Must the department give equity increases to all employees on the list provided by Central Human Resources?
The names on the list are recommendations for consideration. The manager decides who will get an increase and the amount of the increase. This list is based upon analysis of relatively low salaries campus-wide. This list does not take into account such factors as:
- Special skills and expertise
- Recent salary increases received, or
- Actual salary compression within the department for the managers and supervisors.
Based upon these factors, departments may:
- Modify the recommended percentage equity increase
- Indicate whether the employee should not receive an equity increase, and/or
- Add employees to the list for a special equity increase.
- The employee must be appointed to a career, partial-year career, or a contract appointment to be eligible for the equity program.
- The employee should generally have an annual salary BELOW the midpoint of the salary range (below a compa ratio of 100).
- The employee must have a documented performance rating of “3—Meets Expectations” or higher.
- The employee must not have received an equity increase greater than or equal to 2% since January 4, 2016.
See the FAQs for the merit salary program. The same criteria apply to the equity program. In addition, if the individual received an equity increase of 2% or more after 1/4/16, they are ineligible. Also, the current annual salary is below the midpoint of the salary range. The equity program is specially designed to address employees with relatively low pay on campus.
I understand that under PPSM policy, an employee’s total salary increase in a single fiscal year shall not exceed 25% of the employee’s base salary. Will this employee be eligible to receive any further salary adjustment?
Full Question: An employee in my department has already received a 24% salary increase in 2015. I understand that under PPSM policy, an employee’s total salary increase in a single fiscal year (including reclassification, promotion, and equity adjustments) shall not exceed 25% of the employee’s base salary. Will this employee be eligible to receive any further salary adjustment?
No, that employee would not be eligible for an equity increase in FY 2016-2017. Since the equity increase is effective November 1, 2016, it will be in the same fiscal year.
The amount of the increase is determined by the manager and varies depending on relative compensation differences and other performance or proficiency factors. The 1% refers to the total amount of funds available in the pool.
The manager has the flexibility to add names for Compensation to review. Yes, as long as those added employees meet the eligibility requirements listed above, including current salaries not above the midpoint in their salary range.
May we add employees to the equity list if those additions then total more than 1% of the total base salaries for non-represented employees?
Full Question: The list of employees submitted and their recommended increases total 1% of the department’s total base salaries for non-represented employees. We have other employees paid relatively low in the range. May we add employees to the equity list if those additions then total more than 1% of the total base salaries for non-represented employees?
The department may not exceed the 1% for the equity program without prior approval of the Vice Chancellor or Dean. They may decide to move equity allocations between departments in their unit so as not to exceed 1% overall. The equity program should not exceed the 1% for any organization.
The equity rosters will be available for Equity Administrators the week of October 4th.
Who is ultimately responsible for making these decisions? Are we going to have to wait on HR approval? Or can we inform employees as soon as we've made our decisions?
The Compensation Unit should be involved in the review of the equity increase however the manager makes the decision.
What if I don't use my 1% equity pool because my department has been making equity adjustments on a regular basis? Is that money I get to keep in my budget?
The equity funds may be applied later in the year as needs arise and it may also be moved to other departments within the same unit that have equity priorities. The equity funds may not be used for merit increases.
Can I reserve part of my 1% pool to use at a later date in case one of my employees comes to me with another job offer in the months ahead that I'd like to compete with in order to retain that employee?
Merit or equity funds may not be used to increase the size of one-time performance bonuses.
If an employee on the equity roster has a recommended equity increase of 10%, may we give that employee a 0% merit increase, since that employee is going to receive a more sizable increase?
No. The equity increase recommendation is in addition to the merit program, not to replace it. The equity program increase should not replace the merit program, since the employee has already been identified as paid low relative to other employees on campus in the same job title.
If the department wishes to delete an employee from the equity list, what sort of documentation is necessary?
The equity roster has a drop-down choice citing the following reasons for deletion of an employee from the equity list: “Performance; Special Skill/Expertise; Actual Salary Compression; Recent Salary Increase; Other.” The department must select one of those choices. The Compensation Unit may contact the department to obtain more detail regarding the proposed deletion.
If the department wishes to add an employee to the equity list, what sort of documentation is necessary?
The equity “additions” roster has a drop-down choice citing the following reasons for addition of an employee to the equity list: “Low Salary; Special Skills/Expertise; Actual Salary Compression; Performance; Other.” The department must select one of those choices. Central Human Resources may contact the department to obtain more detail regarding the proposed addition.
If the department wishes to modify the percentage given for an equity increase, what sort of documentation is necessary?
The roster has a drop-down choice citing the following reasons: “Low Salary; Special Skills/Expertise; Actual Salary Compression; Performance; Other.” One of the choices should be selected to indicate why an equity increase is being modified. Central Human Resources may contact the department to obtain more detail regarding the proposed modification.