August 2012 - Office of Human Resources 1

Discretionary Merit Compensation (DMC)

For Classified Permanent

Employees

2

Policy

• Permanent Classified Employees Eligible• Statewide Policy effective January 2012

– Set by Office of State Employment Relations (OSER)

• Administrative Policy at UW River Falls– Establishes UWRF guidelines for eligible staff

seeking DMC– Sets campus procedure for DMC application

3

Process for UW River Falls• Supervisors nominate/recommend • Employees can self-nominate

• Base pay increase or lump sum payment or both• Supervisors deny or approve and send to HR• Recommendations are sent to Human Resources

• Beginning first Tuesday in September through third Thursday in September

• Advisory Committee reviews requests • Chancellor denies or approves• Approved requests sent to OSER• OSER approves requests before they are granted

4

Eligibility and Coverage

Ineligible to receive DMC:• Any employee whose job performance in the previous

fiscal year was rated below satisfactory• Supervisors who did not complete formal performance

evals on all subordinate employees for whom performance evals are required

• Employees who have not received an eval in last 12 mos

• Craftsworker-related employees (permanent and project craft workers, Crafts Worker Supervisors)

5

Basic DMC Information

Basic DMC Information:• DMC amounts normally limited to four within range pay

steps (WRPS) • All base pay DMC increases are subject to max of employee’s

pay range• All lump sum DMC must be converted to a base pay

equivalent – dividing the lump sum amount by 2088– ensures the fiscal year WRPS limitation is not exceeded

• The granting, denial, amount, and type of DMC are not grievable

6

UWRF Administrative Policy

• Merit and Pay Equity process at River Falls– Application Period is September

• Begins First Tuesday of September• Ends Third Thursday of September

• Will be reviewed by advisory committee– HR Director– UW HR Manager– Assistant Chancellor for Business and Finance– Associate Vice Chancellor for Academic Affairs and

Graduate Studies

7

Effective Receipt

• Base Building: Beginning of first pay period following the date HR receives the recommendation

• Lump Sum: Date payment made

8

DMC Report Form

• Download it from HR’s UWRF website• Must keep the same formatting

– Do not change font, type size or cell format– Do not change the cell format to text if

zeros drop off If the class code is 00205 the first two zeros will drop off. That is okay

– Both Request and Report Form are OSER documents – only the agency and campus signature area can be modified

9

JUSTIFICATION FOR DISCRETIONARY MERIT COMPENSATION (DMC) AWARD

AGENCY: EMPLOYEE NAME: CLASSIFICATION TITLE: PAY SCHEDULE & RANGE:

CRITERIA JUSTIFICATION

(PROVIDE SPECIFICS AND DETAILS) INCREASE AMT.

Hourly or Lump Sum NUMBER OF WRPS OR

EQUIVALENT Merit: Employee recognition for superior or meritorious performance. Merit criteria/factors which should be considered include: Length or frequency of the outstanding performance Overall significance or importance of the employee’s work products to the organization; Regularity with which the outstanding performance or unique contribution is

demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)

Merit–related criteria/factors which may be considered include: Employee has new permanent job duties and /or responsibilities of growing importance

to the agency that have been either newly assigned or were an evolution of their originally assigned functions. The new duties are of greater scope, impact and/or complexity compared to the previous functions; or

Employee has acquired additional competencies, which are both specialized and critical in carrying out the permanent functions of the position.

Provide justification on page 2 of this document.

Pay Equity: The employee’s salary has been determined to be lower than that of other state employees performing the same or similar duties at the same level of proficiency and who have comparable years of relevant service; or there is significant pay compression between the employee and his/her immediate subordinates; or established labor market data identifies a need to award market adjustments in order to achieve equity with external public/private employers.

Provide justification on page 2 of this document.

Retention: The employee possesses special skills that are in high demand in other organizations or loss of the employee’s knowledge and experience would be a detriment to the agency, therefore, requiring a pay adjustment be made in order to retain the employee.

Provide justification on page 2 of this document.

