1. Merit Pay Plan Effective July 1, 2015

2.  Timeline ◦ Early May – Approval OHR ◦ Mid May – Final review with Chancellor Cabinet ◦ Late May to Early June & September  Employee/Supervisor Training  Process and goal setting ◦ Spring 2015 –  Compensation letter review  Determination of merit pool  Combine P&A/Civil Service or not  Distribution of instructions  Process merit pay

3. Distribution of Merit Pay Based on Overall Performance Rating and Individual Factor Rating

4.  Merit Pay Matrix (Total Performance Rating) Rating CodeRating Description and Range Percentage 5Superior 91 - 100% 4Exceeds Requirements 85 – 90% 3Meets Requirements 50 – 84% 2Requires Improvement 36 – 49% 1Unsatisfactory 0 – 35%

5.  Merit Pay Matrix (Individual Factor Rating) ◦ Each factor has a total rating of 16.5% except factors Diversity and Job Performance have 17% RatingAccumulative percentage Diversity & Job Performance All others Superior 17% 16.5% Exceeds Requirements 12.75% 12.375% Meets Requirements 8.5% 8.25% Requires Improvement 4.25% 4.125% Unsatisfactory 0%

6.  Final Distribution Matrix # of Employees Receiving Rating Code % EE in Rating Code Increase %Salary Total EE In Rating Code $ Increase EE in Rating Code

7. Training

8. “Thank You”

9.  Overview ◦ The University is moving to a merit pay system to encourage excellent performance and achievement though the use of recognition and rewards based on individual performance comparative to peers. ◦ Rewards and recognition are important parts of a total compensation program ◦ In Fiscal year 2014 compensation pay plan, President Kaler communicated his intention to have all of the University’s colleges and administration units in a merit-based pay system by June 2015

10.  Committee ◦ Tim Caskey, P&A UMD HR & EO Director ◦ Mary Cameron, P&A UMD HR & EO Associate Director ◦ Mary Allen, Civil Service, Academic Administration ◦ Paula Rossi, Civil Service, Student Life ◦ Kathy Chalupsky, Facilities Management, Associate Director ◦ Sue Kerry, P&A, VCFO ◦ Cheryl Reitan, P&A, External Relations ◦ Cathy Rackliffe, Civil Service HR & EO

11.  Performance Appraisal ◦ Performance rating is tied to the Joint Employee Performance Appraisal Form and Rating Factor Guide ◦ Joint Employee Performance Appraisal Form includes employee self-appraisal rating and examples. The same for the supervisor sections of the document.

12.  UMD Policy and Procedure ◦ All Civil Service Employees will receive a Performance Appraisal  Performance evaluations for Civil Service will align with the due dates for P&A evaluations  Conducted for each fiscal year  Deadline for completion is June 1 st of each year.

13.  UMD Policy and Procedure ◦ Each Performance Appraisal Includes:  Updated job description  Rating Factor Guide (must have 6 factors)  Mandatory factors are:  Job Knowledge  Inclusiveness and behavior in working with others  Department Managers choose other 4 from:  Integration with others  Responsibility and effectiveness  Attendance  Acceptance of supervision and organizational procedures  Judgment and Comprehension  Safety and Security

14.  UMD Policy and Procedure, cont. ◦ Merit Pay (Determined by each unit)  Following U of M annual compensation plan  Distributed spring of each year  Merit adjustment and pay equity option will be based on  Joint Employee Performance Appraisal Form  Rating Factor Guide  Review by the Chancellor’s Cabinet  Written notice of salary adjustment  An employee receiving a rating below 49% will require a Performance Improvement Plan

15. UMD Policy and Procedure, cont. Merit pay linked to final performance rating achieve on appraisal. Example Superior 4 – 5% Exceeds 3- 3.99% Meets Requirements 2 – 2.99% Requires Improvement 1 – 1.99% Unsatisfactory – 0% Joint Employee Performance Appraisal Form and Rating Factor Guide (link) Proposed Merit Pay Plan Matrix (link)

16.  Questions ◦ Contact Tim Caskey Director, UMD Human Resources & Equal Opportunity tjcaskey@d.umn.edu or 218-726-6326.

17. “ Thank you for all you do for UMD”