The UW–Madison current compensation system differs for different employee groups. This is for both starting pay and compensation adjustments. The compensation team was charged with developing a strategy which would identify the factors which should drive starting pay and adjustments. The approach intends for the University to be a competitive employer and align with University values and HR Design goals. The team’s approach recognized the various employee types affiliated with the University, outlining variations within this narrative. The team developed a vision statement for a new UW-Madison compensation program, as follows:

The University of Wisconsin-Madison compensation program is intended to provide competitive and equitable salaries to attract, retain and engage highly-qualified individuals into a wide range of occupations. To this end, the University of Wisconsin–Madison will:

• Have clear and accessible compensation program information available for its employees
• Provide a program that has the flexibility to allow for changes in the marketplace or other conditions
• Include compensation opportunities based on job responsibilities and that are competitive with the various markets in which the University competes for talent, and in consideration of the financial resources of the University
• Recognize and reward expertise, sustained contributions and performance
• Support career growth and development
• Include a process of continuous compensation program monitoring and review to optimize performance and avoid unnecessary complexities

Summary elements in the compensation strategy which are new include, but not necessarily limited to:

• Compensation be market based across all job types
• Performance management be formally in place on a regular, periodic basis for all job types
• This recognizes the process is in place for some job types currently, such as faculty
• Formal systems be established across all job types to apply adjustments to compensation as circumstances dictate based on performance and/or job responsibilities.

The team’s specific recommendations:

• A formal structure will be required to define “market.” Further, that structure will need to review/update market based information on a regular, periodic basis. A centralized campus office should establish a compensation analyst structure to help address this recommendation.
• The relevant market should be identified for all positions. Further, many positions should have compensation ranges. Subject to recommendations from the employee categories and titling teams, those positions for which a range is needed will not include certain groups of employees, such as faculty, researchers and other specialized positions.
• For positions that have compensation ranges:
  • Decisions should be made and compensation ranges should be established based on applicable market analysis
  • These decisions will require the involvement of campus compensation analysts familiar with applicable markets based on job category
  • Compensation analysts are expected to consider living wage by geographic location in setting market compensation depending on applicable employee categories
  • Pay ranges will be evaluated at regular intervals to ensure market changes are addressed. Pay ranges can also be evaluated outside of the regular schedule as circumstances require
• Compensation starting pay and adjustment guidelines should be developed with reference to the market midpoint and should be dependent on employee categories and titles established
• Comprehensive training programs and related tools will be required for all employees to ensure performance management operates effectively, recognizing performance measurement may vary depending on the responsibilities of a position
• Definitions, guidelines and effort criteria for overloads should be developed including maximum range limits
• Statutory legislation should be revised such that performance results can be addressed with compensation adjustments regardless of an employee’s classification
• Individuals are compensated in accordance with federal law and based on market, limiting overtime compensation to non-exempt personnel
• Student hourly workers should be evaluated as part of market review, while giving consideration to the flexibilities distinct to student workers versus other employees
• Graduate student (TA’s/PA’s) stipends should have market reviews
• An accountability chart should be developed outlining roles and responsibilities of key functional areas of campus specific to the various activities and elements of the compensation process (see draft table, Appendix A)