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Classification and Compensation System
Changed for Administrative Staff

Nora E. Costa

Faculty who conduct the annual performance review for administrative staff members need to know that the classification and compensation system has been changed for this payroll group. The review period will still be in March with pay changes effective July 1, 2000, but the structure of the system has been simplified, and there is some new terminology.

Here are some of the main differences between MIT’s new system and the old "point" system that has been used for 25 years. The new system focuses on the qualities of complexity, scope and impact of the job, rather than quantitative metrics associated with the number of people managed or budget size. The new system has six classification levels (rather than 42) and six corresponding broad "salary bands" with "market zones" that replace the old terms of "salary range" and "mid-point."

Every administrative staff job has been assigned to a classification level (salary band) and market zone. The external market and the internal value of the job determine the market zone within the salary band for a particular job. The market zone concept will help managers identify the appropriate "marketplace" salary for a given job within the broad band. For example, the positions "admissions counselor" and "systems programmer I" are classified in Level 1. Data from the external salary marketplace shows that the admissions counselor would be paid on average about $32,000 annually, whereas the systems programmer is likely to earn closer to $50,000. Both jobs are valued at the same classification level within MIT, however the average salaries for the two positions are quite different. By identifying the part of the salary band a particular job should be paid within, the new broad band system will provide individuals with a more realistic view of how they are paid compared with "market" for the kind of work they perform. Here is an illustration of the salary bands, which will be in effect until June 30, 2001.

Six "compensable factors" were used to determine the new classification level for every administrative staff position on campus. These factors include collaboration; communication; influencing and leading; critical thinking and problem solving; knowledge, skills and expertise; and responsibility and accountability. The full classification model is available to view and print from the Compensation Office Website http://web.mit.edu/personnel/www/compensation/.

In February, each staff member received an individual letter with their level, salary band, and market zone as well as a packet explaining the new system. The classification level of every administrative position was reviewed by the senior officer or department management head who oversees the position, and no individual’s salary will be decreased as a result of the new system.

The factors to consider in determining merit pay increases continue to include the following: fulfillment of job performance requirements, contributions to results, peer comparison/internal equity, and recognition of superior performance. MIT staff members will be paid within the minimum/maximum boundaries of the assigned salary band. The market zone dividers within each band should be used as guidelines for determining market competitive salaries.

When an employee’s salary is above the market zone assigned to the job, the manager may do any of the following when making merit pay allocation decisions.

The information packets provided to administrative staff are available to faculty through their administrative officer, the Dean’s Office, or the Human Resources Department.

Questions about the new classification and compensation system for administrative staff may be directed to me at 3-4279.
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