DMC RECOMMENDATION

Old Base Salary New Base Salary Funding Source(s): DMC Effective Date: # Prior WRPS in Same FY: PUA in last 12 months: ___ No ___ Yes Effective Date: ________ Recommended By (Supervisor): Date: Budget Approval (Funding approval only): Date: Human Resources Director Approval: Date:

CHANCELLOR APPROVAL (signature): ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ OSER APPROVAL: ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ UW INSTITUTION HR CONTACT NAME: CONTACT PHONE NO:

UW-River Falls Smith, John R. UW Human Resources Manager 81-04

Do Not Change Document Headings or Criteria

10

ALPHABETICAL LISTING OF CLASSIFICATIONS

Alphabetical Listing of ClassificationsCurrent as of January 15, 2012

Class Pay Appt. Appt. 8% of Range-Adj

Code Sched Range Minimum Max 1 Max 2 Maximum WRPS Minimum Amount

UW ATHLETICS PROGRAM SPEC SUPV 06520 81 04 $16.902 ###### $38.875 $0.508 $1.353

UW EXTENSION MAIL TECHNICIAN 13300 06 12 $15.039 $22.558 $0.452 $1.600

UW HUMAN RESOURCES MANAGER 10910 81 04 $16.902 ###### $38.875 $0.508 $1.353

UW HUMAN RESOURCES MANAGER-ADV 11310 81 03 $22.026 ###### $50.660 $0.661 $1.763

UW IS CUST SALES TECH 13510 06 12 $15.039 $22.558 $0.452 $1.600

OFFICIAL CLASSIFICATION

TITLE

Pay Schedule and Range

This amount equals one step

11

JUSTIFICATION FOR DISCRETIONARY MERIT COMPENSATION (DMC) AWARD

AGENCY: EMPLOYEE NAME: CLASSIFICATION TITLE: PAY SCHEDULE & RANGE:

CRITERIA JUSTIFICATION

(PROVIDE SPECIFICS AND DETAILS) INCREASE AMT.

Hourly or Lump Sum NUMBER OF WRPS OR

EQUIVALENT Merit: Employee recognition for superior or meritorious performance. Merit criteria/factors which should be considered include: Length or frequency of the outstanding performance Overall significance or importance of the employee’s work products to the organization; Regularity with which the outstanding performance or unique contribution is

demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)

Merit–related criteria/factors which may be considered include: Employee has new permanent job duties and /or responsibilities of growing importance

to the agency that have been either newly assigned or were an evolution of their originally assigned functions. The new duties are of greater scope, impact and/or complexity compared to the previous functions; or

Employee has acquired additional competencies, which are both specialized and critical in carrying out the permanent functions of the position.

Provide justification on page 2 of this document.

Pay Equity: The employee’s salary has been determined to be lower than that of other state employees performing the same or similar duties at the same level of proficiency and who have comparable years of relevant service; or there is significant pay compression between the employee and his/her immediate subordinates; or established labor market data identifies a need to award market adjustments in order to achieve equity with external public/private employers.

Provide justification on page 2 of this document.

Retention: The employee possesses special skills that are in high demand in other organizations or loss of the employee’s knowledge and experience would be a detriment to the agency, therefore, requiring a pay adjustment be made in order to retain the employee.

Provide justification on page 2 of this document.

DMC RECOMMENDATION

Old Base Salary New Base Salary Funding Source(s): DMC Effective Date: # Prior WRPS in Same FY: PUA in last 12 months: ___ No ___ Yes Effective Date: ________ Recommended By (Supervisor): Date: Budget Approval (Funding approval only): Date: Human Resources Director Approval: Date:

CHANCELLOR APPROVAL (signature): ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ OSER APPROVAL: ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ UW INSTITUTION HR CONTACT NAME: CONTACT PHONE NO:

$1.016 2

.90 1.77

(Depicting amount less than 2 steps)

(2 steps x .508 per step)Two examples for

HOURLYincrease (.90 ÷ .508 =

1.77)

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JUSTIFICATION FOR DISCRETIONARY MERIT COMPENSATION (DMC) AWARD

AGENCY: EMPLOYEE NAME: CLASSIFICATION TITLE: PAY SCHEDULE & RANGE:

CRITERIA JUSTIFICATION

(PROVIDE SPECIFICS AND DETAILS) INCREASE AMT.

