In formulating salary offers for employees in new positions (both those new to Brown and those who are promoted from within the University), the following considerations are taken into account:
- Departmental Budget;
- External Equity;
- Internal Equity;
- Relevant Education, Experience and Skills.
Definition of Equity
- External Equity is the term used to describe fair and competitive compensation with respect to the market value of a job. Considering external equity involves researching the University’s alignment to what competing employers pay to attract and retain employees who have similar skills and responsibilities as the prospective new hire.
- Internal Equity is the term used to describe fair compensation with respect to how different positions within the University relate to each other. At Brown, internal equity is maintained by consistently applying the Hay Evaluation method to select the appropriate grade level and pay range based on the responsibilities and requirements of the job. Internal equity is also verified through the comparison between salaries offered to new employees and salaries paid to employees working in the same grade within the University. Depending upon the job, this comparison might be to positions within the department or across the University.
Markets Brown Uses to Fill Positions
As part of the process of determining external equity, Brown utilizes various markets to fill positions, depending upon the requirements and the level of the vacancy. They are usually as follows:
- Department head level positions: national markets;
- Professional and administrative positions below department head level: regional markets; and,
- Support staff and entry level exempt positions: local markets.
Factors Considered in Formulating Salary Offers
The primary consideration for evaluating education, experience, and skills, is the relevance of the candidate's credentials to the requirements of the specific position. Brown does not compensate for credentials that exceed a position's requirements unless they have a direct bearing on the candidate's ability to perform the job. All salary offers should be developed in collaboration with the Human Resources Department.
Formulating Salary Offers
Salary offers to external candidates often appropriately fall within the first quartile of the applicable salary range for the position's grade level. If the potential hire has substantial and directly related education, experience and skills that indicate competent performance will be achieved with a minimal learning curve, the starting salary may be set up to the range's midpoint. On an exception basis, salaries above the midpoint may be recommended in order to attract the best suited candidate. Such exceptions must be approved by the Human Resources Services Director or the Director of Compensation and Organizational Services.
To determine appropriate salary offer/promotional increase, the hiring supervisor should:
- evaluate the salary requirements of the candidate;
- evaluate relevant background, skills and experience;
- request that a Human Resources representative and/or the Director of Compensation and Organizational Services review internal and external equity considerations and placement within the salary range;
- review departmental budget considerations;
- discuss and finalize the recommended amount with the Human Resources representative and/or Director of Compensation and Organizational Services;
- make no offer or promise of an offer until authorized to do so by Human Resources.
Employees in good standing may not be paid less than the salary grade level minimum. Lateral transfers (movement between jobs with the same grade level) should be reviewed with Human Resources on a case-by-case basis to determine appropriate salary.