Who’s eligible for a salary increase?

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

  1. Career positions: Individuals appointed to career positions in grades 15-30 covered by PPSM policy on or before January 3, 2017 are eligible regardless of funding source.
  2. Contract positions: Individuals on employment contracts may be eligible and are handled on a case-by-case basis.  If an increase is provided to an individual on contract, the unit will need to (a) provide funding for those who will receive an increase, (b) update the contract with the new salary amount, and (c) enter the increase into the HCM system by 9/23/27.
  3. Individuals must be a) appointed to a PPSM position on or before January 3, 2017, (b) in a PPSM position on July 1, 2017, and (c) must remain on payroll in an eligible position and appointment on the date that the pay increase is paid.
  4. Excluded:

a. Individuals who were hired after January 3, 2017,
b. Individuals whose current salary exceeds the new salary range maximum,
c. Individuals who separate from employment on or before the payout date,
d. Manager 4 level employees,
e. Rehired retirees,
f.  Athletic positions covered by contracts that contain performance bonuses, and
g. Employees covered by collective bargaining agreements. Represented employees’ compensation is covered by their respective labor agreements. Human      Resources will communicate any compensation changes for employees covered by collective bargaining as the contracts are finalized.

What is the effective date?

The retroactive effective date for merit increases is 7/1/17 for monthly paid employees, and 6/18/17 for bi-weekly paid employees. Both monthly paid and bi-weekly paid employees will receive retroactive payments on the November 1, 2017 paycheck.

How is an employee’s salary increase determined?

An employee’s salary increase will be based on 3 factors: 

  1. Merit – a pay for performance approach based on the employee’s performance rating.
  2. Internal equity - the employee’s salary relative to the campus-wide average salary for the employee’s job title.
  3. External market - the employee’s salary relative to the midpoint of the salary range for their grade (which is based on market data).

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

Salary increases for PPSM Supervisors and Managers are contingent on:

  1. Completion of mandatory Sexual Violence and Sexual Harassment prevention training by all subordinate staff (non-represented and represented) in their unit, confirmed by the VCs and Deans, or designees by 7/21/17. (Managers can check the status of their employees training and completion progress through this link)
  2. Completion of written performance reviews for all subordinate non-represented staff in their unit by 8/31/17, confirmed by the VCs and Deans, or designees.

What are the requirements for individual contributors to receive salary increases?

Salary increases for individual contributors (non-manager/supervisor staff) are contingent on completion of mandatory Sexual Violence and Sexual Harassment prevention training 7/21/17.

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

If completion of the required training and/or performance reviews does not occur, salary 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?

Since the performance review period concludes at the end of the fiscal year, managers are provided time to develop performance reviews. Salary increases will be retroactively effective on 7/1/17 at the beginning of the fiscal year.

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. Managers must complete written performance reviews for all subordinate non-represented staff in their unit by 8/31/17, confirmed by the VCs and Deans, or designees to receive a salary increase. Salary 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.

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 11/1/17 and those on a bi-weekly schedule will also see the salary increase in their 11/1/17 paycheck.

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 salary increases and one-time bonuses. Performance, internal, and external equity will drive those decisions. Percentages will vary. Berkeley provides salary increases and salary increases which reflect the increased value of the employee’s contributions to the organization rather than cost of living increases.

How is this being funded?

The funding for this program comes from campus budgets. The Berkeley campus receives no additional funding from UCOP to support any of these increases. Units were advised as they were planning for their FY18 budgets to include 3% for an anticipated non-represented salary program.

Isn’t 3% 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 9%. 
  • 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 each year. It isn’t something we think we can resolve in one year but we feel we’re taking steps in the right direction.

How are performance ratings a factor in the salary increase amount?

The matrix below is an example of how the employee’s performance rating and the quartile the employee resides in the salary range (market lag) may be considered. Individual managers may administer the program differently. 

Compa Ratio June 2017

 *  A compa-ratio is the employee’s salary relative to their salary grade midpoint (an employee whose salary is equal to their grade midpoint has a 100% compa-ratio)

 Note: These are recommended % increases only (based on a 3.0% salary program)

How do I explain why an employee with a 4 rating in the 4th quartile has a salary increase range of 1.5 - 2.5% and another employee with a 3 rating in the 1st quartile has a higher increase range of 3.0 - 4.0%?

Berkeley’s salary ranges are market priced to the Bay Area. A job is considered paid at market when the compa-ratio is close to 100%. An employee in the 4th quartile (118% compa-ratio or higher) is well-paid for their job while an employee in the 1st quartile (65-83%) is at the low end of the market range for their position. The employee in the 1st quartile should be receiving larger increases if they are performing satisfactorily or better to bring them closer to market. The employee in the 4th quartile should receive a smaller increase because they are already well-paid for their job.

