1. A merit-based salary program for non-represented employees HRAC PRESENTATION

2. AGENDA Manager/supervisor role in change Rationale for merit-based salary program Scope of 2016 appraisal changes Impact to employees Timeline and details Expectations Resources Change management plan 2

3. Why are managers and supervisors so important? 3 Introduce changes in operations Meet the needs of their employees Run the day-to-day operation and achieve results

4. Why Are Managers So Important? Managers and supervisors are influential Employees trust them Managers and supervisors mitigate resistance at the root cause Managers and supervisors build support for initiatives/changes They are a preferred sender of information! 4

5. Your Role In Leading Change Communicator Advocate Coach Resistance manager Liaison Most critical roles for managers and supervisors: 5

6. Rationale for P4P University commitment to move to pay for performance - Systemwide initiative beginning in FY 2015-2016 “The merit-based approach is also consistent with feedback we received from staff in the most recent Engagement Survey.” “Ultimately, predictable pay practices that are based on performance engage employees, maintain the University’s competitive position for talent and help build an even higher performance organization where staff feel they can excel.” UC President Janet Napolitano, February 29, 2016 letter to campus chancellors “Chancellor Katehi articulated more than a year ago that the campus would move to a pay-for-performance system, so employees knew what to expect in the EPAR year that began July 1, 2014.” Source: 7/31/15 Dateline Article about Pay for Performance - UC Davis was an early adopter in FY 2014-2015 6

7. Rationale for 2016 Changes to P4P Feedback received during last two years of merit- based salary program “Meets Expectations” rating was viewed as a “C grade” Perception of forced distribution Inconsistency in calibration practices across schools, colleges, divisions Inconsistency in merit application practices across schools, colleges, divisions “With proper distribution of performance ratings, managers can differentiate merit awards and appropriately recognize the strongest contributors” UC President Janet Napolitano 7

8. Changes for 2016 Review period is May 1, 2015 to April 30, 2016 New rating category and descriptions Five-point rating scale remains Category and descriptions updated significantly to provide clearer distinctions between ratings 2016-2017 appraisal will use a four-point scale that collapses “Exceeds Expectations” and “Exceptional” into one rating 8

9. EPAR RATINGS Overall rating should reflect the employee’s overall performance for the review period. Ratings must be supported by the narrative. What are the 2016 ratings?  Expectations Not Met  Some Expectations Met  Fully Achieved Expectations  Exceeded Expectations  Exceptional 9

10. Ratings Guidance: EXPECTATIONS NOT MET IMMEDIATE IMPROVEMENT IS NEEDED Goals/Achievements/Job Functions No critical goals were achieved and/or majority of work was poorly executed Skills Did not demonstrate basic skills, knowledge or ability required to perform the majority of assigned duties Behavior Behavior was unacceptable and detrimental to positive organizational culture 10

11. Ratings Guidance: SOME EXPECTATIONS MET PERFORMANCE OCCASIONALLY MET EXPECTATIONS, BUT WAS INCONSISTENT Goals/Achievements/Job Functions  Some critical goals were completed though overall achievement was below expectations Skills  Demonstrated most required skills, knowledge and abilities, but improvement/growth is needed Behavior  Behavior was not consistently professional or supportive of a positive organizational culture  New in position and developing appropriately; performance was good given limited time in position 11

12. Ratings Guidance: FULLY ACHIEVED EXPECTATIONS PERFORMANCE CONSISTENTLY MET, AND AT TIMES, MAY HAVE EXCEEDED EXPECTATIONS Goals/Achievements/Job Functions  Critical goals were completed and achievements were as expected of an experienced performer Skills  Consistently demonstrated required skills, knowledge and abilities Behavior  Behavior was consistently professional or supportive of a positive organizational culture 12

13. Ratings Guidance: EXCEEDED EXPECTATIONS PERFORMANCE CONSISTENTLY EXCEEDED EXPECTATIONS Goals/Achievements/Job Functions  Critical goals were completed and achievements clearly and consistently surpassed job performance expectations Skills  Demonstrated skills, knowledge and abilities well beyond the job requirements Behavior  Behavior was highly professional, and meaningful contributions to a positive organizational culture were made 13

