Compensation

Compensation jgastley3 Sun, 07/15/2012 - 14:34

Compensation Program Review & Approval

Compensation Program Review & Approval
Type of Policy
Administrative
jgastley3 Tue, 05/29/2012 - 15:29
Policy No
4.2
Effective Date
Review Date
Policy Owner
Human Resources
Contact Name
Kevin Merkel
Contact Title
Senior Director-Payroll and Total Rewards
Contact Email
Kevin.Merkel@ohr.gatech.edu
Policy Statement

The Compensation Program Review & Approval process provides a means of periodic internal management assessment of the Institute’s policies, procedures and practices covering its compensation programs thus ensuring that those programs are properly designed and administered. Compensation programs consist of those covering academic faculty, research faculty and professional/administrative and other staff.

Procedures

Annually, the Office of Human Resource will coordinate the production of a written report on the condition of the Institute’s compensation program to include those covering research faculty and classified personnel. The OHR Compensation staff will compile and report on comparisons of actual pay practice (salaries being paid) for research faculty management and professional level personnel as well as various levels of classified management and staff to appropriate external markets. The report may also include comparison of additional elements of compensation such as supplemental pay and benefits. This report will be completed in March of each year and cover current conditions as well as those of the previous twelve months. The report will include an executive summary and be addressed to the President, the Provost & Executive Vice President for Academic Affairs and the Executive Vice President for Administration & Finance.

The report will include:

  1. Background materials on what policies and procedures are currently in place for monitoring and controlling academic faculty, research faculty and classified staff compensation including Board of Regents policies and Board of Regents reporting requirements.
  2. Comparative data to include compensation survey data covering faculty and staff practices of peer institutions and general industry.
  3. Analysis and recommendations for adjustments and modifications to existing practices to maintain or improve competitive posture relative to applicable markets.

With regard to compensation paid to academic faculty personnel, the Institute Research and Planning Office will prepare and analyze comparative data on external pay practices for academics which will then be reviewed by Deans and School Chairs.

Upon review, the President in consultation with the Provost & Executive Vice President for Academic Affairs, the Executive Vice President for Administration & Finance and others that may be designed by the President, will assess the status of compensation programs currently in place and take whatever action deemed appropriate to correct, maintain or improve those programs.

Additionally, compensation programs will be subject to review and reporting by the Institute’s Internal Audit organization.

Responsibilities

The Office of the President provides oversight and guidance to the Compensation Program Review & Approval Process. Specifically, the President assisted by the Provost & Executive Vice President for Academic Affairs and the Executive Vice President for Administration & Finance periodically review all existing and proposed compensation policies, authorize corrective actions and approve new programs as appropriate. Additionally, the Office of the President may appoint other senior level administrators and faculty to review and advise on programs related directly to their areas.

Extra Compensation

Extra Compensation
Type of Policy
Administrative
s1polics Tue, 01/26/2016 - 09:47
Effective Date
Last Revised
Review Date
Policy Owner
Human Resources
Contact Name
Kevin Merkel
Contact Title
Sr. Director-Payroll & Total Rewards
Contact Email
kevin.merkel@ohr.gatech.edu
Reason for Policy

Institute personnel, to include staff, academic faculty, and research faculty, may be paid extra compensation for performing certain duties in addition to their normal job responsibilities. This Policy is intended to augment applicable Board of Regents (BOR) Policy and Procedures and 1) describes when extra compensation from Georgia Tech may be allowable, 2) establishes a consistent approach to setting compensation for additional duties, and 3) sets limits so such activities do not interfere with the normal work of the employee.

Policy Statement

Extra compensation for certain activities may be paid in accordance with the criteria described in the BOR Business Procedures Manual, Section 5.3.2, Extra Compensation.

In accordance with Board of Regents policy, and absent special program approval granted by the BOR, extra compensation may be paid to employees for tasks performed (services rendered) outside their normal business hours for duties not included in the employee’s normal job responsibilities, provided the following three criteria are met:

  1. The task(s) must be outside of the employee’s regular department. See FAQ section.
  2. The Extra Compensation Departmental Agreement Form must be completed and routed for signatures by the appropriate department heads prior to commencement of activities of the employee.
  3. The employee must meet at least one of the following criteria (from the Official Code of Georgia Annotated Section 45-10-25):
  • Chaplain
  • Firefighter
  • Dentist
  • Certified Oral or Manual Interpreter for Deaf Persons
  • Registered Nurse
  • Licensed Practical Nurse
  • Licensed Physician
  • Psychologist
  • Teacher or Instructor of an evening or night course or program (see additional rules applicable to Professional Education Courses included below)
  • Professional holding a doctoral or master’s degree from an accredited college or university
  • Part-time employee

An employee meeting all three criteria listed above may be paid extra compensation for a task providing:

  • The task is not part of their normal job responsibilities;
  • The task is outside their department;
  • The task is not during their normal job hours or if the task is during their normal job hours and the employee takes annual leave for the portion of time being used for the task receiving extra compensation.

