Performance Management & Compensation
- Creating PMTs
- Compensation Administration Handbook
- Performance Management
Performance-based adjustments are delivered in the form of annual increases, typically referred to as merit increases. Merit increases are used to recognize and reward staff who meet or exceed performance standards. Merit increases are not entitlements, and should be aligned with the staff member’s level of performance.
The annual merit increase budget will be determined by the Division of Human Resources by considering relevant market data as well as relevant budget constraints. The Division of Human Resources is responsible for communicating the merit budget and merit guidelines. Annual merit increases will be effective on July 1.
Managers will recommend merit increases based on the evaluation of each eligible staff member. Portfolio owners will be responsible for allocating their merit budget based on these recommendations, and within the guidelines established by the Division of Human Resources.
The guidelines for performance-based adjustments or merit increases are directly tied to the results of the performance management process. Performance Management is a continuous cycle carried out by the manager. Managers are responsible for ensuring the work performed by their staff is contributing directly to the department, division and Institute’s goals and objectives.
The Performance Management Tool (PMT) is used to clearly define job responsibilities, core competencies, goals and objectives, career development/improvement plans and job requirements. The PMT is also used to establish performance standards and measure performance.
Performance standards are the criteria managers use to assess staff performance and to ensure that results are properly aligned with department, division and institute goals and objectives. Specification of performance standards is essential in order for staff to have a clear idea of the basis upon which performance will be evaluated.
Job performance is considered satisfactory when staff are meeting or exceeding the established performance standards. Throughout the evaluation period managers should observe staff performance in relation to the established performance standards. These observations will provide the information needed to objectively evaluate and discuss job performance on a day-to-day basis.
On an annual basis, Rensselaer requires managers to conduct a formal assessment of staff performance using the PMT. The performance evaluation is intended to assess the employee’s effectiveness in performing the duties and responsibilities in meeting the performance standards and achieving goals and objectives. It is also intended to provide recognition to staff and encourage staff to develop their potential by providing a communication tool for the manager and employee to set attainable goals and objectives.
A promotion is defined as movement to a higher position in the same level or to a position in a higher level on the same or different career ladder. Staff members can be promoted either by successfully applying for a new position, or by having their current position reclassified.
A promotion within level typically represents new responsibilities that are different from current responsibilities, may require training, and will require the development of new competencies. A promotion within level will normally warrant an increase in base pay from 5 to 10%.
A promotion to a higher level on the same or different career ladder typically represents the addition of significantly greater responsibilities as described by the standard criteria defined on the appropriate career ladder. A promotion to a higher level will normally warrant an increase in base pay of 6 to 15%, or to the minimum of the new pay range, whichever is greater.
The re-evaluation of occupied positions due to substantial changes in responsibilities is called a job audit. As a result of a comprehensive evaluation, a change in grade may occur. A reclassification could result in a position being moved up or down within the given career ladder. Factors for determining the salary increases are similar to those that apply in the case of a promotion. To process a reclassification, the following procedures must be followed:
- Under the Resource Planning section of the Performance Plan, the Department Head determines the need to promote an individual and makes the recommendation to the appropriate cabinet member.
- As a part of the Resource Planning process, the reclassification request process must be initiated. The manager is responsible for developing a draft Performance Management Tool.
- The draft Performance Management Tool must be submitted along with a revised organizational chart and a Request for Reclassification Form to the Division of Human Resources for salary, title and FLSA determination.
- In order for the request for reclassification to be finalized, it must be approved by the Division of Human Resources, incorporated in the approved Performance Plan and included in the approved Budget.
- At the time that the manager wishes to effect the reclassification, the approved reclassification form, an electronic copy of the final Performance Management Tool and a transaction form must be submitted to the Division of Human Resources.
- The Division of Human Resources will generate a letter to the staff member to confirm the reclassification.
Equity adjustments may be requested when a classification level is correct, but the salary is low in comparison to the external marketplace and/or to others, usually in the same level, with similar credentials and have comparable responsibilities and experience.
The following are guidelines to assist managers in making decisions regarding premium pay. Premium payments are discontinued at the conclusion of the assignment or other special circumstance.
A staff member who is assigned to a higher-level position on an interim basis or who assumes significant duties in addition to their regular job, may receive an interim pay increase of 5 – 15% if the interim period is at least 30 days. Any proposal to temporarily increase a staff member’s pay under these circumstances must be approved in advance by the Division of Human Resources.
The following steps will facilitate this process:
a) The manager must provide the Division of Human Resources with an outline of the additional duties assumed, the duration of the interim appointment and the source of funding.
b) The Division of Human Resources will determine the appropriate pay adjustment, and notify the manager. Typically, interim pay adjustments will be between 5 and 15% of the staff member’s base pay.
c) The manager must complete a transaction form and obtain the required signatures.
d) The Division of Human Resources will generate a letter to the staff member.
The differential paid to nonexempt employees working in certain designated positions that are regularly scheduled to work during the second or third shift. Such differential will be considered as part of the overtime calculation if the total hours worked in a week exceed 40. Please refer to the HR Policy Guidelines for the complete on-call policy.
On Call Pay
Rensselaer may require non-exempt employees to be available to return to work beyond their normal work schedule. These employees are considered to be on-call. Employees assigned to on-call are required to be accessible if it is necessary for them to return to work. Please refer to the HR Policy Guidelines for the complete on-call policy.
Call In Pay
A non-exempt employee will receive a minimum of four hours pay for each call-in occurrence. The four hours will be added to the total hours worked for the week, and typically will result in a full time employee in a paid status being paid time and a half for the call-in hours. Please refer to the HR Policy Guidelines for the complete on-call policy.
At times, exempt employees may be requested to perform work that is separate and distinct from the employee’s regular job classification duties and responsibilities or outside of their department. It is Rensselaer’s policy that this work should be performed by adjusting the workload of the employee so that the work can be performed without supplemental compensation.
Where the supplemental duties cannot be performed by adjusting the workload and the need to perform the work is critical to a project, supplemental payment may be granted if the work is a short-term project, and the duties are performed over and above the individual’s primary job duties. Supplemental work will normally be performed evenings and weekends.
A request for supplemental pay must be processed on the Exempt Staff Supplemental Pay Authorization form. This form must be signed by the employee, the employee’s immediate supervisor, the hiring department supervisor, Dean or Director and Vice President or Provost. The Exempt Staff Supplemental Pay Authorization form must contain the hours of work required and the estimated rate per hour or flat fee as approved by Human Resources.
Non-exempt employees are paid on an hourly basis for hours worked. Hours worked in excess of 40 hours per week must be compensated at time and a half. Time worked on supplemental assignments is not a separate entity but a combination of the regular job and supplemental duties and will be computed as such. Please refer to the HR Policy Guidelines for the complete policy.