University Compensation Philosophy Statement
Gonzaga University is committed to a humanistic compensation philosophy, which is consistent with its mission as a Catholic Jesuit institution, insuring fairness, internal equity, and external competitiveness for purposes of attracting, retaining, and motivating employees. The Human Resources department is responsible for administering the compensation systems.
Gonzaga University's compensation philosophy is to enhance the quality of work life by recruting, retaining, and motivating employees whose work ethics and behaviors incorporate and exemplify the key values consistent with the University's mission.
Benchmarking
Benchmarking is the practice of matching a position to survey data, based on a job description. The University uses reported market average data to determine the appropriate pay range for the position. The surveys used are considered to be comparable institutions to Gonzaga. A local market survey is used primarily for non-exempt positions. These surveys have been approved by the Vice President for Administration and Planning.
Market Data and Pay Ranges
A pay range is created by benchmarking a job to the appropriate survey/description. Salary ranges include a minimum, first quartile, midpoint, and maximum. The salary range spread is dependent on if the position is exempt or non-exempt.
- Exempt salary ranges are 85%-115%, the minimum is 85% of the midpoint and the maximum is 115% of the midpoint.
- Non-Exempt salary ranges are 90%-110%, the minimum is 90% of the midpoint and the maximum is 110% of the midpoint.
Salary ranges are established through evaluating requisite job qualifications, reviewing salary survey data and assessing market forces such as demographics, skill demand, and economic factors including inflation. Salary range midpoints are established at market value for a position. Salary ranges are updated annually, based on the University's fiscal year budgeting process.
Salary Offer Philosophy
Newly hired employees are typically hired between their salary range minimum and first quartile, depending on various factors including experience and education. Supervisors have discretion and may hire up to the midpoint of the salary range, based on the applicant pool and/or level of position.
Annual Salary Increases
Gonzaga University is currently transitioning its compensation plan design from a length of service driven system to one that will be performance based. This is a three year transition which began June 1, 2008. The transition model for annual increases will be an across the board increase plus funding to the minimum of a pay range (whichever is greater) for fiscal years 2008/2009 and 2009/2010. A pilot group will be formed for increases effective June 2009 to test the revised performance management system. Gonzaga anticipates a full implementation to a performance based compensation plan effective June 2010. Please contact Human Resources for additional information 509-313-5996.
Other Types of Salary Increases
Guidelines
Promotional increases typically range from 3%-10% of annual base salary. The size of the promotion varies according to a variety of factors such as: level of performance, internal equity, and the date of last increase.
Organizational Promotions
Organizational promotions recognize an employee accepting a completely new position. Organizational promotions reflect that the employee is accepting a significant change in responsibility and nature of work performed. Organizational promotions should be implemented whenever they occur during the year. A job re-evaluation is required to properly evaluate the salary range, job title and other factors for an organizational promotion. Organizational promotions must have Vice President level approval.
Re-evaluation Promotions
A re-evaluation promotion may be given to an employee whose duties and responsibilities have significantly changed enough to warrant a re-evaluation. Re-evaluation promotions should be implemented whenever they occur during the year. As with an organizational promotion, a job re-evaluation is required to properly evaluate the salary range, job title and other factors for a formal job re-evaluation. Re-evaluation promotions must have Vice President level approval.
Salary Decreases
Voluntary Demotions
An employee who voluntarily moves to a position with a lower salary range may have their salary reduced to the same relative position within the new range. A voluntary demotion may result when an employee voluntarily takes an internal position that is a lower level than their current job.
Performance Based Demotions
An employee may be demoted because of job performance, as determined by the supervisor. When this occurs, their salary will typically be reduced to the same relative position in the new salary range. Any demotion must be documented and a supervisor may not demote an employee's position/salary unless they have gone through the University's corrective action process with the employee. A supervisor must work with Human Resources before implementing a performance based demotion as well as have Vice President level approval.
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