University of Arizona Human Resources

   

Guide to Using the Information Technology (IT) Pay Bands

Background
 
An innovative, flexible, and cost effective compensation structure, the Information Technology (IT) Pay Bands, has been developed for use with the new IT classifications.
 
In recognition of a broad variety of work, skill sets and associated compensation requirements, past exceptions were made to University salary policy to enable a broader range of pay options for many IT classifications. This exception has ranged from one to two pay grades, depending on external market conditions and internal funding.
 
The implementation of the IT Pay Bands formalizes this approach and extends the capacity for flexible and competitive compensation decisions.
 
Introduction to the Information Technology Pay Bands
 
 
Sample Information Technology Annualized Pay Rates
Sample Information Technology
Pay Band (grades used)
Minimum
25th Percentile
50th Percentile
75th Percentile
Maximum
Band 01 (15/21/22)
$18,766
$22,065
$25,364
$28,662
$31,961
Band 02 (21/22/23)
$19,742
$23,497
$27,252
$31,007
$34,762
Band 03 (22/23/31)
$21,124
$25,322
$29,520
$33,717
$37,915
 
The IT Pay Bands are based on combining three adjacent grades into one larger band. For example, grades 15, 21, and 22 have been combined into IT Pay Band 01. The minimum pay rate corresponds to the minimum of a pay grade 15 on the traditional Salary Schedule, and the maximum pay rate corresponds to the maximum of pay grade 22. In addition, each band is broken into quartiles with the 25th, 50th, and 75th percentile targets available for reference. 
 
Pay Band Minimum to 25th Percentile
Pay rates for job postings/recruitments, new hires, reclassifications and pay adjustments must be no less than the Pay Band minimum. IT employees paid between the minimum and 25th percentile of the band are typically new to the job, still in training, not performing the full range of duties of the job, or not performing adequately.
 
50th Percentile
The middle of the Pay Band represents the rate paid to a fully competent performer, and is targeted to the relevant external recruiting market rate. Judicious use of the Pay Bands, taking into account employee experience, skills and performance, should result in a normal distribution, or a bell curve. As a result, the majority of the pay rates should cluster around the 50th percentile.
 
75th Percentile to Pay Band Maximum
The upper quartile represents the rate paid to outstanding performers, employees with specialized technical expertise and skills sets, and/or long term employees. The maximum rate represents the highest rate the institution normally is willing to pay to any incumbent in the job title.

Human Resources’ Maintenance of the Information Technology Pay Bands
 
Human Resources will continue to monitor changes in the external pay market and internal compensation rates on an annual basis. As soon as the institution has available funding, and the majority of incumbents are paid no less than the 25th percentile of the Pay Band, the equivalent of the one grade will be removed from each Pay Band, which will then encompass only two traditional grades. 
 
Additional Compensation Decision Support Tools
 
The University's Compensation Philosophy guides managers in making compensation decisions.