September 23, 2024  |   

September 2024

Please find the recording and slide deck for the compensation focused town hall here and the Q&A from that session here.

Please review all FAQs and wait until you receive your direct employee notification in late October before reaching out to CIRES HR. The purpose of these frequently asked questions (FAQs) is to provide you with information on the new 2024 Compensation Plan recently completed by CIRES and how it will be administered in the future.  CIRES HR will be working hard on implementing the structure throughout October, and only a few members of the team are able to answer related questions.

Important note: The 2024 CIRES Compensation Plan only applies to full- and part-time research faculty roles (professional research assistants/associate scientists, research associates/research scientist) employees. This plan does not apply to teaching faculty, administrative positions, researchers who work as part of a teaching faculty research group, post-doctoral roles, or intermittent and seasonal employees. 

Q. Why did CIRES hire Employers Council to develop the compensation plan?

  • A. Compensation design and practice is a very specific skill set within the human resources field. Employer’s Council consultants provided objective, third-party expertise in compensation to help us establish a new pay system. Additionally, to keep current with best practices/industry trends, it was appropriate to use Employers Council to assist us in aligning our pay practices with the current market and culture of CIRES. 
  • Additionally, when campus delegated compensation compliance and administration for research faculty groups to the campus institutes in 2021, CIRES did not have the internal compensation expertise to manage a project of this scope without bringing in external expertise. As of April 2024, to effectively support the implementation and maintenance of this new structure in an ongoing way, CIRES HR created a compensation analyst position and hired a new team member into this role.

Q. Did CIRES contact other competitors to ask what salaries they are paying? 

  • A. The short answer is “no.” We did not contact competitors when gathering data for this project and we will not contact them in the future. The reason is that we must comply with antitrust laws. Often when people think of antitrust laws, they tend to think more about competition for goods and services in the marketplace, which is certainly a major reason the law exists. However, there are also antitrust laws that apply to employers competing for talent in the labor market. Lawful exchanges of market and salary data can be achieved by using “a neutral third party to manage the exchange” (pg 5). One way to legally get the relevant data needed to inform our decision-making process was to use Employers Council as that third party.

You can learn more by visiting https://www.justice.gov/atr/file/903511/dl. “This document is intended to alert human resource (HR) professionals and others involved in hiring and compensation decisions to potential violations of the antitrust laws” (pg. 1).

The Department of Justice (DOJ) and Federal Trade Commission (FTC). (2016, October). Antitrust Guidance for Human Resource Professionals. U.S. Department of Justice. https://www.justice.gov/atr/file/903511/dl. 

Q. What is CIRES’ new total rewards philosophy?

  • A. As part of developing a new pay system, CIRES examined how total rewards should align with CIRES’ short- and long-term objectives. The following total rewards philosophy was developed:

At CIRES, we are committed to conducting innovative research that advances our understanding of the global, regional, and local environments and the human relationship with those environments, for the benefit of society.

Our total rewards philosophy acknowledges the enormity of both our mission and the challenges to reaching it. CIRES is an international leader in conducting cross-cutting environmental research of the highest quality while bridging fundamental science and service to society. We build leaders, scientists, communicators, and teams dedicated to developing sound and trusted information to address environmental challenges. We embrace a positive and inclusive culture and are committed to recruiting and retaining talented employees from a diversity of backgrounds and experiences, recognizing that CIRES thrives when our people do.

CIRES approach to compensation is a market-to-midpoint philosophy that provides competitive base pay (at the median/50th percentile of the estimated market average for each functional title/position) when employees are fully proficient and meeting expectations and based on the analysis of our competitive market and the organization’s ability to pay.   We support a fair, equitable, and consistent approach to compensation for all employees, and recognize individual results through the use of a merit review process based on performance and the achievement of goals.

At the same time, we endorse a healthy work-life balance which honors our personal relationships and families. We strive to provide a competitive, total rewards program that includes base pay, comprehensive benefits, recognition programs, and development opportunities based on financial conditions and strategic objectives, as compared to other employers in our industry and community.

Our compensation system is designed in a good faith effort to ensure that employees are not discriminated against on the basis of age (40 and over), race, sex, sexual orientation, gender identity, color, religion, national origin, disability, military status, genetic information, or any other status protected by applicable state or local law and that any wage differentials between employees engaged in substantially similar work are based on even and consistent application of the legitimate business-neutral factors outlined in state law. 

Q. Does CIRES use a pay-for-performance model for compensating employees?

  • A. A pay-for-performance model is consistent with the culture and commitment to CIRES’ core values. CIRES rewards employees for performance that contributes to both the individual department’s goals as well as CIRES and CU overall goals. CIRES currently has a “pay-for-performance” model which is known as the Annual Summary of Accomplishments (ASA) process and serves as our institute-wide performance management process. In years where the Board of Regents have approved a merit allocation process for eligible research faculty, an employee’s rating during the ASA process is a major factor in determining their annual merit increase.

