Equity Increase & Equity Reviews
An equity increase is a permanent increase to the base salary that may be granted to an employee under certain circumstances, such as increased duties that do not warrant a reclassification or a significant salary lag to comparable internal positions or the local labor market. The intent of equity adjustments is to provide consideration to critical and/or unusual pay administration problems. The primary mechanism for an equity increase is the Annual Equity Call, but in other rare occasions an off-cycle equity increases may be granted.
- Annual Equity Call (Primary Mechanism)
Salary inequities related to changing external market conditions, and/or internal salary inequity that cannot be managed through the annual merit program are addressed during an Annual Equity Call in the fall. The Annual Equity Call is centrally funded, and the amount is determined each year by the Planning and Budget office. Funds for this program are limited, therefore equity decisions are prioritized based on strategic business needs.
- Retention Equity Adjustment
Off-cycle, unplanned equity adjustments may occur due to bona fide retention situations.
- Supervisor/Represented Employee Compression
If the salary progression of represented employees results in salary compression where there is less than a 5% differential between a supervisor and directly supervised represented employees, the organizational unit may request that an equity review be considered that is out of cycle from the Annual Equity Call. Approved equity increases due to compression resulting from collective bargaining agreements may be centrally funded.
Permanent, unanticipated change in scope of duties, complexity of assignments that have suddenly changed and do not warrant a change in classification.
Equity Request Process
Equity requests are to be submitted directly to Human Resources/Compensation for review and approval. Requests shall be routed by the organizational unit’s designated contact with supporting documentation (current and new organization chart, new job description and written justification). Such requests are intended to be rare and will be contingent on the availability of funding. Both the departmental level and organizational unit level review and approval are required prior to review by Human Resources.
- For represented positions, some of the collective bargaining agreements contain provisions regarding individual equity increases. In addition, visit the UCnet Union-Represented Employees webpage for Labor Relations & Collective Bargaining updates.
- Additional information is also contained in Personnel Policy 30 Compensation, and the campus Local Procedure 30.