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Merit Pay (Faculty) Procedure - 63.04.06

College Policy Number/Title:

Howard Community College believes that excellent performance creates excellent results, and therefore sets demanding standards for employee performance. In order to foster and acknowledge meritorious performance, the college has adopted a system for determining merit pay that defines various levels of employee performance and awards higher merit pay for higher performance.

The merit pay amount for each faculty member is determined based on a formula that includes the base merit percentage approved by the board of trustees and the faculty member’s performance rating, among other factors. The formula can be obtained at any time from the office of human resources and is distributed to all faculty whenever merit pay is awarded. Performance levels and their definitions can be found in procedure 63.05.01, Evaluation (Faculty). A faculty member who receives a performance rating below Meets Expectations is not eligible for merit pay for that year.

Faculty who are approaching the maximum of the salary range for their grade are eligible to earn merit pay, but any portion of merit pay that exceeds the maximum of the salary range will not accrue to the base salary. Instead, that portion is paid as non-base merit with the base salary remaining at the maximum.

Merit awards will be adjusted for faculty hired after the start of the fiscal year. Faculty hired July 1 through September 30 are eligible for the full merit award; faculty hired October 1 through December 31 are eligible for three-quarters merit award; faculty hired January 1 through the end of February are eligible for half the merit award; and faculty hired March 1 and after are not eligible for a merit award until the following fiscal year.

Faculty on extended periods of leave during the year may also have reduced merit increases. Faculty who work eight months of a fiscal year or more are eligible for full merit for that fiscal year; faculty who work for six to eight months of a fiscal year are eligible for three-quarters merit for that fiscal year; and faculty who work three to six months of a fiscal year are eligible for half merit for that fiscal year.

Merit pay is contingent on available resources, and may be withheld or delayed each year at the discretion of the board of trustees.

Effective Date: 07/01/20

President's Office Use:  VPAF/VPAA

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