Also, an employee meeting all three criteria listed above may be paid extra compensation for a task for another department during normal job hours if the task is not part of the employee’s normal job responsibilities, and the employee takes annual leave for the portion of time that is being used for the task receiving extra compensation.

Employees that have been determined by the institution to be non-exempt, as defined by the Fair Labor Standards Act (FLSA), and are performing extra duties qualify for overtime pay. Please consult the SSC regarding clarification of overtime pay requirements. Non-exempt employees should be paid at least the overtime rate or more.

Under no circumstances should an employee receive extra compensation for a task while receiving normal compensation for the same time period. Extra compensation does not add to earnings used for retirement calculations, and no retirement deductions are taken from extra compensation pay.

Classified staff and employees who accrue annual leave are not permitted to take consulting leave. Only faculty who do not accrue annual leave may report their leave as consulting for time spent on approved outside professional activities.  For more information on Consulting, refer to Georgia Tech Policy 5.6.5 Consulting and 5.4 Conflict of Interest

Employees receiving extra compensation shall be paid said extra compensation through the institutional payroll. Such compensation shall be subject to existing federal and state regulations as to taxability and/or withholding taxes. No compensation, as defined above and paid to employees who are on the institutional payroll, shall be paid as per diem and fees or as stipends.

Cross-school instruction and work for research centers/institutes, when outside one’s home department, typically involves tasks considered part of an individual’s normal job responsibilities and therefore would not qualify for extra compensation. Based on the criteria above, instances where extra compensation for staff is allowable for performing different tasks are not common. Whenever there is uncertainty by the providing department as to whether tasks qualify for extra compensation, the supervisor should seek guidance from their School/unit’s leadership, appropriate Vice President/Provost, Faculty Affairs, or Georgia Tech Human Resources’ Payroll and Total Rewards Department.

Extra compensation does not add to earnings used for retirement calculations, and no retirement deductions are taken from extra compensation pay. Employees receiving extra compensation are paid through the Institute’s payroll. Such compensation is subject to existing IRS regulations as to taxability and/or withholding taxes. No compensation, as defined above and paid to employees who are on the institutional payroll, shall be paid as per diem and fees or as stipends.

University System of Georgia (USG) Dual Employment Agreements are subject to the same general rules governing extra compensation. In these agreements, extra compensation is paid by the providing institution (employee home) to the employee and reimbursed to the providing institution by the institution requiring the service (the host institution). Payment for the performance of an employee’s normal job duties is typically reimbursed to the home institution by the host institution using the employee’s standard base rate of pay plus applicable fringe benefits. Not all Dual Employment agreements involve extra compensation.

Compensation Rates
In order to ensure additional duties do not interfere with the performance of normal job responsibilities, total extra compensation for both sponsored and non-sponsored activities shall typically not exceed 30% of the employee’s expected regular annualized compensation. In unusual cases when extra compensation is anticipated to exceed the 30% threshold in a fiscal year, additional justification and advance approval by the Provost or appropriate Executive Vice President depending upon the employee’s home department/unit is required. Compensation paid for sponsored activities must be consistent with applicable external rules, regulations, and award terms and conditions.

Additional Requirements - Professional Education Courses
Professional education activities should be in compliance with the Faculty Handbook: Section 4.6, Georgia Tech Professional Education. GTPE is the Requesting Department for all professional education activities, and compensation paid for professional education activities shall be established based on the following criteria:

  • Compensation paid for a sponsored activity must be consistent with the terms and conditions of the award and Federal or other rules applicable to the sponsoring agency or organization.
  • Absent sponsor restrictions, compensation rates should be in line with salaries paid to faculty in the discipline being taught.
  • Rates may be adjusted based on the type of course (e.g., non-credit courses vs. professional masters).
  • Rates should be expressed as a lump-sum payment for the course being taught rather than as an hourly rate.
  • Extra compensation may neither be contingent on a program’s revenues nor based on a percentage of income generated by the activity.
  • Prior to extra compensation being paid, the appropriate department head must complete, sign, and return the Departmental Agreement Form (DAF) to GTPE. See the Flow Chart for DAF process guidelines. The department head is responsible for ensuring compliance with this policy in terms of allowableness, individual amounts, and rates.
     
