Managing Effective and Meaningful
Appraisal and Merit Increase
Programs
ABA Presentation
April 18, 2006
Performance and Staff Development Program
Goals
• Provide accurate feedback on performance and
accomplishments for appraisal cycle
• Establish performance goals/expectations for coming cycle
• Address professional development needs using
competencies or other feedback
Why It’s Important
• Top 3 drivers of performance – CLC
Manager – Employee interaction
– Ensuring employee understands expectations and how work
contributes to organizational success
Appropriately appraise performance
– Positive, areas of improvement and professional development
Ongoing Informal Feedback
– # 1 driver
– Accurate, detailed, timely
When appraising performance…
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Assess performance against expectations
Take into consideration entire cycle
Avoid halo/horn effects
Consider extenuating circumstances
Be accurate and honest
Be specific, give details
No surprises
Be consistent
When appraising performance…
• Address staff professional development
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Training
Developmental assignments
Projects
Competencies
• Career Coach – Gale Gibbons
2005 Rating Data
Return No
UnacMeets Meets Reliable Exceeds
%
Overall ceptable Some
Penn
91% 3%
0%
4%
17% 37%
38%
Schools
87% 3%
0%
4%
13% 33%
47%
Centers
99% 2%
0%
5%
26% 44%
23%
Minor Revisions to 2 Ratings
• ___ Staff member’s performance consistently exceeds established
goals/expectations for the position and is clearly outstanding overall.
• ___ Staff member’s performance consistently meets and frequently
exceeds all established goals/expectations for the position.
• ___ Staff member’s performance consistently meets established
goals/expectations for the position.
• ___Staff member's performance meets some, but not all, established
goals/expectations for the position and improvement in specific areas
is required.
• ___Staff member's performance is unacceptable for the position and
significant improvement is required.
2006 Goals
• 100% return rate
• Accurate and honest feedback
• Overall ratings more like a bell shaped
curve
• Appraisal supports level of merit increase
Performance and Staff Development Program
• 2006 materials available at www.hr.upenn.edu as
of March 15, 2006
• Performance appraisals must be completed and
ratings entered into database by June 2, 2006
• For assistance or training contact school/center
HR representative or Staff and Labor Relations at
215-898-6093
Merit Increase Program
• Designed to recognize and reward faculty and staff
performance
• Differentiate employee performance
• Increase should reflect performance rating
• Pool for FY2007 is a maximum average of 4.0%
• Some schools and centers may reserve .5% of the 4.0%
salary pool for an approved bonus program to be paid in
June 2007. (3.5% pool)
Merit Increase Program
• Aggregate salary pool may not exceed 4.0%
regardless of performance ratings.
• Salary increases may range from 0 to 6.0%.
• Some schools and centers may have a smaller
merit increase percentage based on financial
constraints. Guidelines will be prorated.
• Employees who meet expectations may receive up
to 3.0%.
• Staff members who received an unacceptable
performance rating do not receive a raise. (0%).
Performance Rating and Percentage Increase
Rating 1
Staff member’s performance consistently exceeds established
goals/expectations for the position and is clearly outstanding overall. 4%-6%
Rating 2
Staff member’s performance consistently meets and frequently exceeds all
established goals/expectations for the position.
3% - 4%
Rating 3
Staff member’s performance consistently meets established goals/expectations
for the position.
2% - 3%
Rating 4
Staff member’s performance meets some, but not all, established
goals/expectations for the position and improvement in specific areas is
required.
1% - 2%
Rating 5
Staff member’s performance is unacceptable for the position and significant
improvement is required. 0%
Merit Increase Program
• Schools and centers with a lower percent
increase pool will use lower percentage
distributions.
• Consider other factors such as position in
range.
Sample Matrix
Rating
First Third
Middle Third
Top Third
1
6.0%
5.0%
4.5%
2
4.5%
4.0%
3.5%
3
3.5%
3.0%
2.5%
4
2.5%
2.0%
1.5%
5
0%
0%
0%
Bonus Program
• Awarded by some schools and centers
• Bonus pool is up to .5% of salary pool for up to
10% of employees.
• Each school or center determines plan design and
eligibility.
• .5% bonus pool was set aside beginning of FY06
to be paid the end of FY06 or beginning of FY07.
SALINC TIMELINE
February 28th
Last hire date to be eligible for FY07 increase.
Week of April 17th
SALINC mailings: Copy of the FY07 Faculty and Staff Salary Increase
Program Guidelines, SALINC access forms, and Salary Structures. The
Guidelines and forms will be available on the web at:
http://www.hr.upenn.edu/compensation/salinc
SALINC reports in electronic format made available to School /Center
Human Resources Administrator.
April 24th
Deadline for submitting security requests for SALINC access forms.
April 28th
Last day to make changes on Payroll System to appear in SALINC
May 1st
SALINC TIMELINE
SALINC database opens
May 2nd & 3rd
)
SALINC training sessions will be held in the Registrar’s Training
Room, 3451 Walnut Street, 221 Franklin Building:
May 2nd 9:30am to 10:30am and 11:00am to Noon
SALINC training sessions will be held in the School of Medicine
Training Room, 3620 Hamilton Walk, 202 Anatomy/Chemistry:
May 3rd 1:00pm to 2:00pm and 2:30pm to 3:30pm
(Two sessions will be available each day
June 13th
SALINC database closes at midnight.
SALINC TIMELINE
June 14th – July 3rd
Changes cannot be processed in live Personnel/Payroll
System for SALINC eligible employees.
June 16th
SALINC reports in electronic format distributed for
approvals and sign-off to each School/Center Human
Resources Administrator.
June 30th
Due date for SALINC reports with signatures to be
returned to the Compensation Office.
SALINC TIMELINE
July 1st
Effective date of merit increases for monthly paid
employees.
July 31st
First monthly paycheck to reflect merit increase.
July 3rd
Effective date of merit increases for weekly paid
employees.
July 14th
First weekly paycheck to reflect merit increase.