Flexible Pay Policy for Non-Organized P&S Employees

Flexible Pay shall be awarded for extra-meritorious performance that may include rewarding a variety of outcomes and behaviors e.g., project completion, sustained high level performance and revenue generation, etc. There are two types of Flexible Pay: (1) Exceptional Performance Awards, and (2) SPOT Performance Awards. Flexible Pay should not be used as a substitute for providing ongoing base adjustments that assure equitable and competitive salaries.

The general requirements for Flexible Pay are:

  • All regular, non-organized Professional & Scientific employees are eligible for Flexible Pay.
  • Flexible Pay may be awarded at any time during the year.  
  • All Flexible Pay awards must be approved at the Organizational level. If an award is to be paid in any part by 500 or 510 funds, UI Compensation and Classification will route the transaction to Grant Accounting so they may review the payment request at the time an award is submitted for final approval.
  • Flexible Pay will be awarded in the form of a lump sum payment that is not added to the base salary.
  • Colleges and Divisions are required to develop Flexible Pay Guidelines with approval by UI Compensation and Classification. Guidelines must reflect the components of the University's Flexible Pay Policy as described herein and may adopt more stringent guidelines.
  • To operationalize a Flexible Pay program, Colleges and Divisions will be required to develop Flexible Pay Guidelines which must be reviewed and approved by UI Compensation and Classification. The guidelines must reflect the components of the University's Flexible Pay Policy as described herein, but may adopt more stringent guidelines.
  • No Flexible Pay awards will be approved unless guidelines have been developed and approved by UI Compensation and Classification. A copy of the guidelines will be kept on file in University Human Resources.
  • Departments will be responsible for funding Flexible Pay awards.

For different incentive purposes, departments may grant different types of Flexible Pay.  Here are the different requirements for Exceptional Performance Award and SPOT Performance Award:

  Exceptional Performance Award SPOT Performance Award
Eligibility Employed at the University of Iowa in a regular position for six months. No minimum employment period required.
Performance Expectations Must have Exceeds Expectations or Outstanding performance evaluation (within past 12 months) on file. Exceeds Expectations or Outstanding performance evaluation is not required. 

Average July 1st Salary Increase

Must have received at least the average July 1st salary increase for the College or Division to be eligible for an Exceptional Performance Award, unless prior agreement reached with Compensation and Classification that the employee must have received at least the Department average July 1st salary instead of the College or Division average.

If an employee did not receive average salary increase for College, Division or Department due to their current market position, the College or Division may ask for consideration from the Director, UI Compensation and Classification. 

Employee is not required to have received at least the average July 1 salary increase for the College, Division or Department to be eligible.
Payment Amount

May receive up to 10% of their salary for Exceptional Performance Awards per fiscal year.

If the recommended amount for any single Exceptional Performance Award is over $5,000, the recommendation must be reviewed and approved by UI Compensation and Classification.

If a second Exceptional Performance Award recommendation for the same employee is received in the same fiscal year, and the cumulative amount is over $5,000, it must be reviewed and approved by UI Compensation and Classification.

The gross amount for a Spot Award cannot total more than $116.56 (net $75.00).
Request Frequency An employee may receive Exceptional Performance Awards a maximum of two times per fiscal year. No more than 10% of a College or Division's non-organized Professional & Scientific staff would be eligible to receive an Exceptional Performance Award in a given fiscal year. An employee may receive no more than four SPOT Performance Awards (net $75 or less) in one fiscal year. Multiple SPOT Performance Awards to the same employee must be submitted at least 30 days apart.

Flexible Pay Program Guidelines for P&S Employees