Compensation

Program

The Compensation Program at Penn State Hershey is administered in accordance with all applicable Federal & State laws to include the Fair Labor Standards Act. Additionally, we take proactive steps to ensure our salaries are competitive. Maintaining compliance and a competitive edge are a few responsibilities of the compensation team.  We achieve this by:

 

  • Maintaining a competitive salary administration program to assure we attract and retain all highly qualified employees
  • Establishing job structures & salary ranges
  • Reviewing survey data to assure market competitiveness and recommending appropriate actions
  • Coordinating merit increases
  • Performing job analysis
  • Maintaining & updating job descriptions
  • Maintaining and updating compensation guidelines
  • Administering policies and procedures related to pay, such as overtime compensation

Elements

Pay Range

All rates of pay are set within a certain pay range. Pay ranges begin with a range minimum, midpoint, and maximum. Pay ranges are typically 50% wide. All jobs are assigned a pay range within a particular job.

Experience

There are two types of experience that are included in the calculation of total experience: directly related and indirectly related experience.

  • Experience that is directly applicable to the job (i.e. secretarial experience for a secretary job) is credited year for year of experience.
  • Indirect experience, although it has some relevancy to the job, is not directly applicable (i.e. customer service experience for a secretary job). Indirect experience is counted at a reduced rate (i.e. 2 yrs indirect experience = 1 year credited experience).
  • If experience is not relevant, it is not included when determining the amount of experience (i.e. life guard experience would not be relevant experience for a secretarial job).

Education

If you possess a degree that is required for a job you will receive full credit for that degree. For example, if a Bachelor’s degree is required (or a preferred qualification), and you hold that degree, you would receive full credit for the degree. If you hold a higher degree then what is required for the job, you will only receive credit for the degree required for the job. For example, if the job required an Associate’s degree but you have a Bachelor’s degree, you would only receive credit for the education that is required (Associate’s Degree). If a degree is not required for the job, you would not receive credit for the degree.

Equity

When setting your rate of pay, we also consider the internal equity of other employees in the same job. After your experience and education is calculated, we consider the qualifications of current employees in the same role and set your rate of pay at an equitable rate within the pay range.

 

Compensation information is applicable for all non-bargained, bi-weekly paid positions only. Compensation information for bargained positions is contained in the applicable union contract.

How is a starting salary determined?

A starting salary is determined by reviewing the qualifications (education and experience) that a candidate brings to the job. A starting salary will be set by placing it equitably within the pay range and in relation to the current employees in the same job title.

What does “equity” mean in relation to my pay?

This means that you are paid at a fair rate based on your qualifications and in relation to other employees in the same job title.

How often will I be paid?

Most employees are paid on a bi-weekly basis. You will receive your direct deposited pay on the Friday following the end of a pay period.

When will I receive my first pay?

If your start date is the first day of New Employee Orientation (Monday), you will receive your first pay 18 days later (Friday).

Do employees receive merit increases?

Non-Bargained employees (not covered by union contract) receive merit increases based on their individual performance. These merit increases typically occur annually, depending on financial viability.

Employees covered by union contracts receive pay adjustments as specified in their respective union contracts.

What is the difference between Exempt and Non-Exempt?

All jobs are classified as either exempt (salaried) or non-exempt (hourly) according to Fair Labor Standards Act (FLSA) regulations. Under the provisions of FLSA, employees who are considered non-exempt must receive overtime compensation where applicable. Employees who are exempt are not covered by the FLSA’s overtime compensation requirement.

How do you calculate the amount of experience I have for a job and how does this calculation determine my rate of pay?

There are 2 types of experience that are included in the calculation of total experience: directly related and indirectly related experience.

Experience that is directly applicable to the job (i.e. secretarial experience for a secretary job) is credited year for year of experience.

Indirect experience, although it has some relevancy to the job, is not directly applicable (i.e. customer service experience for a secretarial job). Indirect experience is counted at a reduced rate (i.e. 2 years indirect experience = 1 year credited experience).

If experience is not relevant, it is not included when determining the amount of experience (i.e. life guard experience would not be relevant experience for a secretarial job).

Once all directly and indirectly related experience has been counted, your rate of pay will be set by placing it equitably within the pay range and in relation to the current employees in that job.

I have a Bachelors Degree. Will I get credit for the degree when determining my rate of pay?

It depends on the type of job you are applying for and if a degree is required. If a degree is not required for the job, you would not receive credit for the degree. If a Bachelors degree is required (or a preferred qualification), you would receive full credit for the degree. If an Associates degree is required you would receive credit for the education that is required (Associates), but would not receive additional credit for the degree above what is required.

How do you maintain competitive pay rates?


To ensure that our pay rates are competitive, we conduct a comprehensive analysis of benchmark jobs (jobs that are commonly found in other organizations) on an annual basis. Based on this review, pay ranges and/or individual jobs may be adjusted to remain competitive with the market. Also, some jobs may be reviewed throughout the year to ensure that the pay ranges for these jobs are competitive in the market.

Compensation information is applicable for all non-bargained, bi-weekly paid positions only. Compensation information for bargained positions is contained in the applicable union contract.