Staff Compensation Administration
At Swarthmore, job expectations and roles serve as the foundation for determining the market range for each position. All jobs will be assigned to a market pay range. We recognize that the specific responsibilities, scope, and impact of a role, combined with the skills, knowledge, experience, and performance of the job holder, collectively influence where within the market range an individual's salary falls.
Market Analysis
Job Expectations and Role Definition:
- Each position within the College has defined job expectations and role responsibilities that contribute to the overall objectives of the College.
- These expectations and responsibilities are carefully crafted to align with the strategic goals and operational needs of the College.
Market Range Determination:
- Based on the essential position responsibilities and qualifications, a market range is established to provide a framework for compensation within each position.
- This range reflects what the market pays for a position, considering factors such as higher education and functional benchmarks, geographical location, and the College’s budget.
Individual Factors Influencing Salary:
- Within the established market range, the salary of an individual employee is determined by various factors:
- Skills: The specific competencies and proficiencies required to excel in the role.
- Knowledge: The depth of understanding and expertise relevant to the job function.
- Education and Experience: The length and relevance of the individual's professional background.
- Performance: The demonstrated ability to meet and exceed job expectations, contribute to organizational goals, and drive results.
Compensation Structure
Market Ranges
The compensation structure will be designed to align with the market ranges identified through the market analysis. The compensation program is targeted to the 50th percentile (midpoint) and will be positioned to attract and retain key talent. If institutional needs, specific positions, or a candidate possesses extraordinary experience or talent that requires greater competitiveness, the market-reference point may be modified.
The structure will consist of market ranges or bands for each position, reflecting the 25th, 50th (midpoint), and 75th percentile of the market.
- 25th Percentile: Represents the salary below which 25% of the market will fall, indicating the lower end of the salary range.
- 50th Percentile (Midpoint): The market target is where half of the market earns less and half earns more, representing the typical base salary.
- 75th Percentile: Represents the salary below which 75% of the market will fall, indicating the higher end of the salary range.
Paying Within the Market Range
Staff can expect to be paid within the market range associated with their job’s duties. Base salary will be positioned in the range based on a number of factors, including skills, competency, job knowledge, education and experience, available budget, and market value for the position.
It is our goal to pay staff at least the minimum threshold of the designated market range to ensure that all staff are compensated fairly and in accordance with their roles and responsibilities.
Review and Adjustment of Market Ranges
Human Resources will review market ranges annually and recommend adjustments as needed to maintain competitive alignment with external job markets, internal pay equity, and internal alignment of career progression, keeping in mind internal equity and budget considerations.
The Human Resources department participates in a number of carefully selected salary surveys to ensure that the College has access to current data to establish and update market ranges. These surveys cover market data from multiple markets, including other higher education institutions, not- for-profit organizations and local employers. Surveys are conducted on an annual basis by reputable survey firms which use proven methods for collecting, analyzing, and presenting data. Human Resources continually re-assesses data sources to ensure that they continue to meet the College’s needs.
Staff Compensation Adjustments
Annual Increases
While it is the intent of the College to provide annual increases when finances permit, it cannot guarantee that such increases will occur every year, nor can it guarantee the level of annual increase. Information about staff compensation increases will be communicated following the adoption of the operating budget by the Board of Managers in May of each year.
Annual Increase Eligibility
New staff must begin employment before April 1st to be eligible for the annual increases. New staff hired between April 1st and May 31st are eligible for a prorated annual increase based upon their date of hire. Under no circumstances will the College award an automatic salary increase. Staff who are on a performance warning, performance improvement plan, or the subject of disciplinary action may not be eligible for an annual increase. Increases will generally be effective on the first day of the fiscal year, July 1.
Types of Adjustments
“Market Adjustment” refers to an adjustment that is made to recognize changes in the competitive market rate for a position. Market adjustments are unlikely to occur often, because market ranges are maintained and updated regularly to ensure continued competitiveness. Occasionally, however, unusual market circumstances may warrant an adjustment. Market adjustments will take into consideration both the College’s budget and internal pay equity.
“Equity Adjustment” refers to an adjustment that is made to ensure that an individual staff member’s salary appropriately reflects their skills, knowledge, experience, and performance.