Once you have identified that right person for your vacant position, the next step is to formulate your salary offer.
It is important to examine salary from several perspectives including the candidate's experience, internal equity in relation to peers, the candidate's salary history, recruitment difficulties, bargaining agreements, and personnel policies. The following guidelines are provided to assist you in examining salaries from those perspectives:
Salaries for New Employees (Not current UC Davis employees):
- Evaluate a candidate's experience in relation to placement within a salary range.
Consideration should be given to the level of experience in position-related areas that a candidate possesses in relation to placement within the salary range for the classification. For example, salaries near the minimum of the range are appropriate for new employees who are in the learning stage of their positions. As another example, salary set above the first quartile is generally to compensate for fully competent trained staff with average experience. Salary offers above midpoint of any salary range may be considered but prior to asking for approval you will need to articulate the reasons that the individual's background and experience support placement higher in the range. Also consider the additional points outlined below with respect to internal equity, their salary history, and the recruitment process.
Note: This action to appoint an individual above the midpoint of the range requires approval from Human Resources.
- Evaluate a candidate's proposed salary in relation to peers of same classification.
Salary equity among internal employees is an important consideration when setting starting-salaries, since perceived inequity impacts employee morale and motivation, but also triggers contentions of discrimination and/or can prompt other grievances. When setting starting-salaries, the skills and work experience of external candidates should be compared to the skills and work experience of internal employees performing similar work and the result of the comparison should be factored into your salary decision.
Note: Salary equity does not imply that all employees within a classification who have similar years of experience and education should be paid the same salary. It is assumed that recognition of varying levels of skills and performance, for example, may result in differences in salary among employees. It is important to note that two collective bargaining agreements have specific considerations for internal equity issues associated with the hiring of new employees. It is the AFSCME agreements representing Service Unit (SX) and Patient Care Technical (EX) employees.
SX Agreement ARTICLE 41, Section E. and EX Agreement ARTICLE 42, Section H. PAY EQUITIES
The University of California supports reasonable pay rate equity (within five percent), resulting from the University's initially hiring new career employees (e.g., an outside hire) at a rate of pay at least five percent higher than the pay of current career employees in the same hiring unit in the same classification and who are assigned the same duties. For the purposes of this section, a hiring unit is equivalent to a layoff unit. When examining reasonable equity rate issues, the university and AFSCME shall consider the employees:
- Years of experience performing the duties related to the position
- Years of experience in the same or equivalent classification
- Current employee's work history (reasonably objective work related issues or concerns that have been documented)
- Appointment type
- Overall skills, knowledge and ability that can be applied to the job
- Education (where applicable)
- New employees documented and objective eligibility for other salary adjustments (e.g., special differentials) or UC benefits
- Actual duties assigned
The university will use the criteria in Section E or H.2., when setting the salaries of initial hires and the parties will use the Section E or H.2., criteria when assessing claims of salary rate equity. All criteria must be met to invoke the university's obligation to increase wages to within five percent of a new hire with a higher salary.
- Evaluate a candidate's salary history.
The salary history of an applicant in a position similar to your vacant position should be taken into consideration. Specifically, attention should be given to the candidate's previous experience as it relates to the responsibilities and required skills you are seeking, in order to see how they compare. Consideration of past experience and corresponding salary can/will help you to establish a salary starting point in your deliberations.
- Evaluate recruitment difficulties.
Evaluation of factors such as the scarcity of qualified applicants, the number of rejected job offers, and the turnover rate for a position, may give insight into recruitment difficulties. Consideration should be given to recruitment difficulties in relation to the available trained labor force for the position. For example, individuals who possess skills that are difficult to find in the labor force may be in higher demand, and therefore may require additional salary consideration. We recommend you consult an Employment Consultant/Recruiter in addressing this issue.
- Evaluate your budget.
As you consider the appropriate salary action, you need to also evaluate the impact on your budget. Not only do you need to consider the salary for the final candidate, but also if the action causes internal equity issues the budget impact for those potential changes as well.
Salaries for Employees Currently Employed at UC Davis:
If your recruitment action involves a current UC Davis/UC Davis Health employee it is important to first identify the type of hire action you are taking. If the individual being selected for the position is currently employed in a classification that has a lower salary range maximum your recruited position it would be considered a promotion. If the salary range for the current employee is identical to your recruited position the action would be considered a lateral. If the salary range maximum for the current employee is less than that of your recruited position it would be considered a demotion.
- Non-Represented Employees (not represented by a bargaining unit).
An employee who is promoted to a position with a higher salary range maximum may receive a salary increase provided that the resultant salary does not exceed the maximum of the new salary range. However, the same guiding principles outlined above should be considered. It is important to note that some individual departments will/do have narrower guidelines that were devised to allow for budgetary constraints. In these situations, the department's narrower guidelines will take precedence over the general Campus guidelines.
- Represented Employees (represented by a bargaining unit).
A represented employee who is promoted to a position with a higher salary range maximum may receive a salary increase in accordance with their collective bargaining agreement. It is important to note that bargaining agreements are not exactly alike. The bargaining agreement language covering any given employee must be referenced whenever you are contemplating a decision about salary. Please consult with your Employment Consultant/Recruiter regarding collective bargaining stipulations prior to making a job offer.
- Employees who laterally transfer into a position.
An employee who transfers laterally into a position that has an equivalent salary range typically does not receive a change in salary. Consult an Employment Consultant/Recruiter prior to making a salary offer.
- Employees who demote into a position.
An employee who demotes into a position that has a lower salary range maximum may receive a decrease in salary. In such a case, the salary is accordingly reset to fit within the new salary range. Exceptions are to be discussed on an individual basis with an Employment Consultant/Recruiter prior to making a job offer.
In conclusion, it is important to know that these guidelines are not intended to provide an answer to every possible situation presented to you. We recommend that you refer to the appropriate campus policy, bargaining agreement, and departmental practice that governs your situation and the specific employee or individual. If you have questions about a particular situation or would like general assistance, please consult your Employment Consultant/Recruiter.