A merit-based salary program for non-represented employees EMPLOYEE PRESENTATION

AGENDA Rationale for merit-based salary program Scope of 2016 appraisal changes Impact to you Timeline and details Resources 2

Rationale for P4P University commitment to pay for performance - Systemwide initiative beginning in FY “The merit-based approach is also consistent with feedback we received from staff in the most recent Engagement Survey.” “Ultimately, predictable pay practices that are based on performance engage employees, maintain the University’s competitive position for talent and help build an even higher performance organization where staff feel they can excel.” UC President Janet Napolitano, February 29, 2016 letter to campus chancellors “Chancellor Katehi articulated more than a year ago that the campus would move to a pay-for-performance system, so employees knew what to expect in the EPAR year that began July 1, 2014.” Source: 7/31/15 Dateline Article about Pay for Performance - UC Davis was an early adopter in FY

What you said about the process “Meets Expectations” rating was viewed as a “C grade” Perception of forced distribution Inconsistency in calibration practices across schools, colleges, divisions Inconsistency in merit application practices across schools, colleges, divisions “With proper distribution of performance ratings, managers can differentiate merit awards and appropriately recognize the strongest contributors” UC President Janet Napolitano 4

Changes for 2016 Review period is May 1, 2015 to April 30, 2016 New rating category and descriptions Five-point rating scale remains Category and descriptions updated significantly to provide clearer distinctions between ratings appraisal will use a four-point scale that collapses “Exceeds Expectations” and “Exceptional” into one rating 5

EPAR RATINGS Appraisal rating will reflect your overall performance for the review period. Ratings will be supported by a narrative. What are the 2016 ratings?  Expectations Not Met  Some Expectations Met  Fully Achieved Expectations  Exceeded Expectations  Exceptional 6

Ratings Guidance: EXPECTATIONS NOT MET IMMEDIATE IMPROVEMENT IS NEEDED Goals/Achievements/Job Functions No critical goals were achieved and/or majority of work was poorly executed Skills Did not demonstrate basic skills, knowledge or ability required to perform the majority of assigned duties Behavior Behavior was unacceptable and detrimental to positive organizational culture 7

Ratings Guidance: SOME EXPECTATIONS MET PERFORMANCE OCCASIONALLY MET EXPECTATIONS, BUT WAS INCONSISTENT Goals/Achievements/Job Functions  Some critical goals were completed though overall achievement was below expectations Skills  Demonstrated most required skills, knowledge and abilities, but improvement/growth is needed Behavior  Behavior was not consistently professional or supportive of a positive organizational culture  New in position and developing appropriately; performance was good given limited time in position 8

Ratings Guidance: FULLY ACHIEVED EXPECTATIONS PERFORMANCE CONSISTENTLY MET, AND AT TIMES, MAY HAVE EXCEEDED EXPECTATIONS Goals/Achievements/Job Functions  Critical goals were completed and achievements were as expected of an experienced performer Skills  Consistently demonstrated required skills, knowledge and abilities Behavior  Behavior was consistently professional or supportive of a positive organizational culture 9

Ratings Guidance: EXCEEDED EXPECTATIONS PERFORMANCE CONSISTENTLY EXCEEDED EXPECTATIONS Goals/Achievements/Job Functions  Critical goals were completed and achievements clearly and consistently surpassed job performance expectations Skills  Demonstrated skills, knowledge and abilities well beyond the job requirements Behavior  Behavior was highly professional, and meaningful contributions to a positive organizational culture were made 10

Ratings Guidance: EXCEPTIONAL PERFORMANCE FAR EXCEEDED EXPECTATIONS Goals/Achievements/Job Functions  Critical goals were completed at an exceptional level and performance far exceeded all standards and expectations Skills  Demonstrated skills, knowledge and abilities at an extraordinary level Behavior  Served as a role model; extensive and valuable contributions to a positive organizational culture were made 11

What are Calibration Meetings? Managers and supervisors meet to discuss the most important criteria that differentiates top performers They review proposed ratings of employees Determine if the ratings align with the criteria identified for top performers Agree on performance ratings for each employee, making adjustments as appropriate =============== Helps drive greater consistency in the rating process Creates a common, consistent language to clearly communicate performance management standards 12

What are Calibration Meetings? Questions supervisors and managers consider during the meeting What exemplary behaviors did they observe? What significant impact did your accomplishments or goal achievement have on your unit/division/college/school or the university? What significant accomplishments or goal achievement went above and beyond your daily work expectations? What unusual circumstances took place during the past year that presented an opportunity for excellence? 13

Changes for 2016 Improved communication and support Comprehensive communication plan, including direct communications to all non-represented staff New one stop website hosting various support materials for Employees, Supervisors and Everyone 14

Impact to YOU Timelines will be clearer Performance ratings will be easier to understand and explain There will be a greater sense of consistency across each school, college and division Easy to find tools will be available to help you write your self-assessment Merit increases will vary among non-represented employees 15

Timeline 3-16Call for performance appraisals 3-16 to 4-16Employees write self-assessment 4-16 to 6-10Supervisors write DRAFT appraisals Calibration meetings Merit decisions Supervisors discuss/finalize appraisals with employees by 6/ to 6-23HR Review 6-24Merit info due to payroll 6-24 to 7-15Supervisors notified about merit; then employees notified about merit 16

Eligibility Non-represented 99 (PSS) and K3 employees Hired before October 30, 2015 Non-probationary by April 30, 2016 Full-time and part-time career appointments MSP employees Hired on or before January 4, 2016 Full-time and part-time career appointments Employees must have a completed appraisal with a rating of “Fully Achieved Expectations” or better Contract (PSS and MSP), per diem, limited term, floater appointments are excluded 17

Effective Dates Bi-weekly paid employees Effective June 19, 2016 – one bi-weekly period of retroactive pay Merit in July 27, 2016 earnings Monthly paid employees Effective July 1, 2016 Merit in August 1, 2016 earnings Employees at top of range - TBD 18

Appraisal Resources

A merit-based salary program for non-represented employees Questions?