Compensation Change Process
Annual Increases
Annual increases are generally awarded on July 1 and are based on the external market, each employee’s career progression, and the College’s/Institute’s budgets, as approved by the Board of Trustees.
Generally, all employees are eligible for consideration for an annual adjustment, except that:
- Employees who have given notice of resignation prior to the raise effective date, and whose termination date will be one month or less from the effective date of the annual increase (that is, those terminating prior to August 1st for a July 1st increase cycle), will not be eligible for an increase.
- Employees with current documented unsatisfactory performance may not receive an increase.
Discretionary adjustments up to $3,000 may be applied, in increments of $500, as long as doing so does not exceed the maximum for the grade range.
Promotions
A promotion is the movement of an employee to a different position in a higher pay grade. This movement is usually the result of the employee applying for and being selected for a position through the recruitment and selection process.
- Human Resources will work with the hiring supervisor/manager to determine the appropriate promotional increase before the offer is made and before potential pay is discussed with the employee.
- New salaries are set by Human Resources and are established after consulting with the hiring manager on the candidate’s skill matrix assessment but will not be less than the minimum or more than the maximum of the grade range assigned for the position.
- Promotions will align to the overall structure and the new base salary will be set by assessment of where the new role falls within the grade structure, the career progression of the individual and discretion. In all cases an internal equity review will be conducted by Human Resources before a promotional increase amount is finalized.
Discretionary adjustments up to $3,000 may be applied, in increments of $500, as long as doing so does not exceed the maximum for the grade range.
Reclassification
Reclassification occurs when the scope of a job changes significantly enough to change the grade to which a job is assigned (see Job Placement section for details).
Job description revisions are reviewed on a bi‑annual cycle and are submitted by the manager. Human Resources reviews all revised descriptions; if no reclassification is warranted, the updated description is posted in the job description library. If the changes are significant enough to result in a grade change and the area Vice President supports the reclassification, the request is forwarded to the Ways and Means Committee for final review and decision.
Reclassification requests follow Middlebury’s January and July compensation cycles. Each cycle includes a semi‑annual request period, review of Skill Matrix updates, and—when available—VP‑submitted discretionary adjustments. Approved changes are communicated to managers and employees ahead of the upcoming cycle, with salary adjustments following the appropriate promotion, lateral, or demotion guidelines and becoming effective at the start of either the January or July cycle.
July Cycle:
Semi-annual Request Process opens March
Skill Matrix changes submitted by VP in April
Discretionary adjustments (if available) submitted by VP in May
Changes approved by the Ways and Means Committee, effective July 1, are shared with Managers and Employees in June
January Cycle:
Semi-annual Request Process opens November
Changes approved by the Ways and Means Committee, effective January 1, are shared with Managers and Employees in December
In-Grade Adjustments
An in-grade adjustment is a change to an employee’s base salary as a result of:
- A permanent change in the scope of the job that does not change the pay grade of the job.
- Market equity (this is most common when labor market pressures force pay rates for new hires up, resulting in inequitable pay between new and current incumbents when comparing ownership and impact).
Supervisors may request consideration for in-grade adjustments by submitting documentation supporting the request. Human Resource may also identify the need for equity adjustments based on market or internal salary studies.
It should be noted that in-range salary adjustments are not routine and will need to be fully justified. Requests for in-grade adjustments must be made to, and approved by, the Total Rewards Manager in conjunction with the area’s Human Resources Business Partner.
Discretionary adjustments up to $3,000 may be applied, in increments of $500, as long as doing so does not exceed the maximum for the grade range.
Lateral Transfers
A lateral transfer occurs when an employee moves to a different job within the same grade. Such transfers may result from department reorganizations or when an employee applies for and is selected for another role through the recruitment process.
In this instances, the management team will assess the employee’s career progression in the skill matrix for the new position which will determine if an increase is warranted. Because jobs within the same grade are considered to be equivalent in terms of responsibility, employees who transfer laterally may not receive an increase in base pay.
Discretionary adjustments up to $3,000 may be applied, in increments of $500, as long as doing so does not exceed the maximum for the grade range.
