Human Resources Manual

Policy No.: 7-6 This policy applies to:
Policy Name: Salary Reviews & Adjustments Non-exempt staff
Effective Date: 08/01/04   Exempt staff
Revised: 08/01/11   Faculty

Policy

All salary adjustments will be related to job performance and position in job band. Salaries will be reviewed on at least an annual basis, generally at the end of the fiscal year, and adjusted as appropriate to ensure that each employee’s salary reflects his/her contribution. An annual increase is not guaranteed. Length of service or time spent in a job does not, by itself, justify an increase. Employees who fail to meet expectations, or whose performance is unacceptable, are not eligible for salary increases. All salary administration decisions are subject to budgetary considerations.

Procedure

Merit Increase Administration

The merit review cycle is the fiscal year -- August 1 through July 31. Merit salary increase recommendations will be accompanied by a Loyola University New Orleans Performance Evaluation Form and will be forwarded through all supervisory channels to the Vice President. Merit salary increases should reflect the performance rating and position in band. Levels of performance and increases should be differentiated among employees with the outstanding performers receiving a higher rating than those who are performing competently. Those who are not performing satisfactorily in the job should not be recommended for a merit increase.

  • Total merit increases for the division must remain within the budgeted salary pool.
  • Divisional spreadsheets showing merit rating and salary increase recommendations will be submitted to the Human Resources Department.
  • Human Resources will review the ratings, consider the distribution of ratings and merit increases by job level and function category, and will discuss any questionable ratings or increases with the Division Head involved. This is to ensure consistency and fairness of ratings and increases within and among departments and divisions.
  • Director of Human Resources will advise the Vice President for Finance & Administration of any inequalities in the application of the performance evaluation/merit increase system. The Vice President for Finance & Administration will resolve inconsistencies and will give final approval to merit recommendations

Salary increases must not be communicated to employees until after the President has given final written approval.

Increase Above Grade Maximum

Employees hired after August 1, 1998, who are paid at or above the salary band maximum are not eligible for salary adjustments.

Increases above the maximum are discouraged for any employee, irrespective of hire date, and should be carefully considered by the manager since the employee is already being paid well above market value for the position being performed and significantly more than others in the same band.

New Employees

New employees who have been employed less than six months will not receive a merit increase. New employees, who have been employed more than six months but less than one year as of August 1, will be eligible for a pro-rated merit increase. The next review and opportunity for increase will be the following August 1.

No Merit Increase

Employees who fail to meet performance standards will not receive a merit increase, and will be scheduled for a follow-up performance review, but not merit increase, in 90 days.

Promotion Increases

Pay Practices: Newly promoted personnel shall be paid at or above their salary band minimum, but normally in the lower half of that range.

Promotional Increase: The amount of promotion increase will be determined by the appropriate Vice President in conjunction with the Human Resources Department but will not exceed 7% or the minimum of the new band whichever is greater for a move of one band; or 10% or the minimum of the new band whichever is greater for a move of two bands. Any promotion increase above 10% (unless required to bring employee to new band minimum) or a move of more than two salary bands will require approval by the President.

Promotion increases will normally be effective at the beginning of the pay period in which the promotion occurs.

Market Adjustments

If an incumbent’s salary is significantly (more than 15%) below the market wage, i.e. midpoint for the band, and the employee’s performance is exemplary, consideration can be given (if budget allows within the Division) to an out-of-cycle market adjustment to assure employee retention.

Lateral Transfers

Employees transferring from one job to another within the same salary band will not receive an increase. Any merit increase for the performance year will be based on performance in the new job.

Demotions

Demotions are discouraged in most situations. Consideration for pay as it relates to transfers to a lower salary band will be handled on an exception basis by the department head, the Director of Human Resources and the appropriate Vice President. However, if the transfer results in that job falling into a lower salary band, the employee will receive a pay reduction if his/her salary is above the maximum of the lower salary band.

Salary actions must not be communicated to employees until after final written approval has been obtained from the Human Resources Department.