SF State HRSRM | Employee & Labor Relations

Compensation Guidelines
Practice Directive P300

Effective Date: January 1999 (Rev. 10/02, 12/05, 09/07)


Program

P300.1 It is the philosophy of San Francisco State University (SFSU) and the California State University System to maintain an equitable and consistent compensation program. SFSU recognizes job skill requirements, individual performance, contribution to group or team goals, internal and external equity in compensation determinations. The purpose of this practice directive is to provide an overview of the compensation options available for staff positions that are covered by collective bargaining agreements, the processes for initiating compensation changes for staff positions, and the criteria for determining appropriate compensation. Additional information regarding salary calculations and conversions is available at the end of these guidelines.

Scope

P300.2 These guidelines apply to all staff employees covered by collective bargaining agreements. These guidelines do not apply to individuals hired as faculty, employees in designated confidential positions, employees hired as administrators in the Management Personnel Plan (MPP) or those in excluded classifications, e.g., student assistants, work-study, special consultants, etc.

P300.3 Where the provisions of this policy and procedure are in conflict with the Collective Bargaining Agreements reached pursuant to Chapter 12, (commencing with Section 3560) of Division 4 of Title I of the Government Code, the Collective Bargaining Agreements shall take precedence.

APPOINTMENTS

Initial Appointment/Hire

P300.4 Level of pay for initial appointments is determined through the consideration of several factors including: 1) salary range established for the position, 2) specific skills and experience required in the position, 3) level of skills, knowledge, abilities and previous experience attained, 4) difficulty in recruiting for the position, 5) equity with similar positions within the unit and 6) equity with external labor market salary rates.

P300.5 For initial appointment to a staff position, selected candidates are usually appointed within the first quartile of the service salary range of the classification to which they are appointed (refer to Human Resources Practice Directive P105 for additional information regarding the Employment/Recruiting Program). When it is necessary to appoint a candidate at a salary rate above the first quartile of the service salary range, the Dean/Director shall submit a written request to the Human Resources Department with justification relating to the factors in P300.4.

P300.6 Within the first quartile of the salary range - the Dean/Director makes the determination;
Within the second and third quartile of the salary range - written justification by the Dean/Director and approval of a Human Resources administrator is required;
Within the fourth quartile of the salary range - written justification from the Dean/Director, endorsement by a Human Resources administrator and approval by the Cabinet Level Officer is required.

Refer to the information at the end of this document for assistance with calculating quartiles within salary ranges.

Reappointment

P300.7 A reappointment is an extension of a temporary appointment beyond the original appointment date. When an employee is reappointed to a temporary position, the Dean/Director may grant a salary increase based on performance. To initiate a salary increase at the time of reappointment, the Dean/Director shall indicate the new salary (amount in accordance with collective bargaining agreement) on the ETRAC with the performance rating noted in the "Notes" section and submit the performance evaluation to the Human Resources Department. Normally, a 3% to 10% salary increase may be granted for a reappointment.

Honoraria

P300.8 An honorarium is a one-time payment for a special lecture/seminar given by an individual for a specific class or instructional program under the direction of a University faculty member or administrator or a special activity in support of the academic program. Such an assignment for a University employee must be outside the normal duties and responsibilities. To initiate an honorarium, complete an Honorarium Payment Request (form # P301A) and forward to the Dean/Director for endorsement. All honoraria for University employees are processed by Human Resources. All Honoraria for non-University employees are processed by Fiscal Affairs. The Human Resources Officer must approve all Honoraria in excess of $500.00. (See HR Practice Directive P301 for additional information regarding Honorarium).

SALARY INCREASES

General Salary Increase (GSI) (applies to all Units):

P300.9 A GSI is a salary increase provided "across-the-board" to all employees when the salary range within the classification is increased through the collective bargaining process. The GSI is not discretionary and is automatically implemented by the California State University normally effective July 1 for eligible employees.

