Classification & Compensation
Guidelines for Compensation Planning
Please note: This page exists for the purpose of providing guidelines only and does not imply funding availability. Funding provided centrally for merit increases is communicated separately and updates will be provided on the "Salary Announcements" page of this website.
Performance management reviews are a critical component of professional development as well as a key part of the merit process. Managers are expected to complete a performance review annually for each employee. To evaluate and recognize performance appropriately, colleges and units establish the performance management process for their area. A distribution of performance ratings should correspond to a distribution of merit increase amounts to recognize performance, rather than applying an across-the-board approach.
The aggregate merit pool for each college and support unit is a pre-determined percentage (%) of eligible employees’ base salaries. Colleges and units should review their employees’ overall performance and internal compression factors based on the employee’s current salary.
Employees Eligible for Merit (Included in the Aggregate Merit Pool)
- Out-of-unit Administration, Staff, and Executive Services employees, regardless of FTE.
- Employees who were promoted (including promotions due to a reclassification) or received an equity, market, or other base pay increase with an effective date on or after April 1 of the planning cycle may be eligible for a merit increase at the unit’s discretion. Where merit has already been taken into consideration with an increase effective April 1 of the planning cycle, or later, the unit may elect to give no additional merit increase.
- Employees need to be actively employeed on day of payout
Employees Ineligible for Merit
- Hired or rehired on or after April 1 of the planning cycle
- Employees who are a part of a Collective Bargaining Agreement (CBA). Please note that in-unit employees will be compensated in a manner consistent with their respective Collective Bargaining Agreement (CBA)
- Employees who have received a yearly performance rating < Meets Expectations during the current planning cycle
- Employees on a Performance Improvement Plan (PIP)
- Grant-funded positions that have expressed provisional language prohibiting increases
Administering Merit Awards
- Higher increases for top performers must be accommodated within the college/unit's overall % merit pool aggregate.
- Merit increases are based upon a multitude of factors. Performance Management ratings of Meets Expectations and above does not necessarily dictate an employee will receive a merit increase.
- When a college/unit elects to award no merit increase to an eligible employee, documentation regarding the zero increase must be on file in the college/unit explaining why the individual was not given a merit increase.
Base Salary Merit Increases > 10%
Justification for a base salary merit increase greater than 10% must be accompanied by supporting documentation and be approved by the Chief HR Officer.
Dates the merit process will be open
The typical timeframe for the compensation planning cycle is as follows:
- May: Budget planning begins; preliminary budget loads are not reflective of total budget allocations available for units until later in the fiscal year
- June: Yearly performance conversations begin between employees and their direct supervisor to review current fiscal year overall performance; Goals should be set for the upcoming fiscal year
- July: Yearly performance management reviews are due for all employees
- August: Budgets are finalized; Organizational performance as well as individual performance evaluations are finalized.
- September: Compensation planning finalized, reviewed, and approved. Communication between employees and their direct supervisor occur explaining new increases and reasoning behind each determination; merit increases uploaded into system.
- October: Merit increases effective the first full pay period in October of new fiscal year.
Other Compensation Actions
With the implementation of the annual Compensation Planning process, Compensation will not be accepting the following actions due to merit calibration audits during September 15 - October 12.
- Special Increase – Temporary
- Special Increase – Permanent
- Pay for Performance