Scope

This policy applies to Institute personnel to include staff, academic faculty, and research faculty, who, by virtue of their education, training or experience are selected to perform additional duties and in accordance with other BOR applicable policies.

This policy does not address additional or specific policies related to Summer Salary Arrangements, External Consulting by Faculty, Dual Appointments (formerly Joint Staffing), Moonlighting, Temporary Assignments, or Acting/Interim Title pay adjustments. For purposes of this policy, prizes and awards received are not considered extra compensation and are not considered part of an individual’s regular annual salary. Those matters are governed by separate policies and rules. See Section 10 – Related Information.

This policy does not apply to Overloads for Academic Faculty. Board of Regents Academic and Student Affairs Handbook: Section 4.10 Faculty Overloads and Instructional Staff Responsibilities discourages the payment of extra compensation for overloads. The policy advises that when possible, workload adjustments should be made to encompass the additional duties. If the school and college determine that a workload adjustment cannot be made, a request to pay overload compensation should be submitted to the Office of Faculty Affairs. Full-time faculty members with academic status, who are budgeted at 100% time for the full year may qualify for overload compensation. Approval must be obtained from the School Chair, Dean, Provost, and President prior to the start of the assignment

Definitions

Normal Job Responsibilities The duties outlined in the job description or work statement of a position currently held by an individual (employee).
Professional Education Activities The instruction, laboratory supervision, design, marketing, coordination, evaluation, and other effort that faculty and administrators participate in to conduct Professional Education (GTPE) programs.
Requesting Department The academic department or non-academic unit desiring to obtain or facilitate the services of an individual. If the details of the instance are known by the requesting department, it can describe why the services of the individual are needed on the Departmental Agreement Form. The requesting department may also describe why the instance is in the best interest of the Institute on the DAF.
Providing Department The academic department or non-academic unit employing the individual. When an individual initiates the instance with extra compensation, the individual/providing department should complete the part of the DAF describing the details of and the reason why the services are needed. The supervisor of the individual being requested must provide a written statement that the individual is available to provide the desired services and the performance of the services will not detract from the individual’s normal job responsibilities.
Moonlighting Employees may pursue a variety of endeavors for financial gain that are not directly related to the person’s field or discipline. These efforts are part of the non-faculty member’s private life and do not come under Institute regulation for this policy. Such endeavors may be pursued only after the primary commitment to the Institute has been fulfilled.

 
Procedures
 
Departmental Agreement Form The Departmental Agreement Form (DAF) should be completed for each instance creating the need for extra compensation by the employee’s home department (Providing Department) and the department receiving the services (Requesting Department) of the employee prior to provision of any services by the employee. Providing Department typically initiates the DAF process. If additional approval is required for an instance causing an individual’s total extra compensation to exceed the 30% threshold in a fiscal year (July 1 through June 30), advance approval from the Provost or appropriate Executive Vice President shall be obtained and noted by signature at the bottom of the DAF. If similar instances, creating the need for extra compensation, are expected to occur over a period of time, a DAF may be completed for a period of time, rather than each instance (up to quarterly or a three-month period). For example, multiple short courses are going to be taught.

Frequently Asked Questions:

May I receive extra compensation for services performed outside my normal working hours for Georgia Tech affiliates that are separate 501(c)(3) organizations, such as the Athletic Association?
Yes, faculty and staff may work outside their normal working hours for Georgia Tech affiliates such as the Athletic Association and receive compensation for those services. This type of compensation is generally considered a type of “moonlighting”, is allowable, and would not count towards the 30% threshold.

Are there exceptions to the three criteria above with regards to qualifying for extra compensation?
There are a few situations where extra compensation is allowable even though the three criteria above have not been met. For example, some academic programs are allowed to pay faculty for instruction even though the faculty member may be performing the additional duties for their department. Examples include the Executive MBA, Evening MBA, GTPE Professional Master’s, and the Online Master’s Science – Computer Science. In these cases, the program has received approval from an authoritative body for extra compensation, the work is carried out in addition to a normal full load, the program generates sufficient tuition/fees in direct support making it self-sufficient and the additional duties are not so heavy to interfere with an individual’s regular duties.

