Human Resources 
Policies & Procedures 
Illinois Institute of Technology		 Policy No. D. 5.00 

Date of Issue 8/97
 

Subject: Salary Administration Policy
5.01 It is university policy to determine compensation levels by giving consideration to salaries paid similar positions in the IIT university community, as well as in the general employment market, and to place special emphasis upon relating compensation to individual performance. Compensation decisions are made without regard to race, color, gender, creed, national origin or ancestry, age or physical or mental handicap.
 
5.02 Union employees are governed by the applicable provisions of the appropriate labor agreement. Wages are determined through collective bargaining and are published in the contract.
 
5.03 Human Resources has the authority and responsibility to: 
 
a. Develop and recommend policies with regard to administrative, professional, technical and clerical staff salaries and union wage administration.
 
b. Recommend salary and/or merit adjustment guidelines to be effective during each fiscal year.
 
c. Evaluate individual positions and assign those positions to specific classifications and salary levels.
 
d. Conduct continual reviews of wages and salaries as compared with other appropriate employers and recommend adjustments to maintain fair and equitable policies.
 
e. Notify supervisory personnel on a timely basis of the need to conduct performance reviews. Each recommendation for a merit increase must be accompanied by a completed Performance Appraisal form.
 
5.04 Job Descriptions 

Each position must have a written description of the basic function, duties and responsibilities, supervision exercised, and qualifications. This description will form the basis for classifying the position. Human Resources will also use the information to designate each classification as exempt or non-exempt according to definitions set forth in the Fair Labor Standards Act of 1938. 

A review of the classification may be requested by the appropriate vice president, dean, director or department head. Any staff member who questions his or her position classification may, with the endorsement of the department head and appropriate dean or director, appeal in writing for a review by the Director of Human Resources, whose judgment in the matter shall be final. 
 
Any time the duties of a position or its reporting relationship are substantially changed or the position becomes vacant, the supervisor should send an updated description through appropriate administrative officers to Human Resources in order to reaffirm the current classification or to establish a new classification.
 
5.05 Merit Increase - is an adjustment based on sustained performance during the rating period. The percentage adjustment shall be in direct proportion to the performance level achieved, as measured by the performance appraisal program. Merit increase guidelines will be developed each fiscal year. 
 
a. Non-exempt employees who are rated "meets expectations" or higher on their initial 6-month performance appraisal shall be eligible for a merit increase. Exempt staff who are rated "meets expectations" or higher on their initial 12-month appraisal shall be eligible for a merit increase.
 
b. All other employees will be evaluated and be eligible for a merit increase on a common date as established by the university each fiscal year.
 
5.06 Special Salary Adjustment - is a specific response to market and/or internal equity issues substantially affecting the ability to recruit and retain competent people in specialized areas.
 
5.07 Recognition Award - is a one-time salary payment or series of payments as defined in the salary administration plan of that fiscal year. To be eligible, an employee must have demonstrated:  
 
  Significant success in improving the quality of operations of a department (function) to better respond to customer needs without the assistance of additional resources. The improvements must be measurable, of consequence to furthering the mission of the university, and serve as a role model for other employees/departments.
 
  Significant success in a special project that was well outside of regular duties and was assigned in addition to normal responsibilities/workload, or if the special project fell within the scope of the position, the outcome was substantively beyond the expectations of those duties normally performed.
 
  Contributions to work restructuring, productivity improvement or innovation that resulted in tangible budget savings.
 
5.08 Promotion/Reclassification Increase - is an increase in salary when an employee moves from a position in one class to a position in a different class assigned to a higher salary level.  

A promotion occurs when the move is to a vacant budgeted position. It establishes a new merit increase date on the the first of the month following completion of 6 months in the new position and upon a university designated common date for employees each fiscal year thereafter.

A reclassification occurs when the position an employee occupies has increased duties and responsibilities that warrant assignment to a higher salary level. An employee who has been reclassified and receives a salary adjustment will be evaluated for merit increase based on the same schedule as all other employees for that fiscal year.
 
5.09 Demotion - A salary reduction will ordinarily occur following a demotion from a position in one class to a position in a different class assigned to a lower salary level or when the position a staff member occupies is reclassified to a lower salary level. A demotion may occur within a department or between departments. 
 
5.10 Transfer - A transfer occurs when a staff member is moved from a position in one class to a different class assigned to the same salary level. A transfer may occur either within a department or between departments. Internal equity and market issues will be addressed when determining the salary level for the staff member. In general, a lateral transfer will not result in a salary adjustment.
 
5.11 Classifications as Defined for Benefits and Paid Time Eligibility 

Each position is classified to one of several designations: administrative officer, professional, clerical, technical and union. 

Administrative officers are eligible for participation in the retirement plan after one year of employment, qualify for participation in the TIAA Long-term Disability Plan and receive 24 days of annual vacation. The following criteria must be met for administrative officer designation: 
 
a. Reports to a position of Director or above.
 
b. Is responsible for directing a key or major function.
 
c. Controls the budget and maintains fiscal responsibility including revenue generation and expense control of a major function.
 
d. Has significant impact on short- and long-term success of the department or university.
 
e. Exercises substantial influence within the university in decision-making matters.
 

5.12 Exempt Employees - Performing Work Outside Regular Duties or Department 

On occasion an exempt employee may be required to perform work that is outside of the scope of the assigned classification. A department head may request a lump-sum payment or a temporary adjustment to salary to recognize this interim situation. These payments must be based on the following criteria:
 
a. requires substantial additional time beyond the normal workweek
 
b. additional work has been approved by the immediate supervisor
 
c. work was not performed by an employee under this employee's supervision
 
d. work was previously performed by an employee assigned to a higher salary level
 
e. and/or a special project from another department
 

The amount of payment requires prior approval of Human Resources. 
Documentation supporting the request must be submitted.
 
5.13 Minimum Wage - Federal minimum wage as amended by the Fair Labor Standards Act is $5.15 per hour as of September 1, 1997. This is subject to change.

 

 
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