Compensation and Classification

Campus Address
121-11 USB
Mailing Address

121 University Services Building, Suite 11
Iowa City, IA 52242-1911
United States

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 Professional and Scientific, SEIU, and Merit staff are eligible for an exceptional performance award.
  • All regular Faculty, Institutional Officers, Professional Scientific, SEIU, and Merit employees are eligible for a Spot Award.
  • 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 may choose to develop their own Flexible Pay Guidelines which require 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.  A copy of the guidelines will be kept on file in University Human Resources.  If the college or division does not develop Flexible Pay Guidelines, those issued by University Human Resources will be utilized.
  • 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 P&S and SEIU staff who have been employed at the University of Iowa in a regular position for six months. Merit staff are also eligible for Exceptional Performance Awards, and details on limits can be found on the Merit Compensation website P&S, Faculty/IO, SEIU and Merit regular staff with no minimum employment period required.  
Performance Expectations Must have Exceeds Expectations or Outstanding performance evaluation (within past 12 months) on file.  Exceptions may be requested by the college/division for employees without a performance rating due, or who received a “meets expectations” rating due to the timing of their hire.  Additionally, exceptions may be requested for employees who have a “meets expectations” rating but have since performed in a manner that makes it likely that the next performance rating will be “exceeds expectations” or “outstanding”. Exceeds Expectations or Outstanding performance evaluation is not required. 
Payment Amount

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

The maximum amount for a Spot Award cannot exceed net $200. In the HR Transaction System, enter the desired net amount and the gross amount will be automatically calculated.
Request Frequency Employees may receive a maximum of two Exceptional Performance Awards per fiscal year but the total of the two awards should not exceed 10% of their current base salary.  No more than 10% of a College or Division's Professional and Scientific and SEIU staff are eligible to receive an Exceptional Performance Award in a given fiscal year.  If a college or division would like to provide additional awards beyond their allocation, a request should be made to UI Compensation and Classification. An employee may receive no more than 6 awards per fiscal year (net $200 or less) and the effective date of the awards must be at least 30 calendar days apart. 

Flexible Pay Program Guidelines for P&S and SEIU Employees

If the college or division does not have an internal nomination form for Exceptional Performance Awards, departments may use our generic Pay for Exceptional Performance Nomination Form