Can I perform work for another Georgia Tech department and receive extra compensation if the funding source is a non-Georgia Tech funding source, such as the Georgia Tech Foundation?
Only if the three criteria mentioned above are met. The funding source is not typically a determining factor on whether extra compensation is allowable.

Do retirees classified as “Retired but Working” qualify for extra compensation?
Pay rates for Retired but Working (RBW) employees should be established and approved based on specific duties to be performed during the stated period. For this reason, RBW employees are not eligible for extra compensation. For additional information about RBW reemployment, please visit the Retirees reference data on the GTHR website at: http://ohr.gatech.edu/employment/hiringtalent/retirees

Responsibilities

8.1. The Providing Department is responsible for initiating and completing their part of the Departmental Agreement Form.

8.2. Working with the Georgia Tech Human Resources as necessary, the Providing Department is responsible for ensuring the employee’s extra compensation does not exceed the 30% threshold defined in this policy in any single fiscal year without additional approval as indicated below, point 8.3.

8.3. The Providing Department is responsible for attaching additional justification with the DAF and seeking advance signature approval by the Provost or appropriate Executive Vice President to exceed 30% of the employee’s annual, regular compensation.
 

Enforcement

Employees who receive extra compensation contrary to this policy may be in violation of O.C.G.A. Section 45-10-23 relating to unlawful conflicts of interest. Employees authorizing or receiving extra compensation in violation of this policy may be subject to discipline as provided in the Faculty Handbook and the Administrative Policies of the Institute.

The Institute’s Payroll Office along with the Division of Administration and Finance will periodically monitor extra compensation activity to ensure compliance in terms of allowableness, administration, and amounts/rates.

To report suspected instances of noncompliance with this policy, please visit Georgia Tech’s EthicsPoint, a secure and confidential reporting system, at:
https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History
Revision Date Author Description
08/15/2018 Office of Human Resources Clarify Policy
12/2/2016 Office of Human resources New Policy

Hours of Work

Hours of Work
Type of Policy
Administrative
jgastley3 Tue, 05/29/2012 - 14:20
Policy No
2.7
Effective Date
Review Date
Policy Owner
Human Resources
Contact Name
Kevin F. Merkel
Contact Title
Sr. HR Director, Total Rewards and Payroll
Contact Email
kevin.merkel@ohr.gatech.edu
Policy Statement

Georgia Tech has established a standard workweek of forty (40) hours for regular full-time Classified (biweekly) personnel. Biweekly full-time employees are allowed to work overtime with supervisory approval. Employees described above are covered by the provisions of the Fair Labor Standards Act in this manual under Compensation Administration, Section 4.0, Fair Labor Standards Act (Overtime for Employees), Procedure No. 4.9.

Research Faculty Compensation Administration

Research Faculty Compensation Administration
Type of Policy
Administrative
jgastley3 Tue, 05/29/2012 - 15:34
Policy No
4.3
Effective Date
Review Date
Contact Name
David Bamburowski
Contact Title
Director of Academic & Research Faculty Affairs
Contact Email
dbam@gatech.edu
Reason for Policy

The Georgia Institute of Technology is committed to a Compensation Program for research faculty employees that is externally competitive, internally equitable, promotes retention of good performers and encourages exceptional performance. To this end, the program has been designed to attract and retain the quality and quantity of research faculty personnel required to collectively meet Institute objectives.

Procedures

Compensation Administration Responsibilities

The Research Faculty Employment unit of the Office of Human Resources (OHR) will be responsible for:

  1. Developing and administering compensation policy and procedures applicable to research faculty personnel.
  2. Monitoring and reporting on external markets relative to internal compensation practices.
  3. Reviewing pay related transactions for research faculty personnel to ensure consistency with published policy.
  4. Researching and analyzing published compensation survey data to ensure that proposed salary offers to candidates for open research positions as well as the pay practices for current research faculty are reasonable.

Starting Pay Rates

Education and Job Related Direct Experience
Each open research faculty position is posted with specific requirements for level of education and the number of years of direct job related experience.

Assessment of an individual's qualifications begins with a review of the resume and application to determine the appropriateness of the proposed title and to determine if job qualifications are met.

The results of an assessment of an individual's education, skills and experience as well as job responsibilities ultimately determine the pay rate that will be offered upon employment.

Hiring Range
In determining the appropriateness of a salary offer, data from the most recent Watson Wyatt Survey Reports is referenced. These reports cover professional, middle and top management compensation paid in various markets., The data is compared to the proposed candidate’s degree level, degree major, and years since first degree, experience, knowledge, and responsibilities of the position being filled.

