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Medical College of Georgia |
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FAQs(Frequently Asked Questions) Regarding the MCG Classified Positions Pay Plan
1. Why is MCG introducing a new pay plan? In the fall of 2001, MCG’s leadership adopted a number of strategic goals, one of which was to enhance the competitiveness of support staff salaries. At about the same time, the University System of Georgia (USG), our parent organization, was in the process of overhauling its own position classification system for implementation in the fall of 2003. The Division of Human Resources began the assessment of MCG’s existing pay plan in the summer of 2002. The analysis revealed that the classification structure had 82 pay grades with base rates which had not been increased for inflation or other factors since 1998, and, therefore, were not market competitive. This situation has hindered recruitment and retention of good employees, and ultimately incurred significant hiring and training costs for the institution. It was decided that the best approach would be to develop a completely new structure, which would be consistent with the USG conversion, to go into effect July 1, 2004.
2. Why are some position titles changing, but others are not? Analysis of MCG’s existing system revealed titles that were no longer being used and others that had been added because the pay plan had not been adjusted in so many years. The design of MCG’s new pay plan also incorporates the University System of Georgia’s new BCATs (or Board categories) position classification structure which resulted in a significant streamlining of USG position categories. The job families that will be most affected by title streamlining include Accounting, Research, Administrative/Clerical support, and IT, although other positions may also be adjusted.
3. Who determined what the new pay grades and ranges would be? The Division of Human Resources gathered data from numerous sources—peer and aspirational colleges and universities within the University System and around the country, the state labor office, and the local job market—to identify market competitive ranges for each classified position. This comprehensive review resulted in the establishment of twenty-seven (27) pay grades with minimum to maximum ranges for each grade. Market data was then used to assign MCG positions to grades in the new plan.
A benefit of the new plan is that each grade will have a minimum, a midpoint and a maximum, with a 50% spread from the minimum to the maximum. The top three grades for our classified positions with the highest levels of responsibility will have a 60% spread.
4. What does it mean that the pay plan will be “phased in” over a three-year period? MCG’s executive management team has recognized a need to enhance the competitiveness of the salaries of support staff and has committed to doing so within available resources. It also recognizes that MCG is a complex and changing organization. Phasing in the plan is necessary due to the variety of funding sources tied to positions.
Phase I will include the streamlining of titles and recruitment for new vacancies using the new ranges for positions starting July 1, 2004.
Phase II will cover the FLSA-driven compliance requirement on August 23, 2004.
In Phase III, after merit increases have been loaded from the Budget into the HR System for January 1, 2005, HR will identify those employees who still fall below the minimum range for their pay categories and will work with department chairs, directors, and business managers to pull those salaries within the designated range. For the multitude of MCG positions that are funded in whole or in part through restricted accounts and grants which may already be set for a period that extends into the next fiscal year and beyond, we will be coordinating with both departments and the Office of Grants and Contracts. By making the new ranges available now, new grant applications can be written with the new salary levels. The “phase in” will also allow units to identify funding for other positions funded through other types of restricted accounts and/or build additional funding into future budgets.
During the final phase, Human Resources will work with directors and managers at the departmental level to encourage the evaluation of equity among employees and increase salaries as necessary to recognize outstanding performance.
5. How does this affect my job? Each classified employees’ job remains the same and each employee will be expected to continue to perform the job duties associated with his/her position.
6. How does the new plan affect my pay? In the long-term, this change will positively affect every employee and the institution as a whole. Everyone may not, however, see an immediate short-term effect. Some employees’ salaries will remain unchanged while others’ may increase to ensure that they are compensated at not less than the minimum of the new pay range. Salaries already within the new range are considered already market competitive and will not increase. The goal identified by the senior leadership was to enhance the competitiveness of support staff salaries. The long-term benefit of establishing the new pay ranges will be to ensure that each classified employee is competitively compensated, that annual adjustments for market changes will make the new pay scale continually competitive, and that all classified employees will have an increased potential for growth in their pay ranges.
7. How will I know if my position will be affected? Human Resources will be coordinating changes with all department managers and directors. Your supervisor will notify you if your position is subject to an increase and/or title change.
8. Will this pay plan implementation affect everyone on campus? The new MCG pay plan applies to all classified positions and therefore will affect only those employees in classified titles. All classified positions are being assigned to a pay grade in the new salary structure.
