Managing Effective and Meaningful Appraisal and Merit Increase Programs ABA Presentation April 18, 2006

Performance and Staff Development Program Goals Provide accurate feedback on performance and accomplishments for appraisal cycle Establish performance goals/expectations for coming cycle Address professional development needs using competencies or other feedback

Why It’s Important Top 3 drivers of performance – CLC Manager – Employee interaction –Ensuring employee understands expectations and how work contributes to organizational success Appropriately appraise performance –Positive, areas of improvement and professional development Ongoing Informal Feedback –# 1 driver –Accurate, detailed, timely

When appraising performance… Assess performance against expectations Take into consideration entire cycle Avoid halo/horn effects Consider extenuating circumstances Be accurate and honest Be specific, give details No surprises Be consistent

When appraising performance… Address staff professional development –Training –Developmental assignments –Projects –Competencies Career Coach – Gale Gibbons

2005 Rating Data Return % No Overall Unac- ceptable Meets Some MeetsReliableExceeds Penn 91%3%0%4%17%37%38% Schools 87%3%0%4%13%33%47% Centers 99%2%0%5%26%44%23%

Minor Revisions to 2 Ratings ___ Staff member’s performance consistently exceeds established goals/expectations for the position and is clearly outstanding overall. ___ Staff member’s performance consistently meets and frequently exceeds all established goals/expectations for the position. ___ Staff member’s performance consistently meets established goals/expectations for the position. ___Staff member's performance meets some, but not all, established goals/expectations for the position and improvement in specific areas is required. ___Staff member's performance is unacceptable for the position and significant improvement is required.

2006 Goals 100% return rate Accurate and honest feedback Overall ratings more like a bell shaped curve Appraisal supports level of merit increase

Performance and Staff Development Program 2006 materials available at as of March 15, 2006www.hr.upenn.edu Performance appraisals must be completed and ratings entered into database by June 2, 2006 For assistance or training contact school/center HR representative or Staff and Labor Relations at

Merit Increase Program Designed to recognize and reward faculty and staff performance Differentiate employee performance Increase should reflect performance rating Pool for FY2007 is a maximum average of 4.0% Some schools and centers may reserve.5% of the 4.0% salary pool for an approved bonus program to be paid in June (3.5% pool)

Merit Increase Program Aggregate salary pool may not exceed 4.0% regardless of performance ratings. Salary increases may range from 0 to 6.0%. Some schools and centers may have a smaller merit increase percentage based on financial constraints. Guidelines will be prorated. Employees who meet expectations may receive up to 3.0%. Staff members who received an unacceptable performance rating do not receive a raise. (0%).

Performance Rating and Percentage Increase Rating 1 Staff member’s performance consistently exceeds established goals/expectations for the position and is clearly outstanding overall. 4%-6% Rating 2 Staff member’s performance consistently meets and frequently exceeds all established goals/expectations for the position.3% - 4% Rating 3 Staff member’s performance consistently meets established goals/expectations for the position.2% - 3% Rating 4 Staff member’s performance meets some, but not all, established goals/expectations for the position and improvement in specific areas is required.1% - 2% Rating 5 Staff member’s performance is unacceptable for the position and significant improvement is required. 0%

Merit Increase Program Schools and centers with a lower percent increase pool will use lower percentage distributions. Consider other factors such as position in range.

Sample Matrix RatingFirst ThirdMiddle ThirdTop Third 16.0%5.0%4.5% 2 4.0%3.5% 3 3.0%2.5% 4 2.0%1.5% 50%

Bonus Program Awarded by some schools and centers Bonus pool is up to.5% of salary pool for up to 10% of employees. Each school or center determines plan design and eligibility..5% bonus pool was set aside beginning of FY06 to be paid the end of FY06 or beginning of FY07.

SALINC TIMELINE February 28 th Last hire date to be eligible for FY07 increase. Week of April 17 th SALINC mailings: Copy of the FY07 Faculty and Staff Salary Increase Program Guidelines, SALINC access forms, and Salary Structures. The Guidelines and forms will be available on the web at: SALINC reports in electronic format made available to School /Center Human Resources Administrator. April 24 th Deadline for submitting security requests for SALINC access forms. April 28 th Last day to make changes on Payroll System to appear in SALINC

SALINC TIMELINE May 1 st SALINC database opens May 2 nd & 3 rd (Two sessions will be available each day ) SALINC training sessions will be held in the Registrar’s Training Room, 3451 Walnut Street, 221 Franklin Building: May 2 nd 9:30am to 10:30am and 11:00am to Noon SALINC training sessions will be held in the School of Medicine Training Room, 3620 Hamilton Walk, 202 Anatomy/Chemistry: May 3rd 1:00pm to 2:00pm and 2:30pm to 3:30pm June 13 th SALINC database closes at midnight.

SALINC TIMELINE June 14 th – July 3 rd Changes cannot be processed in live Personnel/Payroll System for SALINC eligible employees. June 16 th SALINC reports in electronic format distributed for approvals and sign-off to each School/Center Human Resources Administrator. June 30 th Due date for SALINC reports with signatures to be returned to the Compensation Office.

SALINC TIMELINE July 1 st Effective date of merit increases for monthly paid employees. July 31 st First monthly paycheck to reflect merit increase. July 3 rd Effective date of merit increases for weekly paid employees. July 14 th First weekly paycheck to reflect merit increase.