Performance Based Salary Programs (applies to Units 1, 4, 6, 8):

P300.10 A Performance Based Salary Increase (PBSI) is a discretionary salary increase available when negotiated through the collective bargaining process, that is granted for exceptional performance, as documented in the performance evaluation, up to the maximum salary rate of the Performance Range. Normally, when approved, a salary increase of 1% - 5% is granted in the annual PBSI cycle, funded through the state budget. A PBSI may be provided through campus funds in accordance with collective bargaining provisions.

P300.11 The annual PBSI cycle is contingent upon collective bargaining negotiations and the adoption of the state budget and is usually initiated following the completion of annual performance evaluations in May and June. The annual PBSI adjustments for employees are normally effective July 1st.

P300.12 To initiate a PBSI, the Dean/Director shall prepare and submit a Recommendation for Performance Based Salary Increase (PBSI) or Performance Bonus, or In-Range Salary Increase form # P300A to the Cabinet Officer for approval with three (3) examples of meritorious performance based upon the performance evaluation. The PBSI recommendation must include a combination of some or all of the following elements: quality of work, quantity of work, leadership, initiative, problem solving, commitment, creativity, judgment and discretion, meeting changing demands, interpersonal communications and user-friendly interactions (refer to User Friendly Principles), achievement of organizational goals and contributions to campus/CSU/community. An employee may submit a self-nomination by completing a PBSI recommendation form and submitting it to his/her dean/director for consideration.

P300.13 A Special PBSI may be granted at times other than the annual cycle, if allowed by provisions in the collective bargaining agreement. Normally, a minimum of 1% and maximum of 10% salary increase is granted for a special PBSI or MSI. An increase of 3% - 5% is the standard. A request for a special PBSI or MSI must be reviewed and endorsed by the Director of Human Resources prior to approval by the Cabinet Officer. A special PBSI awarded outside the annual cycle shall be funded by the unit requesting the PBSI.

P300.14 To initiate a special PBSI, prepare a narrative and include some or all of the following: 1) additional skill or knowledge learned and applied during the period of consideration, 2) contributions made to a special project or program during the period of consideration, 3) special contributions made to campus/CSU/community and 4) demonstrated ability to bring people together to successfully execute tasks, i.e., enhances collaboration and team work. Include an overall performance rating on the narrative using the rating scale from the performance evaluation form.

Merit Salary Increase (MSI) (applies to Units 2, 5, 7, 9):

P300.15 A MSI (applicable only to CSUEU) is a salary increase within a salary range based upon an overall annual performance evaluation rating of satisfactory or higher. The overall rating is based on a review of all performance evaluation categories. Employees with an overall rating below satisfactory or less than twelve (12) months of campus service are ineligible. A MSI granted during the annual MSI cycle, when available as negotiated through the collective bargaining process, will be calculated by HR based on the funding allocation and the overall performance rating, unless denied based upon performance. A report will be sent to Deans/Directors each month by HR listing eligible employees.

Merit Service Increase (MSI) (applies to Unit 4)

P300.16 A MSI (applicable only to APC) is a salary increase within a salary range for Unit 4 employees who have completed 1 year of qualifying service as of June 30 and have received an overall rating of satisfactory or above on their performance evaluation for the period immediately preceding the award. The MSI is calculated by HR, when available as negotiated through the collective bargaining process.

In-Range Progression (IRP) Salary Increase (applies to Units 2, 4, 5, 6, 7, 9)

P300.17 The IRP is a discretionary salary increase of at least 3.0% and normally not to exceed 10% within a salary range or sub-range granted for the following reasons, including but not limited to: increased responsibilities, critical skills, market or pay equity, retention, and exceptional performance. To initiate an IRP, the Dean/Director shall prepare a salary recommendation using a Recommendation for Performance Based Salary Increase (PBSI) or Performance Bonus, or In-Range Salary Increase form # P300A or memorandum that includes a narrative outlining at least three (3) examples that meet the criteria, and submit it to the Human Resources Office for endorsement prior to approval by the Cabinet Officer.

