University Supervisors' Meeting: May 15 Resources

Summary of Compensation 101 - Key Highlights

This University Supervisors Meeting focused on HR Modernization. Download the PowerPoint Presentation, watch the meeting recording or review the key highlights and takeaways below.

Core Philosophy and Strategic Impact

• Compensation is positioned as a strategic tool that drives employee motivation and performance, not just a compliance requirement
• The university emphasizes framing compensation discussions around impact rather than compliance alone
• The partnership between HR Compensation team and supervisors is highlighted as crucial for successful implementation

Eight Pillars of Compensation Architecture in Detail

Pay Philosophy:

• Market competitive to attract and retain talent in external markets
• Fair and consistent practices based on clear guidelines
• Career growth support through defined progression opportunities
• Commitment to transparency and legal compliance

Compensation Strategy:

• Active consultation with individual units to address specific needs
• Career architecture ensuring internal equity through defined job levels
• Total rewards approach, including benefits and development opportunities
• Regular review process to maintain alignment with goals

Job Architecture:

• Structures diverse roles via Functions, Families, and Levels
• Helps employees visualize and navigate career progression
• Provides a common language for consistent compensation decisions
• Facilitates effective market benchmarking

Salary Market Data:

• Uses at least three data sources to ensure reliability
• Strategic selection based on talent markets and peer institutions
• Ensures ongoing alignment with market wages

Pay Ranges:

• Designed as facilitators rather than inhibitors
• Midpoint represents the market rate for fully proficient employees, not a ceiling
• Allows for growth and flexibility based on skills and experience

Legal Compliance:

• Strict adherence to all applicable laws
• Clear policies guide supervisors in making legally sound pay decisions
• Serves as the foundation for all compensation practices

Compensation Policy:

• Establishes how jobs are categorized for appropriate mapping
• Ensures equitable compensation based on job value and market data
• Supports legal compliance in all compensation activities

Communication:

• Transparent sharing of compensation philosophy and processes
• Resources available through the HR website and UAccess
• Managers equipped to discuss compensation principles with teams
• Open conversations are encouraged between employees and supervisors

Common Misconceptions Clarified

• Midpoint is a reference point in the salary range, not the "average" or "target" salary.
• Raises are individualized based on performance and other factors, not uniformly distributed.

Distinctive Arizona Compensation Model Elements

• Leading compensation approach in the higher education sector
• Diverse options for strategic acknowledgment of employee contributions
• Investment in advanced tools like JD Expert for consistent job evaluations
• Expert compensation team that other universities often consult
• Continuous improvement through supervisor feedback

Real-World Applications (Case Studies)

1. Specialized Research Roles: Successfully created a new job family for specialized Core Center/Shared Services Lab roles that lacked direct market data
2. Strategic Hiring: Used flexible compensation approaches to secure an overqualified candidate for a Campus Store Assistant Director position

Additional Information & Resources