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2.02 Compensation Practices

Origination date: 10/1/93
Revised: 1/1/2000
Applicability: Classified Staff, and Service Professionals


The purpose of this policy is to outline pay change options and to communicate the criteria for establishing pay rates.

Pay Rate Changes

Legislated Pay Raises: certain salary changes occur through state appropriations. These may include, but are not limited to, general adjustments, merit pay adjustments and market pay adjustments. Eligibility for salary adjustments is based on legislation as well as university procedures. Employees paid from sources of funds other than state appropriations (grant or local accounts) are generally eligible for the same legislated pay raises subject to availability of funds. The awarding of pay increases is not subject to employee grievance procedures.

Northern Arizona University Initiated Pay Raises: employee salaries may be increased through a reclassification or a salary adjustment (a salary within the same job classification). Reasons for such adjustments may include, but are not limited to, assignment of additional responsibilities (career progression), market considerations, or equity. For classified staff and service professionals, the Human Resources Department shall determine an appropriate salary increase amount.

Establishment of Pay Rates

New hire pay rates: the hiring department will establish hiring pay rates with input from the Human Resources Department. Some considerations include: experience of the applicant, responsibilities of the position, campus/department equity, applicable salary range/pay grade, market and available funding.

Promotion: when an employee is promoted, an appropriate pay rate will be established, using the same considerations as in establishing a new hire pay rate.

Transfer: a transferred employee will normally be paid at least the same salary as received prior to transfer or will be paid the approved hiring rate for that job classification. The employee may receive a pay increase or decrease in conjunction with a transfer subject to approval of the Human Resources Department using the same considerations listed in new hire pay rates.

Trainee: a trainee may be hired at a pay rate below the minimum rate of pay or the normal rate of pay for that position for up to 12 months.