Merit Process - Human Resources at Ohio State

The following employees who are actively employed by the university prior to April 1, 2023, are included as part of the 2023 merit process, and their salaries will be in the aggregate pool of dollars available for increases:

• Tenure, clinical and research track faculty regardless of FTE.
• Regular unclassified staff regardless of FTE.
• Regular classified staff regardless of FTE, including non-bargaining unit staff hired prior to April 1 who are still completing an initial or promotional probationary period as of September 1 (bargaining unit staff are subject to merit increase rules as dictated by their bargaining agreement).
• Regular non-board purview executives.
• Regular eligible employees defined above who move internally to another eligible position (transfer or reclassification, including promotion) and/or receive another type of pay increase on or after April 1.
  • For these individuals, their salary will be included in the aggregate pool of the new employing unit when the effective date of the job movement falls between April 1 and August 1.
  • It is preferable to distinguish an increase provided to these individuals as part of the merit process from the salary offer associated with the internal movement; however, providing a merit increase to individuals who had an internal job movement on or after April 1 is at the discretion of the employing unit.
• Employees who have provided notice of their upcoming resignation or retirement with an effective date after August 15 (for faculty) or September 1 (for staff) will remain eligible for merit and part of the aggregate pool. An increase may be given to that individual at the discretion of the unit.

The following employees are ineligible for the merit process and their salaries will not be included in the aggregate pool of dollars available:

• External hires or rehires effective on or after April 1, 2023. These individuals should still receive appropriate feedback about their performance at regular intervals until they go through the next performance review cycle.
• Faculty in the last year of a probationary period who have not been reappointed or received tenure.
• Employees whose termination or retirement is effective on or prior to August 15, 2023 (for faculty) or September 1, 2023 (for staff).
• Employees scheduled for layoff or on severance prior to September 1, 2023.
• Employees who did not complete the “Report = Support!” training by April 28, 2023, at 11:59 p.m. Units are responsible for confirming their ineligible employees who did not complete this training. For these individuals:
  • Units must enter a 0% merit increase with the comment of “failure to complete Report = Support! training”.
  • Medical Center employees who did not complete Report=Support! will reflect a 0% merit increase for the budgeted amount on the P3 budget spreadsheets that will be Managers should assign these employees a performance rating but should not change the budgeted increase amount.
  • Questions regarding the non-compliant list should be directed to equityeducation@osu.edu.

While not included in the aggregate pool of dollars available for increases (e.g., not included in the college/unit’s 3.0% aggregate pool calculation), the following employees should receive performance reviews and, at the college/unit’s discretion, may be considered for a merit increase consistent with the guidelines for eligible faculty and staff:

• Staff in term and temporary positions.
• Associated faculty paid by salary or course.
• Graduate Associates returning to equivalent appointments.

The effective date of merit increases are as follows:

The timeline for academic units, including College of Medicine and Office of Health Sciences is as follows:

The timeline for Health System units is as follows:

Usage

Monetary payment to reward and recognize performance, such as appreciation, under a defined and approved rewards and recognition program. This may include recognition for years of service, etc. Refer to Reward and Recognition policy 3.15. Defined programs may include a nomination and selection process. It is provided at the sole discretion of the unit and there cannot be any expectation that the reward will be given. The defined program cannot be linked to specific performance metrics/numbers or used as an incentive.

Units that wish to create a new reward and recognition program or revise an existing program should consult with HR Compensation.

Type

Bonus – Discretionary Performance Incentive (Amount) is calculated as a flat amount, not based on a percentage of base salary and will be paid in one installment as a lump sum..

Retirement Treatment

The discretionary bonus (amount) is not subject to OPERS or OPERS ARP retirement contributions. It is subject to STRS and STRS ARP retirement contributions, as dictated by Ohio Revised Code and Ohio Administrative Code.

Usage

Monetary payment for extraordinary effort as an individual, team or unit to complete a project, milestone or other significant contribution. This is commonly referred to as an on-the-spot bonus/spot bonus and should be given shortly after the completion of the body of work; however, units may elect to provide the spot bonus in conjunction with the merit process. The amount of the bonus should be commensurate with the employee’s level of contribution to the work (see below). It is provided at the sole discretion of the unit and there cannot be any expectation that it will be given.

Generally, an employee should receive only one spot bonus per fiscal year.  If a circumstance arises where a unit wishes to provide a second spot bonus to an employee, it must be pre-approved by HR Compensation.