9. What is a classified position? Classified positions include regular professional/administrative and staff positions pursuant to the Board of Regents policy. Generally, a classified position is any position that is not a faculty or administrative faculty. Postdoctoral fellows, residents, and all student positions are also not classified.
10. If an employee’s salary is above the maximum, will that employee no longer be able to receive increases? The pay range for each position is based on market data indicating what other employers are paying for the same type of work—ranges will now be adjusted as market data suggests from one year to the next. However, the decision to grant an increase for an employee whose salary is above the maximum will be based on salary administration guidelines distributed each year. Managers will have the discretion to grant an increase, but they will also have the discretion to limit an increase when market data suggests that an employee is already adequately compensated.
11. If my salary is below the new minimum, when will it be brought up to the new minimum? The timing will depend on the funding source. Efforts are being made now to make most increases in January 2005, however, the timeline may be later for some positions depending on the availability of resources.
12. What if I am responsible for positions that are grant funded?
13. Will I get an increase if I transfer to a different position but I am already above the minimum of that position? This will depend. Under the new pay plan, increases will be tied to a formula based on job specific experience that an employee brings to the new position above the minimum requirements for the position. This approach will ensure that internal and external candidates are treated the same. Basically, for each year of job specific experience as determined by Human Resources, the employee/candidate will be eligible for 3% above the new minimum, up to 25% above or the midpoint of the range. Thus, if a person is transferring to a position and is already above the minimum but would qualify based on job specific experience for a higher offer, they would be eligible for such. All increases are subject to the availability of funds within the department and departments will also be expected to assess the impact of any offer on internal equity.
14. If an employee transfers to a different position prior to January 1, 2005, and the employee’s current salary is below the new minimum, will the employee be eligible for the new minimum? Yes. This is not unlike a transfer in the current system. Offers will be based on the new pay plan for internal and external candidates.
15. Is it mandatory, effective July 1st, that all offers of employment must be at least at the minimum of the new pay range? Yes, we will be posting vacancies based on the new pay plan. Your HR recruiter will provide guidance during this six month transition period.
16. On what basis, if any, can a candidate be offered more than the minimum? We will allow offers up to the midpoint of the range based on directly related job experience that is beyond the minimum advertised criteria and other qualifications that are directly related to the position, such as additional educational degrees, certifications, licenses, etc. The determination of job specific experience and the relevance of other qualifications will be made by Human Resources. Your HR recruiter will provide guidance.
17. What if I don’t agree with the new range for my position? Can I appeal? There is no standardized appeal process in place, however, the Division of Human Resources is open to reviewing new market data information as it comes available.
18. How do the Fair Labor Standards Act changes relate to the Pay Plan implementation? Technically, they are unrelated. However, the timing of the FLSA changes fits well with this implementation and the FLSA changes were a major factor that we considered while developing the new plan. The FLSA requires employers to pay workers at least the federal minimum wage, and to compensate them at one and one-half times their regular rate of pay for working more than 40 hours in a week. There are certain positions that are exempt from the overtime provisions of the FLSA. Under the new regulations that officially go into effect August 23, 2004, such positions must be paid a minimum annual salary of $23,660 and meet a “duties” test according to the exemption category – executive, administrative, professional, computer, and sales. These duties test changes are requiring an additional level of review for certain positions and this review could not be accomplished until the regulations were issued. Preliminary assessments are underway presently and a Job Evaluation Questionnaire will be distributed on or about August 1 to ensure a more comprehensive review of select positions and to ensure correct placement in the pay plan.
19. When does the Pay Plan go into effect? We will begin phasing the plan in with the start of the new Fiscal Year. The first salary adjustments will occur on August 23, 2004, and will be driven by the Fair Labor Standards Act requirement that positions retaining exempt status must be paid not less than $23,660. Departments will see a series of changes, from titles that are changing due to the streamlining achieved through the new plan, to recruitment based on new levels for new hires as of July 1, to adjustments after January 1, 2005, for employees whose salaries are below the new minimum for their positions. In the months ahead, HR will provide detailed instructions to the departments that have employees and/or positions affected by these changes.
20. Who should I contact if I have any additional pay plan questions? Gail Story, Compensation Manager, 1-3634 or via Groupwise Lisa McDonald, Sr. Compensation Analyst, 1-3634 or via Groupwise Lisa Winstead, Compensation Analyst, 1-3634 or via Groupwise
Distributed at Pay Plan Kick Off Meeting 060304 SAN |