Compensation terms and definitions

Term Definition
Base pay The regular pay an employee earns for doing their job, not including extras like bonuses.
Below minimum adjustment A pay adjustment that brings the employee’s pay that was below the assigned pay grade minimum to the minimum of the pay grade.
Business title A title that provides a more specific description of the function or work performed. A business title may be used in job postings, an employee’s signature line, business cards, etc. Business titles are reviewed and approved by HR Compensation and Organizational Effectiveness to ensure they reasonably reflect the job duties, responsibilities and level of the position.
Career pathway A career pathway shows the different jobs someone can move into over time as they build skills and experience. In a job architecture, it helps employees see how they can grow — from starting roles to more advanced or specialized jobs within the same field or job family.
CIP code A code used to group similar academic programs for comparing faculty jobs. In compensation, CIP codes are used to understand faculty pay based on discipline. CIP is an acronym for the Classification of Instructional Programs and is maintained by the National Center for Education Statistics.
Comparator institutions An institution that meets a defined set of criteria and is used as a benchmark for evaluating and setting pay levels.
Compensation philosophy A set of principles and guidelines that the institution follows when designing and managing compensation.
Compression (pay) Insufficient distinctions in pay between employees who have differing skill sets and/or experience levels.
Compensable factors The qualities an employee brings to the job — such as their skills, experience, responsibilities and how they perform the work — that help determine where their pay should fall within the pay range.
Compensatory time (comp time) Provides the employee with time off instead of overtime pay. For each hour of overtime, an employee earns 1.5 hours of comp time to be used at a later time.
Competitors The other employers K-State competes with for talent.
Cost of labor Refers to what employers pay to attract and retain talent. This is distinct from cost of living, which reflects the amount individuals need to cover basic expenses in a specific location.
Education/experience equivalencies

Utilization of an education/experience equivalency is the practice of substituting education for experience and vice versa to meet minimum qualifications for a position. Equivalencies may only be utilized where noted in the job architecture.
Essential duties The main tasks a job requires for an employee to perform it successfully.
Exempt

A job that is classified as exempt under the Fair Labor Standards Act, or FLSA. Jobs in this classification are not eligible for overtime pay or compensatory time when work exceeds 40 hours in a workweek. These jobs are paid on a salaried basis, with pay that does not vary from pay period to pay period based on hours worked.
Faculty title The job title assigned to a faculty member based on their qualifications and attainment of rank. K-State faculty titles are listed in the University Handbook, section C10.
Flexible work arrangement A way to help arrange work time within the same workweek to minimize overtime or comp time. For instance, an employee may work 7:00 am to 4:00 pm instead of 8:30 am to 5:30 pm, or a supervisor may allow an employee to come in late after staying late the night before. To avoid overtime/comp time, the time must be adjusted within the same workweek.
FLSA (Fair Labor Standards Act)

The federal law that provides guidance on which jobs are eligible to earn overtime (nonexempt) and which do not (exempt). FLSA determinations are made by K-State HR Compensation and Organizational Effectiveness.
Hours worked Hours worked ordinarily includes all time during which an employee is required to be on duty or at a prescribed workplace. Hours worked may extend outside of scheduled work hours if the individual continues to do work activities that benefit the university. Paid time off for vacation, holidays, illness, etc. does not count as FLSA hours worked and does not contribute to hours calculated for overtime/comp time.
Job The work someone is hired to do, including tasks and responsibilities.
Job architecture A structured system that organizes all jobs into clear levels and categories so they are easier to compare and manage.
Job family A group of related jobs that use similar skills (for example, “Human Resources” or “Information Technology”).
Job profile A summary that describes what a job is, the level of work and key responsibilities.
Job title The generic title for a job. The job title serves as the official payroll title within the HR system.
Market The group of other employers we compare ourselves to when deciding what to pay. The university establishes a set of comparators as the university’s defined market from which we draw pay information.
Market data Pay information collected from other employers to help us understand typical pay for a job.
Market median The market median is the midpoint of the rate competitors pay for the defined job. 50% of competitors pay more and 50% of competitors pay less.
Minimum qualifications The basic skills, knowledge or experience a person must have to be able to perform the essential duties of the job.
Nonexempt

A job that is classified as nonexempt under the Fair Labor Standards Act, or FLSA. Jobs in this classification are eligible for overtime pay when hours worked exceed 40 in a workweek, or other daily or weekly thresholds as required by applicable state law. At K‑State, nonexempt jobs are paid on an hourly basis.
Overtime Pay for working more than 40 hours in a week (or other applicable state threshold). The employee is compensated at one and one-half times their regular rate of pay.
Pay equity Pay equity means employees are paid fairly compared to others who do similar work, based on job responsibilities, experience and performance — not personal characteristics like gender, race or age.
Pay grade A pay grade is a level in the established pay structures. Each job is assigned to a pay grade based on the type of work and its overall value to the organization. Every pay grade has a minimum, midpoint and maximum, reflecting the range within which jobs within that grade are paid.
Pay grade maximum The highest rate of pay allowed for a job assigned to the pay grade.
Pay grade midpoint The middle of the pay range. It shows the “target” or typical pay for a job when someone is fully skilled in the role.
Pay grade minimum The lowest rate of pay allowed for a job assigned to the pay grade.
Pay range The full span of pay for a job, from the lowest to the highest amount normally paid.
Position An individual employee's role within a job. Multiple employees may hold different positions within the same job title.
Position description

A document that outlines the duties, responsibilities, and requirements of a position.
Primary duty The principal, main, major or most important duty that the employee performs.
Range penetration A percentage showing how far into the pay range an employee’s pay has moved. An employee paid at the grade midpoint has a 50% range penetration.
Range placement Where an employee’s pay falls inside the pay range (near the minimum, midpoint or maximum). Range placement is based on compensable factors.
Salary survey

A validated study that gathers pay information from many employers. Salary surveys are used to compare pay to the market.
Workweek At K-State, this is defined as Sunday at 12:01 am to Saturday at midnight.