14. Ratings Guidance: EXCEPTIONAL PERFORMANCE FAR EXCEEDED EXPECTATIONS Goals/Achievements/Job Functions  Critical goals were completed at an exceptional level and performance far exceeded all standards and expectations Skills  Demonstrated skills, knowledge and abilities at an extraordinary level Behavior  Served as a role model; extensive and valuable contributions to a positive organizational culture were made 14

15. Ratings Examples ExamplesExceptionalExceeded ExpectationsFully Achieved ExpectationsSome Expectations Met*Expectations Not Met Goals/Achievements/ Job Functions Undertakes additional job functions/duties, through their own initiative, that further the goals of and makes significant contributions to the unit, department, and/or organization. Possesses full knowledge of their job functions/duties as well as other related aspects of the unit, department and/or organization with the ability to explain and articulate such aspects clearly to others. Competently performs job functions/duties on a day-to-day basis and regularly meets expectations and job description requirements with some tasks performed beyond expectations Sometimes does not complete assignments/tasks in an effective manner or the assignments/tasks require revision, clarification or time extensions. Consistently does not competently complete assignments/tasks and consistently does not produce quality work products even with clarifications or time extensions. Significantly and consistently exceeds expectations, producing a high quality and quantity of work. Often exceeds expectations and role requirements by producing a high quality and quantity of work. Consistently produces high quality work and is willing to take on extra tasks if needed Sometime the quality and quantity of work does not meet department goals and objectives. Consistently produces low quality work and does not carry appropriate share of work load. Skills Demonstrates exceptional in-depth knowledge of their job functions/duties and is highly recognized by others within the University community or within their area of expertise as an authority in their area of work. Recognized by peers, managers, students and other customers/personnel as collaborative, skilled, and reliable. Recognized by members of the unit/customers as someone who knows how to do their job, and gets it done. Sometimes viewed by others as someone who does not exhibit full understanding of their job functions. Does not understand job functions or does them inaccurately. Identifies programs, develops recommendation, carries out solution independently. Identifies problems and consistently participates in creating solutions. Identifies problems, asks for help or participates in solutions. Sometimes not able to identify problem areas or carry out solutions. Routinely unable to identify problem areas or carry out solutions. Takes initiative consistently that has a larger impact (e.g. contributes to cost savings or increased efficiency). Takes initiative frequently that impacts their own team or other groups. Occcasionally takes initiative that impacts their own position/functional area. Rarely takes initiative to complete tasks or resolve problems. Does not take initiative to complete tasks. Behavior Exhibits model behavior that exemplifies the values and qualities of the organization and is worthy of emulation by supervisors/staff members (e.g. Principles of Community). Understands and is proactive in promoting the Principles of Community and other values of the organization. Understands the Principles of Community and other values of the organization. Sometimes engages in behaviors that do not adhere to the Principles of Community and other values of the organization. Violates the Principles of Community and other values of the organization. Exhibits teamwork or is a team player in varied settings and influences others to work collaboratively to bring about a positive impact while furthering the goals of the unit, department and/or organization. Exhibits teamwork or is a team player in varied settings and consistently models collaboration Exhibits teamwork or is a team player in varied settings; collaborates with others Sometimes does not collaborate effectively with co-workers and does not exhibit teamwork. Routinely does not collaborate effectively with co-workers and is not a team player. Skillfully resolves conflict in the midst of differing opinions by creatively developing a compromise within competing interests. Sometimes able to resolve conflict or identify people or programs that can help resolve differences Regularly interacts effectively with peers, managers and other University staff, public and students. Sometimes engages in ineffective or negative interactions with peers, colleagues, management, students or other members of the University community. Engages in unprofessional or negative interactions with others in the workplace. Fosters a "can do" attitude in others, builds the team up. Possesses a "can do" attitude.Willing employee, open to new ideas.Occasionally a nay-sayer about new ideas.Routinely exhibits behavior that breaks down the team. Creates opportunities for self and others to support the direction/mission/goals of the department/unit or organization. Actively supports the direction/mission/goals of the department and encourages the same from others. Models the direction/mission/goals of the department/unit and does nothing to undermine success of the team. Occasionally disagrees with the direction/mission/goals of the department/unit and undermines the success of the team. Routinely disagrees with the direction/mission/goals of the department/unit and undermines the success of the team. 15