Starting pay rates for new employees as well as those being promoted to a new position are normally set between the 25th percentile, and 75th percentile of survey data reported based on that individual employee’s credentials. The positioning within that range is dependent upon the amount of directly related job experience beyond the basic job requirements that the incumbent brings to the job, as well as market demand for that individual's expertise and credentials.

Processing Offer Rates

A candidate's proposed offer rate will be included in the hiring package when it is forwarded by the hiring department/HR Representative to OHR. The offer rate will be reviewed by OHR – Research Faculty Employment. This review will determine whether the offer is within the hiring range as defined in this policy and appropriate to the candidate’s education and experience or if it exceeds those guidelines.

If OHR – Research Faculty Employment determines that the offer rate is within the guidelines, the hiring package is routed to the Vice Provost for Research and Dean of Graduate Studies for approval. If not, the hiring package is forwarded to OHR - Compensation for further review.

OHR – Compensation will conduct an analysis of the offer relative to guidelines and special circumstances, usually including a discussion with the hiring department. OHR - Compensation will then document the analysis and forward to OHR – Research Faculty Employment with recommendation for approval or disapproval.

OHR – Research Faculty Employment notifies the hiring department that either an exception is in order or that there appears to be no justification for the rate exceeding guidelines. Any appeals from the hiring department are routed to the Associate Vice President - Human Resources for disposition with the department and the Vice President for Research and Dean of Graduate Studies.

Offers should not be extended until all required approvals have been obtained. Every effort will be taken to ensure the review process occurs in a timely manner.

Monitoring Competitiveness

Participating in and analyzing the results of compensation surveys is the primary means of monitoring the competitiveness of pay rates for research faculty personnel. Through this process, pay rates of research faculty personnel are systematically compared to appropriate external markets on an annual basis. The purpose of these comparisons is to ensure that the Institute’s pay practice is maintained at competitive levels and where this is determined not to be the case, to take corrective action as appropriate.

Job Mapping
Compensation comparisons are accomplished through a process of job mapping. Research faculty employees whose job assignments in terms of discipline, educational level, work experience and work assignment are similar to or essential the same as those contained in external survey organizational models and job descriptions are matched up or mapped. This process can apply to several research faculty personnel being mapped to a single survey job description or an single employee’s job duties mapped to a single survey job description.

Compensation Comparison
As these matches are made, the pay rates of Institute research personnel are compared to the median of the survey job match within an appropriate market and differences noted. In this process, care is taken to ensure, to the extent possible, the appropriateness of the market to which comparison is made. Given that the source for attracting new and experienced research personnel may cover multiple geographic areas and organizational types, the national market for all survey participants is generally referenced for comparison purposes. Additionally, the compensation comparison process may include supplemental analyses related to additional cash compensation and benefits values associated with research personnel relative to comparable external market data. The results of the comparison process is summarized in tabular and report form and incorporated in the written report on Institute compensation referenced in Section 4.2 – Compensation Program Review and Approval.

Pay Adjustments

Promotions
A promotion normally occurs during the annual research faculty peer reviewed promotion process. The annual promotion process is scheduled in conjunction with the beginning of the fiscal year (July 1). In any case, an established set of hiring or promotion criteria determines the research faculty title category, i.e., research engineer/scientist/technologist/associate, and level, i.e., I/II/Senior/Principal, to which the faculty member may be elevated.

Merit Adjustments
A merit adjustment may occur as a result of the demonstration of performance relative to job expectations as determined through an annual evaluation. The merit adjustment funding is a result of the actions of the General Assembly and Board of Regents of the University System of Georgia. Merit adjustments are awarded on an annual basis following legislative and Board of Regents approval. There are no strict guidelines regarding the amount of merit increase that should be associated with a given level of performance. However, it is strongly encouraged that significant differences in performance should yield significant differences in reward.

Lateral Transfers
A lateral transfer occurs when an employee is moved to a research faculty position with the same level as the one previously assigned. The reasons for such action are: 1) a simple transfer from one position to another of the same level, particularly when funding ceases to exist in the position previously assigned, 2) the employee has bid for a research faculty position of the same level they currently occupy but in a different department 3) placement in a temporary assignment. Any requests for lateral pay adjustments should be referred to the Office of Human Resources prior to completing a PSF.
Normally pay adjustments are not made as a result of a lateral transfer. Only in cases of extenuating circumstances will an adjustment be considered.
Other Pay Adjustments
Other pay adjustments include those for market equity, increased responsibilities and interim assignments. Requests for these type adjustments should be made in memo form to the Office of Human Resources and include an explanation of why the adjustment is necessary and, in the case of market equity, comparable survey titles matching the position in question.

