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Southern Methodist University rewards outstanding performance through an annual merit increase program for eligible employees whose job performance and productivity consistently meets or exceeds expectations. The merit increase process is now underway.
Merit Guidelines |
Effective Dates of Merit |
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Determining Merit Increases |
Performance Reviews |
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Timing for Submission of Merit Paperwork |
Between now and the end of March, managers will be determining the appropriate merit increases for their employees. Employees must have been employed by Southern Methodist University as of January 31, 2009, to be eligible for a merit increase allocation.
We encourage strategic distribution of merit dollars to motivate, reward, and retain high performers. The budget allocation is determined by taking a certain percentage of base salaries as of January 31, which designates a pool of money for a manager to distribute. The amount is determined each year at the board meeting in February and is generally 3%.
Across the board increases of 3% should not be given. Employee performance should be differentiated and rewarded accordingly, as shown below:
Employees with extreme performance problems should receive 0%
Employees performing below expectations should receive 0% to less than 3%
Employees with solid, strong performance should receive around 3%.
Employees with high, exemplary performance should receive greater than 3%.
Consider prorating increases for staff who have been employed less than one year.
See the bell curve below for a visual presentation of this recommended distribution.
Recommended Distribution of Merit Increase Allocation
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Merit pay logic is straightforward: If pay is contingent upon performance, then employee motivation to achieve high performance is increased. Conversely, if pay is not contingent on performance, employee motivation to achieve high performance is diminished because employees do not see the connection between performance and reward.
Strategic distribution also emphasizes manager empowerment. Knowing that managers have some control over pay is a further motivator for employees.
This process requires manager accountability and responsibility. Managers must play an active role in assessing employee performance, having conversations with employees about their performance, and rewarding employees accordingly—demonstrating the link between performance and reward.
Academic
Schools: Academic schools must submit their
merit increase data to the Provost's Office
by March 27, 2009.
All Others: All merit increase data is due to Human Resources by April 3, 2009.
For further clarification about the merit increase process specific to your area, please contact your Financial Officer. For general information about the merit increase process, contact Amy Sample in the Department of Human Resources at amittels@smu.edu or 8-1931.
Effective Dates of Merit
Effective dates for merit increases are as follows:
June 1, 2009 for exempt staff
May 23, 2009 for non-exempt staff
August 1, 2009 for faculty
In addition, performance reviews are due to Human Resources by Friday, April 17, 2009. The due date has been moved to more closely follow the merit recommendation due date. Information from the review process should be considered as you make important decisions regarding merit increases; therefore, it is suggested that you complete your performance review meetings prior to recommending merit increases this spring. This change was made based on feedback provided by participants in the recent HR survey, manager focus groups, and a University-wide task force currently working to improve performance management processes at SMU.
Performance Review Process: Information and Forms
Self
Directed Manager Tutorial
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