University of Arizona Guide to Using the Classified Staff Pay Ranges
The University's Compensation Philosophy guides managers in making compensation decisions. For classified staff employees, managers have another important tool to assist them in these decisions - the Classified Staff Pay Ranges in the Pay Schedule.
Purpose of the Pay Ranges
The Classified Staff Pay Range supports a manager in compensating employees on the basis of evaluated performance and merit, rather than compensating employees at pre-determined flat rates for each job. Pay Ranges allow managers to recognize that different levels of performance should receive different levels of pay. This system also provides flexibility in meeting competitive realities of the various employment/recruitment markets to ensure that the university obtains and retains high quality employees. Below are terminology definitions that may be helpful.
Range Minimum
This is the lowest rate paid to any incumbent in the job title. Pay rates for employee recruitments, new hires and pay adjustments must be no less than this rate.1 Employees paid between the minimum and 10% above the minimum are typically new to the job, still in training, not performing the full range of duties of the job, or not performing adequately. There also may be instances where an employee is performing the majority of the duties and responsibilities of the job, but the department lacks the funds to increase pay.
Range Midpoint
This is the middle2 of the Pay Range and represents the rate paid to a fully competent performer. The Midpoint is targeted to the relevant recruiting market rate, so job titles are reviewed annually for possible re-grading to align more closely with the market.
Range Maximum
This rate represents the highest rate the institution normally is willing to pay to any incumbent in the job title. Employees paid between 90% of the maximum and the maximum are typically employees who consistently exceed performance expectations. There also may be instances where an employee has received multiple legislated increases in the same job title.
Using the Pay Ranges and the Range Midpoint to Make Pay Decisions
An appropriate use of the pay ranges combined with a normal mix of employee skills and performance should result in a normal distribution, or a bell curve. Most of the pay rates should cluster around the range midpoint, with fewer appearing near the range minimum and the range maximum. Therefore, the Pay Ranges and the Range Midpoint can be powerful management tools when used effectively. Hiring managers should assess the skills, abilities, education, and experience of an applicant/employee in relation to the Pay Range, and in relation to other current employees in the same job title, and then determine an appropriate rate of pay. Caution should be used when assigning a rate of pay near the Range Minimum or the Range Maximum.
1 As part of each Classified Staff Re-grading Project, current incumbents who are at a pay rate less than the new grade minimum should be adjusted up to the new grade minimum as soon as possible. In those instances where funding is not immediately available, departments have twelve months from the project effective date to grant the pay increase.
2 The Range Midpoints of the University of Arizona Classified Staff pay schedule are not always the mathematical midpoint, due to various adjustments to the minimum of the ranges since the schedule was initially implemented in 1990.
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