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.