Common Compensation Terminology
Common Compensation Terminology
| Term | Definition |
|---|---|
| Base Pay | Ongoing budgeted salary for a position |
| Compensation Structural Adjustments | Structural pay range adjustments occur annually to ensure pay ranges align with market data. They typically occur when an employee’s pay is below the minimum of the pay range. |
| Market Adjustments | Market increases are permissible only if they are awarded in the context of meritorious performance. They must be justified through an appropriate market analysis, periodically or annually, and adequately documented. Particular attention should be given to evidence regarding recruitment and retention problems in providing market increases. |
| Job Change | A job change results in a shift in the job code, which takes place via an in-line promotion or reclassification. |
| Promotion | A promotion (also referred to as a promotional opportunity or promotional recruitment) exists when an employer has or anticipates a vacancy in an existing or new position that could be considered an employment advancement opportunity for one or more employee(s) in terms of compensation, benefits, status, duties, or access to further advancement. Additionally, a promotion is defined as giving an existing employee a new position, including by changing their title and/or materially changing their authority, duties, or opportunities. This consists of a lateral job change or a promotion along a fixed, in-line career trajectory for which a current employee is eligible. Promotions result in a base-building compensation change. |
| Reclassification | Occurs when a position takes on duties that result in moving to a different functional group or job family. May result in a base-building compensation change. |
| Pay Equity | Ensures equitable pay by reducing pay compression, or the pay disparities between employees within similar roles, experience levels, education levels, tenure, or performance, especially when these disparities result from historical pay practices rather than differences in performance or qualifications. Equity adjustments address pay differences that cannot be justified by factors such as performance, qualifications, education, or experience. These adjustments ensure fairness and equity in compensation across all employees. Pay equity assesses pay inequities specifically related to categories in the CEPEWA and pay disparities between salaries in the aggregate, regardless of employee personal demographics. |
| Substantially Similar Work | Jobs are grouped into job families and functional areas based on core responsibilities. The CU system outlines the job families, but the functional areas are specific to UCCS. The number of functional regions will vary per job family. Positions within the same functional area and classification level are defined as performing substantially similar work. This is because the primary function of the positions is related in nature, even though there may be nuances between each position’s activities, software systems, and/or processes. At UCCS, substantially similar work is represented by the unique compensation code (UCC). |
| Primary Function/Duty | The principal, main, major, or most important duty that the employee performs. Determination of an employee’s primary function must be based on all the facts in a particular case, with a significant emphasis on the character of the employee’s job. |
| Unique Compensation Code (UCC) | Unique compensation code is used in the CU system to categorize substantially similar work by combining job families, functional areas, and job levels. Faculty and research faculty codes combine a 4-digit CIP code and a job code. Staff codes combine the shortened description of the functional area and the job code.
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| Merit | Refers to the growth in an employee's pay awarded based on an objective measure of their past performance. |
| Salary Pool | The term salary pool refers to the maximum average percentage increase in salary approved by the Board of Regents. |
| Non-Base Building Salary Payments | Salary adjustments that are not permanent or ongoing, and generally end or are reestablished each year. |
| Reasonably related education, training, performance, and/or experience | Reasonably related education, training, performance, and/or experience is defined as that which is directly or very closely associated with the primary job function(s) listed in the position’s job description. Education, training, and/or experience that may be valuable to the job but is not directly or closely related to the work described in the job description will not be considered for compensation purposes. |