How do we establish pay for an employee in an acting or interim role?

Employees may be asked periodically to serve in interim roles or assignments. These assignments may include taking on one or two additional tasks outside the usual scope of work, or assuming the duties of a higher-level position that is vacant.

Many employers have policies that address compensation for employees in interim roles. While an increase in compensation for an employee may not be required, typical adjustments to compensation include the following:

• A one-time payment or bonus to acknowledge the extra work related to new tasks.

• An increase to base salary for the duration of the interim assignment. For example, if the employee’s new role is at the same salary level and involves substantial additional work, an employer may offer supplemental pay of 5%-15%, depending on the nature and amount of the additional work. The amount of supplemental pay may be based on whether the employee functions in both his or her current position as well as the vacated position, or only in the vacated position.

• An increase to base salary to reflect a higher-level position. If the interim role is at a higher level, the employer may pay the employee a salary appropriate to that level position for the duration of the assignment.

Typically, once an interim assignment ends, the employee’s salary returns to the original pay plus any merit increases warranted during this time.