To:         Chief Human Resources Officers, Academic Human Resources Leads
As you may know, the General Assembly ended its session yesterday without taking action on the Governor’s veto of the Fiscal Year 2019/20 state budget. Unfortunately, this means that the University’s customary annual raise process (ARP) as well as any grant of bonus leave will not occur this fiscal year for University EHRA and SHRA employees.
This is a very disappointing outcome for the university in spite of many efforts to obtain a more positive result for our employees. Rest assured, that the UNC System will continue to strongly advocate for the compensation needs of our employees in the months ahead, in spite of this most recent development.
Constituent institutions are reminded that they may continue to use existing authorities to pursue out-of-cycle salary adjustments to address labor market, equity, retention, and other criticial compensation needs in accordance with the University’s regular salary administration procedures. Below are several additional reminders regarding salary administration for the remainder of this fiscal year.
FLEXIBILITY FOR SHRA CAREER BANDING LABOR MARKET SALARY ADJUSTMENTS
As previously communicated, although the Office of State Human Resources (OSHR) did not approve changes to the SHRA career banding salary ranges for this fiscal year, OSHR did provide the University flexibility to grant SHRA labor market salary adjustments up to 110% of the position’s defined market reference rate when needed, with the approval of the institution’s chief human resources officer. This may be accomplished as long as any other required salary pre-approvals are obtained in accord with our established salary administration procedures.  [See HR Council email 12-06-2019.]
UPDATED EHRA NON-FACULTY SALARY RANGES
As previously communicated, System Office Human Resources has published updated salary ranges for EHRA non-faculty positions on a secured web portal. Institutions with management flexibility retain the option to create their own SAAO Tier II and IRIT salary ranges in consultation with System Office Human Resources and with approval of their Boards of Trustees. [See HR Council email 10-21-2019.]
CONTINUING SALARY AND POSITION PRE-APPROVAL AND CONSULTATION REQUIREMENTS
The proposed Fiscal Year 2019/20 Appropriations Act included a rescission of the existing legislatively mandated pre-approval and consultation requirements with respect to selected salary and position actions. Unfortunately, given the lack of a state budget being adopted, this change does not take effect. Therefore, the required University consultation with the Board of Governors remains in effect for the following human resources actions:

  • Any salary action when the salary action is 5% or greater of the June 30 salary and when the current or newly proposed salary is $100,000 or greater, and;
  • The creation of any new position with a position budget of $70,000 or greater.

Consult the existing salary administration matrix on the secured System Office HR web portal for current requirements.
POINTS OF CONTACT FOR FURTHER INFORMATION
For questions concerning any proposed EHRA and/or SHRA salary adjustment or position action, please contact any member of the System Office Human Resources classification and compensation team.
UNC System FY19-20-Compensation Memo