Personnel Policies for All Staff and Hourly Employees

Reward Plans and Recognition Plans
AFSCME(BL) 3.2 • CWA 9.5 • PA/SS 2.4 • Hourly 6.4

Effective April 1, 2008

Employees covered by this policy
This policy applies to all Staff and Hourly employees.

A. Purpose

  1. Indiana University supports the acknowledgment of an individual’s special achievements that further institutional goals and objectives, through structured reward and recognition plans. Both plans are considered elements of a total compensation plan for Staff and Hourly employees.

  2. Reward plans are lump-sum monetary payments to acknowledge significant outstanding employee performance in the form of contributions directly related to a specific University or campus goal or objective. Recognition plans are non-cash items to acknowledge a significant outstanding achievement or completion of significant increments of University service.

B. Introduction

  1. A campus, Responsibility Center (RC), or other distinguishable unit may determine whether to develop and implement a Reward Plan or a Recognition Plan.

  2. A Reward Plan is a formal written plan that provides for a lump-sum monetary payment to commendable employee(s). A Reward Plan may consider awards that are either discretionary or based on clearly defined goals and achievements. In either case, the plan should directly support a University or campus goal or objective.

    1. Rewards are not a substitute for base salary increases or an alternative to salary adjustments that would otherwise be appropriate to recognize a significant change in position responsibilities, sustained high performance, or internal or external pay equity.

  3. A Recognition Plan is a formal documented plan that provides for recognition for such reasons as outstanding achievements, accomplishments, teamwork, or length of service. A Recognition Plan may provide certificates, plaques, or a range of pre-selected items of limited monetary value from which a recipient may choose to commemorate her or his accomplishments.

    1. A Recognition Plan developed pursuant to this policy is not intended to-- and should not take the place of--recognition amongst coworkers, letters of recognition, and other forms of commendation or recognition for a job well done. 

    2. Gift cards, gift certificates, vouchers and the like are deemed by the IRS to be equivalent to cash, and therefore may have tax consequences. As such, these kinds of items cannot be used in conjunction with a Recognition Plan.

C. Reward Plan – Plan Design, Document and Administration

  1. Unit management is responsible for ensuring that the design of a Reward Plan is aligned with the University’s or campus’ strategic goals objectives and funded within budget guidelines. Reward Plans should also:

    1. Recognize top performers for accomplishment of defined goals and objectives.

    2. Reward outstanding performance or a specific accomplishment that is beyond normal expectations.

    3. Provide award amounts relative to the accomplishment and outstanding performance not to exceed an annual award of 10 percent of a full-time Staff employee’s annual equivalent base salary. For part-time Staff and Hourly employees, the maximum annual award is the greater of $500 or 10 percent of actual pay during the last 12-month period. Any proposed exception to this amount must be submitted for consideration to University Human Resource Services by the Campus Human Resources Office.

  2. Campus Human Resources offices and University Human Resource Services will serve in a consultative role in the development of a Reward Plan. These offices will provide guidelines regarding Reward Plan structure and process and will assist in determining the potential impact on overtime pay in accordance with FLSA regulations.

  3. A Reward Plan must be documented and have prior approval.  The plan document must include:

    1. Name of campus, RC or unit

    2. Purpose of the Plan and how accomplishments support University or campus goals and objectives

    3. Category of eligible employees or list of eligible positions

    4. Period of time on which award will be based (fiscal year, calendar year or other appropriate period of time)

    5. Performance criteria - examples of performance criteria:

      1. Accomplishment of task(s) that goes beyond the fulfillment of all job duties and normal expectations of the job; or,

      2. Outstanding performance on a special project or a major accomplishment or special effort that goes well beyond expectations and resulted in a significant positive impact, productivity gain or cost savings

    6. Selection process - identify how the award recipients will be selected and what positions or committee will select the recipients of the awards

    7. Award

      1. Number individual awards expected per award period

      2. Targeted amount of individual award payments not to exceed the limits noted above

      3. Total cost of awards per award period

    8. Approval

      1. Prior to its approval, the campus budget office is responsible for securing funding approval from the University Budget Office.

      2. The final plan document must be approved in writing by the associated vice president, provost, chancellor or RC Head, the campus budget office, and the Campus Human Resources Office.

      3. A unit that has eligible employees on multiple campuses should seek consultative advice and approval from University Human Resource Services.

  4. Upon completion of the approval process, the Campus Human Resources Office shall maintain the approved plan and any subsequent amendment to the plan. These approved documents along with University policies and procedures serve as the guiding principles for administration of the plans.

  5. The unit is responsible for the administration of the Reward Plan within the approved plan documentation. Payments to Staff and Hourly employees who have been chosen for an award pursuant to this policy shall be initiated by the unit through the Additional Pay E-doc process, with comments that identify the approved Reward Plan, a brief explanation of the employee’s exceptional performance, and the period of time over which the award was earned.

D. Recognition Plan – Plan Design, Document and Administration

  1. Campus Human Resources offices and University Human Resource Services office will serve a consultative role in the development of Recognition Plans.

  2. The Recognition Plan must be documented and approved. The plan document must include:

    1. Name of campus, RC or unit

    2. Purpose of plan

    3. Category of eligible employees or list of eligible positions

    4. Period of time on which award will be based (fiscal year, calendar year, or other appropriate period of time)

    5. Selection criteria- examples:

      1. Outstanding achievement

      2. Teamwork

      3. Length of University service

    6. Award

      1. Type of individual awards and any selection options available to the award recipient (such as pins, pictures, watches, equipment, or certificate that entitles the recipient to select from several university purchased items)

      2. Total cost of awards expected for award period

    7. Approval

      1. The campus budget office is responsible for securing funding approval from the University Budget Office.

      2. The final plan document must include the approval of the associated vice president, provost, chancellor or RC Head, campus budget office, and Campus Human Resources Office.

      3. A unit that has eligible employees on multiple campuses should seek consultative advice and approval from University Human Resource Services.

  3. Upon completion of the approval process, the Campus Human Resources Office shall maintain the approved plan and any subsequent amendment to the plan.

  4. The unit is responsible for the administration of the Recognition Plan within the approved plan documentation.

  5. The purchase of all non-monetary awards, such as equipment, pins, pictures, watches, etc., must be processed through Purchasing, FMS, and/or IU Foundation per established policies and procedures and are subject to applicable federal and state laws and regulations. 

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University Human Resource Services
Last updated: 8 May 2008
URL: http://www.indiana.edu/~uhrs/policies/
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