Salary Increases and Bonuses

 

2022-23 Legislative Market Adjustment Reserve (LMAR)

(LMAR) & EHRA Non-Base Salary Merit Bonuses


Each constituent institution of the University of North Carolina System, including North Carolina A&T State University, is required to conduct an Annual Raise Process (“ARP”) for both EHRA and SHRA employees in accordance with UNC System Office guidance.

One part of the ARP pertains to Section 39.2 of the 2022 Appropriations Act (S.L. 2022-74) which funded a Labor Market Adjustment Reserve (LMAR) equal to one percent (1%) of each institution’s state-appropriated salaries and associated benefits. N.C. A&T’s appropriation is $900,000. In addition, based on recently delegated authorities and as part of the annual raise process guidelines, the campus has authority to award eligible EHRA employees (EHRA faculty and EHRA non-faculty) a one-time discretionary bonus to recognize meritorious performance and to maximize the retention of high-performing talent.

The following information provides details pertaining to both compensation awards.

LMAR: Effective September 1, 2022

LMAR adjustments are intended to address salary compression, and other critical labor market needs to equip the institution to better retain talent. Institutions have the discretion to identify which employees or positions will receive LMAR-related adjustments based on our identified labor market needs.

President Hans strongly encourages LMAR funds be used to address critical workforce needs among SHRA and EHRA non-faculty employees that are not “highly paid” employees. The Office of State Human Resources has identified major categories of LMAR actions for reporting purposes:

  • Increase salary that is below the minimum of the salary range
  • Increase salary that is below the midpoint or market/reference rate of the salary range
  • Increase salary to address salary compression or salary inequity issues
  • Increase salary to address classifications with higher turnover or higher vacancy rates
  • Other market-related reasons for salary increases.

 

LMAR Basic Eligibility

No more than 25% of the institution’s permanent number of positions (as of July 1, 2022) may receive an LMAR increase.

For employees who have received a 2021-22 performance review, the rating must be “Meets Expectations” or greater.

If an employee was not eligible to receive a 2021-22 performance review due to start date or EHRA non-faculty employee exempt from Section 300.2.18[R] of the UNC Policy Manual, the employee must be deemed in “good standing” by their Department Head to participate in any discretionary ARP increase.

“Good standing” for ARP purposes means that an employee:

  • Is not suspended with or without pay,
  • Does not have an active SHRA disciplinary action,
  • Is not in receipt of or planned to receive a notice of termination for cause,
  • And is not in receipt of an EHRA non-faculty performance improvement plan or written counseling memorandum (or its institutional equivalent).
  • Failure to complete mandated institutional training may also be a consideration for ineligibility, at the institution’s discretion.
  • Any employee who has received notice of an EHRA end of at-will appointment or EHRA notice of non-reappointment is not eligible for any discretionary component of the ARP.

 

Limits on LMAR Increases

The application of the LMAR increase is limited as follows:

  • May not exceed the greater of fifteen thousand dollars ($15,000) or fifteen percent (15%) of the employee’s current base salary as of the effective date of the adjustment.
  • May not result in the employee's salary exceeding the maximum of the salary range associated with the position or, for SHRA employees, the market rate of the next-higher competency level of the position classification.
  • May not exceed twenty-five percent (25%) of the institution’s total positions as of July 1, 2022. Twenty-five percent (25%) of N.C. A&T’s 2,394 total positions is 598 positions.

 

A&T’s LMAR Distribution

  • SHRA employees below 90% of market index
  • SHRA employees identified as “Hard to Recruit/Retain” below 95% of market index
  • EHRA non-faculty employees below salary range minimum
  • These permanent salary adjustments will be effective September 1, 2022 and will be reflected in the December 22nd
  • Following the proposed salary adjustments the departments with critical workforce needs will be allocated a portion of LMAR funds to increase vacant positions.

 

Hard to Recruit SHRA Classifications & Critical Departments

 

Job codes for hard-to-recruit and critical need employees.

EHRA Non-Base Discretionary Merit Bonus

Based on recently delegated authority and as part of the annual raise process guidelines, the campus has authority to award eligible EHRA employees (EHRA faculty and EHRA non-faculty) a one-time bonus not to exceed 5% of the June 30 base salary to recognize meritorious performance and to maximize the retention of high-performing talent. 

As a discretionary non-compensation based reward, there is no automatic entitlement to such a bonus and the campus did not receive a state allocation to support such bonuses. N.C. A&T’s institutional resources are being redirected to provide a pool of funds equal to 3% of state funded salaries to support one-time merit bonuses. Non-state resources may spend an equivalent 3%, as well, to support these one-time merit bonuses.

 

EHRA Discretionary Merit Bonus Basic Eligibility

For employees who have received a 2021-2022 performance review, the rating must be “Meets Expectations” or greater.

If an employee was not eligible to receive a 2021-2022 performance review due to start date or is exempt from Section 300.2.18[R] of the UNC Policy Manual, the employee must be deemed in “good standing” by their Department Head to participate in any discretionary ARP increase. “Good standing” for ARP purposes means that an employee:

  • Is not suspended with or without pay,
  • Is not in receipt of or planned to receive a notice of termination for cause,
  • Is not in receipt of an EHRA non-faculty performance improvement plan or written counseling memorandum (or its institutional equivalent),
  • Failure to complete mandated institutional training may also be a consideration for ineligibility, at the institution’s discretion.
  • Any employee who has received notice of an EHRA end of at-will appointment or EHRA notice of non-reappointment is not eligible for any discretionary component of the ARP.
  • EHRA faculty subject to special clinical pay plans shall be excluded from the ARP process in its entirety and instead subject to the provisions of these plans with respect to annual compensation adjustments.

 

Bonus Payment Details

The awarded bonus payment will appear in the December 22, 2022, paycheck.

Performance based bonuses are subject to retirement contributions to either the Teachers’ and State Employee’s Retirement System or the UNC Optional Retirement Program.

 

Temporary Employee Special One-Time Bonus

Earlier in the fiscal year, the university provided temporary employees a one-time $500 bonus; However, given the timing of the year, many temporary staff did not have a July 1st effective date and thus did not receive the bonus.

However, in an attempt to capture all eligible temporary staff, the university has reviewed its temporary staffing profile and identified all temporary hourly and salaried staff employed as of October 1, 2022. The temporary employees that did not already receive the one-time special bonus in the August 29th bi-weekly payroll will be provided a one-time $500 special bonus in the December 16th bi-weekly payroll.

This includes all active temporary employees taking a 31-day break in service. The special bonus will be prorated based on FTE (full-time equivalency).