Who’s eligible for a merit increase?

Staff covered by Personnel Policies for Staff Members (PPSM) policy:

  • In a Career or contract appointment included in salary ranges 15 – 30 hired before 1/4/16
  • On payroll in an eligible position and appointment on the date that the pay increase is paid, and
  • Performing at a level that meets expectations.

Who’s eligible for an equity increase?

Career employees, and on a case-by-case basis contract employees are eligible for consideration for an equity increase.  

What are the effective dates?

The retroactive effective date for merit increases is 7/1/16. You will receive retroactive payment by 11/1/16 for those on a monthly schedule and by 11/16/16 for those on a bi-weekly pay schedule.

Equity increases will be effective 11/1/16 if paid monthly and 10/23/16 if paid biweekly and will be available in the paycheck 12/1/16 if paid monthly and in their paycheck on 11/16/16 if paid biweekly.

Are there new requirements for Supervisors and Managers to receive merit increases?

New this year, merit increases for PPSM Supervisors and Managers are contingent on:

  1. Completion of written performance reviews for all subordinate non-represented staff in their unit by 8/31/16, confirmed by the VCs and Deans, or designees
  2. Completion of mandatory Sexual Harassment and Sexual Violence prevention training by all subordinate staff (non-represented and represented) in their unit, confirmed by the VCs and Deans, or designees. (Managers can check the status of their employees training and completion progress through this link)

Are there new requirements for individual contributors to receive merit increases?

New this year, merit increases for individual contributors (non-manager/supervisor staff) are contingent on completion of mandatory Sexual Harassment and Sexual Violence prevention training.

What happens if the required Sexual Harassment and Sexual Violence prevention training and/or performance reviews are not completed?

If completion of the required training and/or performance reviews does not occur, merit increases will be delayed and will not be retroactive. The merit increase will be effective the 1st of the month following completion of the requirement(s).

Why is the salary program happening later than the start of the fiscal year?

Merit increases will be effective at the beginning of the fiscal year. In the case of equity increases, we want to give managers time to work with our Central HR compensation team to identify the highest priority equity needs.

I’ve been working at Berkeley for several years and never had a formal performance evaluation. What is HR doing to hold managers accountable? What are you doing to ensure that every staff member receives a formal evaluation?

Managers should provide formal evaluations to their employees. This year managers must complete written performance reviews for all subordinate non-represented staff in their unit by 8/31/16, confirmed by the VCs and Deans, or designees.  Merit increases that are delayed will not be retroactive and will be effective the 1st of the month following completion of the required training and/or performance reviews. 

Why is Berkeley doing something different than other campuses?

Berkeley is administering a 3% non-represented salary program. UCOP issued high-level guidelines for administering non-represented salary increases, which are the same across all UC campuses. These guidelines include a requirement for merit-based pay. The guidelines give chancellors flexibility to develop a plan that is suited to the economic conditions and operational needs on each campus while taking into account performance, market and equity considerations at each individual campus. We are giving managers the flexibility to consider both merit and equity (internal and external). We are also funding $2M for performance based bonuses through the Staff Appreciation and Recognition (STAR) program. We are committed to performance based pay and are using both the salary program and the STAR program to that end. However, we also want to be mindful of the fact that we also have external and internal equity issues to address.

When and how will the decisions be communicated to staff?

Managers should inform their staff about their salary increases by the end of October.  Employees paid monthly will see the increase in their paycheck on 11/1/16 and those on a bi-weekly schedule will see the merit increase in their 11/16/16 paycheck. Equity increases, if provided, will be in their paycheck 12/1/16 if paid monthly and in their paycheck on 11/16/16 if paid biweekly.  

Does this mean that there will be some staff who won’t be receiving any increase? How is the campus addressing increases in cost of living?

Staff whose performance does not meet expectations (i.e. a rating of 1 or 2) will not receive an increase. Managers are considering both one-time bonuses and base salary increases. Performance, external, and internal equity will drive those decisions. Percentages will vary.   Berkeley provides merit increases and salary adjustments which reflect the increased value of the employee’s contributions to the organization rather than cost of living increases. 

Why are we only using part of the 3% pool for equity increases?

We want to be able to address both merit and equity. The funding is admittedly limited, but we have done the best we can within the constraints of UCOP’s guidelines. 

How is this being funded?

The funding for this program comes from campus budgets. We receive no additional funding from UCOP to support any of these increases. Units were advised as they were planning for their FY17 budgets to include 3% for an anticipated non-represented salary program. 

What does 2% and 1% really mean?

These are annual spending caps, so all managers are required to administer merit increases up to a maximum of 2% and they are receiving information about how much that is. Similarly, they are asked to consider equity increases up to an annual cap of 1%.

Isn’t 1 or 2% merely a token amount?

A 3% salary program is consistent with other UC salary programs this year. It is a small pool that needs to be administered carefully if we are to address both merit and equity. We are also funding one-time bonuses to support a performance based approach. The reasons include:

  • We know we have top performing staff who we want to reward and recognize with the right compensation. 
  • We know overall that we lag the market by around 10%. 
  • We know we may have some internal equity issues.

Collectively, the needs are beyond what we could possibly fund. We’re doing what we can this year. It isn’t something we think we can resolve in one year but we feel we’re taking a step in the right direction.