Compensation Guidelines
The Compensation Program
Texas State University is committed to providing a compensation program that enables the institution to attract and retain the highly skilled and talented staff necessary to meet its operational needs and strategic priorities. This webpage serves as a compliment to UPPS 04.04.11. Official University policy supersedes this webpage in the event of any inconsistencies.
The compensation program established in support of the institution’s compensation philosophy strives to meet the following objectives:
- Establish compensation levels for positions on the basis of their duties, responsibilities, and qualifications, external competitiveness within relative labor markets, and relative internal comparators;
- Reward employees based on work performance and longevity;
- Administer pay equitably and consistently.
- Provide a structure for consistency and transparency in compensation decision making within funding availability, the Rules and Regulations of the Texas State University System, and federal and state statutory requirements. Funding availability may trump the ability to provide salary increases as otherwise referenced in this document.
Salary Structure Overview
The salary structure is a compensation framework comprised of multiple pay grades, each of which has an associated pay range. The salary structure groups jobs with similar market values and/or internal equity into the same pay grade. The goal of the salary structure is to ensure that each employee receives a salary that is reasonable based on appropriate market data given their assigned pay grade and corresponding pay range. We expect salaries to be distributed throughout the pay range to reflect the differences in knowledge, abilities, record of performance, and experience that employees bring to their respective roles. Generally, employees with less relevant experience will be paid closer to the minimum of the range, and people with more relevant experience in the job will be paid closer to the range’s midpoint with only the most experienced and skilled employees reaching the maximum of the pay range.
Compensation Guidelines
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New Hires
Salaries for newly-hired or created positions will be assessed based on the pay range for the position's pay grade, the candidate's qualifications, and budget availability. The candidate’s relevant knowledge, skills, and experience will influence their placement within the range, with less experienced candidates typically starting lower and more experienced candidates starting higher. Additionally, internal equity related to the same or significantly similar roles is to be considered when placing new hires into a range.
A new hire’s salary is not set at the level of the prior incumbent. It is based on the factors mentioned above. The starting salaries for a new hire should not exceed the midpoint of their pay range. Any starting salary above the midpoint will require approval from the Executive Vice President of Operations and Chief Financial Officer.
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Non-Competitive Pay Increases
For all salary changes, any increase in excess of 10% will require approval by the Executive Vice President of Operations and Chief Financial Officer (EVPCFO) upon recommendation from the Chief Human Resources Officer (CHRO). Increases beyond 10% are to be based on exceptional circumstances such as rapid changes in market data or urgent documented retention concerns.
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Reclassifications
A reclassification may occur following a job audit or assessment performed by Human Resources that confirms a significant change in job duties and responsibilities that necessitates a new job title. Budget permitting, reclassifications can result in pay increases if the employee’s salary falls below the minimum of the new pay grade. Any increase beyond the minimum is subject to review from Human Resources. If a reclassification results in either no change or decrease in pay grade, the employee’s salary does not change. Except under exceptional circumstances, such as verified concerns related to retention or other critical operational matters, reclassifications with a corresponding pay increase will be effective either the beginning of the mid-year cycle or during annual salary review, depending on the time of the request.
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Non-Competitive Promotions
A non-competitive promotion may occur when an employee is advanced into a position which is part of a natural career progression. When, as a result of such a promotion, the employee is placed into a position of a higher pay grade, the employee may receive a pay increase not to exceed 10% subject to the following considerations:
- The actual increase may be less than 10% based on internal equity, available budget, or compression considerations;
- If an increase in excess of 10% is required to place the employee above the minimum of the new pay range, the University may phase any increases above 10% over a period of time.
- If an employee is already above the minimum of the pay grade, the pay increase should not exceed the midpoint of the pay grade.
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Pay Increases Resulting from Competitive Selection
Internal applicants for posted positions, who are competitively selected for such positions, may receive a pay increase if the new position is at a higher grade in the University Pay Plan. Lateral moves are not subject to pay increases. When a current employee is competitively hired into a new position at a higher pay grade, the guidelines listed above under “New Hires” will generally apply to ensure internal applicants are not disadvantaged compared to external applicants.
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Transfers
When an employee is transferred to another position with the same pay grade, which does not occur as a result of a disciplinary action, reduction in force, or position elimination, the employee’s pay will not change. If an employee is transitioned to a position at a lower pay grade due one of the listed reasons above, or chooses to move to a lower pay grade voluntarily, the employee may be subject to a pay decrease within the discretion of the University as approved by Human Resources.
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Market-Based and Equity Adjustments
A market/equity adjustment is a change in salary designed to address internal pay disparities (such as compression or inversion) or to align with external labor market rates. Equity adjustments recommended by Human Resources via the year-end compensation review process will be reviewed with the applicable vice president and will be subject to the availability of funding. Market adjustment proposals may be initiated by Human Resources as a result of market studies or audits, or may be initiated by divisional leadership requesting a review of the position by Human Resources. As with equity adjustments, market adjustments are subject to funding availability. Market adjustments will be effective either at the beginning of the mid-year cycle or annual salary review, depending on the time of the request.
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Other Salary Adjustments
When exceptional circumstances exist, members of the President's Cabinet may request discretionary salary adjustments for reasons not previously outlined. These requests should generally be submitted during the year-end salary review process, although, in certain limited scenarios, out-of-cycle adjustments may be justified. Salary adjustment requests outside the year-end review must include a detailed explanation of the rationale for the adjustment, such as grant-funded positions where funds-availability changes on a different cycle than the university’s normal salary review process. Additionally, these requests will be routed through Human Resources and reviewed by the Budget Office for funding availability before being approved by the Executive Vice President of Operations and Chief Financial Officer.
Pay Plans/Salary Ranges
Human Resources will endeavor to review the University’s Pay Plans annually and make adjustments based primarily upon external market conditions. The general timeline for publishing changes to the Pay Plans/Ranges will be as early in each calendar year as possible. If an adjustment to the Pay Plans/Ranges places staff employees below the minimums of their applicable Pay Plan, any adjustments to minimum will occur as part of annual salary review. Salary adjustments due to a change to the Pay Plan minimum may be phased in over time as funding allows.
Consistent with State law, pay changes will not be retroactive. Generally, pay changes will take effect at one of two times each year - the annual salary review process (September), or the mid-year point (March).