A pay increase results in an upward adjustment to the base pay of a staff or faculty member. Common reasons to provide a staff member with a pay increase include: annual increases, promotions, reclassification, addition of duties, to maintain / achieve internal equity, to align salaries with the external market and to retain top talent.
Compensation staff members can provide guidance in developing customized compensation strategies and plans to help attract, retain, and reward staff. For help with faculty pay adjustments, please consult your Dean’s Office or the Provost Office. Please Note: In all cases, pay increases must be approved through the appropriate approval process before reaching Human Resources.
Determining If An Increase Is Warranted
If done effectively, pay increases are one way to reward, retain and motivate staff; however, compensation decisions can be difficult as there are often no clear cut right or wrong answers. Some key factors to consider regarding pay increases are performance, internal equity, job duties and responsibilities, qualifications, and budget. Use the questions listed below to think about whether or not a pay increase is warranted and how much may be appropriate given the circumstances.
- How would you rate their performance over the last few months? Last year? Last three years?
- How does their performance compare to others in your department?
- How does their pay compare to others in similar positions within your department, division or school?
- If there is more than a 5% difference, what is the reason for this difference? Experience? Education? Performance?
- If another employee in a similar position found out about this person's pay, are you prepared to explain these differences? Or, are you prepared to make an adjustment?
- Have people you hired most recently received higher rates of pay than employees in similar jobs who have been with you for several years?
- How complex are the job duties and responsibilities?
- Have there been significant changes to the job?
- To what level are they performing these duties in comparison to the job description? In comparison to others in a similar role?
- Level Of Education
- Years of experience
- Special knowledge, skills, or abilities
- Certifications / Licenses
- How do you want to allocate available funds to cover this increase?
- How will providing this pay increase impact your ability to pay your other staff members?
To provide an employee a pay increase, the process used will depend upon the reason for the increase. In all cases the pay increase must be approved through the appropriate approval process for your school or division before reaching Human Resources.
Annual Increases are determined during the annual budgeting process and loaded electronically into Banner. In special circumstances (i.e., split funding, grant funded, etc.), a PAF will need to be submitted to process the annual increase manually.
An updated job description must be submitted through RICEWorks and approved by your school or division designee and Compensation before a pay increase can be granted. Refer to the Reclassification, Additional Duties, or a Promotion sections for more information on those processes. Once the updated job description has been approved, a PAF should be submitted to finalize the reclassification, promotion, or additional duties and allotted pay increase.