Human Resources Manual > Compensation > Merit Increases
 

Policy Number: 707	Effective Date: 3/1/95
New: x	Revised: 11/1/07

707.0	POLICY	MERIT INCREASES
707.1	STATEMENT	Merit pay increases are one component of the University's compensation program.  This policy establishes guidelines covering employee merit increases. Employee job performance is evaluated annually.  The performance appraisal process is designed to assess individual employee contributions to department goals, which are created with reference to the University Mission Statement.  The performance appraisal process also measures employee achievement of specific individual goals set during the prior appraisal process. The merit increase program is administered by University Human Resources and eligibility for an increase, the effective date of the increase, and other details of the program, may vary from year to year, in accordance with criteria established by University Human Resources. The merit increase is based on the following factors:   The performance level of the incumbent employee. The appropriate salary considering the incumbent's performance. Salary increase funds available by Campus salary pool.  For most employees, the performance review period is April 1 through March 31 of the following year.  Exceptions to this must be approved by University Human Resources. Pay increase for Union represented employees are governed by the appropriate collective bargaining agreement.
707.2	PHILOSOPHY	The University has adopted a pay for performance program as part of the overall compensation program.  Merit pay is one of the methods the University uses to reward successful job performance.
707.3	PROCEDURES	Annual Performance Review In the performance review process, the employee completes the job performance self-assessment.  Then the employee and the supervisor engage in a dialog during which supervisor gives feedback on the employee self-assessment, reviews the employee's job performance during the past year and sets goals and development objectives for the upcoming year.  Merit Budget Merit increase budgets are recommended by the heads of each Campus and approved by the Board of Directors.  Merit Increase Eligibility  In general, employees, hired or re-employed prior to April 1, are eligible to be considered for a merit increase.  For most non-probationary employees the effective date of the annual increase is the payroll start date closest to July 1.  For newly hired or re-employed employees on probation, the merit increase will be effective after they have successfully completed their probationary period (without any retroactive effect). Employees promoted, transferred, or demoted prior to April 1, are not eligible to be considered for a merit increase.  The merit increase will be effective after they have successfully completed their probationary period (without any retroactive effect). Employees hired, re-employed, promoted, transferred or demoted on or after April 1, are not eligible for a merit increase.  These employees will be evaluated at the end of their probationary period (but will not receive a merit increase at that time).  For employees hired, re-employed, promoted, transferred or demoted on or after April 1, the starting salary in the new position should take into account that the employee will not be eligible for a merit increase until July of the following calendar year.  Merit Increase Awards Supervisors recommend whether an employee should receive any increase and, if so, the level of increase.  Within the constraints of the merit budget, increases are awarded on the basis of the three factors listed in the "STATEMENT" section of this policy (above), and other University and Campus guidelines issued annually.  Factors that should not be considered for merit increases include: length of service, market comparability, and cost of living. All merit increases are subject to VP level approval. Employee Options Employees who disagree with their performance review may attach a statement to the review that will become part of their personnel file.  The Dispute Resolution Policy, HRM 303, is not applicable to disputes concerning merit increases, but employees who disagree with their merit increase and performance review can raise the matter with their supervisor.  Appeals may be taken to the senior leader for the Campus area.
707.4	RESPONSIBILITY	Departments must administer the University's merit increases policy and follow the procedures outlined above.
707.5	RESOURCE	Contact the appropriate Human Resources Generalist if you have questions about this policy or if you would like more information.  Contact the Campus CFO if you have questions about the merit pool for your Campus.