University of Hawai'i
(808) 956-8856 Telephone
For Immediate Release:
June 21, 1999
Contact: Eugene Imai, Sr. Vice President for Administration 956-8903
Jim Manke, University Relations 956-6106
UH Institutes Innovative Performance Incentive Based Salary Increases For Executive/Managerial Employees
The University of Hawaii has implemented a new performance incentive salary system by which pay increases for Executive/Managerial employees are calculated. The system includes a mix of base salary increases and, in some cases, added amounts of compensation based on meritorious performance.
The total dollar amounts allocated for the increases does not exceed the amounts appropriated for this purpose by the Legislature. This new plan is a change from the traditional across the board increases.
"We are pleased to be the first in state government to implement this progressive pay plan," said UH President Kenneth P. Mortimer. "Throughout the private sector this kind of performance incentive program is a common management practice to foster and support outstanding effort on the part of executive and managerial personnel. We believe it can be a model for the rest of state government, and we look forward to evaluating its effects on innovation and productivity and to sharing our experiences with this ground breaking program."
Under the new formula, base salaries for Executive/Managerial employees will increase by an amount up to 3% for satisfactory job performance, with the new higher base carried over from one year to the next. Additional compensation has been approved above 3% for some E/M employees, and is considered to be for outstanding and meritorious performance as determined by supervisors' evaluations and recommendations. These amounts are not calculated into the base salary, and are not automatically carried over from year to year unless recommended by supervisors' annual evaluations.
Salary increases for the approximately 200 UH managers retroactive to July 1, 1998 were approved last week. E/M personnel are being notified this week about their new salary calculations for that period and the fiscal year ahead, beginning July 1, 1999.
Although funds for the fiscal year just ending were appropriated by the 1998 Legislature, decisions on retroactive pay were withheld until there was an assurance that retroactive pay increases for public employee bargaining unit employees would be approved by the 1999 Legislature signed into law by Governor Cayetano.
A total of $573,000 was included in the UH budget for these purposes. About 25-30% of this salary pool will be carried over from year to year for allocation under the incentive program.
The university's HGEA and UPW employees were to receive their retroactive salary increases in paychecks last week. UH faculty members in the University of Hawaii Professional Assembly (UHPA) were the only public employees in the state to receive their current year pay raises at the beginning of the year for which they were negotiated.