Merit Pay Programs

Merit Pay Programs

Recognizing and rewarding high performance is a key recommendation that came out of the University's Strategic Positioning process. Merit pay is a compensation system whereby base pay increases are determined by individual performance (as opposed to across the board increases). Using a merit pay plan is a good way for a department to reward high performance, an effort that is especially crucial as the University strives to become one of the top three public research universities in the world.

Currently, P&A and faculty employees across all colleges participate in merit pay programs. Civil Service employees in select participating departments, colleges and units are covered by merit pay plans.

These Web pages are meant to consolidate the information available about merit pay programs for units, departments, and colleges who are interested in implementing or revising a merit pay program. Please see the "Tools and Resources" section for more information.

Colleges and units that are interested in a customized merit training for their management team should contact Mary Luther.

Merit Pay for Civil Service Employees

Merit pay is a compensation program whereby base pay increases are determined by individual performance. The University encourages the recognition of excellent performance and achievement of Civil Service employees through the use of merit pay and other rewards. The Merit Planning Guide and Policy for Civil Service Employees (pdf) is meant to help make implementing a merit/reward program easier for managers and HR professionals.

During 2005 and 2006, the Compensation Division of OHR and the Civil Service Committee collaborated on a review of the Performance Merit Pay for Civil Service staff. After researching the issue, the Task Force revised merit pay guidelines and policies, developed and improved merit pay tools, and created and deployed a training program.

• Task Force Results in Enhancements to Civil Service Merit Pay Programs
• Civil Service Pay Program

Tools and Resources

Performance Management
The first step in implementing or improving a merit pay program is to have a solid performance management program.

Merit Planning Guide and Policy for Civil Service Employees (pdf)

Merit Pay: Template Options (pdf)
There's more than one way to implement merit. This document explains three different options for using merit pay programs with Civil Service employees.

Glossary of Terms
This glossary clarifies the compensation terms used in merit planning and implementation.

Working with the Office of Measurement Services
Learn about how the Office of Measurement Services can assist management and HR determine whether their unit or college is ready to implement a merit pay program for Civil Service employees.

Budget Spreadsheet (Excel)
It is possible to successfully and effectively implement merit pay with a low uplift in salaries. This budget spreadsheet illustrates two examples which you can then download and experiment with.

Training Is Available!
Scroll down this list of Workshops and Lab Courses for "Implementing Merit Pay Plans."

Colleges and units that are interested in a customized merit training for their management team should contact Mary Luther.