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POL 5.305 Review and Maintenance of Classification Compensation Structure

Purpose is to ensure that a regular review and adjustment to the pay structure is carried out in a timely and effective manner. This requirement stems from the need to maintain a structure that allows the college to compete for qualified employees within its relevant labor markets and to retain competently performing employees on a long-term basis.

  1. The pay ranges (i.e., minimum and maximum rates of the structure) will be reviewed annually using comparative data from local and statewide labor markets. The pay ranges will be adjusted when necessary to ensure that they are competitive for jobs with duties and responsibilities comparable to those being performed by Kirtland employees. All pay range and pay adjustments will be based on the college’s ability to pay.

Revised June 10, 1993

PRO 5.305 REVIEW AND MAINTENANCE OF CLASSIFICATION COMPENSATION STRUCTURE

  1. Comparative labor market rates and cost of living indexes are two sources of influence in the determination of pay rates of ranges. Typically, labor market rate averages and cost of living indexes change at different rates or speeds. Because the college intends for its pay structure to be competitive with other employers, it adjusts its pay ranges based on changes in surveyed labor market rates as well as on the basis of one of the various cost-of-living measures.
  2. In January/February of each year, the director of human resources obtains or completes a survey of the outside labor market. The survey will include a collection of data on benchmark jobs. Benchmark jobs could include:
    1. Classifications with recruitment/retention problems
    2. Cross-section of all classifications
    3. Reasonable probability of matching the job in outside organizations.
  3. The college’s director of human resources will oversee the computation of appropriate statistics (averages, percentages, dollar variances, etc.), the analysis of these statistics, and submit recommendations for changes to the pay structure to the administration.
  4. The revised pay structure will become effective, upon approval of the board of trustees, no later than July 1 of each year.
  5. An employee beginning employment after the effective date of the revised pay structure will receive a starting rate of pay that is no less than the minimum rate of their pay grade.
  6. “Red Circle” employees will be eligible to receive the market adjustment (or a portion thereof) if the revised maximum of their respective pay range overtakes or surpasses their current rate of pay.
  7. The following schedule will be followed in reviewing and adjusting the salary structure:

 

MONTH
ACTIVITY
January Assess current recruitment and retention problems
February Review the design of the annual survey including selection of survey sources and methods for data collection and analysis
February Conduct survey and compile results
March/April Submit recommendations for adjustments in the pay structure to the administration as part of the preliminary budget process
May/June Submit recommendation for adjustments in the pay structure to the board of trustees