2015-16 Salary Increase Program

To: UCSC managers, supervisors, and non-represented staff employees

From: Chancellor George Blumenthal and Campus Provost/Executive Vice Chancellor Alison Galloway

We are pleased to inform you that at the direction of President Janet Napolitano, the university is making plans to implement a systemwide salary increase program for non-represented staff for fiscal year 2015-16. The program encompasses employees governed by Professional and Support Staff (PSS), Managers and Senior Professionals (MSP) and Senior Management Group (SMG) policy programs.

The directions are that we budget for a 3 percent increase over non-represented staff base salaries. Our campus has chosen to utilize an across-the-board approach based upon eligibility criteria. Additional program details and implementation guidelines will be forthcoming.

The funding framework reached between the university and the governor allows UC to plan for annual pay increases for non-represented staff over the next several years with more certainty. It does not create new resources specifically for these pay increases, but it allows the campus to plan on a multi-year basis for the amounts needed to fund the program. It also creates an opportunity to move decisively toward performance-based pay. This approach is consistent with feedback received from staff in the most recent engagement survey, which advocated for making merit-based pay a more prominent feature in our salary programs. Predictable pay practices that are based on performance also contribute to more engaged employees and maintains the University's competitive position for talent. Thus beginning in FY 2016-17 all UC locations will be required to implement a merit-based pay for performance model.

We appreciate the many contributions and services provided by our staff in supporting the university's mission and goals. The implementation of this salary increase program will help to establish consistent and stable pay practices and support our efforts to remain competitive in attracting and retaining the best talent for the University.

Please share this information with non-represented staff employees in your organization.