According to the California State University Employees’ Union and the State Employees Trades Council collective bargaining agreements, employees in positions represented by Unit 2, 5, 6, 7, and 9 may initiate an in range progression request through their appropriate administrator (Management Personnel Plan manager) for forwarding to Human Resources. Additionally, Academic Professionals of California employees may initiate an In-Range Progression Request by completing the In-Range Review Request form and submitting it directly to HR. If the request is not forwarded to Human Resources within 30 days of being submitted to the appropriate administrator, the employee can file a request directly with Human Resources. The employee request may be made in the form of a memorandum addressed to the appropriate administrator. Employee initiated requests should be forwarded to Human Resources with a cover memo from the manager. 

Long Term Satisfactory Bonus (LTSB) (applies to Unit 4)

P300.18 The LTSB is a one-time bonus equal to approximately 5% of the annual salary earned granted to Unit 4 employees who have completed 10, 15, 20, 25, etc. years of continuous qualifying service on campus. The LTSB is processed by HR twice each year after December 31st and June 1st for those Unit 4 employees who have met the criteria for qualifying service on campus during the preceding six (6) months.

Lump Sum Bonus (LSB) (applies to Units 2, 4, 5, 6, 7, 9; and 8 only if at maximum of salary range):

P300.19 The LSB is a one-time bonus normally up to 10.0% of an employee's annual salary. An LSB may be granted to an employee below the maximum of the salary range for individual or group performance, critical skills or other special circumstances which may include recruitment and retention. An LSB may also be provided to an employee who is being paid at the top of the salary range (performance maximum) to recognize outstanding contributions. The payment of the LSB is a single payment and does not increase the base salary of the employee. The LSB may be funded from the annual PBSI cycle allocation or at other times from department funds if allowed by collective bargaining agreement. An LSB may also be granted through the collective bargaining process and implemented automatically by the CSU. To initiate a LSB for outstanding performance, contributions or critical skills, the Dean/Director shall prepare a salary recommendation using a Recommendation for Performance Based Salary Increase (PBSI) or Performance Bonus, or In-Range Salary Increase form # P300A with specific detail of an outstanding project, assignment or skill developed during the period giving rise to the request for an LSB. An LSB may also be provided for purposes of exceptional recruitment or retention. For such a situation, in addition to identifying special skills and abilities, the Dean/Director shall include justification as to the critical nature of the position, difficulty in recruitment and labor market conditions. All requests for LSB outside the annual PBSI cycle shall be reviewed and endorsed by Human Resources prior to approval by the Cabinet Officer.

Service Salary Increase (SSI) (applies to Units 2, 5, 7, 8, 9):

P300.20 The SSI is a salary increase provided to eligible bargaining unit employees on their anniversary date subject to completion of required qualifying months of service, satisfactory performance, and the SSI maximum. The SSI will be implemented unless the Dean/Director initiates a request to deny/stop the adjustment. The Dean/Director shall receive a monthly report from the Human Resources Department of employees in their units eligible for a SSI during the upcoming pay period. To initiate a denial, the Dean/Director shall address a memorandum to the employee providing notice of denial and attach a completed performance evaluation detailing the performance areas falling below expectations with a plan for improvement. A copy of both documents shall be submitted to the Human Resources Department for the Official Personnel File at least two (2) weeks prior to but not later than the anniversary date.

Extended Performance Increase (EPI) (applies to Unit 6):

P300.21 An EPI is a salary increase provided to employees who have completed 12 years of qualifying pay periods at the CSU; whose overall performance has been rated satisfactory or better for the previous five years and have no disciplinary action for the previous 5 years. Human Resources shall send an eligibility listing to Plant Management for authorization and shall implement EPI increases in accordance with negotiated timelines.

