Performance Management Program

Salary Management and Merit Administration Guidelines

 The following information directs OOA managers in: determining appropriate starting salaries and administering the awarding of merit funds.

Delegation Level

Responsibility for salary management and merit application has been delegated to senior staff members representing the following areas of Office of Administration:

• Accounting/Material Management
• Facilities
• Human Resources and Risk Management
• Central Administration
  • Vice Chancellor’s Office
  • Business Contracts
  • Campus Events and Visitors’ Services
  • Internal Audit
  • Mail Division
  • Police Department
  • TAPS

Salary Management – Appropriate Starting Salaries

It is the responsibility of the manager with delegated authority to assure the following items are considered when identifying appropriate salaries for newly hired, promoted and reclassified employees:

• Newly hired, promoted or reclassified employees in the open-range salary program generally start with a salary that is at or above the first quartile. Employees in the step-base salary program generally start at the first step. Variables to this guideline might include the following:

The employee’s limited skill development/experience (trainee) may warrant a starting salary below the first quartile.

The employee’s advanced skill development/experience and ability to "fully function" in the position immediately may warrant a starting salary near or at the mid-point of the salary range. In addition, if the position has been difficult to recruit and market conditions warrant a starting salary above the mid-point of the salary range, it may be offered.

Note: Approvals must be obtained for above-the-mid-point offers. The associate vice chancellor of Human Resources and Risk Management (HR&RM) reviews and approves these offers for all MSP personnel. Approvals for all other staff are directed to the manager or employment/outreach unit within HR&RM.

• Policy states that an employee may not receive more than a 25 percent salary increase as a result of all salary actions in a given fiscal year. In some situations this percentage increase may need to exceed 25 percent in order to achieve an appropriate starting salary. Exceptions must be supported by the sr. staff of the unit and addressed to the associate vice chancellor of Human Resources and Risk Management for consideration.

Salary Funding Information

Also refer to "Personnel Policies for Staff Members, 30 Salary, UCD Procedure" and Section 330-26, UCD Campus Policy and Procedure Manual.

The department funds up to the first quartile or first step regardless of the funding source.

Departments may request additional funding for between first quartile and mid-point or above first step for those funds eligible for central campus funding. However, this is true only for "recruited" positions or those positions granted a "waiver of recruitment."

The department always funds reclassifications and equity actions.

Note: Address questions regarding funding issues to Lola Riolo, 530-752-8543.

Merit Administration

Merit administration occurs at the major unit (sr. staff) level and includes establishment of merit committees in each major unit.

Merit awards are based upon documented job performance, funding availability, performance compared to others in the pool and, in some cases, compliance with specific collective bargaining contracts.

Each senior staff member is responsible for seeing that the following guidelines are used in the implementation of their unit’s merit administration process:

• Merit committees are established consistent with the OOA Unit Merit Committee Structure guidelines (page II-6).

• The Performance Level Categories and Definitions (page II-7) are a recognized standard in OOA and, as such, are used by all merit committees in establishing performance levels.

• The OOA Merit Matrix (page II-8) is used to determine the specific "flat dollar" merit award or step increase after merit committees have reviewed performance appraisals and have identified the appropriate "performance level category" for each employee.

Note: Senior staff may adjust actual figures used to derive merit increases as long as those rated "Does Not Meet Expectations" do not receive a merit increase and that those identified as "Contributors" receive at least the "flat-dollar" award equal to the range adjustment as applied to the mid-point of their grade.

• A minimum number of people in each merit pool grouping are necessary to provide for a reasonable range of award amounts. Merit pools must have a minimum of five with the ideal closer to ten.

• Employees who receive a Supervisors Assessment (rating) of "Does Not Meet Expectations" will not receive a merit increase.

• Each employee is sent a merit award letter which communicates the results of the merit process (pages II-10, II-11).

Specific Considerations Regarding the Open Range Salary Program

• An employee who receives a Supervisors Assessment (rating) of "Meets or Exceeds Expectations" will minimally receive a merit increase consistent with the range adjustment relative to the mid-point of their grade.

• Range mid-point is considered to be the "market rate" for similar positions. Mid-point is intended to be the compensation goal for "fully functioning" employees who consistently meet expectations.

• The upper half of the salary range (above mid-point) is intended for employees who consistently excel in their performance.

• Progression through the salary range is expected to be more rapid for employees paid below the mid-point, compared to similarly rated employees above the mid-point.

[OOA Performance Management Handbook: Contents]