Princeton University Office of Human Resources Merit Increase Program MIP AAMG February 20, 2007

1. Princeton UniversityOffice of Human ResourcesMerit Increase Program (MIP) AAMGFebruary 20, 2007

2. 2 Overview Performance Appraisal Process and Salary Recommendations Merit Increase Program (MIP) recommendations Key MIP and Performance Management Program Milestones Support from Compensation and OHR staff Questions Process similar to past years Provide some context regarding total compensation Time for questions Process similar to past years Provide some context regarding total compensation Time for questions

3. 3 Performance Appraisal Process Managers should be working on performance appraisals with their staff Performance appraisal forms are on HR web site www.princeton.edu/hr/manager/perfforms Performance appraisals should be completed by April 13, 2007 Appraisal deadline extensions to 6/30/07 if requested Reminder that salary recommendations should be aligned with performance Managers should be working on performance appraisals now Important staff feedback Development and performance expectations Appraisal information all throughout the year � appraisal earlier the better for best alignment 5 levels of performance again Forms on the webReminder that salary recommendations should be aligned with performance Managers should be working on performance appraisals now Important staff feedback Development and performance expectations Appraisal information all throughout the year � appraisal earlier the better for best alignment 5 levels of performance again Forms on the web

4. 4 MIP Pool and Landing Points Merit Pool = 3.8% Five levels of individual performance Exceptional � 4.0% or higher Highly Effective � 3.2% to 4.0% Effective � 2.0% to 3.2% Requires Improvement � up to 2.0% Unsatisfactory � no increase VP/Dean may choose to withhold a portion of their pool to reward exceptionally high performance in their areas Overview notes Thanks to President Wightman, Provost Disrober and the Priorities committee the pool is .2 higher than last year a significant amount in this operational budget. Staff salaries are a priority. Every year, the market for staff salaries is reviewed to ensure competitive wages - look at local, regional and national Pushed the landing points slightly higher in order to have the most impact to pay. Over past several years, university has increased entire total compensation package Overall salaries more in line with market Major enhancements to benefits package over the last few years � Overview notes Thanks to President Wightman, Provost Disrober and the Priorities committee the pool is .2 higher than last year a significant amount in this operational budget. Staff salaries are a priority. Every year, the market for staff salaries is reviewed to ensure competitive wages - look at local, regional and national Pushed the landing points slightly higher in order to have the most impact to pay. Over past several years, university has increased entire total compensation package Overall salaries more in line with market Major enhancements to benefits package over the last few years �

5. 5 Additional Variable Pay Option SPRA Award Intended to reward exceptional contributions Recognition based on completion of a special project or assignment in CY 2006 Awards are highly competitive Additional means of rewarding an extraordinary contribution We�ve added an additional feature which will allow you to reward for completion of a special project during the calendar year 2006 that has not been previously submitted. The SPRA Award, normally awarded in July and December, allows you as managers the opportunity to reward an individual for a special contribution during the year. The document should be completed as outlined in the general SPRA instructions Information should be forwarded to Vani Pawar in HR Comp for review at the time the spreadsheet is submitted A final determination will be submitted prior to the effective date of MIP and the SPRA payment We�ve added an additional feature which will allow you to reward for completion of a special project during the calendar year 2006 that has not been previously submitted. The SPRA Award, normally awarded in July and December, allows you as managers the opportunity to reward an individual for a special contribution during the year. The document should be completed as outlined in the general SPRA instructions Information should be forwarded to Vani Pawar in HR Comp for review at the time the spreadsheet is submitted A final determination will be submitted prior to the effective date of MIP and the SPRA payment

6. 6 Key MIP Dates and Milestones Week of March 5 � HR launches Salary Management Web Site. Managers receive e-mail notification (memo) and instructions March 5 through March 26 � Managers complete salary increase recommendations April 2 through April 9 � Senior officers finalize pool distribution with HR Week of May 21 � HR sends individual confirmation letters Pay increases effective 6/18/07 (BW); 7/1/07 (Monthly)

7. 7 Support from OHR and Compensation Contact Human Resources (ext. 3300) with general questions about process, guidelines, and instructions HR will provide advice and counsel to managers on performance management and salary planning issues Compensation support provided throughout the MIP process Dot Garrison, Director, Compensation E-mail � dorothyg@princeton.edu Telephone 8-8628 Vani Pawar, Compensation Analyst E-mail - vpawar@princeton.edu Telephone 8-2847 John Flynn, Compensation Systems Analyst E-mail - jflynn@princeton.edu Telephone 8-3274 Questions? Questions?