The following guidelines and practices apply to non‑represented, non‑faculty exempt and non‑exempt staff. Union employees are compensated in accordance with their applicable collective bargaining agreements.
Special pay practices are non-base, temporary adjustments tied to a specific circumstance. They do not change base pay permanently and end when the circumstance no longer exists.
Temporary and Acting Pay
A temporary pay increase may be appropriate when a staff member fills in for a higher-graded vacant position or assumes duties significantly beyond their regular role on a temporary basis. Any proposal for a temporary pay increase must be discussed with your Senior HR Business Partner/HR Business Partner before it is implemented.
Shift Differential
Some University operations require around-the-clock coverage or work schedules outside the standard workday. In these cases, departments may supplement the wages of non-exempt staff scheduled for non-traditional hours. Common examples include computer operations staff in ITS, nurses and nurse practitioners in Health Services, and Public Safety officers. Proposals to add a shift differential must be discussed with the HR Compensation Team prior to implementation.
Variable Pay Program
The Variable Pay Program provides a one-time, non-base award to recognize significant contributions that go beyond standard job expectations in a non-recurring circumstance. It is designed as an incentive and retention tool. It is not intended to reward sustained excellent performance within the scope of one’s regular job as that type of performance is more appropriately recognized through a base pay increase.
Eligibility
The program is open to non-faculty exempt and non-exempt staff. Bargaining unit staff should refer to their current contact for information relating to variable pay awards.
Two Award Models
There are two models for variable pay awards: retrospective and prospective. The appropriate model depends on whether the extraordinary performance has already occurred or is anticipated as part of a planned project or initiative.
| Retrospective Award | Prospective Award | |
| Purpose | Recognition of extraordinary performance after it has occurred | Incentive and retention tied to a planned project or initiative |
| Criteria Set | Identified after the performance by the manager | Defined in advance; participants are informed before work begins |
| Timing | Approvals secured before award is processed | Proposal approved before the project or initiative begins |
| Example | Staff member absorbs a departing colleague’s workload for an extended period while continuing their own duties | Key staff retained through a multi-year system conversion, rewarded for sustaining exceptional effort through critical milestones |
| Steps to Implement | Assess the individual’s or team’s contribution relative to job expectations, focusing on impact. Confer with your Senior HR Business Partner/HR Business Partner to determine an appropriate award amount. Secure required approvals (see Approval Process below). | Determine whether a variable pay award would positively impact performance on the planned project or initiative. Define goals, performance criteria, and award levels before work begins. HR is available to assist. Communicate the program clearly to participants, including objectives, individual expectations, and how performance will be evaluated. Submit a proposal through the approval chain (see Approval Process below) before the project begins. At close of the performance period, evaluate results against defined criteria and distribute awards accordingly. |
Setting Performance Criteria
Whether using a retrospective or prospective model, performance criteria should be:
- Measurable — quantitatively or through clearly observable outcomes
- Attainable, but require a meaningful stretch beyond normal expectations
- Time-bound — defined by the project or event
- Results-oriented — tied to outcomes, not just activities
- Understood by participants — especially for prospective awards, staff should have a clear picture of what is expected and what they could earn
Approval Process
All variable pay proposals should first be reviewed with your Senior HR Business Partner/HR Business Partner. From there, the required approvals depend on where the proposal originates.
Proposals from any department require approval from the relevant dean, vice president, or senior leader, with support from their respective Executive Team leader. Proposals originating from the Chancellor’s office may be approved by the Chancellor or by the Senior Vice President and Chief of Staff on the Chancellor’s behalf.
Note: For prospective awards, approvals must be secured before the project or initiative begins.
Award Size
The minimum award under the program is $500. There is no defined maximum. Managers and supervisors are encouraged to work with their Senior HR Business Partner/HR Business Partner to determine an appropriate amount, taking into account the magnitude and value of the performance, the contribution of the individual, competitive pay practices, and the department’s budget.
Funding
Awards are funded from the department’s budget or the relevant project budget. The Office of Budget and Planning can help identify an appropriate funding source. Eligible funding sources include departmental general operating and personnel budgets, and restricted funds where such awards are permitted. Use of a project budget requires approval from the Executive Team leader or the individual with spending authority for that budget.
For prospective awards, managers should confirm in advance that sufficient funds will be available to cover the maximum possible payout if all performance expectations are met.
Benefits and Tax Impacts
Variable pay awards are not eligible for the University’s TIAA contribution. Awards are subject to a flat-rate federal tax withholding of approximately 40%. Managers should communicate this to participants when discussing award amounts so that the net value is understood upfront.
Questions about this policy should be directed to your Senior HR Business Partner/HR Business Partner or the HR Compensation team.