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Title 42 Clinical Research Support Compensation Plan

Overriding CC Compensation Principles

Entry salaries of newly hired employees must fit within the employing Department’s fiscal plan.

Each CC Department must carefully plan its salary expenditures for the entire fiscal year, including any pay adjustments, individual salary increases, cash awards, performance increases, etc., that may occur over the course of the year.

Generally, the lower half of each band range will be associated with position competencies from the fundamental level through the moderate level, while the upper half will represent advanced level. Base pay should be constructed so that employees are paid more when they apply more advanced or broad competencies in their job. Within this structure, each CC Department participating in the CRS program should construct a competency valuation plan for covered occupations/positions. The plan should address the competencies required in each band of the occupation/position and the levels of competency attainment that will be recognized and compensated within each band (see Attachment 1 for guidance on developing Department Competency Valuation Plans). Application of competency valuation plans to individual pay decisions should facilitate consistent and defensible pay decisions.

The entry rate should be set only as high as necessary to recruit an employee. It is important to provide a newly entering employee the opportunity for salary growth throughout his/her CC career based on his/her growth in position-specific competencies.

The CC is committed to internal pay equity. In establishing an individual entry rate, the qualifications of a newly hired employee should be compared with the qualifications and pay of existing staff who are being properly compensated and who occupy similar positions. Employees with similar competencies and position requirements should receive similar pay.

Base pay is only one aspect of total compensation. Supplemental pay may also be offered when necessary to obtain an employment commitment or to recognize special work or achievement. For example, it may be appropriate to offer a lower base salary with a recruitment bonus to obtain an employment commitment from an outside candidate.

Management of the Clinical Center recognizes that it is often necessary to provide a financial incentive to potential candidates in order to obtain an employment commitment. As a general rule, individual Department Heads may offer an experienced potential candidate a base salary rate that is up to 5% greater than the individual’s current salary rate, without further narrative justification.

Individual Pay Setting Guidelines

The pay rate of a newly hired should be set within the appropriate band range based on an assessment of the following factors:

As discussed above, salary offers that are up to 5% more than the candidate’s current base rate require no narrative justification. A pay slip or other documentation of current base earnings must be attached to the Request for Individual Salary Assignment or Increase form (Word template).

Attachment 2 provides a Sample Justification for Appointment With a Base Rate More Than 5% Above Current Base Salary. It should be used in concert with the Individual Salary Assignment or Increase form to justify base rates that exceed the 5% threshold, based on an assessment of the factors that are discussed below.

The Individual's Current Salary And Benefit Package

The aspects of an incoming employee’s current or prospective pay that may relevant to the establishment of his/her salary at the CC include:

It is important that like components of compensation be used in salary comparisons. Current base salary should be compared to the proposed CC base salary. Only the candidate's current compensation may be considered and it must be verified through such documentation as a Leave and Earnings Statement (pay slip). A projected raise to be received by the candidate may be used for comparison of the candidate's current salary, provided the raise will be received within 60 to 90 days and it can be confirmed by the candidate's employer.

It is usually inappropriate to establish a candidate’s CC base salary based upon the total compensation he/she currently earns from another employer. If the candidate has received supplementary pay such as recruitment or retention bonuses, an occupational specialty allowance, or a similar non-base payment within the last year of his/her employment, that amount may be used to justify similar supplementary pay in the CC. The Supplementary Pay program in the CRS includes payments such as recruitment and retention allowances, referral bonuses, allowances for temporary role, and other appropriate pay factors.

When comparing rates of pay, the duties of the employee’s current position also should be reviewed carefully vis-à-vis the CC target position. If the employee is receiving pay in his/her current position for duties that are additional, unique, or otherwise not included in the CC position, that rate should not be used to establish CC pay. For example, a supervisory rate should not be used to establish pay in a nonsupervisory position.

Fringe benefits that cannot be matched in the CC may be used in establishing base pay if a fringe benefits assessment is done that considers all types of benefits provided in the current position vis-à-vis those provided by the CC. The Compensation Comparison and Fringe Benefit Analysis Calculator may be used for this purpose and is available for download.

A competing offer from another institution also may be considered when establishing the CC salary, through a comparison process that is similar to the current earnings analysis described above. The prospective employee should provide a copy of the offer or the name of the institution and the position offered, the base salary and total compensation offered, and the date of the offer. If the offer is not in writing, managers must confirm its authenticity. Managers should consider the relevance of the offer vis-à-vis the CC position when utilizing a competing rate to establish the CC rate.