Processing Pay Adjustments

Processing Pay Adjustments (other than annual merit)
Pay adjustments other than merit adjustments include transfers to interim positions, market adjustments, or acceptance of additional responsibilities and duties, etc.

For these pay adjustments a Personal Services Form (PSF) and justification letter should be completed by the individual's supervisor, approved by appropriate unit management and routed to OHR – Research Faculty Employment.

OHR- Research Faculty Employment will conduct an analysis of the requested adjustment relative to job responsibilities, market and internal equity and may require review by OHR – Compensation. Approval is then sought from the Office of the President, notification sent to the Board of Regents and forwarded to Payroll for processing.

For pay adjustments that do not appear to be supported by market survey data, OHR- Research Faculty Employment or Compensation will contact the unit's Human Resources Representative and discuss the proposed adjustment. This will take in to account not only the market data but also the individual’s credentials and experience. Adjustments that can not be resolved at this stage require final resolution by the Associate Vice President of Human Resources and if necessary, the Vice-Provost for Research as designee for the President.

Pay adjustments are not to be discussed with the employee until all necessary approvals are obtained.

Processing Pay Adjustments (annual merit)
Annual merit adjustments are not processed using the PSF. The Budget Office is responsible for gathering, monitoring and routing documentation associated with these adjustments to Payroll.

Communicating Annual Merit Pay Adjustments

The supervisor should notify the employee in writing that the adjustment is forthcoming. This should occur no later than the effective date of the increase. A copy of the memo should be sent to OHR-Records for inclusion in the employee's personnel file.

Staff Compensation Administration Policy

Staff Compensation Administration Policy
Type of Policy
Administrative
jgastley3 Tue, 05/29/2012 - 15:28
Policy No
4.1
Effective Date
Last Revised
Review Date
Policy Owner
Human Resources
Contact Name
Kevin Merkel
Contact Title
Senior Director-Payroll and Total Rewards
Contact Email
Kevin.Merkel@ohr.gatech.edu
Reason for Policy

Georgia Tech is committed to providing a competitive staff compensation program that will attract, retain, motivate, and reward a qualified, diverse workforce at all levels. This Policy outlines staff compensation requirements and is not intended to be a contract of employment, express or implied, between any employee and Georgia Tech.

Policy Statement

Georgia Tech strives to ensure that compensation decisions are made as objectively as possible without consideration of a person’s race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age, disability, or genetic information. Employee compensation administration will be supported by reliable market data, internal equity reviews, and performance evaluations. Implementation of policies and procedures pertaining to payment of salaries is contingent upon the availability of funds.

General Considerations for All Compensation Actions
Salary and wage adjustments will generally be awarded to employees at Georgia Tech upon promotion to a higher level position, upon reclassification to a higher level position, when an equity, market or administrative adjustment is deemed necessary, and on an annual basis provided performance warrants the adjustment. The annual increase will be in the form of a merit increase and developed in conjunction with, and in adherence to the University System of Georgia’s (USG) guidance. Equity and market adjustments may also be developed in conjunction with the budget development process. For all compensation and Pay Grade changes, the unit Human Resources representative and department supervisor will collaborate to develop an appropriate salary recommendation, based on factors such as an employee's skill, knowledge, experience, and performance, criticality of the role, budget, and market data. All adjustments are contingent upon available funding and must be developed in consultation with the unit’s Human Resource representative and GTHR Compensation.

The effective dates of the compensation action will be aligned with a future compensation period corresponding with the position’s compensation frequency.

Exceptions to this policy may be approved in unusual circumstances by the head of GTHR Total Rewards and the AVP of Human Resources, with the support of the appropriate EVP, or Office of the President where the approval is given in writing and such exception does not violate other policies within Georgia Tech, the USG, or related laws.

Communicating Compensation Adjustments
Supervisors must not commit to any change in salary or compensation of an employee without appropriate departmental, Institute, or USG level approval. Georgia Tech is not bound to any agreement made by a supervisor who has not obtained proper approvals.

Maximum Salary Administration
All Georgia Tech departments must adhere to the USG Maximum Salary Administration guidelines in all compensation actions.

Incentive Programs
Georgia Tech may establish incentive compensation programs consistent with state law, USG Policy, and applicable procedures, however, institutional incentive compensation programs must be reviewed and approved by the USG’s Office of Fiscal Affairs and GTHR.

