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Introduction to UDM’s Compensation Program
The Compensation program at the University of Detroit Mercy consists of three
components:
JOB DESCRIPTION
Identifying the primary purpose of the position, the 4 – 7 key responsibilities of
the position, and the competencies required to perform them. This component
also includes information to support the University’s commitment to compliance
with the Americans with Disabilities Act.
JOB EVALUATION
Comparing the key responsibilities and competencies to the templates for a job
category, job group and job level, and making decisions as to appropriate
placement relative to these criteria.
MARKET PRICING
Determining the range of market pay for a job, given UDM’s pay philosophy.
The UDM Compensation program is interwoven with Performance Management
and the Selection process. Information from one is used to support and reinforce
the activities and decisions in another. As interlocking pieces, substantive
changes cannot be made to one without impacting the others. Each of these
processes was previously described in preceding sections of this manual.
Job Description
All positions, whether existing or newly created, are to have a Job Description
Questionnaire (JDQ) completed on them. The purpose of the JDQ is to collect
the information needed for purposes of job evaluation and market pricing. The
information gathered is also used in the Performance Management and Staffing
procedures. In order to properly complete a JDQ, both the employee and
supervisor need to consider the responsibilities and tasks of the position. The
JDQ considers such questions as: Why does a particular position exist? How
does it fit the University’s mission? Which tasks and duties are essential to
carrying out the purpose? How does the way in which information is used on the
job affect the scope of the job? How does the way decisions get made affect the
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Job Description (Continued)
scope of the job? Which competencies are required to perform the work and
what level of competency is required? What is the minimum and desired
education level for a position? What are the physical working conditions of the
position? These and other questions are used to formulate a job description for
each occupation at the University.
Job Evaluation Process
The job evaluation process at UDM is designed to take the individual job
description and assign it to a Job Category, then to a Job Group and Job Level.
This method is labeled “Classification of Job Evaluation” and is a non-quantitative
form of evaluation that compares jobs to predefined descriptions established for
each job group and level. Jobs are placed in whichever classification best
describes them.
Positions are evaluated on three factors:
1. Responsibilities (the content of the job and the outcomes expected).
2. Competencies (The required skills and knowledge that is required in order
to successfully achieve the expected work outcomes).
3. Impact (The potential fallout, both positive and negative, from the quality
of work produced).
Information
categories:
·
·
·
·
·
·
from this evaluation is used to place a job into one of six job
Coordination
Counseling
Office/Administration
Professional
Supervision
Technical
Once a job category is assigned, the position is placed in a job group, which is a
further refinement of the job category and speaks to the specific nature of the
work done.
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Job Evaluation Process (Continued)
Finally, a job level is assigned to each position, based on the above three
evaluation factors. The job level reflects the amount of expertise or experience
needed for the job and moves from lower to higher as the position requirements
increase from “learner” to “expert.”
Market Pricing
The UDM compensation process is based on paying employees a competitive
rate for assigned responsibilities and tasks. An employee is paid competitively if
total compensation, salary plus benefits, is within a market range. Ordinarily, for
UDM, that market range is from 10% below to 20% above the benchmark pay for
that job. Pay levels ranging from 11% to 20% below benchmarked rates may be
appropriate for employees during their introductory period.
Overtime Pay
UDM conforms with the Fair Labor Standards Act (FLSA) of 1938 (as amended)
and state and local overtime laws in calculating and paying overtime to
employees.
Non-exempt employees are entitled to overtime pay. Overtime is paid for all
hours worked over 40 hours in one workweek. Overtime pay equals one and one
half times the employee's regular rate of pay. Exempt employees are not entitled
to overtime pay or compensatory time off.
APPROVAL FOR OVERTIME
Since overtime is a variance from a non-exempt employee's normal work
schedule, the supervisor must approve all overtime by non-exempt employees
before the hours are worked. An employee who works overtime without
supervisory approval is in violation of this policy. However, when an individual
works overtime without the approval of the supervisor, overtime will be paid in
compliance with applicable laws.
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Overtime Pay (Continued)
APPROVAL FOR OVERTIME (Continued)
A supervisor may require an employee to work overtime. When possible, the
supervisor should provide advance notice to the employee concerning the date
and amount of overtime required. However, occasionally an employee may be
required to work overtime without prior notice. In either case, employees are
expected to work overtime as directed. An employee may request overtime to
complete an assignment; however, the employee must obtain the supervisor's
approval in advance.
COMPUTING OVERTIME
For the purpose of computing whether more than 40 hours were worked only
actually worked hours, vacation hours, holiday hours, and University closure
hours will be counted. When calculating overtime, the University includes all
hours worked by an employee, even when the hours are worked in more than
one job and/or department of the University. The overtime rate for an individual
employed in more than one job at the University is based on the weighted
average rate of pay for all positions.
COMPLIANCE
Employees who violate any component of this policy on Overtime Pay are
subject to disciplinary action.
RESPONSIBILITY
Each department head is responsible for assuring compliance with this policy.
Supervisors are responsible for scheduling and recording overtime correctly.
Each employee is responsible for working overtime hours when required and
securing supervisory approval, in advance, for overtime work.
Pay Philosophy
UDM is committed to recognizing employees’ contributions to the University by
paying wages, salaries and benefits that are fair, competitive, and serve to
sustain a reasonable quality of life. To accomplish this commitment for positions
that are academic in nature, UDM will target the published market rates of the
aggregated, comparable universities as determined by appropriate private status,
and revenue position. For those positions with skills and competencies
applicable to more general business and industry work environments, UDM will
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Pay Philosophy (Continued)
target compensation at surveyed and published market rates. This market
position reflects the fact that UDM has unique attractors, which, with its benefit
package, contribute significant value to the total compensation package. It is
recognized that the targets indicated above are just that – targets. All
compensation decisions must be approved by the President and will be
consistent with the financial position of the University.
Payroll Practices
PAY PERIODS
The University has twenty-six (26) payroll periods each year. There is a oneweek lag in the payroll cycle, which means the paycheck reflects the two prior
weeks pay. The week that the paycheck is actually received represents the first
week of the subsequent pay period.
DISTRIBUTION OF PAYCHECKS
Employees normally receive their paycheck on Friday for the pay period ending
the previous week. In the event a payday falls on a holiday or weekend,
paychecks will be distributed on the last working day preceding the normal
payday.
PAYROLL DEDUCTIONS
An employee’s gross pay is subject to certain deductions for Social Security,
Medicare and other payroll taxes as required by law. Further deductions for the
retirement program, U.S. Savings bonds, health insurance premiums, charitable
contributions and other miscellaneous deductions may also be taken out. A
statement of earnings and deductions will accompany each paycheck. At the
end of the year, employees will receive a withholding statement showing total
salary earned and taxes withheld.
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Payroll Practices (Continued)
DIRECT DEPOSIT
Employees can arrange to have their paychecks directly deposited into an
established bank account by contacting the Human Resources Department for a
Direct Deposit Authorization form.
FINAL PAY
Employees leaving the University will receive their final paycheck at the end of
the next pay period, provided they have returned to their supervisor all University
property (keys, ID card, parking pass, tools, etc.) Final pay will consist of all
hours worked from the final pay period through the employee’s last day of actual
work plus any accrued but unused vacation hours less funds due to the
University. The final paycheck may be reduced further by the amount of any
normal deductions required. Final pays will not be direct deposited.
Employees with any questions regarding the above should contact the Human
Resources Department.
Title Recognition
Title changes are not true promotions as defined in this section unless they also
involve a corresponding change in the functional responsibility of the position and
an increase in the salary level.
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