Determination of Merit and Promotion Increases
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A merit increase is the primary means for an employee to grow their compensation while remaining in the same job. Merit adjustments are provided on an annual basis, subject to financial feasibility and leadership approval. Merit awards are granted in order to recognize movement in the external market as well as reward the performance and contribution of employees.
- Generally, if a merit pool is approved by the Board of Trustees , it will be communicated in the spring with merit increases going into effect as of July 1 – the start of the fiscal year. A few business areas follow an alternate schedule. Please check with your manager or Unit Leadership to confirm the schedule you follow.
- Individual merit increases should be differentiated based on performance with consideration given to market position (i.e. the midpoint of the pay band) and internal equity of the employee relative to his / her peers in the same / similar roles.
- Lump sum awards are one-time payments in lieu of a base salary adjustment for employees whose compensation exceeds the maximum of the pay band and is used to reward exceptional performance.
Generally, all staff employees are eligible for a merit increase with the following exceptions:
- Employees with unsatisfactory performance
- Employees hired or who received a pay increase on or after March 3
- Employees with compensation above the pay band maximum for their job (a lump sum award may be granted for those with high performance)
Employees hired or who received a pay increase on or before January 1 are eligible for a full merit award aligned with the University’s merit guidelines. A prorated merit award should be considered for employees hired or who received a pay increase between January 1 and March 3.
Promotions are defined as a move to a job with greater responsibility and in a higher career stream level. Promotional increases are dependent on the employee’s current pay level, pay band of new job, employee’s qualifications for new job, compensation of similarly situated employees and departmental budget.
Determining Increase Amount – Guidelines:
Compensation will conduct a review of all promotional award increases for consistency and compliance with guidelines. Any exceptions must be approved by the Unit Leadership and Senior HR Leader for the campus.
Manager Training Resources
Managers have access through SuccessFactors Learning:
- Compensation 101 – Three online modules to review staff pay philosophy and job family structure, pay structure and guidelines.
- Communicating Compensation Decisions – One module that prepares managers for compensation conversations with their employees. Reviews three practice scenarios.
The following guidelines are also available:
- Conducting Compensation Conversations Toolkit
- FY22 Staff Merit Guidelines