Q. When will this new Plan go into effect?

  • A. The new CIRES Compensation Plan will be effective on October 1, 2024, and any adjustments to pay will be reflected in the October 31, 2024 check. Each full-time/part-time employee will receive a Confidential Compensation Employee Notification from Human Resources explaining any changes related to his or her position. Notifications will also go out to eligible employees who are not receiving an increase, to confirm review of their salary information and that it was found to be competitive in the new structure.

Q. When am I eligible for my next merit increase?

  • A. The most common and consistent way managers can reward employees is through performance-based merit increases that typically occur on an annual basis, subject to financial feasibility and university leadership approval (Board of Regents). The annual performance review period runs from July 1 to June 30 of each year, with performance ratings due in August.  Merit allocations are typically paid out in January of each year to eligible employees. 

Q. How much can we expect for a merit increase in the future?

  • A. The merit budget is determined and approved on an annual basis by the CU Board of Regents. Merit increases are awarded based on an employee’s performance review and relevant campus criteria. They are not guaranteed.  Additionally, in some years, it’s possible that campus or CIRES will choose to administer an across-the-board increase to eligible employees in lieu of a merit increase, which is different from a merit or cost of living increase. 

More information on current campus budget scenarios is available here. 

Q. Will employees receive a cost of living increase?

  • A. CU does not grant cost of living increases at this time. We allocate pay increases based on the employee’s performance and achievement of core values and performance competencies through the campus merit process, when approved for a given year.  As noted in the prior question/response, it’s possible that some years, campus or CIRES will choose to administer an across-the-board increase to eligible employees in lieu of a merit based increase and this is different than a cost of living increase.  

Q. Does the new compensation system compare people or jobs?

  • A. CIRES’ new compensation system considers career track and seniority in track, functional title, job content, and qualifications only. Demonstrated achievement of performance goals and objectives, core values, and competencies result in determining what pay increase employees are eligible for on an annual basis.  Increases are contingent upon available funding.

Q. How was my functional job title matched to the survey data?

  • A. To identify the most relevant match between CIRES’ functional job titles and the survey job description, we considered factors such as the education required, degree of knowledge/skills, career track progression, span of control, reporting relationships, scope of decision-making authority, types of decisions made, impact on CIRES of such decisions, and autonomy.  While exact comparisons may not always occur, compensation best practices are used and we take care to ensure that a significant degree of comparability existed before using the survey data. Employers Council also solicits input from CIRES HR, who works with supervisors and department heads regarding the quality of the survey job match.

Q. Which surveys were used?

  • A. After Employers Council obtained a final job match, salary information was collected using the surveys below.  Efforts were made to use external labor market data that included organizations with 30 incumbent pay rates or more whenever possible to have a more statistically accurate average.
  • Employers Council Benchmark Compensation Survey
  • Employers Council Information Technology Compensation Survey
  • Payfactors Compensation Survey (used by CU and Employers Council)
  • Economic Research Institute (ERI) Compensation Survey
  • Mercer US SIRS Benchmark Standard Survey – High Technology – STEM Industry (used by LASP and other CU institutes)
  • Office of Personnel Management (OPM) (federal salary survey)

Q. How was my functional title placed in the salary grade?

  • A. First, CIRES’ incumbents completed individual job description templates for their position.  These were reviewed by CIRES Department Heads and Supervisors for accuracy. Next, Employers Council reviewed the job description templates to develop functional job titles that were then matched to a salary survey position.  Next, Employers Council consultants met with CIRES HR to further review and receive approval regarding the functional title survey match(es).  The placement of functional titles (not people or working title) in the hierarchy of lower to higher salary grades was initially driven by the salary survey market data.

The survey data gives us an estimate of what other employers pay for a job, not necessarily what CIRES should pay. The salary survey information provides an initial indicator to establish a value placed on a job.

We then make internal equity adjustments as appropriate to salary grades according to the alignment of jobs within CIRES. When making the internal equity adjustments, we take into account the degree of knowledge/skills, span of control, reporting relationships, scope of decision-making authority, types of decisions made, impact on the organization or unit of such decisions, and autonomy.

Q. How were the salary grades and range structures developed?

  • A. Positions are typically clustered together into salary grades according to comparable skills, responsibilities, and qualifications as well as relative market rates. After grouping CIRES’ Functional titles into salary grades, we develop a salary range structure aligned with CIRES’ career track levels.

Q. Were education or credentials considered when my job was placed in the salary grade?

  • A. Initially the placement of jobs (not people) in the hierarchy of lower to higher salary grades was driven by the salary survey market data. When matching the functional job title, we look at the qualifications necessary to function in the position. If specific education or credentials are needed to be qualified, they were taken into consideration as reflected by the market value.

However, if you possess skills, licensure, certification, or other qualifications not directly required in performing the job tasks, those would not be considered. We only look at the knowledge, skills, and abilities needed to meet the job responsibilities. Again, this is because this piece of the compensation strategy is to determine the value of the job compared to what the market is paying.

Q. Will I receive increased compensation for participating in certification programs or receiving a degree/advanced degree?

  • A. CIRES supports continuous learning and professional development. In some instances, ongoing training is required to meet the essential functions of the position. CIRES does not provide additional compensation for employees receiving certifications or degrees/advanced degrees. Participation in CIRES–funded training is intended to benefit employees and CIRES.  Application of acquired skills and knowledge as a result of attendance at a CIRES-funded training/certification will be considered in the employee’s overall performance.

