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Chapter III Contents: [ III.1 Recruitment ] [ III.2 Retention ] [ III.3 Affirmative Action ] [ III.4.1 Faculty Appointments ] [ III.4.2 Faculty Pay Equity Implementation Guidelines ] [ III.5.1 Academic Staff ] [III.5.2 Short Term Instructional Academic Staff] [ III.6. Zero Dollar & Honorary Appointments ] [ III.7 Retirement/Resignation ] [ III.8 Classified Staff: Civil Service & LTEs ] [ III.9 Student Employment: Hourly & Grad Ass't ] [ III.10 Teaching Assistantships ] [ III.11 Policy on Volunteers ] [ III.12 Guidelines Regarding Peer Instruction by Graduate Students ] [ III. Appendix A: Forms ]

University of Wisconsin-Madison College of Letters & Science

POLICY ON APPOINTMENT TO A BROADBANDED POSITION
DISCRETIONARY COMPENSATION ADJUSTMENTS (DCA)


BACKGROUND

Broadbanding is a compensation system that collapsed numerous classified pay ranges and classifications into a smaller number of broader pay ranges and classifications.  This produced a classification system that is easier to understand and administer.  Movement between jobs and growth within a job is easier since classifications now cover a broad range of job duties in a broad pay range rather than the previous narrow range of duties in a narrow pay range.  Broadbanding has two key components that provide a compensation system that is much more flexible than the system that has been used in the past.  These components, which are implemented according to UW-Madison guidelines and budget constraints, are as follows: 

 Pay on Appointment: Flexible hiring rates for new hires, transfers and promotions within a designated appointment range.  Pay on appointment will be based on pre-established considerations such as internal comparisons, specific qualifications, appropriate external labor market, and budget constraints. 

Discretionary Compensation Adjustments (DCAs):  At the discretion of management, monetary adjustments (which can be as base pay increases, lump sums, or both) may be awarded for significant changes in job duties, increased competencies/skills, merit, pay equity or retention.

Broadbanding covers almost all non-represented classified staff including supervisors, managers, confidential and all Wisconsin Professional Employees Council (WPEC) staff such as professional information technologists and accountants. The College currently has 61 non-represented broadbanded positions and 21 represented broadbanded positions.

It is important to ensure consistency in the establishment of new hire salaries and the distribution of DCA’s.  To ensure this consistency, the College developed internal guidelines and has two committees to administer the program.  The College internal Compensation Committee for Classified Staff consists of the Dean, the Associate Dean for Administration and the Human Resource Manager for classified staff.  The external Compensation Committee for Classified Staff consists of one non-represented classified staff, one academic staff and one faculty member from within the College.  Attached please find the College guidelines for administering this program.                                                                                

3-06


UNIVERSITY OF WISCONSIN-MADISON
COLLEGE OF LETTERS & SCIENCE
POLICY ON APPOINTMENT TO A BROADBANDED POSITION
DISCRETIONARY COMPENSATION ADJUSTMENTS (DCA)

 

NEW APPOINTMENTS

 The following factors are considered in determining the appropriate rate of pay for new appointments:  salary review of positions with like responsibilities both internal within the College and the University; labor market statistics for occupational area; skill sets, education and experiences the individual brings to the position.

 Approval from the College Human Resource Manager for Classified Staff is required for all appointments to positions included in the broadband structure.  The rate request must be in writing with a brief justification (this can and probably should be done via email for timeliness) based on the above criteria.  The College Human Resource Manager for Classified Staff will confer with the internal College of Letters & Science Compensation Committee for Classified Staff when appropriate.

 DISCRETIONARY COMPENSATION ADJUSTMENT’S (DCA’S)

 Definition: 

DCA is a monetary adjustment (which can be as base pay increase, lump sum, or both) that is awarded for significant changes in job duties, increased competencies/skills, merit or to address pay equity or retention needs.

