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Merit Increases    

Policy

Every employee at the University is eligible for merit increase consideration during the common review process.  The merit increase is based on two factors:

·          The level of employee performance.

·          The salary range quartile in which the employee’s salary falls.

 

Procedure

Merit increases will normally be processed annually during the annual review process unless the review date is adjusted.  Merit increase guidelines will be sent to reviewing Directors/Managers each year.  In order to be processed on a timely basis, any merit recommendation must include a signed Performance Review and Appraisal form.  Merit increases outside of the common review process will only be considered in rare instances.

 

To reward performance for employees whose salary is above the salary range maximum, Directors/Managers may (but are not required to) use a one-time lump sum award equal to the amount that would have been awarded as a salary increase.

 

It should be emphasized during the review process that the rate (%) of the increase is less significant than the compensation value ($) involved.  Even though the rate of increase is lower at the top of the range for similar levels of performance, the amount of the increase is frequently greater.  The resulting salary will continue to be at a higher rate compared to the market for similar positions.

 

Employees on leave of absence (LOA) during the common review process will have their increase applied when they return.  While the review date stays the same, the increase percentage must be prorated to account for the time on leave.

Employees who are on a performance related action plan during the common review process are not eligible for an increase.  If performance improves, they may receive an increase recommendation after 90 days, but the increase will not be retroactive.  The next review date is not adjusted.

 

The Compensation Manager and the respective Vice President must approve all merit increase.  

   
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