during the evaluation process.