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UNIVERSITY OF IOWA FLEXIBLE PAY PROGRAM GUIDELINES
FOR NON-ORGANIZED PROFESSIONAL & SCIENTIFIC EMPLOYEES

University Flexible Pay Policy

Flexible Pay shall be awarded for extra-meritorious performance that may include rewarding a variety of outcomes and behaviors e.g., project completion, sustained above average performance and revenue generation, etc. There are two types of Flexible Pay: (1) Exceptional Performance Awards, and (2) SPOT Performance Awards. Flexible Pay should not be used as a substitute for providing ongoing base adjustments that assure equitable and competitive salaries.

• All regular, non-organized Professional & Scientific employees are eligible for Flexible Pay.
• 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. There is no minimum employment period required for SPOT Performance Awards.
• 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. A Commendable or Distinguished performance evaluation (with the past 12 months) is not required for SPOT Performance Awards.
• An employee must have received at least the average July 1st salary increase for the College or Division to be eligible for an Exceptional Performance Award, unless prior agreement has been reached with the Director, UI Compensation and Classification that the employee must have received at least the Department average July 1st salary instead of the College or Division average. If an employee did not receive the average salary increase for College, Division or Department due to their current market position, the College or Division may ask for consideration from the Director, UI Compensation and Classification. An employee is not required to have received at least the average July 1 salary increase for the College, Division or Department to be eligible for a SPOT Performance Award.
• Flexible Pay can be awarded at any time during the year.
• 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 an 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.
• 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.
• An employee may receive Exceptional Performance Awards a maximum of two times per fiscal year. 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.
• No more than 10% of a College or Division's non-organized Professional & Scientific staff would be eligible to receive an Exceptional Performance Award in a given fiscal year.
• To operationalize a Flexible Pay program, Colleges and Divisions will be required to develop Flexible Pay Guidelines which must be reviewed and approved by UI Compensation and Classification. The guidelines must reflect the components of the University's Flexible Pay Policy as described herein, but may adopt more stringent guidelines.
• No Flexible Pay awards will be approved unless guidelines have been developed and approved by UI Compensation and Classification. A copy of the guidelines will be kept on file in University Human Resources.
• Departments will be responsible for funding Flexible Pay awards.

Required Elements of Collegiate and Division Guidelines

• Communication: Describe how the College/Division will communicate the program to all P&S non-organized staff and other supervisors (please be specific regarding method and frequency).
• Process: Describe the College/Division process for evaluation, which includes identifying who can initiate a request for pay and the different review/approval levels. Reviewers and approvers must be named at the College/Departmental level.
• Overall Parameters: In what manner will the program differ, that is, be more stringent than the University Guidelines.
• Criteria for an Award: List the specific performance criteria to be used to evaluate whether an Exceptional Performance Award or a SPOT Performance Award will be given.
• Tracking:  The College/Division will track Flexible Pay Program data and conduct the analyses listed below during the fiscal year.

Page Last Updated December 2012