Lump Sum | Off-Cycle | Deferred

For new employees hired after review eligibility date
For employees who transfer payroll categories after review date

The intent of these guidelines is to recommend, whenever a departmental budget permits, no employee wait more than twelve months for a merit increase and performance review. When a new employee is hired after the review eligibility date for his/her payroll category, as stated in the annual review allocation guidelines, s/he should be considered for an off-cycle merit increase approximately six months from his/her date of hire (typically, after s/he has completed the new employee review period). Similarly, if an employee transfers payroll categories and misses the review date, then s/he should be considered for an off-cycle merit increase approximately six months from his/her date of transfer.

Determining the amount of the off-cycle merit increase
To determine the off-cycle merit increase amount, a manager should consider the following criteria:

• Performance
• Length of service in the job/position
• Employee's salary*
• Internal equity
• Budget (departments are responsible for funding off-cycle merit increases given to employees hired after their review eligibility date)
• Pay program parameters for that fiscal year

It is recommended that the off-cycle merit increase amount be some portion (e.g., prorate the amount for the number of months the employee has been in the job/position) of the annual merit allocation, not to exceed the department's pay program parameters set for that fiscal year.

In all cases, a manager or the appropriate department administrative officer should consult with their Human Resources Officer for guidance in making an informed decision. No commitment should be made to an employee regarding an off-cycle merit increase prior to having a conversation with Human Resources. Where required, approval from the designated senior officer must be obtained to ensure that established channels within a department or school are followed.

*There may be times when a manager makes a salary offer that is somewhat higher than would be otherwise offered, knowing that the newly hired/transferred employee will have to wait more than 12 months before s/he receives a merit increase. When this occurs, the manager should inform the newly hired/transferred employee that s/he may not receive another increase until the next review cycle, that an off-cycle increase will not be warranted, but his/her performance will be assessed approximately six months from his/her date of hire.

Effective in conjunction with the July 1, 2002 review allocation process.