Hourly or Lump Sum NUMBER OF WRPS OR

EQUIVALENT Merit: Employee recognition for superior or meritorious performance. Merit criteria/factors which should be considered include: Length or frequency of the outstanding performance Overall significance or importance of the employee’s work products to the organization; Regularity with which the outstanding performance or unique contribution is

demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)

Merit–related criteria/factors which may be considered include: Employee has new permanent job duties and /or responsibilities of growing importance

to the agency that have been either newly assigned or were an evolution of their originally assigned functions. The new duties are of greater scope, impact and/or complexity compared to the previous functions; or

Employee has acquired additional competencies, which are both specialized and critical in carrying out the permanent functions of the position.

Provide justification on page 2 of this document.

Pay Equity: The employee’s salary has been determined to be lower than that of other state employees performing the same or similar duties at the same level of proficiency and who have comparable years of relevant service; or there is significant pay compression between the employee and his/her immediate subordinates; or established labor market data identifies a need to award market adjustments in order to achieve equity with external public/private employers.

Provide justification on page 2 of this document.

Retention: The employee possesses special skills that are in high demand in other organizations or loss of the employee’s knowledge and experience would be a detriment to the agency, therefore, requiring a pay adjustment be made in order to retain the employee.

Provide justification on page 2 of this document.

DMC RECOMMENDATION

Old Base Salary New Base Salary Funding Source(s): DMC Effective Date: # Prior WRPS in Same FY: PUA in last 12 months: ___ No ___ Yes Effective Date: ________ Recommended By (Supervisor): Date: Budget Approval (Funding approval only): Date: Human Resources Director Approval: Date:

CHANCELLOR APPROVAL (signature): ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ OSER APPROVAL: ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ UW INSTITUTION HR CONTACT NAME: CONTACT PHONE NO:

$2121.40 2

$1500.00 1.41

(Depicting amount less than 2 steps )

(2 steps x .508 per step x 2088 hours in a year)

Two examples for LUMP SUM

increase ($1500 ÷ 2088 = .718 ÷ .508 = 1.41)

13

JUSTIFICATION FOR DISCRETIONARY MERIT COMPENSATION (DMC) AWARD

AGENCY: EMPLOYEE NAME: CLASSIFICATION TITLE: PAY SCHEDULE & RANGE:

CRITERIA JUSTIFICATION

(PROVIDE SPECIFICS AND DETAILS) INCREASE AMT.

Hourly or Lump Sum NUMBER OF WRPS OR

EQUIVALENT Merit: Employee recognition for superior or meritorious performance. Merit criteria/factors which should be considered include: Length or frequency of the outstanding performance Overall significance or importance of the employee’s work products to the organization; Regularity with which the outstanding performance or unique contribution is

demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)

Merit–related criteria/factors which may be considered include: Employee has new permanent job duties and /or responsibilities of growing importance

to the agency that have been either newly assigned or were an evolution of their originally assigned functions. The new duties are of greater scope, impact and/or complexity compared to the previous functions; or

Employee has acquired additional competencies, which are both specialized and critical in carrying out the permanent functions of the position.

Provide justification on page 2 of this document.

Pay Equity: The employee’s salary has been determined to be lower than that of other state employees performing the same or similar duties at the same level of proficiency and who have comparable years of relevant service; or there is significant pay compression between the employee and his/her immediate subordinates; or established labor market data identifies a need to award market adjustments in order to achieve equity with external public/private employers.

Provide justification on page 2 of this document.

Retention: The employee possesses special skills that are in high demand in other organizations or loss of the employee’s knowledge and experience would be a detriment to the agency, therefore, requiring a pay adjustment be made in order to retain the employee.

Provide justification on page 2 of this document.

DMC RECOMMENDATION

Old Base Salary New Base Salary Funding Source(s): DMC Effective Date: # Prior WRPS in Same FY: PUA in last 12 months: ___ No ___ Yes Effective Date: ________ Recommended By (Supervisor): Date: Budget Approval (Funding approval only): Date: Human Resources Director Approval: Date:

CHANCELLOR APPROVAL (signature): ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ OSER APPROVAL: ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ UW INSTITUTION HR CONTACT NAME: CONTACT PHONE NO:

$25.000 $26.016 GPR January 29, 2012

First day of pay period following stamped receipt of DMC in appropriate office.

