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Merit Increase Pay Guidelines
Welcome
Introduction
What is the Merit Increase Pay System
Purpose of the Merit Increase pay
System
Performance Form
New Form
Welcome
Performance Evaluation
Duty Area
Standards
Results
Comments
Scoring
Frequently Asked Questions
Other OHR Issues
Merit Increase Pay System
Act 289 of 2007 & the Office of Personnel
Management developed this system to
reward employees
Purpose is to reward Individual Employee
Performance
Replaces the CLIP program
Salary Increase not a Bonus
All Classified Employee must have a review
Merit Increase Pay System
Eligibility
Must have continuous state employment
in a classified regular position for 12
months – excludes temporary status
The 12 months can be a combination of
UAMS and another state agency or institution
Merit Increase Pay System
October 1, 2007 will be the date used
in determining the performance
evaluation and merit increase cycle
So any classified regular employee who
was hired on October 1, 2006 or before
will receive a merit increase
These same employee’s review dates will
change to October 1 and remain that
date for future reviews and increases
Merit Increase Pay System
Employees hired on or after October 2, 2006
will keep their date of hire as their review
and merit increase date
OHR will be creating a new indicator to help
track this on the 0041 Date Specifications;
however, departments must continue to use
the Date Monitoring screen to track Annual
Reviews
Merit Increase Pay System
If you have already evaluated the
employee for Fiscal Year 2007 (for
example CLIP) – you do not have to
evaluate the employee again
If you have not evaluated the
employee –an evaluation must be
completed by September 1, 2007
Merit Increase Pay System
Why September 1?
On all reviews, a 30-day appeal period
must be offered
For future reviews if the review date is
April 4, the review must be given to the
employee by March 4. Likewise all Oct 1
reviews will need to be given by Sept 1
Merit Increase Pay System
For Example:
Employee with 12 months or more on
10/1/07
Hire Date: 3/24/03
Review Given to employee by: 9/1/07
FY 2008 Review/Merit Increase Date: 10/1/07
Review Given to employee by: 9/1/08
FY 2009 Review/Merit Increase Date: 10/1/08
Merit Increase Pay System
For Example:
Employee with less than12 months on
10/1/07
Hire Date: 12/15/06
Review Given to employee by: 11/15/07
FY 2008 Review/Merit Increase Date: 12/15/07
Review Given to employee by: 11/15/08
FY 2009 Review/Merit Increase Date: 12/15/08
Merit Increase Pay System
Rehires similar to the employees with
less than 12 months
For Example:
Hire Date: 3/24/07
Review Given to employee by: 2/24/08
FY 2008 Review/Merit Increase Date: 3/24/08
Review Given to employee by: 2/24/09
FY 2009 Review/Merit Increase Date: 3/24/09
Merit Increase Pay System
For Transfers, Promotions and
Demotions within the Classified area currently has no changes to their dates
Starting in July 1, 2008 a six month
delay will be put in place for the first
year. We will discuss this change this time next year.
Merit Increase Pay System
Employees on extended leave such as
military leave, extended military leave,
catastrophic leave, or leave without pay
must have accumulated six months of actual
work experience in order to be eligible
If the six months is after the review date –
use the extension date for current year, then
the employee review and merit date will
revert back to October 1st or the latest hire
date, whichever is applicable.
