Determining Salaries for Newly Hired/Promoted/Transfered Positions
In formulating salary offers for employees in new positions (both those new to Brown and those who are transferred or promoted from within the University), the following considerations are taken into account: departmental budget; external equity; internal equity and relevant education, experience and skills. Routinely, salary offers fall within the first quartile of the applicable salary range for the position's grade level. Recommended salaries must be authorized by the appropriate Human Resources Representative or Compensation Services prior to discussing with the candidate. No offer or promise of an offer can be made without authorization by Human Resources.
- External Equity is the term used to describe comparative salaries paid in the marketplace where Brown competes to hire and retain similar types of employees. Compensation Services participates in various salary surveys to determine competitive pay practices.
- Internal Equity is the term used to describe the comparison of salaries paid to employees working in the same grade or level within the University (both within the department and University-wide).
Brown recruits in various markets to fill positions, depending upon the requirements and level of the position. They are usually as follows:
- Department head level positions and above: national markets
- Professional and administrative positions below department head level: regional markets
- Support staff and entry level exempt positions: local markets
For additional details please refer to HR Policy 40.021.
Brown is committed to a formal salary administration program through which the relative worth of a position to Brown and in the labor market where we recruit can be determined.
The job evaluation process establishes the relative value of jobs throughout the University. There are two steps involved in this process:
- Job Descriptions - Each position has a job description that identifies the job's major responsibilities, decision making, accountability, qualifications, and organizational relationships.
- Job Evaluation - Brown uses the Hay System, which is the most widely used job evaluation system in the US. The Hay System measures three major factors: knowledge required for effective performance; the complexity of the decision making role; and the authority or control invested within the position. These compensable factors are assessed and given a numerical value. The total value is then matched to a corresponding Salary Range.
Salary surveys are another of the tools used by Compensation Services to compare Brown's staff salaries and compensation policies with a cross-section of other employers. Brown participates in multiple surveys to capture information about the breadth of positions represented on campus. Compensation Services analyzes this survey data and prepares a report each Fall recommending pay practices for the next fiscal year. The recommendations are presented to the University Resource Committee to consider in determining salary increase pools and salary ranges during the budget planning and approval process.
For more information about job evaluation and salary analysis, see page 2 of the publication: See HR Policy 40.011.