Pay Grades & Decisions

Pay Grades

The University of Richmond's salary structure enables the University to manage compensation competitively against the market through market-based salary grade ranges that provide enough width to account for variation in individual experience and performance.

The UR salary structure contains 12 grades. Each of the grades has a minimum, midpoint, and maximum reflecting the range of compensation in the market for the positions in the grade. UR benchmark positions (e.g., positions for which market data is available) are placed into the structure based primarily on an analysis of compensation in the market for each of the positions, along with internal equity considerations. Non-benchmark positions (e.g., positions that are unique to the University or for which market data is not available) are placed into the structure based on a comparison of the scope, impact, and responsibility of the position to benchmark positions.

The salary structure provides guidelines for UR to set and manage compensation. Employees can expect to be paid within the range of the grade for their position. Employees primarily advance through a grade through annual performance-based increases.

View the University of Richmond salary structure.

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  • Criteria for Assigning Benchmark Positions to a Grade

    Positions are assigned to salary grades primarily based on their market value. Many positions at UR are benchmark positions. This means that positions with similar responsibilities and skill requirements are typical in the market and reliable pay data can be found in published surveys. Benchmark positions are assigned to a grade with the midpoint closest to the market median for the position. The internal equity of all assigned positions is reviewed before finalizing grade assignments.

  • Criteria for Assigning Non-Benchmark Positions to a Grade

    For other positions, market data may not be available; these are called non-benchmark positions. This occurs when positions are found in the market, but not included in salary surveys. In some cases, positions are developed around the skills and expertise of individuals, or to accommodate specific organizational needs. Non-benchmark positions are assigned to the salary structure by comparing the non-benchmark position to other benchmark positions at the University. Positions are compared by considering:

    • Knowledge and Skills: The formal and informal expertise needed to perform the duties of the position on a day-to-day basis. Example: Accounting rules, standards, and procedures.
    • Experience: The amount of prior experience in the same or similar position required to perform the duties.
    • Autonomy: How much supervision the position requires.
    • Influence: The impact that a position has on key organizational imperatives. Example: Financial health, academic quality, or effectiveness of services provided within the institution.
    • Scope of Responsibility: The breadth or range of the position’s operational influence within the institution. Example: University-wide scope, division, or department.
  • Maintaining the Salary Structure

    The salary structure ranges (minimum, midpoint, and maximum) will be adjusted each year to reflect market trends. The structure is generally increased each year based on average annual salary range adjustments within higher education and general industry. Note that this adjustment is to the structure, not individual pay.

    Periodically, UR will complete a thorough market analysis, including matching of benchmark positions to gauge significant changes in the market. This may result in some additional adjustments to the structure or grade assignments.

  • Market Pricing Guidelines

    UR adheres to the following principles when conducting market pricing:

    • Market data is sourced from credible published salary surveys with a representative number of organizations reporting data.
    • Matches are selected based on the content and essential functions of the position and not on title alone.
    • Survey comparison markets are aligned with the talent pool or labor market for the position.
    • Market data is collected from both higher education and general industry survey sources.

Pay Decisions

The guidelines outlined for making employee pay decisions take into consideration multiple factors. These include an employee's skills, knowledge, experience, and performance, while ensuring consistency and maintaining internal equity and market competitiveness. The guidelines also support pay decisions for a variety of circumstances, as seen in the items listed on the left-hand side.

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  • Setting Starting Salaries for New Hires

    Setting a starting salary involves a review by Human Resources of a position’s responsibilities and requirements, as well as the skills and experience of the incumbent, using the salary range associated with the position’s grade as the guideline. The following factors are considered when defining the starting salary:

    Individual Pay
    Human Resources will set pay within the salary grade collaboratively with the hiring manager, based on the applicant’s skills and experience. Less skilled and experienced applicants would be paid lower in the range; more skilled and experienced applicants would be paid higher in the range.

    Review Internal Equity
    Human Resources will conduct a review of salaries of current employees in similar positions to ensure internal equity.

     

  • Annual Merit Pay

    Performance increases will occur on an annual basis and according to merit, when funds are available. The amount of the performance increase budget is determined by budget and market factors each year. Individual increase amounts are determined based on performance ratings and budget considerations. Employees with an overall rating of below expectations will not be eligible for increases.

    The amount of the budget will vary each year, and the performance increase amounts will depend on the performance rating distribution. The increase amounts will not be shared until the distribution is finalized.

