Guidelines for "In-Grade" Pay Increases for Classified Staff

KUMC In-grade Pay Increase Form

In July 2004, Governor Sebelius signed an Executive Order authorizing state agencies to request in-grade pay increases for classified employees. The circumstances under which such increases are permitted are detailed in these guidelines.

In-grade pay increases allow campus departments to request the movement of classified staff members from one step to another step on the same pay grade. Such requests are not routine and are made through a written request to Human Resources, with the approval of the appropriate administrative channels. HR will certify that the request conforms to the guidelines and the Executive Order authorizing in-grade pay increases. Once the certification is complete, the request will be forwarded to the Division of Personnel Services for review and approval. An employee may file a grievance if the employee can demonstrate that he/she has been denied an in-grade pay increase under these guidelines without a reasonable explanation.

Because the University will be required to seek approval for in-grade increases from the State Division of Budget and the State Division of Personnel Services in Topeka prior to granting increases, departments are requested to communicate with employees only after approval is received.

Reasons to Request an In-Grade Pay Increase

A Permanent in-grade pay increase may be requested for the following reasons:

• To reward employees for stepping up to higher level responsibilities that do not reach the level necessary to establish that a reclassification is warranted for the position. Examples of higher-level responsibilities may include: additional and more complex responsibilities related to a new program; a reduction in departmental positions requiring the employee to assume new, higher level duties. (Please provide an updated position description with the request.)
• To compensate an employee for possessing a license, certification, language skill, or other type of credential useful to the department or unit and critical to the University's operation.
• The need to make a "counter offer" to an employee who is formally offered a higher paying job from a non-State employer. HR may request documentation of the offer.
• To adjust salaries to, or close to, "market" rate. (These adjustments will only be considered when there is compelling need and when the number of affected employees is 10 or less. Please provide market data with the request.)

A Temporary in-grade pay increase may be requested when an employee temporarily assumes higher-level job responsibilities. The following conditions apply to such temporary increases.

• A temporary in-grade pay increase will only be granted for two or more pay-periods.
• Notice to the employee is required if the increase is to be temporary. The notice will be provided by HR and will outline the circumstances for which the temporary increase is being provided, will specify the duration of the temporary increase, and will state that the employee will be returned to his or her former step once the temporary circumstances/assignments are ended.
• A request may be made for a temporary in-grade increase to be extended or to be changed to a permanent increase prior to the expiration of the original increase. Such requests should be made at least a pay period before the expiration date of the increase.
• For the purposes of step movement, time spent on a higher step for a temporary in-grade pay increase shall count toward the time-on-step requirements of the employee's regular step.
• The employee must be returned to his/her prior salary step at the end of the temporary increase period.

Limitations

It is anticipated that the number of in-grade pay increases will be limited and will be tied to funding availability as well as justification and approval under these guidelines.

Only one in-grade pay increase per employee can be requested during a fiscal year.

No employee can be moved to a dollar amount beyond step 15 of the pay grade to which the employee's position is currently assigned.

State rules require that in grade pay increases are not to be used for:

• Rewarding exceptional performance.
• One-time bonuses or awards.
• Where a State classification and compensation "study" action is more appropriate.

Funding

In-grade pay increases would be funded with either temporary or permanent monies budgeted in the current fiscal year, along with any associated fringe costs. Departments requesting an in-grade pay increase must identify the source of funding to be used in making the in-grade pay increase.

Examples of how departments could generate savings to pay for these increases include:

• Leaving positions open, or eliminating vacant positions.
• Downgrading vacant classified positions.
• Using monies saved by filling vacant positions at lower salary, paying less than was paid to previous incumbents.
• Providing monies from office and equipment funds.

Appointment and Budget Transfer Instructions

If approved, in-grade pay increases will be processed as an appointment transaction by the Payroll Office based upon a written communication from HR. The department and the employee will receive a copy of that written communication. If funding changes are needed in the HR/Pay system, departmental staff are responsible for processing a Payroll Form to complete that transaction.

Departmental staff will be responsible for transferring the appropriate amount of funds to the budgetary lines on either a permanent or temporary basis using a Budget Transfer Form.