AHEC HR

Effective July 2, 1998, The State Department of Personnel authorized the use of four discretionary pay differentials for classified staff. As outlined in P-3-49 these differentials are: Matching Pay, Temporary Pay, Signing Bonus, and Referral Award. It has been decided that Auraria will implement all of the pay differentials except the referral award.

The pay differentials are to allow supervisors the flexibility to address compensation issues related to performance, recruitment, or retention without relying on the reallocation process or the state system maintenance studies.

General Guidelines for implementing Discretionary Pay differentials at Auraria Higher Education Center.

Pay differentials provide increased flexibility, but they are not intended to replace legitimate human resource processes such as individual allocations and promotions which are to be used when appropriate.

All differentials are discretionary on the part of the agency. The agency is not obligated to pay, even if the employee is eligible, and differentials can be discontinued at any time.

The use of a pay differential must be approved in writing by the Division Director and the Budget Director.

Supervisors are responsible for providing rationale and justifying the budget when requesting the use of discretionary pay differentials.

All discretionary pay differentials are subject to PERA rules regarding retirement calculations, FLSA and Federal IRS regulations.

There are no grievance or appeal rights related to the pay differentials, with the exception that appeal rights do apply if base building-matching pay is discontinued due to performance problems.

All discretionary pay requests must be in writing and include the following: A signed PAF indicating the discretionary pay amount; a letter requesting the differential which includes justification for the request; and a formal written agreement from the employee which includes the type of differential, the reason for use, the amount, frequency and duration, any forfeiture or repayment requirements, and other terms and conditions deemed appropriate. This information must be submitted to Human Resources prior to implementation of the discretionary pay differential.

Non-cash incentives and work-life options (telecommuting, flex schedules) are available means for rewarding employee performance.

The statutory salary lid applies in all cases; no combination of base pay and non-base building differential(s) is allowed to exceed the salary lid in any given month.

Base building payments under matching pay cannot exceed the job rate of a pay range.

Matching Pay

Purpose: Allows movement within a pay range for certain specified circumstances other than anniversary increases or performance awards. This typically includes positions where there is a documented labor shortage. Matching pay applies to current employees who have received a bona-fide, documented job offer either internal or external. The job offer must include salary rate, benefit and leave accrual information. The employee must submit a written letter of resignation along with the request for matching pay.

Matching pay may also be used to ease salary within a pay range when new employees are hired at higher base pay rates than current employees. For example, if the practice has been to in-grade hire at mid range for new employees a department may want to consider moving longer-term employees to the same salary.

The matching pay/salary compression differential is not intended for increased volume of work in regular duties, to retain an employee in the same position where there is no specific job offer to counter or to retain an employee with a unique skill when there is no specific job offer to counter (addressed through temporary pay differential).

Eligibility: Only classified staff with more than six months service and a performance rating of successful or better may receive a matching pay/salary compression adjustment. Matching pay/compression adjustment is limited to one counteroffer/salary adjustment in a twelve-month period.

Amount: Matching pay/salary compression can be any amount up to the job rate for the class.

Authority: The hiring supervisor may request an allocation for matching pay/salary compression. The request must include the recommended amount and appropriate supporting justification. The Appointing Authority/Division Director will determine whether to grant the matching pay/salary compression request and the exact amount in each case. The matching pay/salary amount must not exceed the job rate for the class. Approval of matching pay/salary compression allocation is subject to the Budget Officer’s certification that funds are available.

Payment: Matching pay/salary compression may be added to the base pay and would become a salary obligation. It may also be non-base building or a combination of both base pay and non- base pay. As part of base pay, the matching pay allocation is to be given as an adjustment to monthly pay in accordance with the salary range in the compensation plan for the job class not to exceed the job rate.

If not part of the base pay, the matching pay/salary compression allocation may be given out monthly in accordance with the compensation plan for the job class.

The employee understands that matching pay/salary compression allocation is subject to PERA rules regarding retirement calculation, FLSA and federal IRS regulations.

Forfeiture: If matching pay for a monthly, non-base pay allocation is given to an employee in response to a bona fide job offer and the employee transfers to another position at Auraria,

receives a reallocation to a higher position, is laid off or decides to leave Auraria, the employee forfeits any subsequent matching pay allocations.

Temporary Assignment Pay Differential

Purpose: A temporary pay differential is a non-base building award that may be granted to a current employee in the same position for the following reasons:

Acting assignments where the employee assumes the full set of duties (not in absence of) of a higher level position that is vacant or the incumbent in on extended leave for a period of longer than 30 days but less than six months. The differential shall not exceed six months for any given acting assignment; or

long term project assignments that is not an expected or customary part of the regular assignment and is critical to the mission and operations of the agency as defined by the purpose of the project, its time frame, and the critical nature and expected results; or

to retain a unique, specialized set of skills or knowledge that is critical to the mission and productivity of the agency. The loss would result in documented severe adverse effect on the agency’s mission and productivity. The agreement for this differential should indicate the length of time the differential payment is expected to last and periodic review dates to ensure that the differential is still appropriate.

Eligibility: Probationary or certified staff may receive a temporary assignment pay differential.

Amount: The temporary assignment pay differential amount should be set on a monthly basis and is not part of the base pay. The amount of the temporary assignment pay differential is to be negotiated, but should reflect the nature/difficulty of the assignment.

Authority: The hiring supervisor may request an allocation for the temporary assignment pay differential. The request must include the recommended amount, appropriate supporting justification. The Appointing Authority/Division Director will determine whether to grant the temporary assignment pay differential request and the exact amount in each case. Approval of the temporary assignment pay differential is subject to the Budget Officer’s certification that funds are available.

Payment: The sum of the temporary award and the current base pay shall not exceed a statutory lid in any given month and is paid through regular payroll. The employee understands that a temporary assignment pay differential is subject to PERA rules regarding retirement calculations and federal IRS regulations.

Forfeiture: The employee also understands that an unforeseen change in business needs or availability of funds may require modification or cancellation of the temporary pay differential.

Signing Bonus

Purpose: A signing bonus is non-base building lump sum that may be used to attract new employees into the state personnel system. Signing bonuses may be used for the following reasons.

To fill positions in critical occupations where this a documented shortage in the labor market and recruitment or retention difficulty in the agency that jeopardizes its mission; or

the applicant posses a unique, critical skill in relation to the job market.

Eligibility: Only new employees may receive a signing bonus.

Amount: The bonus may be up to job rate for the class and does not become part of the base pay. It may be used in conjunction with, or in lieu of, an in-grade hire.

Authority: The hiring supervisor may request a signing bonus. The request must include the recommended amount and appropriate supporting justification. The Appointing Authority/Division Director will determine whether to grant a bonus and the exact amount in each case. Approval of the signing bonus is subject to the Budget Officers certification that funds are available.

Payment: The signing bonus will be paid in two equal payments. The first half of the singing bonus is to be given to the new employee with the first paycheck. The second payment will occur at the end of six months of service if the employee has achieved a successful performance rating. The employee understands that the signing bonus is subject to PERA rules regarding retirement calculations, FLSA and federal IRS regulations.

Forfeiture: If a new employee receives a signing bonus but leaves employment with the Division within six months, they forfeit the second payment.

Attachments: