All departments are eligible to develop a variable pay program, but it is not mandatory. It should be implemented if there is a need for an additional reward program. HR is available to assist and guidelines are provided in the new Pay Administration Handbook, which will be distributed in September. A retrospective variable pay program recognizes extraordinary performance after the fact. The outstanding work and award levels are identified after the performance has occurred.
Actual performance is evaluated by comparing it to planned performance.
Awards are based on this comparison. Process Recommendations for retrospective awards or for implementing a prospective program must be approved by the dean, director, or department head, who will then forward the recommendations to the appropriate cabinet officer for review. If the cabinet officer approves, he or she will forward the recommendations to the Chancellor for concurrence. There is no maximum. Awards payable under the program come from the department's budget or the project budget, as appropriate.