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Compensation Glossary of Terms

UNT System Human Resources Compensation Glossary of Terms

Utilize the following glossary of terms to help you understand various aspects of UNT System’s compensation system and processes. Please note that specific policy and procedures may apply for each of the terms listed below.

Additional Pay: Supplemental pay for services performed in addition to or outside the scope of an employee’s regular assignment. Supplemental pay is in addition to, separate from, and does not affect an employee’s base salary rate. Types of additional pay include (but are not limited to) Longevity, Benefit Replacement Pay, Task, Augmentation, and Temporary Base Rate adjustment.

Annualized Compensation (Salary spread): Individuals paid on a 9-month appointment period may elect annualized compensation. With annualized compensation, the 9-month salary amount is paid out over 12 months. Additionally, any employee paid benefit premiums are deducted over 12 months.

Augmentation: A type of additional pay for performing temporary duties usually assigned to a higher pay classification than the employee’s regular position. Only exempt employees are eligible for augmentation pay and additional duties must be for a period of six weeks or more.

Base Pay: The compensation rate established and budgeted for a salaried employee for the appointment period established for their job (i.e. 12-month, 9-month, etc.). Base pay can be paid on a monthly or semi-monthly basis.
Benchmark jobs: A job that has a standard and generally consistent set of responsibilities from one organization to another, and for which data is available in valid and reliable salary surveys.

Classification: The assignment of a job title and pay grade to work that can be performed by one or more employees in the organization with similar job responsibilities, minimum qualifications, and knowledge, skills and abilities.

Classification/Job Analysis: Classification/Job analysis (also known as Job Evaluation) is a systematic process of evaluating the duties, responsibilities, scope, and complexity of a position description to determine the job title, job code, and salary grade that most appropriately matches the job specifications.

Classification (Job) Description: The written description of a classification that includes a classification summary, representative tasks, minimum qualifications and knowledge, skills and abilities (KSAs). Classification descriptions are more generic in nature to provide for potential differences in work between individual positions within the classification. Position descriptions (see definition below) are specific to the work in each individual position.

Classified Job: Job classifications that are assigned to a specific salary range with an established minimum and maximum salary.

Compa-Ratio: A comparison ratio that represents the correlation between base pay and the midpoint of the salary range assigned to the job. The compa-ratio is used to determine the relationship between an employee’s pay and the midpoint of the salary grade. A salary rate at the midpoint of a grade would be considered a 1.0 compa-ratio.

Compensation: All forms of financial returns, tangible services and benefits employees receive as part of an employment relationship.

Counter Offer: An offer to increase an employee’s salary in exchange for remaining with the organization after receiving a verified offer of employment from another employer or department.

Demotion: The permanent movement of an employee from one position in one job classification to a position in another job classification of decreased responsibility or complexity of duties and in a lower salary range.
Essential Functions: The fundamental job functions or tasks that an individual must be able to perform with or without reasonable accommodation.

Equity Adjustment: An adjustment to the salary of a job as a result of a comparison review of other employees’ salaries who are similarly situated (e.g. level of job responsibility, experience, education, etc.).

Equity Review: A process that analyzes internal salary data for a current incumbent or applicant for a job. Salaries and qualifications of incumbents in jobs classified in the same title or very similar titles will be evaluated in comparison to the salary and qualification of the incumbent or applicant to provide a recommended salary range.

Exempt: A job that is not subject to the overtime, record keeping, or minimum wage provisions of the Fair Labor Standard Act (FLSA) based on the salary and responsibilities of the position.

Fair Labor Standards Act (FLSA): Federal legislation that sets the federal minimum wage, overtime pay, equal pay, record keeping, and child labor standards for employees who are covered by the act and are not exempt from specific provisions.

