Employee Handbook - Direct Compensation
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Employee Handbook - Direct compensation
Staff Compensation System
The Staff Compensation System covers all professional, administrative, clerical, and technical
staff members. It does not include bargaining-unit employees, employees hired by contract, researchers,
executive officials, or senior administrative officers.
A market-based compensation system is used to classify positions.
The Staff Compensation System contains 13 position grades, numbered 10 through 22. Each grade has a minimum and a maximum pay amount, with three pay ranges between the minimum and maximum:
- Lower-range — pay is between minimum pay and mid-range, is appropriate for employees in the learning and development phase of their job; this range is typically for employees new to a position and whose competencies are not yet fully developed. Entry level pay falls in this range.
- Mid-range — pay is appropriate for employees who are fully proficient in their job. This is the target market-based competitive pay for employees who are fully competent, possess the full skill set necessary to perform their job well, meet job expectations, and consistently demonstrate skills needed and fulfill responsibilities and duties.
- Upper-range — pay is appropriate for employees who serve as role models, exhibiting an exceptional skill set and consistently exceeding all job expectations. These employees exemplify the best way of doing their job, go the "extra mile," share their knowledge, and leverage their strengths to benefit the University.
The current pay structure, with dollar amounts shown, can be found on the Human Resources Web site at www.wmich.edu/hr/compensation.
New hire policy — starting pay
New employees should be hired at a pay rate between the pay grade minimum and the lower end of the pay grade's mid-range. Starting rates in the mid-range or upper third of the range must be reviewed by Human Resource Services prior to the Department making an offer to the applicant. Prior approval of the appropriate vice president is required for starting rates in the upper third of the range.
Pay adjustments related to job changes
An employee's current rate of pay should not preclude them from consideration for transfer opportunities, including promotions, lateral moves, and demotions. Should an employee be promoted, laterally transferred, or demoted to a new position, the employee's pay rate will be adjusted as follows.
Exceptions
Please note that the hiring department must receive approval for any exceptions to the following guidelines prior to making an offer to the employee. The hiring department will prepare written justification for a proposed exception, and the appropriate vice president, in consultation with Human Resource Services, will approve or deny the exception. The written justification for all approved exceptions must accompany the authorizing form and will be placed in the employee's Human Resources file.
Promotions
The following guidelines apply regardless of the number of grades the employee is promoted.
- When the employee's current pay rate (prior to promotion) is within the new pay grade's lower range or below the new pay grade's minimum, the employee should receive a 7 to 10 percent increase. If the adjusted pay still falls below the new pay grade's minimum, the employee's new pay rate will be the new pay grade's minimum.
- When the employee's current pay rate (prior to promotion) is within the new pay grade's mid-range, the employee should receive a 5 to 7 percent increase.
- When the employee's current pay rate (prior to promotion) is within the new pay grade's upper range, the employee should receive a 3 percent increase.
Lateral transfers
Generally, employees should not receive a pay adjustment when transferring to another position in the same pay grade. Departments may discuss with Human Resource Services possible exceptions based on unique job or employee qualifications, prior to making an offer to the employee.
Demotions
Should an employee transfer to another position with a lower pay grade, the employee's pay rate should be governed by the new pay range. Departments should contact Human Resource Services to determine the appropriate pay prior to making an offer to the employee.
Temporary base pay increases—acting or interim appointments
From time to time, all employees are expected to assume some of the duties of a vacant position. However, it is only when an employee is appointed to a vacant position in an "acting" or "interim" capacity that a base pay adjustment should occur.
- The employee must be appointed to the position by processing the appropriate transaction form.
- Acting or interim appointments should only occur for vacancies longer than three months, but should not exceed one year.
- The employee's temporary pay will be determined by the pay grade of the position in which the employee is acting.
Adjustments to base pay
Adjustments to base pay should only occur through the annual pay adjustment process, at the time of promotion, or when an employee's current position increases in grade.
Annual pay increases
Pay increases are never considered automatic. Each year, the University's President and Board of Trustees consider allocating funds for pay increases, taking many budget and economic factors into consideration. If pay increases are budgeted, raises are granted with the approval of each employee's supervisor, and employees with satisfactory performance will normally receive pay increases effective with the start of the fiscal year. Pay raises may be withheld for less than satisfactory performance.
Overtime pay
Overtime pay is required whenever a non-exempt (hourly paid) employee works more than forty (40) hours in one week.
Overtime pay is paid at one-and-one-half (1-1/2) times the employee's regular hourly rate for the amount of time worked over
forty hours in one week.
Exempt (salaried) employees are not eligible for overtime pay (see "Employment
Status").
Reporting your time
- Non-exempt (hourly paid) employees record their work hours either on a time report
or by using a time clock. Your supervisor will tell you which method is used in your department.
If a paper time report is used:
- All hours worked, including those in excess of forty (40) in one week, must be reported.
- The time report should be completed daily.
- Every absence must be explained.
- The report is to be signed by the employee and turned in for the supervisor's signature;
your department will tell you when they are due.
- Exempt (salaried) employees must record and certify their hours worked. Your department will instruct you on their policy for reporting time. All absences and use of leave must be recorded on this report. Detailed instructions for filling out this report are available from the Payroll and Disbursements Department. Overtime pay is not paid to salaried employees.
Paydays
The Payroll and Disbursements Department issues pay every other Tuesday. You may receive your pay via direct deposit or pay card (see Payroll Choices).
Your bi-weekly pay covers the two-week period ending nine days before payday. You may review a summary of each bi-weekly pay, which includes gross pay, deductions, net earnings, as well as sick and annual leave use and balances, via Self Service in GoWMU. For detailed instructions on accessing your bi-weekly pay summary, please visit Pay Stub on the Payroll and Disbursements website.
If you have a question about your pay, contact your supervisor. If further help is needed, contact Payroll and Disbursements.
Payroll Choices
You will receive your pay in one of two manners: direct deposit at a financial institution or via a payroll card. You may select the option you prefer via Self Service in GoWMU.
Direct Deposit
You may have your pay directly deposited at a financial institution. The direct deposit is normally received by the financial institution on the morning of each payday.
- You can deposit your entire net pay or a portion of your pay to the account(s) of your choice.
- You can establish direct deposit with most banks and credit unions. You may want to check with your bank or credit union regarding forms they may require to establish a direct deposit plan.
- You may review, add or update your direct deposit information via Self Service in in GoWMU.
- For detailed instructions please visit Direct Deposit on the Payroll and Disbursements website.
Payroll Card
If you do not select direct deposit, you will receive your pay via a payroll card. For more information about payroll cards, please visit Payroll Choices on the Payroll and Disbursements website.
Payroll deductions
Payroll deduction is a method for automatically withholding money from your pay on a regular basis. The following deductions are available at WMU:
Annual fund
Employees may donate to the University through payroll deduction.
Dependent Care Flexible Spending Account
Employees may establish a Dependent Care Flexible Spending Account which allows them to pay for dependent child or elder care with before-tax dollars. Forms are available from Human Resources. (See "Dependent Care Flexible Spending Account.")
Garnishments and wage assignments
The University does not wish to be involved in the personal financial affairs of employees. However, WMU is required to honor legal garnishments, wage assignments, and levies. Western must withhold the required monies and submit them to the appropriate party, as prescribed by law.
Medical Reimbursement Flexible Spending Account
Employees may enroll this plan, which allows them to have pre-tax dollars deducted from their pay and set aside to pay medical expenses not covered under their health care plan. (See "Medical Reimbursement Flexible Spending Account.")
Income tax
U.S. and State income taxes are required deductions under federal law. Taxes are withheld from every payroll, based on the employee's income and number of exemptions claimed. If exemptions change for any reason, contact Payroll and Disbursements.
Insurances
Payroll deduction covers employee premiums for most insurance programs. (See "Insurances.")
Season tickets
Employees wishing to buy season tickets to on-campus athletic and/or cultural events may do so through payroll deduction. (See "Athletic Events" and "Miller Auditorium and Shaw Theatre.")
Social Security (FICA)
The Social Security Act requires that money be set aside for future retirement or disability benefits. The rate of deduction, set by the U.S. Congress, changes yearly. An equal amount is paid by the employee and by the University each pay period.
Tax-deferred retirement savings
Tax deferred retirement savings is available to all employees. (See Tax-deferred Savings Plans.)
United Way
Western sponsors an annual drive for United Way. Employees may contribute through payroll deduction.