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HR Provides Info on Salary Increases

June 25, 2008

From: Sharon W. Demers, assistant vice president, Human Resources
Date: Monday, June 16, 2008

Dear Colleagues,

I am writing to let you know that the USNH Board of Trustees will vote on salary increases for staff at its upcoming annual meeting later this month that will result in a total salary increase pool of 5.5 percent. We have more details of what that increase package looks like for our staff and we wanted to get this information out to you now. I want to thank the staff and extension educator councils for their valuable input in this process.

Pending board approval, the components of the increases, effective July 1, for all eligible non-unionized employees will include:

3 percent Across-the-Board (ATB)

This component will be automatically awarded to all eligible employees. Employees who are over the maximum of their pay ranges receive the value of the ATB as a one-time bonus. There will be a 3 percent adjustment to the salary ranges.

1 percent Pool: Merit, Bonus and Internal Equity

Merit, bonus and internal equity amounts are determined by the supervisor. Merit may be awarded as a continuing increase or in the form of a bonus. Employees who are at or near the top of their pay ranges will receive any merit award in part or in full as a one-time bonus. Internal equity increases provide a mechanism for supervisors to address situations where people with the same job classifications within a department or unit, with similar education, experience and performance records have noticeable salary differences.

0.5 percent Pool: Range Adjustment

This component is used to address targeted classifications that are deficient to the market and/or to address recruitment and retention issues. Employees who fall below the new range will receive an increase to bring their salary/hourly rate to no less than the range minimum.

1 percent Pool: General Increase

This component will be distributed as a fixed-dollar amount of $500 added to the base salary and pro-rated based on percent time. Employees who are at or near the top of their pay ranges will receive the general increase in part or in full as a one-time bonus. The general increase will be automatically awarded to all eligible employees. It is important to note that this amount is in addition to the $500 that will be allocated to each eligible staff member for a health reimbursement account (HRA).

Based on the examples of general salary levels below, the general increase will represent the following percentages of annual salary:

$20,000 - 2.5 percent

$30,000 - 1.67 percent

$40,000 - 1.25 percent

$50,000 - 1.00 percent

$60,000 - 0.83 percent

$70,000 - 0.71 percent

$80,000 - 0.63 percent

$90,000 - 0.6 percent

$100,000 - 0.5 percent

$125,000 - 0.4 percent

As you know from the several communications the administration has sent over the past few weeks, we are in the midst of seriously tackling not only our projected FY09 deficit, but the ongoing structural deficit as well. We are balancing the set of cost-cutting strategies outlined by President Mark Huddleston with the desire we have to keep staff salaries and benefits as competitive as possible.


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