Staff Compensation Planning for FY 2015 Budget

Please budget a merit compensation pool increase of 1.50% for staff salaries. This will be reviewed by the Administration and Finance Committee of the Executive Faculty at their December meeting, and will be presented by the administration to the University administration.

Each academic department, program, and administrative unit is asked to limit the merit compensation increases to 1.50% of the pool of total FY 2014 salaries, regardless of funding sources. Departments are encouraged to budget a 1.50% compensation pool and avoid budgeting at the employee level.

Please note that there is no FY 2015 guideline for “other” increases (market, promotion, equity). Any increases given must fit within your departments’ approved FY 2015 budgeted personnel dollars and still allow you to meet your budgeted projected margin targets.

Staff Salaries

When individual staff salaries are projected in April and May, increases should be granted within a range of 0-3% based upon performance. Written justification will be required for the following:

1) Any staff salary increase over 3%
2) Any increase due to market or internal equity factors which has not been approved in advance by the Human
Resources Office
3) Promotional increases over 15%
4) Salary reductions unrelated to FTE changes.
5) Cases where the departmental average for merit increases is greater than 1.5%

The staff salary planning process in HRMS remains the same as in previous years. The tentative schedule for the salary planning process is:
March – Departments update Job Data in HRMS for anticipated transactions through June 30, 2014. (Hires, Terminations, Transfers, Promotions, etc.)
April/May – Departments input proposed July salary increases into staff salary planning page in HRMS. Department managers gather/prepare information to deliver to employees during the performance review meeting.
Early June – HR submits a report of July proposed staff salaries to the Dean’s Office for approval (including a calculation of the aggregate merit increase percentage for the department).
Late June/July – Following approval, departments review performance and inform staff of new rates during a face-to-face performance review meeting before employee receives first FY15 pay check.
July – Approved July staff salaries are automatically loaded to “jobs” in HRMS.
July – Departments enter all other payroll transactions for that pay period by departmental deadline.

The Medical School Office of Human Resources has developed staff compensation planning materials that can aid in the analysis of staff salaries and budgets. This year, in February, we will provide a new report which shows the employee’s position in range as a percentage. For assistance with compensation matters, please contact Tom Kraft at 314-362-7202. For HRMS questions, contact Tammy DeBeaux at 314-362-6962.

Staff Bonuses

Staff bonuses which are not part of an approved departmental bonus plan on file in HR require written justification submitted to Human Resources (Compensation Department). A staff bonus plan MUST be in writing, approved by the Department Head, and answer the following questions:
Upon what criteria are payouts based? These should reflect performance of the individual, the department, or the budget in some combination.
How is the payout calculated?
Who is eligible to receive a payout?
When and how often do payouts occur?

If needed, a bonus template can be requested from Compensation (Tom Kraft, 314-362-7202).

Please note that HRMS workflow will route all bonus payments on Additional Pay pages to HR for approval and pay sheets may not be used.