(Lump sum paid in first pay period followingOSER approval-do not back date lump sums.)

0 X

Extend 3

decimal points

14

JUSTIFICATION FOR DISCRETIONARY MERIT COMPENSATION (DMC) AWARD

AGENCY: EMPLOYEE NAME: CLASSIFICATION TITLE: PAY SCHEDULE & RANGE:

CRITERIA JUSTIFICATION

(PROVIDE SPECIFICS AND DETAILS) INCREASE AMT.

Hourly or Lump Sum NUMBER OF WRPS OR

EQUIVALENT Merit: Employee recognition for superior or meritorious performance. Merit criteria/factors which should be considered include: Length or frequency of the outstanding performance Overall significance or importance of the employee’s work products to the organization; Regularity with which the outstanding performance or unique contribution is

demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)

Merit–related criteria/factors which may be considered include: Employee has new permanent job duties and /or responsibilities of growing importance

to the agency that have been either newly assigned or were an evolution of their originally assigned functions. The new duties are of greater scope, impact and/or complexity compared to the previous functions; or

Employee has acquired additional competencies, which are both specialized and critical in carrying out the permanent functions of the position.

Provide justification on page 2 of this document.

Pay Equity: The employee’s salary has been determined to be lower than that of other state employees performing the same or similar duties at the same level of proficiency and who have comparable years of relevant service; or there is significant pay compression between the employee and his/her immediate subordinates; or established labor market data identifies a need to award market adjustments in order to achieve equity with external public/private employers.

Provide justification on page 2 of this document.

Retention: The employee possesses special skills that are in high demand in other organizations or loss of the employee’s knowledge and experience would be a detriment to the agency, therefore, requiring a pay adjustment be made in order to retain the employee.

Provide justification on page 2 of this document.

DMC RECOMMENDATION

Old Base Salary New Base Salary Funding Source(s): DMC Effective Date: # Prior WRPS in Same FY: PUA in last 12 months: ___ No ___ Yes Effective Date: ________ Recommended By (Supervisor): Date: Budget Approval (Funding approval only): Date: Human Resources Director Approval: Date:

CHANCELLOR APPROVAL (signature): ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ OSER APPROVAL: ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ UW INSTITUTION HR CONTACT NAME: CONTACT PHONE NO:

The signature/date line may vary in the yellow shaded area depending on requirements of your campus or agency.

15

JUSTIFICATION FOR DISCRETIONARY MERIT COMPENSATION (DMC) AWARD

AGENCY: EMPLOYEE NAME: CLASSIFICATION TITLE: PAY SCHEDULE & RANGE:

CRITERIA JUSTIFICATION

(PROVIDE SPECIFICS AND DETAILS) INCREASE AMT.

Hourly or Lump Sum NUMBER OF WRPS OR

EQUIVALENT Merit: Employee recognition for superior or meritorious performance. Merit criteria/factors which should be considered include: Length or frequency of the outstanding performance Overall significance or importance of the employee’s work products to the organization; Regularity with which the outstanding performance or unique contribution is

demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)

Merit–related criteria/factors which may be considered include: Employee has new permanent job duties and /or responsibilities of growing importance

to the agency that have been either newly assigned or were an evolution of their originally assigned functions. The new duties are of greater scope, impact and/or complexity compared to the previous functions; or

Employee has acquired additional competencies, which are both specialized and critical in carrying out the permanent functions of the position.

Provide justification on page 2 of this document.

Pay Equity: The employee’s salary has been determined to be lower than that of other state employees performing the same or similar duties at the same level of proficiency and who have comparable years of relevant service; or there is significant pay compression between the employee and his/her immediate subordinates; or established labor market data identifies a need to award market adjustments in order to achieve equity with external public/private employers.

Provide justification on page 2 of this document.

Retention: The employee possesses special skills that are in high demand in other organizations or loss of the employee’s knowledge and experience would be a detriment to the agency, therefore, requiring a pay adjustment be made in order to retain the employee.

Provide justification on page 2 of this document.