Additionally, it’s important to note that some certifications and / or degrees beyond the

requirement may be helpful when being considered for a career track promotion, or if you want to apply for a future role that requires a certain certification or level of higher education.

Q. How did length of service factor into my salary grade assignment?

  • A. The compensation system design is based on each functional job title, job function and content, not an individual incumbent’s tenure.  An employee’s job tenure and expertise are acknowledged through career track rank and level, and associated salary range.

Q. How can I move to the next salary grade?

  • A. Your salary grade/range changes when and if you are eligible to receive a promotion into a higher career track level. Promotional opportunities vary and these types of opportunities are not a guarantee as they do not always exist given the size and structure of CIRES. 

Q. How often will the salary range structure be updated?

  • A. To start, CIRES anticipates conducting market analysis updates biennially to see how our pay practices relate to current labor market data. When this review is completed, we will consider if adjustments to the structure — or to certain functional areas of work — are recommended to keep us competitive.  Our current economic situation must also factor into any future adjustments as future adjustments will need to be supported by the original salary funding source, not by CIRES. Please note that market analysis reviews do not automatically result in a recommended increase for CIRES positions.

Q. What steps can I or my supervisor take to have my functional title changed or re-evaluated?

  • A. Functional titles may be reviewed if the responsibilities, skills, and other major changes in function occur.  Discuss the changes first with your supervisor and then work together to draft a new job description. Ensure you assign % of effort to major areas of responsibility per the job description template. Submit both the old and new descriptions to Human Resources for evaluation. You and your supervisor will be asked questions about how the changes have impacted the scope and nature of the job functions. Whether or not a re-evaluation is warranted will be determined in collaboration with CIRES HR. Remember, job descriptions are not meant to be a detailed list of every single thing you do in your job.  Job descriptions are written to reflect the general roles and responsibilities of the position.  A given position may be re-evaluated once a year or at the discretion of CIRES HR.

Q. What happens to employees whose pay is at or above the maximum of the range?

  • A. Again, we are not decreasing anyone’s pay with the implementation of this new compensation structure. In the case where an employee’s pay is at or above the maximum of the new salary grade, CU’s current policy is that the employee will still remain eligible for merit increases (assuming they meet the eligibility criteria). CIRES does not take pay away from an employee unless the situation involves a demotion. It is not ideal to have many people outside the maximum of the range, which is why it will be very important going forward that new hires are placed using updated salary placement guidelines that ensure pay equity, adhere to compensation best practices, allow salary growth for new hires,  and support the integrity of the compensation structure. 

Q. What happens if an employee’s salary is below the minimum of the range?

  • A. Employees whose pay is below the minimum of the salary range are eligible to receive a pay adjustment up to (at least)  the minimum of the salary range when the Compensation Plan is implemented.

Q. Why can’t CIRES pay me more?

  • A. CIRES’ total rewards philosophy is to recognize our highly skilled and engaged workforce.  We must attract and retain competent, professional, and results-oriented staff to achieve our mission. Pay must be balanced with all of the other financial demands necessary to sustain our business and support internal pay equity.

Q. What is an equity adjustment?

  • A. An equity adjustment is typically a one-time direct pay adjustment to the base salary that may be granted based on a review of the employee’s pay history, performance, qualifications, and current rate relative to others in the range. All equity adjustments must be reviewed and approved by the CIRES HR Compensation Analyst and the CIRES HR Director.

Q. Why isn’t past performance factored into this new structural implementation?

  • A. In October 2024, CIRES is implementing a new market-driven compensation structure based on what our positions should be paid per their required skills and qualifications, which is purposely separate from employee performance. This is a market alignment based on relevant labor market data and CIRES’ ability to pay.  Pay-for-performance occurs separately as part of the campus merit process and is typically based on an employee’s individual performance rating.

Q. Why are certain employee groups excluded from this new CIRES compensation plan?

  • A. Management of research faculty compensation and related compliance was delegated to the respective institutes by CU Boulder HR in 2021. Because CU Boulder’s HR support is decentralized, compensation for other campus employee groups is managed by different campus units.  For example, compensation and related compliance are managed as follows for these groups:
    • University staff, Temporary Staff, Retirees (largely in CIRES administrative units): CU Boulder HR
    • Tenured/Tenure-Track Faculty: The respective college or school with oversight from the Office of Faculty Affairs
    • Students: The Office of Student Employment and The Graduate School
    • Postdocs: Postdoc salaries are managed at the unit or research group level, and differ across the CU Boulder campus and CIRES. CIRES HR aspires to have more cohesive postdoc salary ranges, but recognizes our units have differing budget availability and pay practices, and in some cases need to align with a separate campus academic unit. CIRES HR will review related compensation in 2025-2026 to consider additional recommendations for this employee group.
    • Administrative Professional Research Assistant appointments: Salary for these positions are most closely aligned with their university staff peers. CIRES HR works with the hiring manager in these cases to determine an equitable and competitive salary.