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Compensation Guidelines

Pay Grade Structures

The University of Houston uses the following pay grade structures to establish compensation limits for jobs:

    1. UHN and UHE pay structures for most staff jobs

    2. TDS pay structure for trades and skilled jobs

    3. RSN and RSE pay structures for research staff jobs

The structures are based on competitive practices and internal equity considerations, and provide the possibility for progression to more responsible jobs with higher and broader pay ranges.

Pay structures are intended to:

  • define the competitive pay position of jobs for the University to the relevant external market

  • establish differential pay levels between jobs to recognize differing demands

  • establish lower and upper limits of value for each job.

Midpoints of the pay ranges represent the university's desired competitive position to the external market and are determined by a statistical calculation based on external salary survey data for benchmark jobs in each pay grade. The minimum and maximum of each pay range represent the minimum and maximum values, respectively, to the University of all jobs assigned to that particular pay range.

In most cases, up to the top of the first quartile is considered the range of value for a newly hired employees who meets the minimum qualifications of the job. Thus, most employees should be hired within the first quartile of the range, but departments have full authority to hire or promote employees up to midpoint. Hiring employees above midpoint requires prior approval by the Human Resources Department.

Hiring employees below the minimum of the pay range is contrary to university policy and is not permitted. Conversely, the maximum of the pay range is the upper limit of pay for a job. An employee's rate of pay may not normally exceed the respective maximum for the job.

Review of Pay Structures

During the first quarter of each year, as part of the budget process, Compensation staff will review the competitiveness of its pay structures. The review will include (1) comparisons of the competitive status of the university's midpoints to the relevant external market; (2) a review of anticipated average movement of pay structures by peer and comparison organizations.

Based on findings of the review, a recommendation will be prepared for consideration by senior management concerning adjustments to the pay structures. The recommendation will include detailed cost analyses.