Classification and Compensation Studies

In order to preserve the integrity and currency of the staff classification and compensation structure, HR Compensation conducts periodic reviews of identified classification series and/or job families.

 

The overall goals of a classification and compensation study include:

  • To ensure market/internal structure alignment
  • To simplify classification structures
  • To identify paths for career progression
  • To address recruitment and retention needs
  • To review minimum qualifications to facilitate recruitment of talent

 

Impact on employees’ pay as a result of a market study:

Any grade modifications will be market-based and not the result of reclassifications. This means that such changes, will not, per UNM policy, trigger pay increases for individual employees except in those unique circumstances in which an employee’s salary rate falls below the minimum of the new pay range.

Classifications that, according to market-data, would have been appraised at a lower grade typically remain unchanged. Situations where lowering the grade of a classification may be warranted will be reviewed on a case by case basis so as to ensure minimal impact on current incumbents.

For new hires, the internal equity policy applies (Section 3.1 UAPPM 3500).

 

How are market studies determined?

Each calendar year, during the HR Compensation strategic planning process, we identify the market studies that will be conducted for the upcoming year. University-wide studies are typically generated at the senior leadership level, and require the support of the appropriate sponsor. In unique circumstances, smaller studies, such as ad-hoc market studies, can be requested by a specific discipline area and require the subject matter expert’s contributions.

In such circumstances, the requesting entity must prepare a written request for a market/ad-hoc study, which should include the following elements:

  1. A letter of justification, signed by the department principal, outlining the background behind and reasons for the request.
  2. A complete and current listing of the employees who would potentially be impacted by the study, to include UNM ID, name, org title and code, pclass title and code, and current salary rate.
  3. A detailed 12-month turnover analysis for each staff position classification, including separation rates, reasons for separation, and summaries of outcomes of attempts to fill vacant staff positions in the classification(s) over the period, if any.
  4. Any statistical or otherwise quantifiable information obtained by the department that would facilitate an assessment of the request.

The above documentation should be forwarded to senior line management for preliminary review and approval. Once this approval has been obtained in writing, the requesting department should route the package to HR Compensation.

HR Compensation will review the information provided to determine the appropriate next steps.

HR Compensation will notify all impacted departments and HR Consultants of any changes and will work to coordinate the project throughout all its stages (Planning, Development, Communication and Implementation).

 

Typical Process Flow of a Market Study