Fringe Benefits: Employer paid benefits for eligible employees including health insurance, basic life insurance, retirement, Federal Insurance Contribution Act (FICA), unemployment, worker’s compensation, and benefit replacement pay.  Hazardous Duty Pay: Entitlement pay for eligible commissioned peace officers in the amount of $10 per month for every year of lifetime service credit accrued in a qualifying position. The amount of a part-time employee's hazardous duty pay is proportional to the employee’s FTE.

Job Code: The identification number assigned to a job title.

Job Title: A specific name given to a job that is reflective of the work performed by the job and the level of the job within the organization.

Longevity Pay: Entitlement pay provided to eligible employees at a rate of $20 per month for every two years of State of Texas lifetime service credit.

Market Adjustment: An adjustment to the salary of a job as a result of market analysis.

Market Analysis: A process that provides external (market) salary data for a job. Comparison jobs will be identified and salary data collected from relevant compensation surveys or from peer institutions. This data will be analyzed by Human Resources to determine the approximate current value for that job in the external marketplace.

Median Wage: The value of the salary that represents an equal number of salaries above and below it fora specific job classification.

Midpoint: The salary that represents the middle value of a given salary range.

Merit Pay: Compensation awarded to a staff or faculty member based on performance and in compliance with institutional guidelines and state regulations.

Non-Classified Job: Job classifications that do not have an established pay grade, and are priced based on external market comparisons.

Non-Exempt: A job subject to the overtime, record keeping, and minimum wage provisions of the Fair Labor Standards Act (FLSA).

Organizational Chart/Structure: A visual depiction of the job titles and hierarchy of relationships between jobs within a unit or institution.

Pay/Salary Grade: The alpha-numeric identifier for a salary range.

Pay Plan: An established set of salary grades and pay ranges that are used to pay classified jobs. The pay plan includes the job title, pay grade, pay range, FLSA classification and retirement eligibility classification.

Position Description: A written description for an individual position that provides job details specific to the position. Content is utilized both for job postings and the performance management system. Position descriptions are specific to the responsibilities in each individual position. Classification descriptions (see above definition) are more generic in nature to provide for potential differences in work between individual positions within the classification.Position number (PID): The unique 8-digit number assigned to a budgeted faculty, staff, or salaried graduate student position.

Promotion: The permanent movement of an employee from a position in one job class to a position in another job class of increased responsibility or complexity of duties and in a higher salary range.

Quartile: A distribution of a salary range divided into fourths. The first quartile corresponds to the 25th percentile, the second to the 50th percentile, the third to the 75th percentile, and the fourth to the 100th percentile. Quartiles provide guidelines for appointing employees within the salary range based on qualifications, performance, and competencies.

Reclassification: A change in the classification of a job as a result of a significant and permanent change in job duties. A reclassification always involves a change of title, but not necessarily a change of salary or salary grade.

Salary Range: The range of minimum to maximum compensation that a classified job may be paid.

Salary Survey: A process utilized to gather data on salaries paid by other employers for benchmark jobs.

Stipend: Stipends represent scholarship/fellowship payments to students for tuition, fees and living expenses. They cannot be tied to any obligation for past, present or future services. There can be no employer/employee relationship associated with a stipend payment.

Task payment: A type of additional pay for work based on completion of a specific assignment. These assignments are restricted to one-time services, or projects with a specified duration, that are separate from an employee's position and performed outside and in addition to the employee's regular work schedule. Only exempt staff and faculty employees are eligible to receive task payments.

Temporary Base Rate Adjustment (TBR): A type of additional pay utilized at UNT Health Science Center for the temporary performance of additional duties that fall within the employee’s current classification/pay grade. Only exempt employees are eligible for a TBR and the assigned additional duties must be for a period of four weeks or more.

Transfer: The permanent lateral movement of an employee from one position to another position assigned to the same pay grade.

Working title: An alternate job title that can be used to provide clarity for job postings, or to convey greater specification of the work performed. A working title is permitted as long as it is not another official job title and the working title does not misrepresent the level, authority or function of the position.