Merit Pay Increase and Achieve Together
What is performance-based merit pay?
In a performance-based merit pay program, salary increases are differentiated based on performance rather than distributed equally as an across-the-board increase. An employee’s performance is evaluated over a period of time (typically twelve months) and then a merit award is determined based on the employee’s performance contributions during that period.
Does UC Berkeley use forced distribution to determine merit levels?
No, UC Berkeley does not use the method of forced distribution to determine performance levels or merit rewards. With forced distribution, managers would be required to force a certain percentage of employees into each of the three merit levels rather than determining based on performance contributions. Managers are required only to use the performance-based Achievement Criteria when determining Performance Levels and adhere to their allocated budgets when determining merit rewards.
How is Achieve Together linked to the merit process?
In years when a merit fund is available and the pay for performance (merit) program is active, the information discussed and documented in the check-ins, as well as the Achievement Criteria, will be used to determine performance levels, which will in turn guide merit awards. Continual dialogue about performance will result in merit decisions that are more closely aligned with performance contributions.
How will consistency be achieved when a Merit program is active?
To ensure consistent and fair application of the Achievement Criteria, calibration meetings are recommended. Calibration meetings are one way to ensure an equitable, unbiased, and factual process for merit recommendations. Unit leaders or their designees will meet with their respective management teams to calibrate employee performance levels and merit rewards within their respective organizations. Calibration meetings will ensure consistency in the distribution of merit increases, and ensure leadership support. Berkeley People & Culture Compensation team will also review the distribution spreadsheets to ensure compliance with merit guidelines.
When are merit increases effective? When will they be reflected in paychecks?
These dates are dependent on merit program guidance from UCOP. Generally, increases will be effective by July and entered into UCPath, the payroll system, in mid-June. After the Berkeley People & Culture Compensation team has reviewed the proposed increases and executive leadership has approved them, managers and supervisors will meet with direct reports individually to discuss performance-based merit increases.
What if my salary is at the pay range maximum?
If an employee with a salary at or near the pay range maximum receives a salary increase, their salary will be increased to no higher than the pay range maximum.
Will any other factor be considered other than performance?
No, merit increase guidelines will be based on performance only as opposed to performance and/or position in range, seniority, time in classification, etc. The entire fund will be used to reward employee performance rather than attempt to address equity, compression or market lags.