Employees maxing out on pay range
St Bens
4 Posts
We have several employees who are at the top of their pay range. These are generally long-term employees in clerical and/or janitorial areas. There is at least a $5 spread between minimum and maximum pay range. We have reviewed and updated the salary ranges each year for the past two years and will continue this practice annually. If an employee falls low on the payscale, they receive an adjustment when the matrix is revised. It is our policy that we give annual evaluations and merit raises. Can anyone share what their policy is when an employee reaches the top of their pay range? Do you go ahead and give them their merit increase or do you give a retention bonus and hope the maximum range increases sufficiently to give a merit the following year? If you give a retention bonus, how do you calculate?
Comments
I have worked for companies that don't give any increase once you "top out" until the ranges are adjusted.
Edit: search longevity, there are a couple good ones that might help
On a related subject, I have worked places where the theory was 'get 'em as cheap as you can' and some VPs would decide to hire someone in considerably under the start step, just for the sake of getting 'em cheap. The catch 22 then became next time he wanted to hire somebody in and start him at the start step or just above, he still had the previous hire making less. Shot us in the foot every time. I hated that system. It got out of hand because HR was not allowed to manage it. It was mismanaged by management who couldn't manage.
We only have one employee who is at the top of her scale, and I fight every year to try to get it increased (sometimes I even actually win). Those scales don't take into account how important this particular employee is to our entire operation by virtue of general experience and a willingness to step in when needed. The truth is the manager of the department is never there and this employee is left in charge, but 'supervisor' is not on her job description. In fact, there are many things this employee takes care of for her department and for the organization that are not in her job description. I think it really comes down to the manager not being willing to admit how little she does, and how much she relies on this employee. In a perfect world the scale would fit the job exactly, but since it isn't a perfect world, I am glad that we give a lump sum bonus to employees who have reached the top of their scales.
End of sermon. ;;)
II. Salary Adjustments:
Merit and Longevity Increases are subject to funding availability as determined by the Board’s budget. Additionally, the Executive Director must approve all increases. When approved, the increases will be effective on the individual’s Anniversary Date as applicable.
A. Merit Increases
(1) Merit increases are earned based on job performance, and only awarded when the employee meets or surpasses the performance elements, as reflected in the Performance Evaluation Report prepared by the employee’s supervisor.
The following table serves as guidance to the supervisor as to the amount of increase that may be earned by the employee and recommended by the supervisor to the Executive Director.
RATING PERCENT INCREASE
Unsatisfactory No increase
Marginal No increase
Satisfactory 1% to 3%
Above Average 4% - 5% with justification for the high end
Outstanding 6% maximum
(2) Employees become eligible for consideration for merit increases on their Anniversary Date (one year after date of hire or one year after a position change requiring a new probationary period and/or an increase in compensation, whichever occurs last); and at one year intervals thereafter (unless there is another position change as described herein)
(3) In the event of a lateral transfer during the performance rating period, any merit or longevity increase will take into consideration performance in both positions. If the employee reported to more than one supervisor during the reporting period, both supervisors will have input into the evaluation with the latter supervisor being the responsible party for completing and submitting the evaluation report.
(4) In the event a Merit Increase will cause the employee to exceed the maximum rate of the salary range for the position, the increase will be given up to the maximum amount allowed and at this point, Longevity Increase procedures become applicable.
B. Longevity Increases
An employee who has reached the maximum rate for the salary range will be eligible for consideration of a 2% Longevity Increase. These increases may be given every twelve months after the employee has reached the maximum salary for their position, provided the performance rating is on the satisfactory high end, or above.
C. Position Change Increases
(1) Promotional Increases shall be granted based on the definitions established in Section 281 of the Personnel Policies and are subject to the approval of the Executive Director.
(a) Meritorious Promotion – the employee shall receive an increase to the entry-level rate for the position or be given a 10% increase, whichever is greater.
(b) Competitive Promotion – the employee shall receive an increase to the entry-level rate for the position or be given an 8% increase, whichever is greater.
(c) Promotions resulting from Reorganization OR Management Decision -–the employee shall receive an increase to the entry-level rate for the position or be given a 6% increase, whichever is greater.
(2) Temporary Assignments Effect on Salary:
(a) An employee who is temporarily assigned to a higher-level position for one month or more shall be granted an increase in the rate of pay on the effective date of the assignment with approval by the Executive Director. The amount of the increase will be determined in accordance with provisions for promotion due to Management Decision II.C.(1)(c), or Promotion to Trainee Status I.(c)(1), as appropriate.
(b) Increases received while on temporary assignment shall not affect eligibility for merit or longevity increases, which the employee becomes entitled to in the normally assigned position. These increases shall be given at the end of the temporary assignment and will have no effect on the amount of increase approved for the temporary assignment.
(3) Demotions Effect on Salary:
(a) Voluntary Demotion - an employee who has volunteered to be demoted will retain current rate of pay if it falls within the salary range of the new position. In the event the current pay rate exceeds the maximum rate for the new position, the employee will be placed at the maximum, and at this point, Longevity will be applicable.
(b) Involuntary Demotion for Cause – when an employee is demoted for cause, the rate of pay will be set at the entry level of the new position.
(c) Involuntary Demotion NOT for Cause – when an employee is involuntarily demoted, not for cause, their rate of pay will not be reduced. If the rate exceeds the maximum for the new position, Longevity will be applicable.
(d) Funding Unavailable:
If the demotion is due to budget/funding decreases, the employee will be given the opportunity to choose if s/he wants to keep the job at a reduced rate of pay. If the employee chooses not to remain in the position at a salary reduction, s/he may be allowed to resign for good cause.
D. Salary Adjustments
Salary range adjustments may be considered by the Executive Director based on current salary surveys. If recommendation is approved, the Executive Committee will determine the amount of the increase and the effective date.
In order to maintain competitive salaries, additionally, at the end of each program year, the salary ranges will be adjusted based on the change in the CPI over the previous 12 month period.
E. Overtime Compensation
Under specific conditions and with prior supervisor approval, overtime may be paid at a rate of one and one-half times the regular hourly rate (See Personnel Policies, Section 507).