Extraordinary Salary Ranges (ESR)

Functional Owner	Assistant Vice Chancellor for Human Resources
Executive Sponsor	Vice Chancellor for Finance and Administration
Policy Contact	Director, Titling and Compensation

Policy Summary

The UW–Madison salary range structure is designed to generally reflect labor market conditions, but certain positions may require the chancellor (or designee) to approve extraordinary salary ranges (ESR) to meet documented recruitment and retention needs. If a division finds evidence (e.g., market data) that an official salary range does not adequately enable the division to compete for talent in a specific position, the division will work with the Office of Human Resources (OHR) to determine if an ESR is needed to address the recruitment or retention need.

Who This Policy Applies To

Academic Staff, Limited appointees and University Staff in title series that have fixed salary range maximums.

Rationale

UW–Madison titles are linked to specified salary ranges. In some cases, these ranges may not be comparable to the market value of the position. An ESR can better align an individual position or a title series with the market.

Policy Detail

1. Definition

   An ESR is an approved salary range that is greater than the assigned range for the title. An ESR is associated with one of the following:

   1. An employee in a position
   2. A title (e.g., clinical anesthetist)
   3. A portion of a title series (e.g., nurse practitioners, within the clinical nurse specialist series)

2. Criterion

   An ESR is used to provide pay flexibility when market conditions require a revised range to address either recruitment or retention needs for a certain position. To justify the ESR, the request must include evidence of a retention or recruitment problem and market data showing that the maximum of the range is below market value (e.g., salary data on comparable positions in the external market).

3. Required Documentation for Review of an ESR

   1. Divisions requesting ESRs must submit the following documents to OHR:
      1. Relevant market data to demonstrate the need for an ESR. The division should provide published or developed survey data on salaries paid for comparable positions in the external market. Depending on the position, the market data may be local, regional, or national. If there is College and University Professional Association for Human Resources (CUPA-HR) or Association of American Universities Data Exchange (AAUDE) data, this information must be included.
      2. A current Job and Employee Management System (JEMS)/Position Vacancy Listing (PVL) or Classified Human Resources Information System (CHRIS) transaction.
   2. To increase an ESR, a division must submit a new request based on updated market data. The ESR can increase based on pay plan updates.
   3. When requesting approval for an ESR, a division should also consider current pay inequities and wage compression potential. If the ESR request is for an entire title series, OHR will work with all divisions using that title to ensure they support the ESR request.

Consequences for Non-Compliance

Positions that are being recruited with an advertised salary maximum above the pay range or approved ESR maximum will be removed immediately and reposted with the appropriate salary range. If a new employee is hired at a rate above the salary range without an approved ESR, that employee’s salary will be reduced to the salary range maximum as soon as the error is identified. The university may have to recoup from the employee any payments made in excess of the range maximum.

Responsibilities

Office of Human Resources (OHR)

Works with the division HR departments to collect and analyze market data Provides final approval and calculation of the ESR Collects and provides market data, in partnership with school, colleges, and divisions

College/School/Division HR

Works with their departments and subunits to identify positions that may be below market, causing recruitment or retention issues Collects and presents data to OHR for consideration of an ESR if division HR representative is aware of the comparable positions in the local, regional, or peer institution Contacts OHR to discuss options for collecting market data when comparable positions are not known

Link to Current Policy

https://kb.wisc.edu/ohr/policies/page.php?id=53108

Link to Related Policy

Unclassified Title Guideline (UTG)

Policy History

Authority to approve ESRs was delegated to UW–Madison from UW System Administration effective July 15, 2011.