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Compensation Program Procedure Modifications

Montgomery College’s compensation system provides a competitive level of compensation that will attract and retain the best-qualified employees, reflects prevalent wages and salaries in relevant labor markets, and ensures that jobs and salaries bear equitable relationships to one another.

This study is focused on the alignment of jobs within our salary structures, not individual employees’ pay. If there are any changes to the staff and administrator salary structure and/or an employee’s pay grade, we anticipate HRSTM will submit implementation plans by June 30, 2021. While some of the activities for the staff and faculty studies will be performed concurrently, due to additional complexity and analysis required for faculty data, it is anticipated that HRSTM will submit implementation plans for full-time faculty by December 31, 2021.

Referencing the approved changes to Policy 35001, Compensation Programs (PDF, Get Adobe Acrobat PDF Reader.-Link opens in new window.) , on June 17, 2019, the modifications to the procedural changes have been critically reviewed and are being thoughtfully implemented and will be reflected on July 1, 2021. The recommendations for modifications for these procedures were posted for public comment, resulting in significant feedback on a number of the recommendations. Over the past year, these comments and concerns have been thoroughly reviewed and considered by the Office of Human Resources and Strategic Talent Management (HRSTM), the President’s Executive Council (PEC), the Senior Administrative Leadership Team (SALT), and Dr. Pollard. We had anticipated that these new procedures would have been effective in a more timely fashion, but leadership believed that College employees deserved to have their opinions and ideas heard and considered before final approval for implementation.

Longevity Award for Staff and Administrators

Current Procedure:

An employee with satisfactory performance who has been at the top of their salary grade for five consecutive years is eligible for a Longevity Award equal to $1,560 added to the employee’s base salary.

Compensation Procedure Recommended Modification:

The Longevity Award of $1,560 shall be awarded as a one-time, lump-sum payment, not added to the employee’s base salary.

Rationale for Recommendation:

The integrity of a market-based compensation program is based on the maintenance of internal and external equity. Salary adjustments outside of these considerations create inconsistencies and ultimately jeopardize the validity of the program.

Leadership Decision, Justification, and Comments

This recommended procedure was approved to maintain the integrity of our market-based compensation system.

Dr. Pollard and the senior leadership highly value and respect an employee’s longevity with the College. This longevity is acknowledged at the annual Employees and Retirees Recognition Luncheon.

Effective Date: July 1, 2021

Degree Attainment for Staff and Administrators

Current Procedure:

An increase added to base salary equal to the FY increment for the attainment of a higher-level degree.

Compensation Procedure Recommended Modification:

The Degree Attainment Award shall be awarded as a lump-sum payment equal to $1,500 not added to the employee’s base salary. An employee who has used the College’s Educational Assistance Program (EAP) to fund the degree is not eligible for the Degree Attainment payment.

Rationale for Recommendation:

The integrity of a market-based compensation program is based on the maintenance of internal and external equity. Salary adjustments outside of these considerations create inconsistencies and ultimately jeopardize the validity of the program.

Leadership Decision, Justification, and Comments:

This recommended procedure has been approved with one modification: the Degree Attainment Award shall be paid regardless of an employee’s use of the College’s EAP funds.

Effective Date: July 1, 2020

Salary Adjustments Upon Reclassifications and Promotions

Current Procedure:

An employee’s salary is increased based on the percent increase in alignment with the salary grade mid-point progression, plus an additional two percent for each additional grade.

Compensation Procedure Recommended Modification:

The procedure modifications provide for an increase in pay in accordance with the established guidelines.  This modification allows for flexibility to ensure best practice in maintaining our new market based compensation structure.  The guidelines that have been established for employees whose positions may be re-classified an increase in salary of between 4% and 11% depending on the grade of the new classification and the employee’s salary placement within the salary range.  The salary for an internal employee who has been selected as a successful candidate may be eligible to have their salary replacement determined similar to that of an external candidate.

Rationale for Recommendation:

The midpoint progression under the prior compensation system ranged from 6 to 10%, while the midpoint progressions under the market- based compensation program range from 8 to 15%. Promotions of 15% are well above the industry norm and increases of 8 to 15% are fiscally unsustainable.  Additionally, internal candidates will be eligible to have their salary placement determined similar to that of an external cadidate. 

Leadership Decision, Justification, and Comments:

The recommended procedure has been approved based on the need to maintain a fiscally sustainable compensation program. Further, it is noted that it is a prevelent practice of a market-based program to recognize the increased complexity, impact, and scope of responsibility by providing higher percentage increases at higher salary grades, and, traditionally, a promotion to a higher grade should result in an employee’s salary in the new range being lower to reflect a learning curve in the new role.

Effective Date: July 1, 2021

Overtime Pay

Current Procedure:

Exempt employees are eligible for straight overtime, upon approval, for hours worked over 40 within a week.

Compensation Procedure Recommended Modification:

College leadership recognizes the need for exempt employees to work in excess of 40 hours when special projects and/or critical initiatives are underway. “Special Project Pay” has been developed which will provide and increase in base salary to employees who are identified as serving in a critical role to meet a major College initiative or project

Rationale for Recommendation:

Although it has been the College’s practice to pay straight overtime to exempt employees, it is not a best practice for salaried employees.

Leadership Decision, Justification, and Comments:

Exempt employees will no longer be eligible for overtime pay; as salaried employees, they will begin reporting time on an exception basis, not on an hourly basis, as is current practice.

College leadership recognizes the need for exempt employees to work hours in excess of 40 when special projects and/or critical initiatives are underway. It is not, nor will it ever be, an expectation for an indefinite duration, without “Special Project Pay” consideration providing for a temporary salary increase.

Effective Date: July 1, 2021

Definitions of Overtime Hours

Current Procedure:

Overtime is defined as hours worked in excess of 40 hours in a work week. Holiday leave, court attendance leave, bereavement leave, and administrative leave hours authorized solely due to the emergency closing of the College are included for purposes of computing the 40 hours worked.

Compensation Procedure Recommended Modification:

Only those hours actually worked will be used in computing 40 hours worked for overtime purposes. Holiday leave, court attendance leave, bereavement leave, and administrative leave hours authorized solely due to the emergency closing of the College will not be included.

Rationale for Recommendation:

Consistent with the Fair Labor Standards Act, overtime is paid based only on the hours worked

Leadership Decision, Justification, and Comments:

Holiday leave, court attendance leave, bereavement leave, and administrative leave authorized solely due to the emergency closing of the College will continue to be included for purposes the 40 hours worked.

This provision is provided to employees covered under the AFSCME collective bargaining contract and the leadership supports the treatment of all employees on an equitable basis.

Effective Date: N/A

Special Project Pay for Exempt Staff

Current Procedure:

N/A - New

Compensation Procedure Recommended Modification:

Staff exempt employees may receive a temporary increase in base salary (“special project pay”) when serving in a critical role in a major College initiative for an approved project.

Rationale for Recommendation:

As exempt employees will no longer be eligible for overtime pay, “special project pay” will recognize the significant efforts of an employee serving in a critical role in a major College initiative.    

Leadership Decision, Justification, and Comments:

College leadership recognizes the need for exempt employees to work hours in excess of 40 when special projects and/or critical initiatives are underway. It is not, nor will it ever be, an expectation for an indefinite duration, without “Special Project Pay” consideration providing for a temporary salary increase.

Effective Date: July 1, 2021