CLASSSIFICATION AND SKILL LEVEL CHANGES

P300.22 Level of pay for salary adjustments resulting from changes in appointment including reclassification, skill level change, promotion, reassignment, stipend and demotion, must be based on established criteria to maintain program integrity (refer to P300.29 - 38). The salary rate established for a position is based on the level of skills required in the position and the level of skills possessed and demonstrated by the employee.

Promotion (applies to all Units)

P300.23 A promotion is defined as a change of appointment to a classification with a higher salary range as a result of a recruitment process. A 5% salary increase or minimum of the new salary range is granted in the new classification. The Dean/Director may recommend a higher salary increase, normally no more than 10%, with justification based on the criteria outlined in P300.29 - 38 and approval by a Human Resource manager. A salary increase of more than 10% (unless necessary to reach minimum of salary range) requires Cabinet Level Officer approval.

Reclassification or Skill Level Change (applies to all Units)

P300.24 A reclassification is defined as a change in a current position to a classification or skill level with a higher salary range, as a result of a change in job and skill requirements. A 5% salary increase or minimum of the new salary range or skill level is granted. The Dean/Director may recommend a higher salary increase, normally no more than 10%, with justification based on the criteria outlined in P300.29 - 38 as well as special skills and experience. To initiate a classification or skill level change, the Dean/Director shall submit to the Human Resources Department via the Cabinet Officer, a revised position description and a narrative justification. Employees may initiate a request by submitting to the Human Resources Department through their Dean/Director and Cabinet Officer, a revised position description requesting a classification or skill level review (refer to Human Resources Practice Directive P320 for additional information regarding the Classification Program).

Reassignment (applies to all Units)

P300.25 A reassignment is a change in position or assigned duties for an employee and may be temporary or permanent. If the reassignment is to a classification or skill level with a higher salary range, a 5% salary increase or minimum of the new salary range or skill level is granted. The Dean/Director may recommend a higher salary increase, normally no more than 10%, with justification based on the criteria outlined in P300.29 - 38 as well as special skills and experience. To initiate a temporary reassignment, the Dean/Director shall submit a position description (form HR 320A Rev 4/98), and a memorandum indicating the purpose for the temporary reassignment including the employee's qualifications, skills and experience for the temporary reassignment and a HR 107 transaction form with an end date.

Lateral Reassignment (applies to all Units)

P300.26 A lateral reassignment is a change of appointment to the same or another classification or skill level with the same salary range. Normally, the same salary is retained as that held in the previous classification or skill level unless documentation reveals a higher level of authority and responsibility or increased skill level requirements in the new position (refer to criteria P300.29 - 38).

Salary Stipend (applies to Units 2, 5, 7, 9)

P300.27 A salary stipend is an amount up to 10% added to base pay and paid on a month to month basis for special project coordination and/or lead work assignments over and above the regularly assigned duties or when required to maintain contact with the campus outside normal work hours on a regular basis. To initiate a salary stipend, the Dean/Director shall submit a memorandum to Human Resources outlining the special project, lead responsibilities, or requirement for campus contact including the duration of the assignment.

Special Assignment Stipend (applies to Unit 8)

P300.28 Employees in Unit 8 may be provided with one stipend for a special assignment at a predetermined monthly rate. To initiate the special assignment, the Chief of Police forwards a memorandum to the Human Resources Office describing the rationale for the stipend.

Demotion (applies to all Units)

P300.29 A demotion is defined as a change from a current classification or skill level to a classification or skill level with a lower salary range. The salary is established by determining the rate to which the employee would have been entitled had he/she been in the previous classification (Administrators must first confer with the Director of Employee Relations prior to taking any action).

MISCELLANEOUS SALARY INCREASES

Market Equity Increase (applies to all Units)

P300.30 A Market Equity Increase is a salary increase applied to selected classifications as negotiated through the collective bargaining process based upon an analysis of comparable labor market positions. Market Equity Increases are implemented automatically by the CSU.

