Employee Compensation

How Babson Stays Competitive

Market Data

The compensation department regularly reviews the external market to ensure the college is compensating positions competitively. The HR department feels strongly that transparency in the compensation process is critical. To that end, at any time a manager can request that the compensation department share the current market value for the positions in their area. Similarly, employees interested in learning the market value for their own position can also request this information from the compensation department. When a request is made, please allow for appropriate time to research and respond so that we can provide the most accurate and up-to-date information to you.

Market Data Sources

Market data comes from a variety of reliable third-party sources including but not limited to: The Survey Group, College and University Personnel Association, Western Management Group, Yaffe & Company, and Lawrence Associates. In addition, research is conducted on hiring ranges for appropriate matches at local and other higher education institutions. Different aspects of data are collected depending on the position being reviewed in order to ensure an appropriate comparison.

The Merit Process

Merit Process Defined

The merit process is designed to recognize employees on an annual basis who are meeting or exceeding performance expectations.

Merit Process Timing

The staff merit process takes place at the end of May/early June for a July effective date. All employees hired before April 1st of a particular year are eligible for the merit process. At the beginning of the merit process, the compensation department sends a request to the cabinet to work with their managers on employee increases for everyone in the division. If you are a manager, you should contact your cabinet member in early May to let them know you would like to be part of the decision-making process for your impacted employees. Faculty adjustments follow a different process and questions should be directed to the Dean of Faculty Office.

Recognizing Top Performers and/or Key Contributors

Promotional Opportunities

When a manager is looking to explore promotional opportunities for an employees it is best to start by creating a new position description by completing the Job Description Intake Form (see the Forms and Resources page to download the appropriate form). Once the form has been submitted, a member of the compensation department will be in contact within a week to discuss the options based on the information provided. If the promotion is to place an employee in a vacant position, please call a member of the employment or compensation department to discuss the process.

Monetary Recognition

The campus committee on compensation reviewed and finalized Bonus Guidelines (pdf) in 2013. A bonus is one option for managers exploring creative ways to meaningfully recognize their employees. If you feel that one of your employees meets the requirements in the bonus guidelines and you would like to propose a bonus, please complete the Bonus Request Form (pdf) and have your President’s Cabinet member sign off on it. Also, please visit the recognition site to read more about non-monetary ways to recognize employees.

Non-Monetary Recognition

We want to make sure you have the tools and resources you need in order to motivate, engage, and recognize your employees. The HR Recognition site has a number of tools and resources for you to review and utilize as you look to understand how to meaningfully recognize your employees.

Position Descriptions and Titles

Access to Position Descriptions

Position descriptions are kept in the HR department. Managers and employees can request the most updated copy of a position description by contacting a member of the compensation department. Please note that we do not keep formal copies of position descriptions for faculty positions.

Making Changes to a Position Description

As an entrepreneurial employer, the way we perform our work is always evolving. As a result, our positions are constantly changing and evolving. If an employee or manager reviews a position description and recognizes it is not an accurate reflection of the position’s responsibilities, then the description should be updated. The employee and manager should work together to update the document; when finalized, the manager sends it to a member of the compensation department for review.

Changing an Employee’s Position Title

If a manager believes an employee’s position title is not reflective of their work, the manager should contact a member of the compensation department to discuss options. Please be aware that position titles do not have any impact on the pay level for a position. Pay is determined by the responsibilities, education, experience, and other required skills outlined in the position description and not by the title or even candidate experience.

Overtime Pay Eligibility

According to the Fair Labor Standards Act:

Employees whose jobs are governed by the FLSA are either “exempt” or “nonexempt.” Nonexempt employees are entitled to overtime pay. Exempt employees are not. Most employees covered by the FLSA are nonexempt. Some are not.

Some positions are classified as exempt by definition. For example, “outside sales” employees are exempt (“inside sales” employees are nonexempt). For most employees, however, whether they are exempt or nonexempt depends on (a) how much they are paid, (b) how they are paid, and (c) what kind of work they do.

With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. These requirements are outlined in the FLSA Regulations (promulgated by the U.S. Department of Labor). Most employees must meet all three “tests” to be exempt.​​​