Merit Pay Plan
Effective July 1, 2015

Timeline
◦ Early May – Approval OHR
◦ Mid May – Final review with Chancellor Cabinet
◦ Late May to Early June & September
 Employee/Supervisor Training
 Process and goal setting
◦ Spring 2015 –
 Compensation letter review
 Determination of merit pool
 Combine P&A/Civil Service or not
 Distribution of instructions
 Process merit pay
Distribution of Merit Pay
Based on Overall
Performance Rating and
Individual Factor Rating

Merit Pay Matrix (Total Performance Rating)
Rating Code
5
4
3
2
1
Rating Description and Range
Percentage
Superior
91 - 100%
Exceeds Requirements
85 – 90%
Meets Requirements
50 – 84%
Requires Improvement
36 – 49%
Unsatisfactory
0 – 35%

Merit Pay Matrix (Individual Factor Rating)
◦ Each factor has a total rating of 16.5% except
factors Diversity and Job Performance have 17%
Rating
Accumulative percentage
Diversity & Job Performance
All others
17%
16.5%
12.75%
12.375%
8.5%
8.25%
Requires
Improvement
4.25%
4.125%
Unsatisfactory
0%
0%
Superior
Exceeds
Requirements
Meets Requirements

Final Distribution Matrix
# of
Employees
Receiving
Rating Code
% EE in Rating
Code
Increase %
Salary Total EE $ Increase EE
In Rating Code in Rating Code
Training
“Thank You”

Overview
◦ The University is moving to a merit pay system to
encourage excellent performance and achievement
though the use of recognition and rewards based on
individual performance comparative to peers.
◦ Rewards and recognition are important parts of a total
compensation program
◦ In Fiscal year 2014 compensation pay plan, President
Kaler communicated his intention to have all of the
University’s colleges and administration units in a
merit-based pay system by June 2015

Committee
◦ Tim Caskey, P&A UMD HR & EO Director
◦ Mary Cameron, P&A UMD HR & EO Associate
Director
◦ Mary Allen, Civil Service, Academic Administration
◦ Paula Rossi, Civil Service, Student Life
◦ Kathy Chalupsky, Facilities Management,
Associate Director
◦ Sue Kerry, P&A, VCFO
◦ Cheryl Reitan, P&A, External Relations
◦ Cathy Rackliffe, Civil Service HR & EO

Performance Appraisal
◦ Performance rating is tied to the Joint Employee
Performance Appraisal Form and Rating Factor
Guide
◦ Joint Employee Performance Appraisal Form
includes employee self-appraisal rating and
examples. The same for the supervisor sections of
the document.

UMD Policy and Procedure
◦ All Civil Service Employees will receive a
Performance Appraisal
 Performance evaluations for Civil Service will align with
the due dates for P&A evaluations
 Conducted for each fiscal year
 Deadline for completion is June 1st of each year.

UMD Policy and Procedure
◦ Each Performance Appraisal Includes:
 Updated job description
 Rating Factor Guide (must have 6 factors)
 Mandatory factors are:
 Job Knowledge
 Inclusiveness and behavior in working with others
 Department Managers choose other 4 from:






Integration with others
Responsibility and effectiveness
Attendance
Acceptance of supervision and organizational procedures
Judgment and Comprehension
Safety and Security

UMD Policy and Procedure, cont.
◦ Merit Pay (Determined by each unit)
 Following U of M annual compensation plan
 Distributed spring of each year
 Merit adjustment and pay equity option will be based
on
 Joint Employee Performance Appraisal Form
 Rating Factor Guide
 Review by the Chancellor’s Cabinet
 Written notice of salary adjustment
 An employee receiving a rating below 49% will require
a Performance Improvement Plan
UMD Policy and Procedure, cont.
•
•
•
•
Merit pay linked to final performance rating achieve on
appraisal.
• Example
• Superior 4 – 5%
• Exceeds 3- 3.99%
• Meets Requirements 2 – 2.99%
• Requires Improvement 1 – 1.99%
• Unsatisfactory – 0%
Joint Employee Performance Appraisal Form and Rating
Factor Guide (link)
Proposed Merit Pay Plan Matrix (link)

Questions
◦ Contact
Tim Caskey
Director, UMD Human Resources & Equal Opportunity
tjcaskey@d.umn.edu or 218-726-6326.
“Thank
you for all you do
for UMD”