Guideline for Determining Commensurate Amount

• An amount of up to 5% of base pay up to $2,000 when the period of time the project, milestone or contribution occurred in 12 months or less.
• An amount of 5% to 10% of base pay up to $5,000 when the period of time the project, milestone or contribution occurred in 12 months or more.

Type

Bonus – Discretionary Performance Incentive (Percent) is calculated as a percent of the employee’s base salary but will typically be paid in one installment as a lump sum.

Retirement Treatment

The discretionary bonus (percent) is subject to all retirement contributions, including OPERS, OPERS ARP, STRS and STRS ARP, as dictated by Ohio Revised Code and Ohio Administrative Code.

Additional Requirements during Merit

• All discretionary bonuses, regardless of the amount, must be pre-approved by senior unit leadership.
• Discretionary bonuses above $2,000 must be pre-approved by HR Compensation and OAA for faculty.  Submit a request via HR Connection.
• Note that discretionary bonuses that will be paid in August or September do not require the compensation exception request to be submitted.

Usage

Monetary payment to reward based on metrics/achievement measures as defined in a written contract, agreement, letter of offer or formal plan document. Documentation must include the specific metrics/measures, payment amount associated with each metrics, payment schedule as well as the process to ensure accurate tracking and reporting. These criteria must be agreed upon and signed in advance by the employee and unit leadership before the work should begin. Employees who fulfill the terms and conditions of the agreement should have an expectation that they will receive the payment as defined.

A non-discretionary bonus cannot be used to compensate employees who render services beyond the scope of their current position.

The contract, agreement or letter of offer or plan documenting the details of the non-discretionary bonus must be attached to the one-time payment transaction.

Employees who are included in a defined written contract, agreement, letter of offer or formal metric/achievement measures incentive plan are generally not eligible to receive any discretionary bonus.

Note that a non-discretionary bonus (amount) is included in the calculation of the regular rate of pay for overtime.

Type

Bonus – Non-Discretionary Performance Incentive (Amount) is calculated as a flat amount not based on a percentage of base salary and will be as defined in the contract or agreement. This may be paid as one or more installments.

Retirement Treatment

The non-discretionary bonus (amount) is not subject to OPERS or OPERS ARP retirement contributions. It is subject to STRS and STRS ARP retirement contributions, as dictated by Ohio Revised Code and Ohio Administrative Code.

Usage

Monetary payment to reward based on metrics/achievement measures as defined in a written contract, agreement, letter of offer or formal plan document. Documentation must include the specific metrics/measures, payment amount associated with each metrics, payment schedule as well as the process to ensure accurate tracking and reporting. These criteria must be agreed upon and signed in advance by the employee and unit leadership before the work should begin. Employees who fulfill the terms and conditions of the agreement should have an expectation that they will receive the payment as defined.

A non-discretionary bonus cannot be used to compensate employees who render services beyond the scope of their current position.

The contract, agreement or letter of offer or plan documenting the details of the non-discretionary bonus must be attached to the one-time payment transaction.

Employees who are included in a defined written contract, agreement, letter of offer or formal metric/achievement measures incentive plan are generally not eligible to receive any discretionary bonus.

Note that a non-discretionary bonus (percentage) is included in the calculation of the regular rate of pay for overtime.

Type

Non-Discretionary Performance Incentive (Percent) is calculated as a percentage of base salary and will be paid as defined in the contract or agreement. This may be paid as one or more installments.

Retirement Treatment

The non-discretionary bonus (percent) is subject to all retirement contributions, including OPERS, OPERS ARP, STRS and STRS ARP, as dictated by Ohio Revised Code and Ohio Administrative Code.

This course provides information on the overall merit process.

Merit Process: Overview Course 1 of 4

This course will help academic units understand the steps that should be taken to plan and prepare for the merit process.

Merit Process: Preparation and Planning Course 2 of 4

This course is designed to HR Consultants and HR Business Partners in academic units understand the navigation and data entry to complete the merit process in Workday.  In addition, the course will cover the reports that are available as part of the Workday merit process.

Merit Process: Merit Navigation and Data Entry in Workday Course 3 of 4

This course is designed to help academic units understand the steps that occur after the completion of the merit process in Workday.  This includes samples of the merit notification letters that employees receive.

Merit Process: Post Merit Process and Review (coming soon)