DMC RECOMMENDATION

Old Base Salary New Base Salary Funding Source(s): DMC Effective Date: # Prior WRPS in Same FY: PUA in last 12 months: ___ No ___ Yes Effective Date: ________ Recommended By (Supervisor): Date: Budget Approval (Funding approval only): Date: Human Resources Director Approval: Date:

CHANCELLOR APPROVAL (signature): ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ OSER APPROVAL: ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ UW INSTITUTION HR CONTACT NAME: CONTACT PHONE NO: Final designee signature, approval, amount, date and forward to OSER.

$1.016x

16

JUSTIFICATION FOR DISCRETIONARY MERIT COMPENSATION (DMC) AWARD

AGENCY: EMPLOYEE NAME: CLASSIFICATION TITLE: PAY SCHEDULE & RANGE:

CRITERIA JUSTIFICATION

(PROVIDE SPECIFICS AND DETAILS) INCREASE AMT.

Hourly or Lump Sum NUMBER OF WRPS OR

EQUIVALENT Merit: Employee recognition for superior or meritorious performance. Merit criteria/factors which should be considered include: Length or frequency of the outstanding performance Overall significance or importance of the employee’s work products to the organization; Regularity with which the outstanding performance or unique contribution is

demonstrated (e.g., an employee who routinely demonstrates exceptional performance and performs special projects on an ongoing basis, as compared to an employee who completes a one-time special project)

Merit–related criteria/factors which may be considered include: Employee has new permanent job duties and /or responsibilities of growing importance

to the agency that have been either newly assigned or were an evolution of their originally assigned functions. The new duties are of greater scope, impact and/or complexity compared to the previous functions; or

Employee has acquired additional competencies, which are both specialized and critical in carrying out the permanent functions of the position.

Provide justification on page 2 of this document.

Pay Equity: The employee’s salary has been determined to be lower than that of other state employees performing the same or similar duties at the same level of proficiency and who have comparable years of relevant service; or there is significant pay compression between the employee and his/her immediate subordinates; or established labor market data identifies a need to award market adjustments in order to achieve equity with external public/private employers.

Provide justification on page 2 of this document.

Retention: The employee possesses special skills that are in high demand in other organizations or loss of the employee’s knowledge and experience would be a detriment to the agency, therefore, requiring a pay adjustment be made in order to retain the employee.

Provide justification on page 2 of this document.

DMC RECOMMENDATION

Old Base Salary New Base Salary Funding Source(s): DMC Effective Date: # Prior WRPS in Same FY: PUA in last 12 months: ___ No ___ Yes Effective Date: ________ Recommended By (Supervisor): Date: Budget Approval (Funding approval only): Date: Human Resources Director Approval: Date:

CHANCELLOR APPROVAL (signature): ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ OSER APPROVAL: ________ APPROVED: ________ DENIED

DATE:

Base Pay Adjustment: ____________________ Lump Sum: ____________________ UW INSTITUTION HR CONTACT NAME: CONTACT PHONE NO:

Agency/campus contact name and phone number for OSER feedback/approval

17

Page 2 of Request Form JUSTIFICATION:

CRITERIA (Check all that apply): ____ Merit ____ Employee received performance evaluation within last 12 months ____ Employee is a supervisor and has completed required performance evaluations for all subordinates ____ Pay Equity

____ Employee is a supervisor and has completed required performance evaluations for all subordinates ____ Retention

____ Employee is a supervisor and has completed required performance evaluations for all subordinates JUSTIFICATION NARRATIVE (Provide specifics and supporting documentation below):

x

Provide justification narrative for DMC request in this section. Add additional pages as needed. Do not modify the columns

on the first page of the request to fit in justification.

Check criteria to match criteria selected

on the first page of request form

x

18

Recap

• DMC is for classified permanent employees• UWRF has its own campus policy supported by

OSER’s policy• Criteria: Merit, Pay Equity, Retention• Requests due to HR September 4 - 20, 2012• Employee must have had an eval to be eligible

August 2012 - Office of Human Resources 19

Questions?

• Links:– Administrative Policy AP 06 104: http://

www.uwrf.edu/Administration/Policy/HumanResources/AP06104.cfm

– Chapter 550 Wisconsin HR Handbook: http://oser.state.wi.us/docview.asp?docid=7359

– OSER’s Alphabetical Listing of Classifications:http://oser.state.wi.us/docview.asp?docid=1425

– Form: http://www.uwrf.edu/HumanResources/HRForms.cfm