 Committees:

There is an internal classified staff compensation committee that consists of the Dean, the Associate Dean for Administration and the Human Resource Manager for Classified Staff.  There is an external classified staff compensation committee that consists of one non-represented classified staff, one academic staff and one faculty member from within the College.

 Amount:

The general policy is that non-represented and represented employees included in a broadband pay range are eligible for a Discretionary Compensation Adjustment (DCA) of up to 6% of the pay range minimum (2 within pay range pay steps) subject to the pay range maximum each fiscal year.  In very rare and unusual situations, DCA’s can be approved for up to 12% of the pay range minimum (4 within pay range pay steps).  It must be stressed that these awards are not an entitlement but rather a means to compensate employees for significant changes in job duties, increased competencies/skills, pay equity, retention and exceptional performance.

Effective Date:

If approved, the effective date for Discretionary Compensation Adjustments will usually be the beginning of the pay period following receipt of the request in the College Human Resource Office. 

Funding:

The College will establish a fund annually for Discretionary Compensation Adjustments.  The fund amount will fluctuate annually based on labor market influences. 

Request Procedure:

The College process varies depending on the type of DCA being requested:

Equity:  The internal Classified Staff Compensation Committee will review all non-represented and broadbanded represented classified staff salaries annually for pay equity issues.  Pay equity is based on the salary of the employee minus any performance/merit based increases.  Pay equity determinations will be made through analysis of pay inequities between peers with similar experience, qualifications, duties and proficiency both internally to the College and to the Campus. The employee will receive a letter notifying them of the award with a copy to the supervisor.

Retention: Retention offer requests will be considered on an as needed basis and will only be considered for employees having a current offer in hand from an organization (private or public) outside of the University. The request must be in writing with a justification (this can and probably should be done via email for timeliness) to the Classified Staff Human Resource Manager.  The justification must include the reason for the request, salary being offered, the company/agency making the offer and the requested retention salary offer.  The College Human Resource Manager will confer with the internal College of Letters & Science Compensation Committee for Classified Staff when necessary.

New Duties:  Discretionary Compensation Adjustment (DCA) requests for an employee taking on new duties that are of a greater scope, greater impact and/or are more complex than the previous functions will be reviewed on an as needed basis. A “Justification for Discretionary Compensation Adjustment (DCA) Awards for UW-Madison Employees” form (http://www.ohr.wisc.edu//forms/form.html) must be submitted to the College Human Resource Manager indicating the requested DCA amount and proposed effective date.  You must also attach a detailed justification with the changes itemized and an updated position description highlighting the areas of change. The external committee will be consulted when necessary. The employee receiving the award will receive a letter informing them of the award with a copy to the supervisor. 

Increased Significant Competencies: Only non-represented classified staff are eligible for these adjustments/payments, represented broadbanded staff are not. Identify the increased knowledge and/or skills the employee has developed allowing them to perform their current or new duties in a more efficient, effective manner.  These competencies will typically be gained by going to specialized training, successfully completing curriculum for an area of study, or learning new skills while on-the-job. In most cases, training required to perform the employee’s initial job duties (e.g., Supv. Training for a new supervisor) would not be appropriate.  DCA requests for this reason will be reviewed annually in the spring at the same time the College Human Resource Office sends out a call for nominations of performance based awards. The external committee will review these requests and make their recommendations to the internal committee for final approval.  The employee receiving the award will receive a letter notifying them of the award with a copy to the supervisor.

Merit or Performance-based:  Only non-represented classified staff are eligible for these adjustments/payments, represented broadbanded staff are not.  Performance related DCA requests will be reviewed annually in the spring.  The College Human Resource Office will send out a call for nominations of performance based awards.  The external committee will convene to review these requests and make their recommendations to the internal committee for final approval.  The employee receiving the award will receive a letter notifying them of the award with a copy to the supervisor.

Revised: 3-14-06, by EMK per DA

 


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