salary review process
This fall, Fermilab managers and supervisors will have more flexibility as they award pay increases to employees as part of the Fermilab annual salary review. At the same time, they will take on the responsibility to balance the pay-increase budget allotted to divisions and sections. The foundation of the system remains "pay for performance" and focuses on the management of employees' salaries, keeping them competitive in the job market.
Each year the Department of Energy approves the total amount of money that the lab can distribute as salary increases. Individual salary increases are then based on the annual performance rating and the current salary that an employee receives.
Last year's individual salary increases were rigorously based on two factors: each employee's review rating and the pay zone (1, 2 or 3) within which his or her salary fell. (The compensation office provides more information on pay grades and pay zones here.) These factors precisely determined the percent of the salary increase.
Based on feedback received from managers, the old system was too rigid and did not allow for effective management of compensation at the laboratory. Fermilab is modifying the system to provide divisions and sections with more flexibility in awarding pay increases while requiring them to stay within the allotted pay-increase budget.
This year, performance rating and pay zone for each employee will be used to produce, in percent, a pay increase range rather than a rigid number. This table, accessible from lab computers, shows how the ranges are calculated from the target pay increase approved by DOE.
Within these ranges, individual pay raises will be determined by supervisors and managers based on the details of each employee's performance review. This allows managers to fine-tune pay increases while staying within the pay-increase budget, in dollars, allotted to the divisions and sections.
Employees will have the opportunity to learn more about the new salary review system at town hall meetings to be held in July (dates to be announced in Fermilab Today). Managers and supervisors will receive training on the new system in 45-minute training sessions scheduled for June 14, 15 and 25. Managers and supervisors can sign up for these training sessions here.