Starting Compensation
Starting salaries for external hires are determined based on the applicant’s prior experience, skills, or education, directly compared to other employees that are similarly situated at Georgia Tech. For starting compensation purposes, external hires include transfers from other USG institutions. Temporary and student workers transitioning to a regular staff or faculty role will be subject to salary increase administration rules for current employees.

Internal and External hires must start at no less than the minimum of the salary range of the Pay Grade for the position into which they have been hired.

Starting compensation for Internal and External hires that is above the midpoint of the salary range of the Pay Grade must gain additional approvals from GTHR. 

Merit Adjustments
Georgia Tech’s compensation programs are designed to recognize, and reward staff members based on individual performance. Merit increases are typically authorized at the beginning of a fiscal year and are subject to salary limitations and guidelines established each fiscal year. Increases reflect each employee’s performance as evaluated by their supervisor and will generally be distributed on a percentage basis around the average percentage increase as determined by USG guidance. Merit salary increases that exceed the range established by the USG salary administration statement must be documented on an individual basis and must be approved according to the guidelines for that year’s merit process.

Promotion or Reclassification Increases
Promotions may occur as a result of reclassification, reorganization, or through competitive recruitment. When an employee is promoted or reclassified to a position in a higher Pay Grade, the employee will normally be awarded a promotional or reclassification increase. Determinations of the actual increase will consider relevant factors such as internal compensation equity and the individual’s qualifications and experience for the position. Not all promotions will result in a compensation increase.

Promotional increases above 9.9% percent, or the minimum of the new compensation range, will require additional justification and review and approval by GTHR. Increases will be capped at the new Pay Grade compensation range maximum.

Newly promoted or hired employees are generally ineligible for a subsequent promotion or a lateral move (unless within their own unit) until completion of one year of continuous service in that position. Exceptions to this are:

  • The individual’s current work is to be curtailed.
  • All available employees with at least one year of service have been considered and rejected for the position.
  • Situations in which the leadership of two units mutually agree to a transition to the benefit of Georgia Tech.

Demotions
No compensation increases are allowed with a demotion. Regardless of where the individual is in the new salary range, responsibilities, internal equity, and budgetary considerations will be considered and may result in decreased compensation in the new salary range Pay Grade. 

If the demotion is voluntary (e.g., applying to a job in a lower grade), and the employee’s current salary is within the new salary range, no change is necessary. If the current salary of an employee is more than the new salary range maximum, their salary will be decreased to no more than the maximum salary range for the new job on the effective date of the new job. If the demotion is involuntary, and the employee’s salary is more the new salary range maximum, the salary shall be immediately decreased to a level within the salary range of the new grade. Involuntary demotions can also occur when a job is reassigned to a new Pay Grade due to a reorganization. Responsibilities, internal equity, and budgetary considerations will be considered and may result in a salary placed lower in the new salary range due to a reorganization. In these instances, the individual's salary may initially remain the same, but must transition to the Pay Grade salary range of the new job within one (1) year.

Equity and Market-Based Salary Adjustments
Market adjustments do not occur in conjunction with a change in title, grade, or FLSA status.

Official Georgia Tech sanctioned salary survey data and the employee’s personnel record, experience, and credentials will be reviewed by GTHR Compensation. Rationales for considering an Equity and/or market adjustment include:

  • Consideration of a more appropriate alignment between the salaries of similarly situated employees performing work at the same family, sub-family, career stream and career level, with similar levels of experience, background, and performance;
  • Consideration of a more appropriate alignment between the salaries of a supervisor and their direct reports;
  • Consideration of a more appropriate relationship between the salaries of existing employees and the relevant market. Any adjustment that is given to bring employees in line with the external market is subject to internal equity. Adjustments will not be made if differences are explainable based on qualifications, type or length of experience (both internal and external to the Georgia Tech), the work itself, and/or performance and productivity.

Administrative Adjustments
In order to correct an administrative oversight, and subject to funding availability, the AVP – Human Resources or his/her designee may approve an in-range adjustment to an employee’s rate of compensation.

Retention of Employees
Counteroffers from Georgia Tech should be rare, and in all cases, will require approval of the Vice Provost, Vice President, Dean, similar level title, or higher (depending upon circumstance) and the AVP of Human Resources or designee.

Internal Offer and Counteroffer:

  • If approved, the employee's current department may make a counteroffer up to the hiring department's salary offer for a similar level role, with prior approval at the organization level.
  • Neither the employee's current department nor the hiring department can offer more than the hiring department's original salary offer.

