A lateral transfer occurs when an employee transfers from one university department to another into the same job title. A lateral transfer may be competitive or noncompetitive. Non-competitive lateral transfers are typically initiated by management, in consultation with the HR Professional. The manager determines the new salary based on the individual’s qualifications and experience and associated salary range of the new job. Based on the results of that analysis, the salary of a transferring employee may increase, decrease or remain the same.
When an employee moves into a job having a lower salary range midpoint than the previous job, the action is considered a demotion. Demotions may be voluntary or involuntary, competitive or noncompetitive. Demotions may include movement to the same level in a different job or to a higher or lower level with a lower salary range midpoint . Level placement for involuntary demotions are determined based on individual circumstances and the needs of the school/unit.
Example 1: A job change from Administrative Coordinator 1 to Administrative Assistant 1 would be considered a demotion.
Example 2: A job change from Administrative Coordinator I to Senior Administrative
Assistant 2 would be considered a demotion.
At the manager’s discretion, involuntary demotions occur when job content changes or when an employee is unable to satisfactorily perform the essential functions of the position. Managers are charged with evaluating job content changes over time which may be the result of position changes, increased technological efficiencies, workforce reorganization, new skill requirements, etc. Employee performance is formally evaluated annually but is considered an ongoing process throughout the performance management process.
Voluntary demotions can occur both competitively through the selection and hiring process or non-competitively through employee initiated requests.
When the need exists for an employee to take on additional responsibilities for a limited duration, managers may award temporary pay. Temporary pay can be either added to base salary or handled as non-base pay incentive, described further in the section below. The department head may choose the payout method. If temporary pay is added to the base salary and received over a period of time, benefits are added to the base salary. If temporary pay is paid as a lump sum, benefits are not paid on that amount and the lump sum is not counted against the bonus threshold for the year. Temporary pay added to the employee’s base salary results in no change to the employee’s position number and is not considered to be a promotion. For example, an employee who assumes the responsibilities of a vacant position may warrant temporary base pay increase, but the employee does not assume the duties of the vacant position on a permanent basis. The employee typically retains responsibility for the current job while assuming the additional duties of another position.
Non-base pay incentives
Monetary and non-monetary non-base pay incentives, also referred to as bonuses, may be awarded per fiscal year as follows: up to $5,000 or 10% of base pay (whichever is greater) and up to five days of leave granted per leave year. Sign-on bonuses and contractual bonuses are excluded from the fiscal year bonus thresholds, as are any annual merit bonuses.
Bonuses are intended to recognize employees for outstanding performance or contributions such as day-to-day support, customer service, or teamwork. Bonuses encourage excellence, create positive morale, and may lead to the retention of top employees. Schools/units should clearly communicate bonus programs/opportunities, and ensure equal opportunity in the design and implementation of bonus programs. Bonuses (or lump sum payments) are also an effective way to recognize employees who take on additional assignments on a temporary basis.