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Salary Setting Goals
Our goal at UCSB is to compensate our staff employees fairly, equitably and consistently. The two main drivers behind how we do this are:
• Pay Methodology
• Budget
The Career Tracks framework and salary structure are both market based and therefore allow us to focus on how our pay compares to the labor market.
SALARY SETTING GOALS:
1. Pay fairly, equitably and consistently. Two main drivers of pay = Pay Methodology and Budget.
2. Pay Methodology = Approach Salary Setting Holistically & Consistently
- Evaluate all salary setting factors for every hire, promotion, reclass and equity increase.
- Be consistent in how you prioritize the factors
- Avoid a one-size-fits-all approach
- Establish defensible pay practices
Salary Setting Factors
We believe that with evey new hire, promotion, equity or reclassification that each case is unique and a variety of factors should be evaluated to determine the most appropriate pay for that position. Keep in mind that UCSB is a public, higher education employer and how we're funded is an extremely important part of the equation. We're funded through student fees, federal contracts and grants, state tax dollars, and gifts. As such, we have a fiduciary responsibility to maintain sound, equitable and defensible pay practices.
Internal:
- Budget
- Policy
- Internal pay practices
- Internal pay equity
- Criticality of position
- Performance
- Salary of supervisor or direct reports
- Position in range (% into range)
- Internal experience at or near level
- Strength of classification
External:
- External experience at or near level
- Transferrable skills, knowledge and abilities
- Required unique or specialized skill set
- Recruitment and/or retention difficulties
- External/market pay equity
Placement in the Range
Where in the salary range should employees be paid?
Why do we have market based salary ranges if we don't plan to pay everyone at midpoint?
We know that midpoint represents the average market median, so should everyone be paid at midpoint?
- Having salary ranges with midpoints as a reference means that the midpoint should represent just that - a reference point.
- ON AVERAGE, half of all salaries in the labor market data set fall below the midpoint and half fall above.
- We expect salaries to be dispersed throughout the salary range to reflect the differences in experience, knowledge, skill, and service that different employees bring to the position.
- Generally speaking, we expect that employees with less experience, less knowledge, less skill will be paid in the lower section of the range.
- And, we expect that employees with more seasoned experience at their level, more knowledge and more skill to be paid in the middle section of the range.
- Keep in mind that each division has their own unique budget concerns, priorities and limitations so these are just general guidelines and you should be paying close attention to what the internal divisional practices, priorities and limitation are.
- Overall, placement in the range is largely influenced by a holistic review of the salary setting factors.