Educational Achievement Bonus (applies to Unit 4)

P300.31 An Educational Achievement Bonus is a lump sum bonus provided to employees who receive a master's and/or doctoral degree from an accredited academic institution, as negotiated through the collective bargaining process. Notices to submit verification of academic achievement are distributed to employees once each year by Human Resources.

CRITERIA FOR DETERMINING APPROPRIATE COMPENSATION

P300.32 The following criteria are used to 1) evaluate job and skill requirements for consideration of classification and skill level changes; 2) evaluating the qualifications and skills of job applicants for new appointments, and 3) establishing rationale for recommending salary increases. For purposes of analysis and comparison, distinctions are made between lower and higher level responsibilities within each criterion. When completing a form # P300A (Recommendation for Performance Based Salary Increase (PBSI) or Performance Bonus, or In-Range Salary Increase" form) or preparing a narrative, the Dean/Director shall describe the changes in level of responsibilities, authority and skills required in the context of the following criteria:

Complexity

P300.33 Performs standard routine assignments vs. multiple, intricate assignments; follows directions from other employees and assists other employees vs. establishes and "juggles" multiple priorities and projects that vary in scope and timing; completes work assignments within one day vs. completion takes several days often requiring coordination of work performed by others.

Scope of Authority, Impact, Judgment & Discretion

P300.34 Work is limited to immediate unit vs. work that has high visibility within and outside the organization; plans and executes work normally involving people within the unit vs. implements work assignments involving people from other units. Errors or omissions in work have a small impact to the unit vs. errors or omissions in work have a severe financial or public relations impact. Makes decisions involving routine situations or procedures based on established policy with narrow impact vs. makes decisions which require selecting a course of action from various options with significant impact to the unit. [Under the Fair Labor Standards Act - FLSA - employees are designated "exempt" if their primary duties are executive, professional or administrative and who spend more than half their work time performing work requiring frequent exercise of discretionary decision making]

Independence & Accountability

P300.35 Assignments are often closely supervised vs. assignments are initiated and performed with supervisory review of results only; responsible for the quality of own work vs. review of the work done by other employees; responsible for the quality of a document or report vs. responsibility for the results of a program or project.

Program/Project Coordination

P300.36 Applies basic practices, methods and procedures in a program vs. responsibility for full program results; degree and level of expertise required in administrative specialties, including pertinent laws and regulations.

Lead Responsibilities

P300.37 Focuses on own work assignments vs. oversees day-to-day program operations providing lead work direction; establishes work unit priorities, provides training and guidance to others, delegates work and evaluates work of others. Lead responsibilities for the purpose of granting a stipend involves additional authority relating to the planning, execution and results of a special project vs. the routine day-to-day oversight of ongoing activities.

Problem Solving, Creativity & Innovation

P300.38 Identifies and solves problems by referencing standard policies and procedures vs. addresses a wide range of problems for which no precedent may exist; relies on experience and ingenuity to develop creative solutions; understands problems from a broad, interactive perspective; conceives and develops strategic and alternative solutions; conceives of new approaches and solutions to address new and complex issues; anticipates problems and works to address them proactively. Adheres to existing business practices vs. designs, develops and creates new approaches and ideas.

Analytical Skills

P300.39 Utilizes basic methods, procedures and techniques in research and analyses vs. utilizes expertise in interpreting and evaluating results, developing and recommending new or revised practices.

Communication, Contacts, Collaboration & Teamwork

P300.40 Compiles and prepares reports vs. interprets, writes, organizes and presents information; responds to standard inquiries and explains policies and procedures vs. handles sensitive and confidential issues composing nonstandard correspondence and reports; uses consultative and facilitation skills to gain consensus. Establishes and maintains effective working relationships with individuals within own work group; regularly works with and coordinates the efforts of individuals at higher levels within the organization; has contact with a variety of campus and community individuals; serves as a prime contact for a program often involving managing relationships with outside entities or agencies.