As discussed above, an experienced prospective employee may be offered a CC base salary that either reflects his/her current base salary or that provides for an appropriate incentive increase up to 5% over his/her current salary, without narrative justification.

Qualifications and Competencies of the Employee vis-à-vis the CC Position

When performing an assessment of an individual’s qualifications and competencies, managers should consider education, training and/or previous experience that demonstrates acquisition of competencies applicable to the CC position. Previous experience may include work in Federal organizations, the private sector, as a volunteer, on committees or task forces, or in professional organizations. Accomplishments or awards that relate specifically to a competency also should also be reviewed.

Documentation should address:

When discussing unique or scarce qualifications, the recruitment effort that was involved in locating the candidate and/or other information that details the shortage nature of the occupation or individual skill-mix should be included.

For pay setting purposes, consider where the individual’s competencies fall within the range of competencies required in the position. If the candidate's competencies are at the fundamental level through the moderate level, a rate in the lower half of the band range would be appropriate, while advanced competencies would dictate a rate in the upper half of the range.

Employees who are newly graduated from clinical training programs, with no CC relevant experience normally should be offered an entry salary within the range of the minimum entry to the 25th percentile. It is reasonable to assume that newly graduated employees will experience rapid increase in competencies and salary growth. Initial compensation should be set to accommodate this anticipated growth in competencies.

Within this overall structure, each CC Department should assess the candidate's competencies based on their competency valuation plan for the occupation or position. In addition, a careful comparison of competencies vis-à-vis existing staff competencies/salaries and/or an assessment of other compensation factors rates should be done, as described below.

Internal Alignment of Salaries Within the Employing Department and the CC as a Whole

The CC carefully reviews the pattern of entry and occupational development, the salary structure, the recruitment pools, and the qualification requirements of CRS positions to determine the assignment of individual occupations to clustered CRS pay band rates. These clustered pay bands have been established to facilitate the internal alignment of occupational pay ranges.

Within this context, it is important that managers review the “fit” of a prospective employee into the current competency/pay structure of the employing unit or the CC as a whole. Therefore, the qualifications of a newly hired employee should be compared with the qualifications and pay of existing staff in similar positions with similar competencies to insure that the candidate’s prospective salary will not disrupt internal salary alignment. Only valid pay of existing staff should be used in this comparison; pay that is “retained” or that is inconsistent with sound pay practices should not be used to establish rates for newly entering staff.

The Criticality of the Program/Position

Highly dynamic or emerging programs that are critical to current CC strategic efforts may require an aggressive compensation approach because of the demands that this type of environment will place on prospective employees. In these cases, managers should describe how the complex work environment impacts the position and its competency requirements; and/or how it affects the availability of candidates with the necessary skills-mix.

Similarly, the relative impact and visibility of the programs can be shown to affect the competencies required in the position. Organizations that are subject to ongoing scrutiny or interest often will require employees who possess both advanced competencies within their clinical discipline and enhanced skills related to presentation of information and negotiation.

These advanced competencies should be factored into the valuation plan for the occupation/position.

Supervisory/Managerial Responsibilities

While CRS managerial employees such as a Department Heads are assigned to Band III, there are no separate band rates or fixed salary percentages for performance of specific supervisory duties in the CRS program. Generally, CRS supervisors receive a base salary that is from 3% to 10% higher than the amount that would be paid if the position had no supervisory duties, but salaries up to 20% higher may be paid for unusually complex supervisory duties.

When hiring a supervisor, an individual assessment of the candidate's supervisory competencies vis-à-vis position requirements must be done to determine an appropriate salary rate. Numerous factors contribute to the complexity of supervisory positions and corresponding competency requirements and should be considered in establishing the base rate for supervisory positions. These include:

In addition, it is relevant to review the salaries paid to the subordinate employees within the unit to be supervised, and to compare the prospective supervisor's salary to the salaries of other CC supervisory employees with similar competencies and responsibilities. Generally, a new supervisor would be paid a base rate that is lower than the rates of more experienced supervisors in the same position (see discussion of internal alignment, above).

Note: temporary roles such as mentor or acting supervisor should not be recognized through base pay, but can be addressed through supplemental pay allowances or bonuses.

Market Rates

The CC is committed to maintaining its competitive posture in the health care market. We carefully construct rate ranges for occupations using valid market surveys. Occupations with similar characteristics and market rates are grouped together and are covered by the same pay ranges. Because it is very difficult to determine a valid market rate for an individual position, we do not recommend that this pay rationale be used on a regular basis. Should it be necessary to justify a rate of pay for a newly entering employee based on the “market rate” for an individual position, the case should be discussed in advance of salary negotiations with the Director, OHRM.