External Offer and Counteroffer:

  • Employee’s current Georgia Tech department will determine if a counteroffer will be made following receipt of a signed offer letter or email from an authorized representative of the potential external employer.
  • No counteroffer may exceed the amount of the external offer.
  • The current Georgia Tech department can negotiate with the individual, offering up to the amount approved by GTHR.
  • If external offer changes, the same process for approval of salary rate (described above) will still apply.

Supplemental Compensation
Georgia Tech recognizes the need to assign additional responsibilities of another position to an employee on a temporary basis and to make interim appointments. A supplemental compensation increase does not include a change in position or title and may be made when a significant change in duties and responsibilities occurs. The supplemental compensation increase should be consistent with additional responsibilities assigned and within salary guidelines. The compensation increase should generally be at least the minimum of the salary range for the position for which the interim appointment is made. The former rate of compensation (plus any applicable supplemental earned during assignment) will be re-assigned when the interim appointment is completed. Information regarding interim appointments can be found in the Georgia Tech Service Now Human Resources Knowledge Base.

Transfers
No compensation increases are allowed with a lateral transfer unless disparity in compensation requires an Internal Equity adjustment. Increases will be capped at the compensation range maximum. The transfer of an employee from a position at one institution within USG to a position at another USG institution or to or from the University System Office is an external transfer. Since USG institutional compensation practices may differ due to market conditions, the transfer may be to a position at a different compensation range.  For compensation purposes, the external transfer is considered an external hire. Additional Human Resources policies regarding external transfers may apply (see Section 10 for related policies).

Timing of Compensation Adjustments
No commitments regarding the effective date for compensation adjustments shall be made to employees until authorization is received from the appropriate department budget official and GTHR. All requests should be submitted and processed in advance of the effective hire date or status change date.  In all cases, the required adjustment should be effective with the beginning of the next compensation period after written authorization has been received. Retroactive compensation adjustments impose significant risk and costs within Georgia Tech and USG. Retroactive adjustments in funding sources (which do not impact compensation rates or classifications) are not impacted by this change.

Additional compensation information can be found at Georgia Tech Human Resources Compensation website, and the Georgia Tech Service Now Human Resources Knowledge Base

Scope

This policy applies to all staff employees at Georgia Tech. This policy does not apply to academic faculty, research faculty, affiliates, or temporary employees.

Policy Terms

Demotion

A shift of an employee to a lower Pay Grade, rank, class, or position.

Internal Equity

Internal Equity exists when employees at an organization perceive that they are being rewarded fairly according to the relative value of their jobs.

Market Adjustments

Market Adjustments are salary adjustments for an employee or group of employees that have fallen behind in base salary as compared to similar positions on campus and/or in the external market.

Pay Grade

Georgia Tech groups jobs with similar external value in to Pay Grades. Within the Pay Grade there are compensation ranges and tiers that reflect the minimum and maximum pay.  All increases will be capped at the compensation range maximum.

Promotion

A Promotion is the elevation of an employee to a new position, with essential responsibilities that are significantly greater than the current position, and a higher Pay Grade.

Reclassifications

A change in a role that results in the employee and/or position being assigned to a different job title and job code.

Structure

Georgia Tech groups job grades with similar characteristics. There are five Structure categories at Georgia Tech. Click here to learn more.

Responsibilities

AVP-Human Resources
The AVP – Human resources shall provide guidance to management on appropriate application of the policy; ensure that appropriate processes and Institute level policy is in place to facilitate fair and equitable evaluations of requests to extend offers above the minimum of a salary range; and ensure requests are properly evaluated and administered in accordance with policy and applicable federal and state laws.

Georgia Tech Human Resources Compensation Department
GTHR’s Compensation team is responsible for monitoring consistent application and interpretation of this policy, and ensures appropriate approvals are received in compliance with USG Policies and Human Resources Administrative Practice (HRAP) Manual.

Supervisors
Supervisors are responsible for seeking approval from unit Human Resources representatives and/or GTHR for all compensation adjustments. Additionally, supervisors must ensure no communication regarding compensation is shared with employees prior to approval.

Enforcement

To report suspected instances of ethical violations, please visit Georgia Tech’s Ethics Helpline a secure and confidential reporting system, at: https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508

Policy History

Revision Date

Author

Description

10/2020 Human Resources Editorial updates
07/2018

Human Resources

Editorial updates

03/2011

Human Resources

New Policy