Contracts: Compensation Adjustments
The BOR Salary Guidelines for Non-Faculty Contract Employees identify the mechanisms available for adjusting the compensation of employees on MUS employment contracts and Letters of Appointment. Supervisors and the HRS Compensation Office work together to determine the most appropriate mechanism, prepare the request, and coordinate approval through the Commissioner of Higher Education. This page covers when each mechanism is appropriate and how the process works.
Who This Applies To
Contracts
Including Letters of Appointment and MUS Contract Professionals
Before You Begin
A current performance evaluation is required for most compensation adjustment requests. If the employee does not have a current evaluation on file, complete one before contacting HRS about a request. Contact the HRS Compensation Office to confirm documentation requirements for your specific situation before preparing any submission.
All requests must be submitted to HRS for review and forwarded to the Commissioner of Higher Education for approval. Salary adjustments of greater than 20% without a corresponding increase in duties and responsibilities require Board of Regents approval. HRS will advise on the appropriate approval pathway for your request.
Process
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Before preparing any request, reach out to the HRS Compensation Office to discuss your situation. HRS will help you determine which mechanism is most appropriate given the circumstances, confirm the employee's eligibility under the BOR Salary Guidelines, and advise on the documentation needed to support the request. Early consultation with HRS is strongly recommended given the documentation requirements and Commissioner approval process for most mechanisms.
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Working with HRS, review the descriptions below to confirm which mechanism fits your situation.
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An annual percentage or flat dollar increase intended to be distributed among eligible employees. The amount and effective date are established by the Board of Regents. Campuses may elect to award merit increases using across-the-board funds for employees demonstrating outstanding performance above the average campus rating, based on performance evaluations.
To qualify: the employee must have been employed in their current position for at least six calendar months prior to the effective date.
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A permanent or temporary base adjustment, or a one-time lump sum, used to retain an employee with valuable knowledge, skills, or abilities vital to the University's mission whose resignation would have a significant adverse impact on critical or urgent work.
To qualify:
- The employee must have completed at least three full contract terms
- No more than one retention adjustment may be received in any two consecutive year period
Documentation required:
- Explanation of the adverse impact if the employee resigns and a summary of their value to the institution
- Relevant salary survey data from CUPA or other sources
- Existing salary relationships among comparable positions within the campus and MUS
- Budget availability, funding source, and long-term impact on tuition
- Evidence the employee has higher-paying opportunities with other employers
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A salary adjustment used to resolve pay inequities among employees performing similar work under similar conditions requiring a comparable level of knowledge, skill, or ability. A retention adjustment granted to other employees may not be used as the sole justification for an internal equity request.
To qualify:
- The employee must have completed at least three full contract terms
Documentation required:
- Explanation of the inequity
- Position and salary comparisons within the MUS confirming an internal equity problem
- Budget availability and funding source
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A one-time lump sum payment recognizing exemplary service or a contribution beyond the scope of the employee's regular responsibilities. This does not affect the employee's base salary.
To qualify:
- The employee must have been continuously employed in their current position for at least 12 calendar months
- The employee must not have received a lump sum bonus in the most recent 12-month period
- The work must significantly exceed standard expectations in quality, quantity, creativity, initiative, and effort
- The employee must have maintained consistent exemplary performance as evidenced by regular evaluations
- The accomplishments must have occurred within the prior 12-month period
The amount typically may not exceed 10% of the employee's annual base salary or $10,000, whichever is less.
Documentation required: written documentation addressing the above eligibility criteria along with the requested dollar amount, submitted through HRS to the Commissioner.
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A one-time signing bonus awarded upon approval of an employee's initial contract when the campus chief executive officer verifies the bonus is necessary to secure the hire. This does not affect the employee's base salary.
The amount typically may not exceed 10% of the annual base salary in the initial contract or $10,000, whichever is less.
Documentation required: written verification from the campus chief executive officer that the bonus is necessary to secure the hire, submitted through HRS to the Commissioner.
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Working with HRS, gather all required documentation for the mechanism you are requesting. HRS will advise on what documentation is needed based on your specific situation and help ensure the submission meets the Commissioner's requirements. The documentation requirements vary significantly by mechanism and incomplete submissions will delay Commissioner approval.
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HRS will review your completed submission, conduct any necessary compensation analysis, and forward the request to the Commissioner of Higher Education for approval. For adjustments exceeding 20% without a corresponding increase in duties and responsibilities, HRS will coordinate submission to the Board of Regents. HRS will communicate the outcome to you and your department.
Frequently Asked Questions
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Unlike staff positions, there is no reclassification mechanism for contract employees. If the expanded responsibilities represent a genuine increase in scope and authority, a retention or internal equity adjustment may be appropriate depending on the circumstances. Contact the HRS Compensation Office to discuss the most appropriate approach before moving forward.
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Yes. The BOR Salary Guidelines apply to both MUS contracts and Letters of Appointment. Contact HRS to discuss your situation and initiate the request process.
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Yes. Any salary adjustment of more than 20% without a corresponding increase in duties and responsibilities requires Board of Regents approval. All other adjustments are approved by the Commissioner of Higher Education. HRS will advise on the appropriate approval pathway for your specific request.
Contact this Team
For questions, please submit a ticket through AskHR, email askhr@umontana.edu, or call 406-243-6760.