It is the policy of The Tobacco Institute to maintain a sound salary administration program with which to administer salaries in an equitable manner. The Institute will recruit, select, train, promote, compensate, transfer, discipline and release employees, and take any and all other personnel actions without regard to employee race, color, age, creed, sex, nationality, religion, marital status or handicap.
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It is the policy of The Tobacco Institute to maintain a sound salary
administration program with which to administer salaries in an
equitable manner. The Institute will recruit, select, train, promote,
compensate, transfer, discipline and release employees, and take any
and all other personnel actions without regard to employee race,
color, age, creed, sex, nationality, religion, marital status or handicap.
The objectives of the salary administration program are: (1) to
compensate employees according to the value of their job relative to
all others in the organization; and (2) to reward individual employee
performance. These objectives are accomplished through the use of:
a. A formal job evaluation system to establish and maintain
equitable relationships among jobs;
b. A competitive salary structure utilizing salary grades de-
veloped from job evaluation and market value of each job;
c. A formal employee performance evaluation program;
d. A salary increase program to reward individual employee
Salient Features of the Salary Administration Program
1. The salary structure utilizes multiple salary grades. Each salary
grade has its own salary range made up of the following:
Minimum - the lowest salary paid for a job in a specified
salary grade. Typically, the minimum is the starting salary
paid a new employee.
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Second Quartile. Represents the value halfway between the
minimum and the midpoint. Employees with significant rele-
vant experience and education may be hired within the second
Midpoint . The salary rate between the minimum and the
maximum of the salary range. The midpoint represents the
average salary paid to experienced employees.
d. Fourth auarti/e. Represents the value halfway between the
midpeint and the maximum.
e. Maximum The highest salary paid for a job within a
specified salary grade.
The salary structure will be reviewed every two years to determine
competitiveness in the market place.
Employees will have their salaries reviewed on the basis of per-
formance in accordance with the following schedule.
QUARTILE PLACEMENT REVIEW
Below minimum 6 months
First, second, third Annual
Fourth 15 months
Above minimum 18 months
Generally, employees will not be paid salaries above the
maximum for their salary grade. Exceptions must be approved by
the President of The Institute and will be based upon the unique
contribution of the individual to The Institute and the industry.
5. Salary increases are granted on the basis of individual employee
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6. The salaries of new employees will be reviewed on the basis of
performance annually at the anniversary of their employment.
7. Salary adjustments as the result of performance review are effective
the first day of the anniversary month.
An employee is eligible for a promotional increase when he/she is
placed in a different job in a higher salary grade. Promotional increases
may occur at any time during the year and will establish a new anni-
versary date for future salary reviews.
A transfer occurs when an employee is placed into a different
position within the same salary grade. Normally, a transfer does not
involve a salary increase.
PER FORMANCE EVALUATION :
Performance evaluation serves as the cornerstone of The Institute's
salary administrbtion program as well as the basis of any employee
development effort. It provides employees as well as management the
opportunity to develop a better understanding of what is expected
and what is achieved.
Each staff member will receive an annual formal performance
appraisal, which will be completed by each employee's immediate
supervisor. The timing of the evaluation coincides with The Institute's
merit increase process. The annual evaluation, however, does not
preclude continuous informal evaluation and feedback of employee
job performance throughout the year.
PERSONNEL PRACTICES 1/1/83
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The Personnel Department is responsible for the management of the
personnel records for all Institute staff. While the information
contained in the records is considered confidential, each employee
may inspect his/her file at any time. Supervisors or other Institute
personnel may review employees' records on a need-to-know basis.
This information will not be made available to outside agencies
without consent of the employee concerned.
The information contained in personnel records varies with each
employee, but the following information is required as a minimum:
(1) Index card with vital statistics
(2) Application for employment and/or resume
(3) Test scores if applicable
(4) Copies of personnel action forms
(5) Insurance enrollment forms
(6) Federal and state withholding statements
(7) Vacation and sick/personal leave records
(8) Annual performance appraisal.
Any additional memoranda regarding an employee's performance
may also be placed in the personnel file if signed by both the
supervisor and the employee.
RECRUITMENT OF PERSONNEL:
In order to provide the staff at The Tobacco Institute with
opportunities for career advancement, the following procedures have
been developed for hiring personnel.
(1) Each division director secures approval to fill a new position or
vacancy from the Personnel Office, and the President.
PERSONNEL PRACTICES 1/1/83
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(2) A position description is prepared by the hiring department and
presented to the Personnel Office.
The Personnel Office will conduct a careful search of all
personnel records to determine an appropriate match of the
requirements of the position and an individual's experience,
qualifications and performance.
(4) The Personnel Office will make recommendations of any quali-
fied internal candidate(s) to the division head.
The hiring department will notify Personnel of its intent to
interview any internal candidates and the results of such
(6) An external search will be conducted only after internal candi-
dates have been carefully reviewed.
(7) If it is determined that no internal candidates are qualified for
the position, Personnel will conduct an outside search.
During the first 3 months of employment, non-supervisory personnel
are considered to be in a training or probationary period with The
Institute. Supervisory and management employees have a 6-month
training or probationary period, During the training-probationary
period, managers will review and evaluate the progress of their
employees to determine mastery of job fundamentals and eligibility
for permanent status. The employment of any new employee may be
terminated at any time during the training-probationary period.
PERSONNEL PRACTICES 1/1[83
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Formal exit interviews will be conducted by the Personnel Depart-
ment for all terminating employees, if practical.
EMPLOYEE ADVANCES AND
All advances issued to employees must be approved in writing by
their Division Manager and the Vice President-Administration of The
Listed below are the policies and procedures relating to specific types
Temporary Travel Advances
Temporary travel advances will be issued to employees and will be
limited to the amount of cash required to meet out,of-pocket
expenses while traveling on Institute business.
The advance should be deducted from the expenses reported on the
Time and Expense Report for that period. Any portion of the
advance not used should be reimbursed to The Institute by check at
the end of the pay period in which the travel occurs. Checks should
be made payable to The Tobacco Institute and sent to the Accounting
Permanent Travel Advance
Field office employees and headquarters office employees who are
often required to travel on Institute business may request permanent
travel advances. The purpose of such advances is to provide a cash
flow to cover out-of-pocket expenses during the time lapse required
to process travel expense reimbursements.
PERSONNEL PRACTICES 1/1/83