The guidelines state that salary increases for Supervisors/Managers are contingent on completion of written reviews for all subordinate non-represented staff confirmed by their manager. At what managerial level will the increase be affected?

If you are a supervisor/manager, you must complete performance reviews for each of your non-represented direct reports to be eligible for a merit increase. If any of these required performance reviews are incomplete as of 8/31/17, your merit increase will be delayed until the 1st of the month following completion of the missing review(s). 

This delay affects only
 your merit. Merits for your own manager and for your subordinate managers are not affected (assuming they have each completed all of their own required reviews).

Will the Berkeley campus salary ranges be adjusted?

Berkeley’s salary ranges will be adjusted by 2.5% effective July 1, 2017.

Who is considered a “Career” employee?

PPSM policy covered employees with an appointment type 2 (Career) and appointment type 7 (Partial-Year Career) are considered a “career” employee.

An employee is promoted or reclassified from a represented position into a non-represented PPSM position, and received a promotional/reclassification salary increase. Is this employee still eligible to participate in this 2017-18 salary program?

An employee is promoted or reclassified from a represented position (covered by policies contained in the bargaining unit contract) into a non-represented PPSM position on or after January 4, 2017, and received a promotional/reclassification salary increase. Is this employee still eligible to participate in this 2017-18 salary program?
No, eligibility is limited to non-represented, career staff covered by PPSM on or before January 3, 2017.

Are Contract (appointment type 1) employees eligible for a salary increase?

It depends. Some contracts stipulate that the employee receive the same percentage increase as the campus control figure. Departments should review all contracts to determine if a salary adjustment will need to be provided.

Should employees who have separated from the University on or after the effective date of the program, but before the payout date, receive the increase?

No. Based on past practices and operational considerations, any separated or terminated employee is ineligible for a salary increase. They must be actively employed on the payout date to receive the increase.

An employee in my department has already received a 24% salary increase this fiscal year. Will this employee be eligible to receive any further salary adjustment?

An employee in my department has already received a 24% salary increase this fiscal year. I understand that under PPSM policy, an employee's total salary increases in a single fiscal year (including merit, reclassification, promotion, and equity adjustments) shall not exceed 25% of the employee's base salary (as of July 2, 2017, in this situation) unless an exception is granted by the Chancellor. Will this employee be eligible to receive any further salary adjustment?

PPSM Policy 30 stipulates that system-wide salary program salary increases are excluded from the 25% calculation. Hence, no need to gain additional approval for a merit salary increase that takes the current fiscal year total increase percentage over 25%.

If an employee transferred from another UC location after January 3, 2017 to our campus, are they eligible to receive a salary increase?

It depends. Assuming that the entire eligibility criterion is met, then, yes, the employee is eligible. However, in the automated merit roster the employee will appear to be ineligible since they did not have a Career appointment at UC Berkeley on or before January 3th (HIRE). Please send the employee’s name and the name of the previous UC location to Compensation Operations Manager Scott Dinkelspiel (scottd3@berkeley.edu) for validation that the employee did not receive a salary increase when moving to the Berkeley campus. Departments will be notified regarding the update process once the eligibility validation has been completed.

Is a career employee who goes below .50 FTE still eligible?

No. Once a career employee drops below a .50 FTE, their appointment status changes to Limited.

How does the salary increase affect an administrative stipend?

If the stipend was implemented as a percentage of base pay, the stipend should increase when the base salary increases. The HCM system will not automatically update the stipend when the salary increase is uploaded. Home departments will need to adjust the stipend amount after the salary increases are uploaded to the system. If the stipend was implemented as a flat dollar amount, the stipend amount should not change.

Are employees on leave status eligible?

Yes, assuming they meet all other eligibility criteria. Merit increases for employees on leave can be processed by the web-based application.

An employee recently transferred to my department. With the performance evaluation period being July 1, 2016 to June 30, 2017, how do I conduct a performance evaluation?

The current department will need to contact the old department for an assessment of the employees’ performance for the time period the employee was in the old department in order to determine eligibility. If no one is available to provide that review, the current evaluation should state the period of time being used by the current supervisor.

How do we treat an employee who does not have a performance evaluation?

PPSM requires that all non-represented staff have an annual performance evaluation. Employees who do not have a written, documented performance evaluation during the past twelve months (July 1, 2016 – June 30, 2017) will be deemed to be “3 – ME – Meets Expectations” and are eligible to receive a salary increase.

An employee works 50% time in my department and 50% time in another department. How will this employee’s increase be handled?

The employee will appear on two rosters – your department roster and the roster in the other department. Each 50% appointment will be handled separately.