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Purpose: This guideline serves to: (1) delineate the compensation decisions that have been delegated to Presidents/Chief Human Resources Officers, and (2) outline the process to be used to request system HR approval of compensation in excess of delegated authority.  

Affects: Th e system.

Affected Bargaining Units/Pay Plans: These provisions cover all appointments (except emergency) to classified and unclassified positions in non-faculty bargaining units/pay plans –AFSCME, Commissioner’s Plan, MAPE, MGEC, MMA, MNA, and the Managerial Plan.

References:
DOER Administrative Procedures:
                                   15.6 Transfer/Demotion
                                   17.1 Work Out of Class
DOER Delegation Order to MnSCU-HR for Compensation Decisions
Union Contracts/ Bargaining Unit Agreements/Pay Plans  

Required Form(s): None

Attachment: System Compensation Delegation Matrix

Background/Guidelines: To recruit and retain the best talent to meet staffing needs, address market demands, and maintain or enhance internal equity, it may be necessary to offer compensation above the minimum of the approved salary range on initial appointment, reinstatement, or promotion.  To facilitate this need, the Department of Employee Relations (DOER) and the Office of the Chancellor have delegated limited compensation decision-making authority to Presidents/Chief Human Resources Officers.  Attachment A summarizes the compensation decisions that have been delegated.  Additionally, system human resources staff have authority to grant approval to the maximum of the salary range. 

Salaries over the maximum of the salary range must be approved by system human resources or DOER and may only be granted for demotions (not for cause).

Procedures: The following actions represent the procedures to be used by Presidents/Chief Human Resources Officers in making compensation decisions:

A.	For Appointments at Compensation Levels Within Institution/Office of the Chancellor delegated authority
	President/Chief Human Resources Officer takes the following actions:
	Determine the compensation level that best meets your recruitment needs, internal equity considerations, and financial resources. If the compensation level is above the minimum, document the rationale, internal salary comparisons, and the approval. Offer the position, confirm the selection and salary offer in writing, and appoint the candidate. Retain a copy of rationale and approval documentation in the appointee’s official personnel file. Maintain a log or file of delegated compensation decisions.
B.	For Appointments at Compensation Levels in Excess of Institution/Office of the Chancellor delegated authority:
	President/Chief Human Resources Officer takes the following actions:
	Prior to making a job offer, submit a written request via memo or e-mail to the System staffing representative (see attached matrix) including all of the following: supporting rationale, as applicable, related to:  recruitment challenges, availability of qualified candidates, turnover problems, market considerations, directly-related education/experience/specialized competencies of the candidate beyond the minimum qualifications for the position, etc.; verification that the proposed compensation level will not create an internal salary inequity with current employees possessing comparable experience, education, and competencies; a copy of the candidate’s resume or application; a copy of the position posting/job advertisement; and OPTIONAL:  current salary, if such information is significant to the rationale.  NOTE:  do not ask external candidates for current salary; however, you may consider it if the candidate offers the information to you. The System staffing representative takes the following actions: Review the request; discuss any concerns with the Chief Human Resources Officer; request additional supporting information as needed; and suggest alternative compensation level if/when appropriate OR when DOER approval is necessary, the System staffing representative will coordinate the request and approval with DOER. Confirm final decision in writing via memo or e-mail to Chief Human Resources Officer. Notify DOER in writing of the approved compensation level. Retain a copy of rationale and approval documentation. President/Chief Human Resources Officer completes the following: Upon receipt of written approval from the System staffing representative, a salary offer may be made to the candidate.  NOTE:  Approval is applicable only to the specific candidate referenced within the request.  If the candidate does not accept the job offer, approval is not transferable to another candidate. Offer the position, confirm the selection and salary level in writing, and appoint the candidate.

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Approved:  July 29, 2005