Values and At Our Best tools to guide us Collaboration – We work together Integrity – We build confidence and trust in all interactions

Merit increases The new normal * Market average based on Wisconsin hospital data. 2.2% 2.1% 2.4% 2.5% Market Average*

Who is eligible? Eligible Staff who have been employed in the same position for the past 12 months. Staff hired or promoted prior to July 1, Not Eligible Staff hired or promoted July 1, 2013 or later. PRNs, interns and positions paid at a flat rate. These rates are adjusted based on market.

Prorated merit increases Staff hired or promoted prior to July 1, 2013: Prorated merit increase % = merit increase % x proration factor Proration factor = # of days from start date to merit increase date/365 days. _______________________________________________________________ For example: Start date = April 1, 2013 Performance review = level 3 Merit increase % = (2.75% x (279 days/365 days)) Merit increase % = (2.75% x.764) Merit increase % = 2.1%

Prorated merit increases Another example: Start date = October 1, 2012 Performance review = level 3 Merit increase % = (2.75% x (461 days/365 days)) Merit increase % = (2.75% x 1.263) Merit increase % = 3.47%

Grades and ranges Salary ranges Maximum Midpoint Minimum Above marketMarket Entry Grades $40 $35 $30 $25 $20 $15 $10 $5

Below salary range minimum 1.Adjust to new salary range minimum 2.Apply merit increase ____________________________________________________ Q: Do new hires receive an adjustment to minimum if they are not eligible for a merit increase? A: Yes, everyone’s pay is adjusted at least to the minimum of the range.

At or over salary range maximum Overall performance rating How merit is applied Level 1Not applicable, no merit received for a level 1. Level 2 Merit applied up to the new range maximum; not eligible for a lump sum bonus. Level 3 Merit applied up to the new range maximum; half of lump sum bonus, prorated based on FTE. Level 4Merit applied up to the new range maximum; full lump sum bonus, prorated based on FTE.

Example of merit bonus calculation FTE (as of 1/5/14): rate: $20.38 Merit increase %: 2.75% Merit increase % applied to base: 1.5% 2014 salary range: $14.25 – – rate (as of 1/5/14): $20.68 (new maximum) Merit bonus amount: $ ((current rate x (1+ merit %)) – range maximum) x (2080 x FTE) x.5 ((20.38 x ) – 20.68) x (2080 x 1) x.5 (20.94 – 20.68) x 2080 x.5 =

Next steps for leaders Access the new rates and ranges for your direct reports through manager self service. MSS/compensation history/direct reports compensation Have a one-on-one conversation with staff about their merit increase.

Talking points for leaders Merit increases were approved in December as part of Children’s overall budget. Level 4:3.25% Level 3:2.75% Level 2:.5 % Level 1:0% Salary ranges will adjust about 1.5 percent Salary and merit increase information is available on Employee Self Service as of Jan. 10. and will be reflected on the Jan. 24 pay statement. As an organization, we look at the market each year to ensure our Total Rewards package –which includes everything we offer in terms of compensation, benefits, culture and well- being –remains competitive.

Questions? Contact any of the compensation team: – Mary Greifenkamp – Anne Gentz – Tracey Corlett