Finance and Operations Flexible Pay Policy
Flexible Pay may be awarded for extra-meritorious performance that includes rewarding a variety of outcomes and behaviors. There are two types of Flexible Pay: (1) SPOT Performance Awards (up to $75) and (2) Exceptional Performance Awards (up to 10% of base pay).
- F&O Departments will be responsible for funding Flexible Pay Awards.
- All regular, non-organized Professional & Scientific employees with an appointment of 50% or greater are eligible for Flexible Pay if they meet established criteria.
- Flexible Pay can be awarded at any time during the year.
- Flexible Pay should not be used as a substitute for providing ongoing base adjustments that assure equitable and competitive salaries.
- All Flexible Pay awards must be approved at the Organizational level. If an award is to be paid in any part by 500 or 510 funds, UI Compensation and Classification will route the transaction to Grant Accounting so they may review the payment request at the time the award is submitted for final approval.
- Flexible Pay will be awarded in the form of a lump sum payment that is not added to the base salary.
- Flexible Pay awards must be supervisor initiated (using the appropriate nomination form) and approved by the unit DEO and forwarded through workflow by the Departmental HR Unit Representative to the Office of the Senior Vice President, Finance and Operations. Awards will not be approved without DEO endorsement. A clear and compelling case for the award and $$ amount recommended must be provided by the supervisor and department.
- There is no minimum employment period or performance rating required for SPOT Performance Awards.
- An employee may receive no more than four SPOT Performance Awards ($75 or less) in one fiscal year. Multiple SPOT Performance Awards to the same employee must be submitted at least 30 working days apart.
- Considerations for determining appropriateness of SPOT Award nominations: Extra effort in completing a non-recurring task or assignment; exceptional customer service or assistance to another unit or department in the course of performing job duties, etc.
- SPOT awards are grossed up for taxes and awarded as a separate check issued/handed to the staff member, typically within a few days following approval of the award.
- F&O Spot Award Nomination Form.docx
- An employee must have been employed at the University of Iowa in a regular position for six months to be eligible for an Exceptional Performance Award.
- An employee must have a current (within past 12 months), Commendable or Distinguished performance evaluation on file to be eligible for an Exceptional Performance Award.
- An employee must have received at least the average July 1st salary increase for the Division to be eligible for an Exceptional Performance Award, unless prior agreement has been reached with the Director, UI Compensation and Classification. If an employee did not receive the average salary increase for the Division due to their current market position, the Division may request consideration from the Director, UI Compensation and Classification.
- An employee may receive up to 10% of their salary in Flexible Pay for Exceptional Performance Awards per fiscal year. If the recommended amount for any single Exceptional Performance Award is over $5,000, the recommendation must be reviewed and approved by UI Compensation and Classification. If a second Exceptional Performance Award recommendation for the same employee is received in the same fiscal year, and the cumulative amount is over $5,000, it must be reviewed and approved by UI Compensation and Classification.
- Considerations for determining appropriateness of Exceptional Performance Award and $$ amounts – For sustained commendable or distinguished performance of assigned work duties resulting in a variety of outstanding/exceptional outcomes and behaviors, successful completion of a major project where work is performed outside of or in addition to normal duties, etc. consider 1-5%; For one-time, successful, completion/implementation of a significant project, outcome, development of significant new initiatives, cost savings and/or revenue generation, where work is performed outside of/in addition to normal job duties: consider 5-10%.
- An employee may receive Exceptional Performance Awards a maximum of two times per fiscal year, provided the 10% base salary maximum is not exceeded.
- Exceptional Performance Awards are subject to taxes and are not issued as a separate check, but added to the next regular monthly paycheck.
- No more than 10% of the Finance and Operations non-organized Professional & Scientific staff would be eligible to receive an Exceptional Performance Award in a given fiscal year. Additionally, no more than 10% of the non-organized P&S staff in the individual units overseen by the Senior VP’s direct reports are eligible to receive an Exceptional Performance Award in a given fiscal year.
- F&O Exceptional Performance Award Nomination Form.docx
Communication and Tracking
- Information related to the F&O Flexible Pay Program will be available at all times to all F&O P&S non-organized staff via the F&O website.
- The Finance and Operations Division will track Flexible Pay Program data and/or conduct the analyses listed below during the fiscal year and transmit the information no later than July 15th to University Human Resources.
- number of awards requested
- number of awards given
- reasons for approval or rejection
- nature of accomplishment/achievement
- percent of non-organized staff receiving an award
- average dollar amount of award
- average percent of salary of an award (for exceptional performance awards only)
- analysis of awardees based on race and gender relative to your College or Division
- potential impact of awards on Division’s morale, productivity, etc.