The Institute’s annual salary review (ASR) is conducted one time per year for each payroll category. (The Libraries currently have two payroll categories – support and administrative). The ASR is made up of two components, the performance review and the merit increase.
Merit pools are set by the Executive Committee of the MIT Corporation. These pools have been 2.5% for the past several years. Departments are encouraged by MIT Compensation to distribute merit pool funds in a thoughtful way to recognize and differentiate performance among staff.
The Libraries’ distribute the merit pool based on the performance rankings assigned to employees during the annual performance review process. In order to maintain the highest possible increases for top performers and to create the pool for premium distributions, the number of (EX)ceptional rankings is capped equally at 25% in each directorate. It is the Libraries practice to assign as close to the merit pool allocation percentage as possible to (ST)rong rankings and to assign a higher percentage to (EX)ceptional and a lower to (EF)ffective. Staff rated at the IPR (Improved Performance Required) level do not receive an increase.
The Libraries assigns a small percentage (< 10%) of the merit review allocation to library departments for distribution among eligible staff as premiums. The purpose of this premium is to recognize special achievement in any area of a staff member’s work, local or system wide. Standards by which departments distribute premium funds are determined by the department head in consultation with the appropriate Associate Director.
Departments are not required to use the full premium allotment assigned, but it is required that department’s stay within the allotment. If premium dollars are not warranted in particular cases, department heads may elect to return some or all of the premium dollars to the Libraries’ central merit pool.
A small pool is available to departments with less than 5 staff members to afford those department heads the same flexibility as others in assigning premiums should they need it.