Merit Increase Pay System
For Example:
Hire Date: 3/24/03
Placed on Cat Leave: 2/1/07
Returns from LOA: 8/1/07
Since 10/1/06 has worked in the month of Oct, Nov, Dec,
Jan, Aug, Sept
Review Given to employee by: 10/1/07
FY 2008 Review/Merit Increase Date: 11/1/07
Review Given to employee by: 9/1/08
FY 2009 Review/Merit Increase Date: 10/1/08
Merit Increase Pay System
Merit Increase will be added to the
employee’s base salary
If the merit increase amount exceeds
the LIM
The merit increase or the portion that it
exceeds the LIM will be paid in a lump
sum on the employees next check
Merit Increase Pay System
Merit Increase
Matrix
Performance
Evaluation
Rating
Merit Increase %
Exceeds
Standards
4.50%
Above Average
3.00%
Satisfactory
1.50%
Unsatisfactory
0.00%
Performance Form
New Form
Currently on the OHR website
If you already have a an evaluation in
place for your particular area - use
this form as a an overview, summary
or roll-up
Performance Form
Part 1 Employee Information
Employee Name
SAP Number
Performance Form
Part 1 Employee Information
Position Title & Number
Department Name
Performance Form
Part 1 Employee Information
Rating Period
From & To dates that you are review this
employee for (last 12 months)
Performance Form
Part 2 Supervisor’s Information
Supervisor’s Name
Phone Number
Position Title
Performance Form
Part 3 Performance Standards
Performance Evaluation
Part 3 Performance Standards
Duty Area – A collection of tasks that
together form an essential element of the
job
List Job Duties
Group the common duties
Develop a overall name for the common
duties
Performance Evaluation
Part 3 Performance Standards
Example
Title
Administrative
Assistant I
Common Job
Duties
Duty Area
Complies financial
information
Enters expenditures
Monitors
expenditure
Budgetary
Responsibilities
Performance Evaluation
Part 3 Performance Standards
Standard – A statement used to measure
employee performance
It may be a quantity or quality of output produced, a
model of operation or a degree of progress toward a
goal
Develop criterion to measure employee performance
Include what is to be done
Include level of performance employee is expected to
achieve
Performance Evaluation
Part 3 Performance Standards
Example
Title
Duty Area
Standard
Administrative
Assistant I
Budgetary
Responsibilities
Complete monthly
reports with no more
than five errors per
report due by monthly
deadlines
Enter in expense within
3 working days
Performance Evaluation
Part 3 Performance Standards
Results – The outcome of the
performance based on the standard of
the job
Example:
Ms. Smith has completed monthly reports and
filling within established timeframes with less than
five errors. She has satisfactorily met this
standard.
Performance Evaluation
Part 3 Performance Standards
Comments – concerning the result of a
specific standard or expectation
Employee
Supervisor
Example:
Ms. Smith could benefit more in her financial
reporting skills by attending an advanced
training for SAP reporting.
Performance Evaluation
Once the Evaluation is completed
Enter the information into SAP using the
90-Day Eval-Annual Eval transition
You can also use the F9 note to “Insert” the
review for future reference
Enter the Salary increase
Send form to OHR-Records to be placed
into the employee’s permanent records
Scoring
The overall rating category is determined at
the discretion of the department
Based on the relative importance of each
standard
Employees with Any Written Disciplinary
Action in the last 12 months will not be
eligible for an increase
An unsatisfactory rating in any standard can
not receive an Exceeds Standard or Above
Average overall rating
Scoring
Overall Rating
Exceeds
Standards
Employee A
Employee B
Employee C
Employee D
3
2
3
0
0
1
0
0
1
1
0
1
0
0
1
2
Exceeds
Standard
Above Average
Satisfactory
Unsatisfactory
Above Average
Satisfactory
Unsatisfactory
Overall Rating
Frequently Asked Questions
Who is responsible for entering the
Merit Increase?
The department using the following SAP
PA40 transactions
90-Day Eval - Annual Eval
Salary Increase
Remember the F9 note
Frequently Asked Questions
Are the award percentages at the
discretion of the agency?
No The Merit Increase pay percentages
can not be changed
Frequently Asked Questions
What date do I used as the effect date
in SAP
The first full payroll period after the
review date
Other OHR Issues
Applicants & Interviews
ZHRAPP
ZHRPAR
ZHRHIRE
Posting a Position – Minimum
Requirements
Delimiting Vacancy Assignments
Other OHR Issues
Applicants & Interviews
Please remember that you MUST enter into SAP
who you have interviewed
Using PB30
Select the Vacancy Assignment
Select the Position number
Click on the Pencil to change
Change the To date to the date of the interview
Change the Vac Assign Stat to 4 - Rejected
Change the Status Reason to 31 – Interviewed Not
Selected
Other OHR Issues
Applicants & Interviews
Other OHR Issues
Questions
ZHRAPP
ZHRPAR
ZHRHIRE
Other OHR Issues
Posting a Position – Minimum
Requirements
New Options
Use of Experience with Education OR just
Education
Use of Yes or No for Skills/Qualifications OR
Years of Experience for the
Skills/Qualifications
Work with a recruiter for you best options
if you have any questions
Other OHR Issues
Delimiting Vacancy Assignments
Once a Post is closed and a person has
been requested to be hired
RCC will Delimit all other applicants that
have not been changed by the
department as previously discussed
Questions???
Thanks for Coming!