Demotions/Downgrades
Demotions or downgrades are moves to a lower job classification and may occur as a result of:
- An employee’s personal request (voluntary downgrade);
- Documented inadequate job performance (demotion); or
- Other reasons (for example when a function has become obsolete, and an employee is being moved to an available job at a lower-level job).
When a downgrade is voluntary Human Resources will determine the employee’s new salary based on an individual assessment of the facts and circumstances. HR will take into consideration the employee’s career progression (in collaboration with the management team) relative to the new job and will conduct an internal equity review.
When a downgrade is involuntary Human Resources will determine the employee’s new salary based on an individual assessment of the facts and circumstances. HR will take into consideration the employee’s career progression (in collaboration with the management team) relative to the new job and will conduct an internal equity review.
When a downgrade is due to a reassignment unrelated to the employee’s performance and not requested by the employee, Human Resources will determine the employee’s new salary based on an individual assessment of the facts and circumstances. Generally, the employee’s salary will be maintained except when this causes significant internal equity concerns or when the salary would greatly exceed the range maximum.
Trainee Status and Pay
Generally, individuals who do not meet the minimum qualifications are not hired into an open job. Very occasionally, however, there are extenuating circumstances that may result in an individual being offered a job without having the minimum required certifications, education, skills, or experience.
This situation could arise because of a very tight labor market in which no fully qualified candidates have been identified, or when a departmental reorganization results in an existing employee being reassigned to an available job for which they are not fully qualified at time of assignment.
All such arrangements must be approved in advance by Human Resources and will require a formal development plan. This plan must include a specific timeline outlining how the employee will obtain the required qualifications.
In these situations, employees may be temporarily paid below the grade minimum. Upon successful and documented attainment of the required qualifications, the employee’s compensation will be adjusted to the grade minimum.
Supplemental Pay
It should be noted that nearly all employees are expected to periodically fill in for colleagues’ vacations (or other short-term absences) as well as to perform special projects or temporary tasks; such work is considered a normal part of the job. It is when a temporary assignment (i.e., assignment to a special project, reassignment during organizational changes, filling a vacant job, extended leave of another employee, etc.) is expected to exceed 60 calendar days that additional temporary compensation may be warranted.
Supplemental pay is additional pay for temporarily assuming significant additional duties/ responsibilities that typically would be in a higher pay grade for greater than a 60-day period. Supplemental pay can be provided to an employee who is assigned different or additional duties and responsibilities on an interim basis for a limited period of time.
Supervisors/managers must receive approval from Human Resources for supplemental pay; supplemental pay should not be discussed with the employee until after appropriate approvals have been received.
Retroactive Adjustments
All salary increases will be made on a prospective basis. Accordingly, managers are expected to adhere to identified deadlines for submitting any promotion requests or job description revisions.
Career Progression
The Staff Compensation Program, together with internal job posting practices, is designed to be flexible and to provide employees with multiple opportunities to advance their careers and their compensation. It is up to each employee to work collaboratively with their manager and to take ownership of their own career and development plans to support their personal and departmental objectives, as well as the organization’s needs.
Employees interested in advancement opportunities are encouraged to regularly monitor job postings for promotional or lateral opportunities. Employees are also strongly encouraged to build their employability by taking advantage of internal training opportunities offered by the organization and/or by accessing professional development or tuition reimbursement funds to support external education or training.
In recognition of the fact that many employees enjoy their current jobs and may not wish to pursue additional responsibilities, as well as of the fact that there will not always be available jobs at a higher level, the Staff Compensation Program has established broad pay ranges which allow employees to remain in their current jobs while continuing to receive compensation adjustments as they progress in their career and/or as market conditions evolve.
Special Compensation Arrangements
Certain areas of the organization have worked with Human Resources to establish special compensation arrangements such as: trainee wage scales and pay adjustments for additional demanding duties. Details about these arrangements are available from the authorized departments or Human Resources.
Exceptions
Exceptions to the standard compensation guidelines must be approved by the VP of Human Resources and Chief People Officer, whose decision is final.