16. Changes for 2016 Adoption of CALIBRATION and merit distribution principles within each school, college or division to create a stronger framework for consistent evaluation practices In each school, college or division, an individual or group of individuals at the leadership level will take responsibility for coordinating and communicating the calibration and merit distribution processes Supervisors and managers within schools, colleges and divisions are engaged in the calibration process Calibration meetings will occur while appraisal is in the DRAFT stage, not yet shared with employees Supervisors and managers are informed of outcomes prior to communication with individual employees 16

17. Calibration Meetings Discuss the most important criteria to differentiate top performers Review proposed ratings of employees Determine alignment with the criteria identified for top performers Agree on performance ratings for each employee, making adjustments as appropriate =============== Helps drive greater consistency in the rating process Create a common, consistent language to clearly communicate performance management standards with employees 17

18. Calibration Meetings Questions to consider What exemplary behaviors did you observe? What significant impact did the individual’s accomplishments or goal achievement have on your unit/division/college/school or the university? What significant accomplishments or goal achievement went above and beyond the individual’s daily work expectations? What unusual circumstances took place during the past year that presented an opportunity for excellence? 18

19. Changes for 2016 Adoption of calibration and MERIT DISTRIBUTION principles within each school, college or division to create a stronger framework for consistent evaluation practices No across the board distribution The only factor considered in the application of merit funds is annual performance The application of dollars/merit is consistent across performance ratings Supervisors and managers are informed about the merit application process outcomes prior to communication with individual employees 19

20. Changes for 2016 Improved communication and support Comprehensive communication plan, including direct communications to all non-represented staff, managers and supervisors New one stop website hosting various support materials for Employees, Supervisors and Everyone, http://P4P.ucdavis.edu 20

21. Impact to Employees Timelines will be clearer Performance ratings will be easier to understand and explain There will be a greater sense of consistency across each school, college and division Easy to find tools will be available to help with writing self-assessments Merit increases will vary among non-represented employees 21

22. Timeline 3-16Call for performance appraisals 3-16 to 4-16Employees write self-assessment 4-16 to 5-10Supervisors write DRAFT appraisal (Does NOT share with employee) 5-11 to 6-9Calibration meetings for consistency; merit decisions 6-10Rating and merit info to HR 6-10 to 6-23HR review 6-24Merit info due to payroll 6-24 to 7-15Supervisors notified about merit; then employees notified about merit 22

23. Eligibility Non-represented 99 (PSS) and K3 employees Hired before October 30, 2015 Non-probationary by April 30, 2016 Full-time and part-time career appointments MSP employees Hired on or before January 4, 2016 Full-time and part-time career appointments Employees must have a completed appraisal with a rating of “Fully Achieved Expectations” or better Contract (PSS and MSP), per diem, limited term, floater appointments are excluded 23

24. Merit Pool The merit pool is 3% of eligible salaries (based on eligible staff within the unit as of 3-1-16) HR to provide roster and absolute salary budget on 3-16-16 Provost, deans and vice chancellors are responsible for ensuring merit allocations stay within total absolute salary budget 24

25. Effective Dates Bi-weekly paid employees Effective June 19, 2016 – one bi-weekly period of retroactive pay Merit in July 27, 2016 earnings Monthly paid employees Effective July 1, 2016 Merit in August 1, 2016 earnings Employees at top of range - TBD 25

26. Expectations Meet with school, college and division leadership to establish calibration, communication and roll out plans Draft communication for leadership as necessary Present at appropriate school, college, division meetings Communicate directly with school, college division leadership, including both academic and staff managers and supervisors 26

27. Expectations Take a leadership role and champion the program Help managers and supervisors advance the initiative Serve as liaison between managers/supervisor and human resources (as appropriate) Communicate as new information becomes available (e.g., merit distribution processes) Disseminate information regarding various tools Communicate with staff about program and expectations 27

28. Appraisal Resources http://P4P.ucdavis.edu

29. A merit-based salary program for non-represented employees Questions?