Performance Bonuses for Permanent EHRA Employees

1. Introduction

This Policy sets forth specific definitions and procedures for the payment of performance bonuses to permanent (benefits eligible) EHRA employees of East Carolina University (“ECU” or the “University”). Performance bonuses may be awarded only for an employee’s extraordinary achievements in the course and scope of their University employment, as defined in this Policy. Any such bonuses will be paid only in accordance with the provisions of this Policy. This Policy is intended to meet the requirements for performance-based bonuses as outlined by UNC Board of Governors Regulation 300.2.14.2[R].

2. Scope of Applicability

This Policy applies to all permanent (benefits eligible) EHRA employees at ECU, except the Chancellor, Athletic Director, and Head Coaches. The Athletic Director and Head Coaches are otherwise subject to Section 1100.3 of the UNC Policy Manual.

3. Policy

• 3.1 Policy Statement
  Within the parameters outlined below, performance bonus compensation may be awarded to permanent (benefits eligible) EHRA employees to reward performance of extraordinary contributions, while ensuring equal opportunity and consistency of application across similarly situated groups of employees and positions. Performance bonuses are subject to the following requirements:
  • 3.1.1 Decisions concerning performance bonus compensation must be consistent with University Policy POL05.25.02, Nondiscrimination and Affirmative Action Policy, and may not be based in whole or in part on any employee’s protected status.
  • 3.1.2 No University employee is automatically entitled to a performance bonus.
• 3.2 Sources of Funds
  Performance bonuses may be funded from any source, including state or non-state appropriations, so long as the funding source permits an expenditure for this purpose. For state funds, such use must be permissible under the policies of the Office of State Budget and Management.
• 3.3 Eligible Employees and General Requirements
  • 3.3.1 Only employees in permanent (benefits eligible) EHRA positions are eligible for performance bonuses under this Policy.
  • 3.3.2 EHRA Non-Faculty
    • 3.3.2.1 The award of a performance-based bonus shall be tied to a completed annual performance appraisal for covered non-faculty. Performance bonuses may be awarded only after an annual performance appraisal of the employee has been completed in accordance with applicable University policies.
    • 3.3.2.2 Athletics staff are exempt from policy if they are covered under a separate and properly approved Athletics nonsalary compensation plan.
  • 3.3.3 EHRA Faculty
    • 3.3.3.1 The award of a performance based-bonus shall be tied to the provisions of a written incentive compensation plan for covered faculty. A written incentive compensation plan should be for all faculty in a unit or college and must be approved by the Chief Academic Officer.
    • 3.3.3.2 Faculty who are subject to a department-based written incentive compensation plan established prior to the effective date of this policy are exempt from this policy for extraordinary research performance.
    • 3.3.3.3 Performance-based pay for clinical faculty is subject to the relevant approved clinical incentive pay plans and is exempt from this policy.
  • 3.3.4 The University will not award any performance bonus under this Policy to an employee who:
    • 3.3.4.1 has received an end of appointment notice;
    • 3.3.4.2 did not receive an overall rating of at least “Meeting Expectations” on their most recent annual appraisal;
    • 3.3.4.3 is currently working under a performance improvement plan; or
    • 3.3.4.4 is no longer actively employed in their position.
  • 3.3.5 Receipt of a performance bonus does not preclude an employee from receiving a retention bonus as may be allowed under UNC Board of Governors Regulation 300.2.14.2.
  • 3.3.6 Receipt of a performance bonus does not preclude an employee from receiving a retention base salary increase for a competitive offer as allowed by existing salary administration policy and regulation.
• 3.4 Performance Bonuses for EHRA Employees
  • 3.4.1 Purpose of Performance Bonuses
    Performance bonuses are discretionary and are intended to reward extraordinary achievements in the course and scope of an employee’s University employment. “Extraordinary achievements” means exceptional performance beyond normal expectations of the employee’s position.
    Performance bonuses are not intended to supplant base salary adjustments when deemed necessary and appropriate, such as addressing essential labor market or equity situations.
  • 3.4.2 Performance Achievements
    A performance bonus must be based on at least one of the following specific, demonstrated, extraordinary achievements, as documented in the employee’s annual performance appraisal and in alignment with the strategic goals of the University:
    • 3.4.2.1 Extraordinary Contributions: The employee has made extraordinary contributions to the fulfillment of the goals, mission, and objectives of the department, school/division, and/or University. Such contributions must be visible, measurable, and acknowledged by colleagues and school/division and/or University administrators.
    • 3.4.2.2 Extraordinary Collaboration/Creativity: The employee has identified and implemented extraordinary creative and innovative ideas or solutions that increase efficiency or effective use of University resources, the effects of which must be apparent at the school/division or University level and must be visible, measurable, and acknowledged by colleagues and school/division and/or University administrators.
      3.4.2.3 Extraordinary Results: The employee has delivered extraordinary results in the areas of teaching, research, and/or service, the results of which must be visible, measurable, and acknowledged by colleagues and school/division and/or University administrators.
  • 3.4.3 Bonus Amount
    University will annually determine pools of available funding. A performance bonus awarded to an employee in a single fiscal year may not exceed the thresholds established in UNC Board of Governors Regulation 300.2.14.2. Recommended performance bonus amounts are subject to funding availability.
  • 3.4.4 Bonus Payout
    • 3.4.4.1 A performance bonus should be paid as close to the most recent year’s performance appraisal cycle as reasonably possible.
    • 3.4.4.2 A performance bonus may be paid in one lump sum or in installments, at the University’s discretion, and paid in the fiscal year in which it was awarded. Each fiscal year, the Chancellor or Chancellor’s designee(s) will determine the method in which performance bonuses will be paid.
    • 3.4.4.3 Performance bonuses are subject to retirement contributions to either the Teachers’ and State Employees Retirement System or the UNC Optional Retirement Program for employees participating in one of those programs.
    • 3.4.4.4 If the employee leaves the position in which the performance bonus was earned prior to the full bonus being disbursed, then the employee will receive the remainder of the performance bonus at the time of separation from the position.
    • 3.4.4.5 An eligible employee may receive only one performance-based bonus award per fiscal year and the bonus award shall not exceed the compensation limitations established by UNC System or Board of Governor’s Policy.
  • 3.4.5 Performance Bonus Requests
    Following an employee’s annual appraisal, the employee’s supervisor and/or department chair may submit a performance bonus request to the appropriate Vice Chancellor, Dean, or division head.
  • For EHRA non-faculty employees, the Vice Chancellor or division head must submit all requests to award any performance bonuses to the Human Resources Department. For EHRA faculty, the Dean must submit all requests for any performance bonuses to the Office of the Provost.
  • All performance bonus requests for Tier I senior academic and administrative officers (Tier I SAAOs, Employment Policy for Employees Exempt from the State Human Resources Act) must be approved by the Board of Trustees.
  • All performance bonus requests must confirm employee eligibility requirements identified in 3.3 above are met and must include the documented justification based on the performance achievements identified in Section 3.4.2 above.