    Employees Below Grade Minimum

    Employees with satisfactory performance will be brought to at least the minimum of the salary grade to which their position is assigned. No permanent employee will be hired below the minimum.

  • Promotions

    A promotion involves taking on a position that is assigned to a higher salary grade. Such a move generally warrants an increase in base salary to recognize the additional responsibilities of the position and to ensure that pay for the new position is consistent with market and internal equity. To be eligible for a promotion or transfer outside the current division, an employee must:

    • Have been in their current position for a minimum of 12 months. If you have been in your current position less than 12 months, please see Transfers and Internal Posting.
    • Be a regular full-time or part-time employee (not on-call or temporary)
    • Be unrelated to an individual who directly supervises the open position, and
    • Have not received corrective action for a period of one year. 
    • If you have been in your current position less than 12 months, please see Transfers and Internal Posting.

    Human Resources will define an appropriate salary within the new salary grade, based on the employee’s skill, knowledge, experience, and performance, and review the salary with the employee’s manager. Since circumstances vary and each employee has a different pay history, it is important to consider multiple factors when making pay decisions related to promotions. These factors are shown in the chart below:

    Criteria Assessed for Promotions

    • Degree of increase in responsibilities
    • Performance
    • Current salary relative ot midpoint of new grade
    • Current salary relative to others in similar jobs in new grade (with similar skills, knowledge, competancies, and experiences)
    • Depth and breadth of skills and knowledge (assumes demonstration)
  • Reclassification of a Position

    During the normal course of operations, changes in primary position responsibilities may make it necessary to rewrite or update staff position descriptions. If positions change substantially (i.e., changes to at least 25% of position responsibilities), these changes should be noted and forwarded to the appropriate department head for review. The department head should review the changes to ensure equitable distribution of department workloads and the appropriate assignment of tasks. If the position has changed substantially, the position description should be rewritten and submitted to Human Resources for review.

    Positions are reclassified only when formal review by Human Resources determines that the grade of the position should be changed upward or downward.

    The following are examples of situations that may warrant a position reclassification:

    • Department reorganization and position restructuring
    • Addition of full-time staff reporting to the position
    • Addition of significant new area(s) of responsibility
    • Major change in level of authority and accountability

    It is essential to distinguish between a change in the position content for an employee and a change in the employee’s skills, knowledge, or performance. A change to how work is done (e.g., changes to the tools or processes used to perform duties) does not normally warrant a position reclassification or pay adjustment. While such a change may require training to learn new software or methods, it does not usually change the purpose or overall accountabilities of the position.

    Small changes in a position also do not influence market value or the position’s core role at the University and therefore would not warrant reclassification (e.g., procedural changes to existing work, responsibility for overseeing student workers). In addition, a position would not be reclassified if the incumbent earns a degree or achieves another educational milestone, unless this results in changes in the position, level of authority, scope of responsibility, etc.

    Once a position has been reclassified, Human Resources uses the guidelines below to recommend the appropriate employee salary within the grade.

    Requests for reclassification should be made during the time period pre-designated by Human Resources and by the manager to whom the position reports, not by individual employees. If a staff member believes that his or her position needs to be reclassified, he or she should discuss this with his or her manager, who will review the request with Human Resources to determine the appropriate course of action.

    Criteria Assessed for Reclassificiations

    • Degree of increase in responsibilities
    • Performance
    • Current salary relative ot midpoint of new grade
    • Current salary relative to others in similar jobs in new grade (with similar skills, knowledge, competancies, and experiences)
    • Depth and breadth of skills and knowledge (assumes demonstration)
  • Lateral Transfer
    Not all career advancement opportunities are promotions. An employee can advance in his or her career by taking a different position in the same salary grade. This enables him or her to become broadly skilled, enhancing his or her ability to contribute to UR. Generally, lateral transfers are not eligible for salary increases or decreases.
  • Demotion to a Position in a Lower Salary Grade

    At times, staff may be reassigned to a position in a lower salary grade. This may occur in order to find a more appropriate fit between the employee’s capabilities and the skills and expectations of a different position, or because the employee chooses to take on a position with fewer responsibilities.

    When an employee is reassigned to a position in a lower salary grade, either voluntarily or involuntarily, the salary will be reduced, based on the criteria below, to reflect the responsibilities of the new position.