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THE UNIVERSITY OF TENNESSEE
SPACE INSTITUTE
HUMAN RESOURCES PROCEDURE
Section 400
Proc. 405

Subject: Compensation Philosophy
Effective: 03/01/80
Revision (4): 06/03/08

  1. EXCEPTIONAL WAGE RATES

    An Exceptional Wage Rate (EWR) must be approved by the Vice President for Business and Finance. Requests for new or revised EWR at this unit are submitted by the Human Resources Director to the Associate Vice President. EWR are applicable for the duration of the University Fiscal year for which approved. EWR must be renewed for succeeding fiscal year(s). Requests from supervisors to the Human Resources Director for increased EWR must be supported by research including data on wages prevalent at other area competing employers.

    The current list of approved EWR and the staff non-exempt classifications eligible for award of EWR is maintained by the Human Resources Director. Typically the minimum EWR will be utilized in recruiting advertising to fill vacancies in classifications with approved EWR.

    An EWR may be utilized for an individual in an approved classification one time during the fiscal year without any other change of status (such as reclassification, promotion, etc.) which might prompt a change in wage rate. In an approved classification, the EWR is said to be utilized with the award of a wage rate in excess of the normal (non-EWR) University range maximum. Adjustments to wages as a part of the annual salary budget process for approved classifications at EWR rates count in the above limitations; the EWR do not provide a mechanism for more frequent wage adjustments than are enjoyed by other staff non-exempt employees in non-EWR classifications.

    If an EWR is revoked or is not renewed, then individuals in formerly approved EWR classifications will continue to receive the same wage received at the time EWR ceases or the top wage rate in the normal University wage range for the grade level in which they are classified, whichever is lower.

  2. SHIFT DIFFERENTIALS

    A shift differential must be approved by the Vice President for Business and Finance. Requests for new or revised shift differentials at this unit are submitted by the Human Resources Director to the Vice President. Shift differentials are applicable for the duration of the University Fiscal year for which approved. Shift differentials must be renewed for succeeding fiscal year(s). Requests from supervisors to the Human Resources Director for increased shift differentials must include justification reflecting practice at area competing employers.

    The current list of shift differential percentages by shift and the staff non-exempt classifications in which payable is maintained by the Human Resources Director. The HRIS payroll system automatically processes shift differential pay in approved classifications according to entry of hours on the Biweekly Time Report. Shift differential pay for any monthly-paid employee is accomplished through submission of an extra-pay paper by the Human Resources Office. All overtime pay which must be provided is paid at one-and-one-half times normal (non-shift) wage rate regardless of shift in which hours are worked.

    Shift assignment, which generates shift differential pay, is the responsibility of the supervisor and the appropriate manager/director, for persons in approved classifications. Shift times are addressed in Human Resources Procedure 480, Subject: Work Schedules.

    Adjustments for Completing Additional Degree Work: Current employees of UTSI have an opportunity to increase base pay by completing additional degree work. Employees who put forth the extra effort to further their education return the additional skills and knowledge acquired to the work places, as well as increasing each person's overall marketability and the ability to serve in his/her position. The amounts of additional compensation are reviewed periodically.

    The percentages of increase added to base salary the pay period following when a degree is conferred are as follows:

    • Associates up to 2%
    • Bachelors up to 4%
    • Masters up to 4%
    • Doctorate up to 6%

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