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Policy 506 - Merit Increases

506. Merit Increases

Statement

The University has adopted a pay for performance program as part of the overall compensation strategy. Merit pay is one of the methods the University uses to reward successful performance. Merit pay increases are based on these factors:

Procedure

Merit Budget

Each fiscal year, the University Budget Council recommends to the President a pay increase pool, if any, for which financial resources are available, to meet the objectives of the compensation program for the following fiscal year. The Board of Trustees approves the pay increase budget.

Annual Performance Review

Employee performance is formally reviewed at least once each year. The focus of the review is whether and to what extent the employee met the planned performance and development objectives or standards for the position. The performance review process calls for the supervisor and the employee to examine the employee’s performance results during the past year against expectations set and to document same in an annual report to the second level supervisor which is maintained in the University’s personnel file.

Merit Increases

In accordance with published University guidelines, supervisors recommend whether an employee should receive any increase and, if so, the amount of increase appropriate for performance results. Factors that should not be considered for merit increase include: length of service, internal equity, market comparability, and cost of living.

Employees at Range Maximum

An employee whose pay is at or near the maximum of the range may not be granted an increase that would cause the base salary to exceed the maximum of the range for the assigned position.

Responsibility

Supervisors, in consultation with Human Resources, administer the University’ s merit increases and follow the procedures outlined above.

Resource

Contact Human Resources if you have questions about this policy or if you would like more information.


Policy Approved: October 23, 1998
Last Updated: October 28, 1998

Maintainer: Human Resources

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