Working Conditions & Effort

P300.41 High degree of difficulty in environmental, physical and mental aspects of job in relation to other positions; environmental variables may include work hazards, job safety, etc; mental effort may include volume, attention to detail and level of concentration required.

Equity

P300.42 The pay for the work performed is comparable with the pay of others performing similar work on campus, off campus locally and regionally. Internal and external market salary surveys may be utilized to support analysis.

Salary survey data may be obtained from the Human Resources Department. Individual equity, internal equity and external equity are three forms of equity considered in compensation determinations.

P300.43 Individual equity is defined as the assessment made of the specific job or of the individual performance of a job in relation to established criteria e.g., P300.26 -34. The job or employee is evaluated without consideration of other jobs or employees. The key objective with individual equity is to reward employees for individual performance and achievement.

P300.44 Internal equity is defined as the extent to which jobs of equal skill, responsibility, effort and working conditions are paid similarly within the unit. Deans/Directors should assess the level of skills required and level of performance/contributions in relation to other positions and employees in the unit when considering a classification or salary change within the salary range established for the position.

P300.45 External equity (competitiveness) is defined as the extent to which the University must match or exceed the compensation offered by organizations outside the University to effectively recruit and retain qualified employees. Deans/Directors may consider the salary paid in the external labor market for similar skills, knowledge and abilities when determining an initial recruiting salary or salary change within the salary range for the position.

Additional Information Regarding Calculating Quartiles Within The Salary Range, and Hourly, Monthly, and Annual Salary Conversions

CALCULATING QUARTILES WITHIN SALARY RANGES

Salary offers are based upon the criteria provided in P300.32 - P300.45 using the following calculations to identify the quartiles within the applicable salary range.
Hiring managers do not have to calculate the quartiles, the following information is provided for illustrative purposes.

  • The top of the first quartile is determined by subtracting the minimum salary from the maximum salary, dividing the result by four, and then adding the minimum salary in the range. Top of First Quartile = (Max-Min)/4 + Min
  • The top of the second quartile is the same as the mid point of the range. It is determined by adding the minimum salary in the range to the maximum salary in the range and dividing the sum by two. Midpoint = (Max + Min)/2
  • The top of the third quartile is determined by subtracting the minimum salary from the maximum salary, dividing the result by four, and then multiplying the result by three and adding the minimum salary in the range. Top of Third Quartile = 3(Max-Min)/4 + Min

Following are examples of quartiles within a salary range:

If Salary Range = $2,000 to $4,000.00
Minimum Salary = $2,000.00
Maximum Salary = $4,000.00
Mid-point = 2000 + 4000/2 = $3,000.00
Top of First Quartile = (4000 - 2000/4)+2000 = $2,500.00
Top of Second Quartile = 2(4000 - 2000/4)+2000 = $3,000.00
Top of Third Quartile = 3(4000 - 2000/4)+2000= $3,500.00

Therefore, for a salary range of $2,000.00 to $4,000.00:

Mid Point = $3,000.00
First Quartile = $2,000.00 to $2,500.00
Section Quartile = $2,501.00 to $3,000.00
Third Quartile = $3,001.00 to $3,500.00
Fourth Quartile = $3,501.00 to $4,000.00

HOURLY, MONTHLY, ANNUAL SALARY CONVERSIONS

The basic unit of conversion in the CSU is the monthly rate, with all other rates being derived from the monthly figures as shown.

Work Week = 5 paid days
Number of Work Weeks in Year = 52
Working Hours in a month = 173.33
Annual Rate = Monthly Rate X 12
Hourly = Monthly Rate/173.33
Overtime Pay, or "time and a half" = Monthly Rate X 1.5/173.33
Annual Working Hours = 40 hour work week X 52 weeks in the year = 2,080 hours
Annual working hours divided by months in a year = working hours per month 2,080 divided by 12 = 173.33
Full - Time Timebase =

40 hours per week, 173.00 hours per month, 2,080 hours per year