Managers are encouraged to award salary adjustments that reflect merit and make distinctions based on performance.
MERIT INCREASE PROFESSIONAL
Merit recommendations for faculty and professional staff are subject to approval by the Vice Provost or Vice Provost’s designee. Unless otherwise noted, unit heads (chairs and unit directors) have discretion in determining the merit amount within the guidelines set forth by Academic Human Resources (for faculty) or the Compensation Office (for professional staff), based on performance. Professional staff are, in general, eligible to receive merit increases if they have not been hired, promoted, and/or had their permanent/ongoing monthly salary adjusted in the six months prior to the effective date of the merit increases. General merit increases for professional staff are authorized by the State Legislature and the UW Board of Regents. This policy does not apply to in-grade or retention increases, which are subject to separate policies and processes.ģ.1 Office of Research Associate Vice Provosts, Assistant Vice Provosts, Directors, Managers and Supervisorsģ.2 Office of Research Administrators/fiscal staffģ.3 Office of Research faculty and professional staffģ.4 Office of Research, Office of the Vice Provost for Research Also remember that state laws may differ from the federal law.This policy establishes guidelines for administering general merit increases for professional staff and faculty within the Office of Research. The information contained in this article is intended to provide usefulinformation on the topic covered, but should not be construed as legal advice ora legal opinion. LEARN MORE: Read Can Pay for Performance ReallyWork? SOURCE: Robert Fulton, managing director, The Pathfinder’s Group,Inc., anaffiliate of The Chatfield Group, Chicago, Illinois, Sept. The objective here is to tie personalperformance more closely to increases granted. This may mean abandoning a common increase date as the focus movestowards rewarding high performance and keeping other employees competitive.įinally, unless you have a system where performance discussions are purposelyseparated from merit, you may want to consider changing the effective date ofmerit increases to Feburary 15 or March 1 to make it as close as possible to theclose of the performance cycle. However, high performers tend to receive more frequent increases,poor performers less frequent or no increases, and solidly performing employeesreceive periodic market adjustments to reflect the value of their jobsexternally. Indeed, they stillmeasure performance on whatever planning cycle is appropriate to theorganization. Some more innovative companies are beginning to move awayfrom annual raises and performance reviews altogether. Some companies prorate by quarter (100 percent, 75 percent, 50percent, 25 percent). Another option is to provide afixed, average increase to all new employees hired within the last three monthsof the year. Some companies prorate right to the day,and allow anyone hired before the last month of the performance cycle to receivean increase on the next common increase date. Their salaries would be higher, and they would be told that,along with the fact that they must wait 15 to18 months for the next raise. One way to mitigate some of the morale problems associated with this practiceis to adjust your salary ranges for new hires in the final quarter of theperformance cycle. Thus, assuming a calendar-year performance period, an employee hiredOctowould not be eligible for a merit increase until April 1, 2004.At that time, the person likely would receive 14/12ths of the standard increaseamount (note that the prorated merit increase does not include the time periodfrom January 1, 2004, to April 1, 2004).
MERIT INCREASE FULL
Company pay policies provide thatnew hires must be participants in the current performance cycle for at leastthree months before they are eligible for a prorated merit increase, and areeligible for full merit if they are employed for six to nine months of thecycle. In addition, they must also becontributing to the organization in a meaningful way, which is measured throughparticipation in the performance cycle.
New hires would not typically be eligible for a merit increase until theyhave been employed for a certain period of time. In your case, this means employees receive increases inrecognition of their efforts during the time period from January 1 throughDecember 31. The reason: a merit increase isintended to recognize the individual’s performance during the requisiteperformance period. It’s common to have newly hired workers wait up to eighteen months toreceive their first merit increase, for companies that provide for meritincreases tied to annual performance reviews.
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