Attachment 1 - Department Competency Valuation Plans

Developing the Plan

Establish individual position or occupational competencies and benchmark profiles.

Bundle these competencies into benchmark profiles - profiles of workers that typify different competency levels.

Associate benchmark profiles with portions of the pay band for that occupation or position. Since Band I has the broadest range of pay and competencies, we recommend that 3 benchmark rates be distinguished within that Band. For example, Band I could be divided into thirds, with a “Learner” benchmark profile occupying the first 1/3rd of the band range, a “Producer” profile the middle third, and a “Journeyman” profile the upper third. For Band II and III, 2-3 benchmark profiles may be appropriate.

Application to Initial Hires

Assess the candidate’s competency level for the key competencies of the target position. Identify which benchmark profile the candidate most clearly matches, e.g., the “Learner”, “Producer” or “Journeyman” profile. Compare the candidate’s current salary to the rate range of the benchmark profile and apply one of the following pay strategies in selecting the CC rate:

If the candidate’s current pay is within the appropriate profile range, offer a base rate that is equal to the candidate’s current rate of pay. When necessary to obtain an employment commitment, an incentive from 1% to 5% more than the current base may be provided without narrative justification. If a rate higher than 5% is necessary, the offer must be justified based on the criteria outlined in the Title 42 Clinical Research Support Pay Setting Guidelines. Note that written justification of such a rate must be prepared (see the Sample Justification for Appointment With a Base Rate More Than 5% Above Current Base Salary).

If the candidate’s current pay is below the appropriate profile range, offer a rate that brings the candidate’s pay to the lowest rate of the profile range, e.g., the 34th percentile for a candidate that matches a “Producer” benchmark. If this results in an increase more than 5% over the candidate’s current base pay:

If the candidate’s current pay is above the profile range, offer an appropriate rate up to the candidate’s current rate of pay.

Application to Periodic Reviews (at least once a year)

Determine what percentage of your total CRS salary budget* will be available for compensation of individual growth in competency levels – the CRS Discretionary Fund. To do this:

This fund will be used to compensate CRS employees for individual competency growth. If you do assessments more than once a year, you should use only a portion of the fund for each assessment cycle. For example, only 50% of the fund should be used at one time if assessments are to be done twice a year. A plan for distribution of this fund within the unit also may be developed. The plan may be weighted to provide a higher distribution of funds to occupations or positions that are more critical to accomplishment of organizational objectives (weighted system) or may provide that funds will be allocated purely on individual competency assessments (unweighted system). For example, a Department with three CRS occupations, may determine that positions in occupation A should be allocated 50% of the CRS Discretionary Fund because of the more significant role those positions play in achievement of the organization’s mission, and that occupations B and C will be compensated under the remaining 50%. Under an unweighted system, no occupational distinction would be made.

Once the competency assessment timetable and a distribution plan have been developed, individual competency assessments can be done. Carefully assess each employee’s competency level on the key competencies for his/her position and document the assessment. Then, identify which benchmark profile each employee most clearly matches and determine the difference between the employee's current placement in the band and their benchmark profile. Target an appropriate rate of increase as follows:

All decisions should be documented and must reflect consistent and fair application of competency standards.

Total all target increases. If the total falls within your allocation, prepare individual pay adjustments to recognize individual competency assessments. If the total target rates exceed the allocation, adjust all of the target increases proportionally. Document all decisions and adjustments made.

*Note that because of multiple employment programs, the CRS salary budget will represent only a portion of the total salary budget for employees in CC Departments.

Attachment 2 - Sample Justification for Appointment with a Base Rate More Than 5% Above Current Base Salary

Note: Attach the Statement of Duties to be performed.

Appointee name currently holds the position of current position title at the name of current employer. His/her qualifications include (1-2 paragraphs detailing the competencies and accomplishments of the candidate vis-à-vis the requirements of the position offered).

Appointee name’s current base salary has been dollar amount per annum. In addition, appointee name receives supplementary pay in the form of (list type(s) of pay and dollar amount(s). (Various types of supplementary pay may be included, i.e., incentive or bonus pay that is paid on a regular or recurring basis including retention allowances, tuition reimbursement, consulting fees, etc.)

Our offer of XX base rate is XX% above Appointee Name's current base salary. (If applicable: we also are proposing to pay a recruitment bonus of bonus percentage and amount.) We have determined that our offer is necessary (insert justification from list below and include or attach the documentation required).

Compensation Justification: