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Administrative Manual - 204 Classification and Compensation

204.04 Compensation System

  1. POLICY
    1. It is the policy of JSA to maintain a compensation system that supports the ability to recruit, retain and properly compensate the work force required to achieve its goals. This requires that JSA remain competitive with other employers in its markets.
    2. It is the policy of JSA to administer its compensation system fairly and equitably.
  2. SYSTEM ELEMENTS
    1. JSA's compensation system is based primarily on merit principles.
      1. Advancement in compensation directly relates to an employee's performance, as measured against management objectives.
      2. Expectations are clearly documented and understood by the employee and supervisor.
      3. An accurate job description and the annual performance appraisal are essential elements in this measurement.
    2. Another element of compensation administration is an assessment of the marketplace in determining the competitive salary range for individual skill categories. JSA's compensation system depends upon an accurate evaluation of the outside salary competition to recruit and retain an appropriate work force.
    3. A third element of the compensation program is the classification system.
      1. The classification system defines the expectations of JSA's management regarding the levels of responsibility, the complexity of the job, the level of skill associated with the job, and the requirement for creative or innovative talents.
      2. The classification system rests on the premise that rank is in the position and not the person.
    4. The final element of the compensation program is maintaining essential internal equity of salary relationships. It is JSA's policy to administer its compensation system with fairness to all employees. Every employee is entitled to fair and equitable treatment in the determination of classification or compensation within that classification as determined by the employee's skills, experience, and performance.
  3. RELATIONSHIP WITH THE DEPARTMENT OF ENERGY

Classifications and salary ranges for JSA positions are set forth in Appendix A of the JSA/DOE Contract, which controls reimbursement of human resource costs and related expenses, salary ranges, classifications, and the policies for JSA's compensation system. Changes to Appendix A require approval by the Director or his/her designee before a formal request for change is made to DOE.

  1. HUMAN RESOURCES

The Human Resources Department is responsible for the administration and monitoring of all aspects of compensation. These responsibilities include the following:

    1. Formulating and updating classifications to describe adequately the levels and types of work being performed.
    2. Recommending salary ranges appropriate to relevant compensation market data and consistent with other established salary range relationships.
    3. Conducting and participating in salary surveys with other organizations to determine appropriate and comparable salary ranges for similar work in a wide range of skill categories.
    4. Advising and providing support to Associate Directors/Dept Heads and supervisors on matters of job classification and compensation.
    5. Processing all reclassification and salary adjustment requests according to the proper procedures.
    6. Reviewing job requisitions to ensure that the proper classifications and salary levels have been recommended.
  1. DIVISIONS/OFFICES

Division/Office responsibilities regarding administration of JSA compensation policies include the following:

    1. Reviews and Recommendations

The Division/Office reviews each employee's salary and work assignment at least once a year to ensure that the employee is working in the proper classification and that earnings are appropriate. The Division/Office makes recommendations for reclassifications and salary adjustments when the employee's work assignment or performance has changed substantially enough to warrant reclassification or salary adjustment. All classification and salary actions require the approval of the Associate Director/Dept Head.

    1. Starting Salary

The Division/Office provides input to Human Resources so that Human Resources may determine the appropriate starting salary for new hires. The Division/Office may discuss suggested starting salary with a prospective candidate, but not make a commitment with regard to the starting salary. The only legal and binding offer of employment is made in writing to the selected candidate by Human Resources. Any preliminary discussion or correspondence with a prospective employee should include a clear statement of this policy.

  1. DIRECTOR
    1. Salary Increases

The Director or his/her designee approves the annual salary increase guidelines.

    1. Disputes

On appeal, utilizing the established grievance procedures (see Policy 210 Employee Issues and Grievances), the Director has final authority in disputes on salary and classification matters.


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