Compensation and Benefits Procedures
(related to Policy 2-5-1)

Procedures

1.

Salary Ranges

UCAR has a salary range structure, with specific ranges designated for particular types and levels of jobs through the job evaluation process.  A major objective of the salary-range-setting procedure is to place salary range midpoints competitively and near the median of salaries paid by employers in appropriate comparison groups.  These groups are selected from among surveys which best match UCAR's benchmark jobs and whose participants are UCAR's competitors in the labor market.

2.

Job Evaluation

Jobs are evaluated by analyzing "Position Description Questionnaires" (PDQ's).  PDQ's should include the job title, division or program, and the PDQ's creation or revision date; a statement of the broad scope and function of the position; an enumeration of the specific job duties and responsibilities of the position; and the position's reporting relationships.  Statements about required qualifications (which must be based directly on the specific duties and responsibilities of the position) are also included.

3.

Nonexempt/Exempt Status

All UCAR employees are covered by the Fair Labor Standards Act (FLSA), which, among other things, sets minimum wages and regulates overtime pay.  Exemption from the FLSA is determined by an employee's salary level and the professional, administrative, or executive nature of the work performed.  The Human Resources Department determines whether an employee is covered by the provisions of the FLSA.  

4.

Annual Performance Appraisal and Salary Changes

A.

Annual Evaluations

Formal performance appraisals occur annually.  Each supervisor prepares a written evaluation of the performance of each employee reporting to him or her.  The goals of this performance appraisal are to:

1. facilitate communication of all aspects of performance between the employee and the supervisor;

2. identify areas in which improvement and learning will help the employee become more successful in the future, allowing him/her to make further contributions to UCAR;

3. identify individual development needs, desires, and plans;

4. establish a permanent record of the employee's work history, which is as straight-forward and objective as possible;

5. serve as a basis for establishing salaries in the UCAR pay-for-performance system; and

6. incorporate goals for meeting employee's career development plan.

B.

Annual Salary Increase

Subsequent to the annual performance evaluation, the supervisor considers an employee's performance and compa ratio (pay in relation to salary range midpoint) and determines whether a salary increase is warranted and the proposed amount of the increase.  Supervisors allocate salary increases so that, over time, higher performing employees will generally have higher compa ratios.  The supervisor forwards salary increase recommendations to the Division or Program Director for approval.  The overall pattern of proposed salary actions and all individual salary actions are then reviewed by the Human Resources Department, which reports the findings to the President's Council for approval.  Approved annual increases are effective on or about June 1 each year, depending on the payroll schedule.

C

Out-of-Phase Merit Increases

Out-of-phase merit increases are not considered.  (For salary adjustments and salary changes due to a reclassification, refer to Procedures 6 and 7).

5.

Setting Pay for New Employees

New employees are paid within the appropriate salary range for their job.  All employees are paid at least the minimum of the range, and new employees may not be paid more than the maximum.  The beginning salary is set by the hiring supervisor with the approval of the Division or Program Director and in consultation with the designated Human Resources Department representative.  Consideration is given both to internal equity, and the skills, knowledge, and abilities of the new employee. 

6.

Reclassification

A position may be reclassified to recognize a change in or addition to duties listed in the Position Description of record.  A revised Position Description Questionnaire is proposed by the supervisor and authorized by the Division or Program Director.  The PDQ is attached to a Reclassification Action Form and sent to Human Resources for analysis.

Reclassification actions are normally effective the date the Reclassification Action form and new PDQ are received in the Human Resources department. Retroactive reclassifications may be considered when the employee has been fully performing the job for an extended period of time. However, retroactivity should not pre-date the last salary change for the employee or interfere with any reclassification moratorium period.

A reclassified employee's salary is set within the appropriate salary range for the job and is at least the minimum of the range.  The new salary is set by the employee's supervisor with the approval of the Division or Program Director and in consultation with the designated Human Resources Department representative.  Reclassification increases of 15% or more require approval of the President's Council. The Division or Program Director provides a memorandum with justification for the request to the appropriate President’s Council member.

If an employee is reclassified less than two months in advance of June 1, his/her salary is based on the salary structure which becomes effective June 1, and no performance evaluation is required.  If, however, the supervisor and Division or Program Director want to grant a reclassified employee a merit increase, a performance evaluation is required.

7.

Equity Adjustments

Equity adjustments are special salary actions necessary when market data, as judged by the Human Resources Department, indicate that a different salary range designation is required, or when inequities in salaries are identified and warrant correction.  Adjustments may be made for individuals or groups of employees at any time during the year.  Adjustments must be justified and approved in writing by the appropriate Division or Program Director and the Director of Human Resources.

8.

Premium Pay

Under certain circumstances, employees will receive premium pay for work performed beyond normal working hours.  See UCAR's Payroll policy, 3-1-1, for details on premium pay.

9.

Benefits

UCAR’s benefit program is designed to help protect employees and their dependents against significant financial losses due to sickness, disability, or death; provide employee rest and renewal; and provide retirement savings, in addition to Social Security.

Benefits include medical and dental programs, life insurance, long-term disability insurance, optional accident insurance, travel accident insurance, flexible spending accounts, defined contribution and tax-deferred annuity plans, dependent care assistance, educational assistance and a schedule of holidays and sick and vacation benefits. In addition, UCAR provides various leave options to accommodate personal and professional needs.

Eligibility, level of coverage, and premium contribution are determined by the nature of an employee's appointment.  Details of the content, conditions, and applicability of various benefits are contained in the master policy or plan documents, the UCAR Benefits manual, and other UCAR policies, as listed below.

Responsibilities

The Director of Human Resources is responsible for oversight of the review process to guarantee that employees are fairly and equitably treated and that budgetary or other guidelines are fairly and appropriately applied. The Director of Human Resources also monitors the consistency and adequacy of Position Descriptions throughout UCAR; assures the fairness and consistency of annual performance reviews, salary range changes, and individual salary actions; and ensures the accuracy of surveys and analyses required to establish appropriate salary ranges. He/she devises and distributes procedures for the conduct of the annual appraisals and salary reviews, defines performance levels, and issues additional guidelines governing annual salary reviews, as appropriate.

Benefit Summary    NOTE: Print in landscape (PDF format)

Regular, Term over six months, and Postdoctoral Appointments
(Appointment codes R1, R2, T1, T2, and T5) 

Term over six months
(Appointment codes T1 and T2)

Benefits Eligibility by Appointment