Sign-On and Retention Bonuses for Permanent Employees

I. Purpose

This Policy sets forth specific definitions and procedures for the payment of sign-on and retention bonuses to permanent employees of The University of North Carolina at Charlotte (“Charlotte” or the “University”). Any such bonuses will be paid only in accordance with the provisions of this Policy. This Policy is intended to meet the requirements for bonuses as outlined by UNC Board of Governors Regulation 300.2.14.2[R] for EHRA  employees and the Office of State Human Resources Sign-On and Retention Bonus Policy for SHRA employees.

II. Scope of Applicability

This Policy applies to all permanent employees at Charlotte, except the Chancellor, Athletic Director, and Head Coaches. The Athletic Director and Head Coaches are otherwise subject to Section 1100.3 of the UNC Policy Manual.

III. Policy

A.    Policy Statement

Within the parameters outlined below, sign-on and retention bonus compensation may be provided to permanent employees for reasons that are relevant to attracting or retaining faculty and staff of the highest possible quality.

1. Decisions concerning sign-on and retention bonus compensation must be consistent with University Policy 501, Nondiscrimination, and may not be based in whole or in part on any employee's protected status.
2. No candidate for employment or University employee is automatically entitled to sign-on or retention bonuses. 
3. Advance approval by the Chancellor is required for any non-salary compensation not specifically authorized in this Policy or that exceeds the compensation limits specified in this Policy. See University Policy 102.11, Non-Salary Compensation for Employees Exempt from the State Human Resources Act.

B. Sources of Funds

Bonuses may be funded from any source, including state or non-state appropriations, so long as the funding source permits an expenditure for this purpose. For state funds, such use must be permissible under the policies of the Office of State Budget and Management. 

C. Eligible Employees and General Requirements

1. Only candidates for or employees in permanent SHRA and EHRA positions are eligible for bonuses under this Policy. 
2. The University will not award any bonus under this Policy to an employee who:
   1. has received an end of appointment notice;
   2. did not receive an overall rating of at least “Meeting Expectations” on their most recent annual appraisal, or if an annual performance appraisal was not required, is deemed to not be in “good standing”;
   3. is currently working under a performance improvement plan; or
   4. is no longer actively employed in their position. 
3. An employee may receive either one sign-on bonus or one retention bonus, but not both, within any 24-month period. Receipt of a sign-on or retention bonus does not preclude an employee from receiving a performance bonus as may be allowed under separate University policy. 
4. Receipt of a retention bonus does not preclude an employee from receiving a retention base salary increase for a competitive offer as allowed by existing salary administration policy and regulation. 

D. Required Agreement and Recoupment

1. Repayment Agreement

Before an employee may receive a sign-on or retention bonus, the employee must sign an agreement under which the employee agrees to repay the bonus, in whole or part, if the employee transfers to another state agency or if their employment with the University terminates, either voluntarily or involuntarily, before the completion of a period of consecutive service of 12 months. This 12-month period begins on the employee's start date for sign-on bonuses and on the date of initial payment for retention bonuses. 

2. Repayment Formula

Repayments will be based on the following formula:

1. Amount of initial sign-on/retention bonus received/12 months = prorated monthly amount.
2. Prorated monthly amount x (12 months - months worked) = repayment due.

The amount due will be deducted in full from the employee’s final paycheck. If the amount deducted exceeds the final paycheck, the remaining balance must be paid in full to the University within 60 days from the last date of employment.

The agreement must also state that if the employee does not terminate employment with the University but moves to another school/division or to another occupational group within the University before completion of 12 months of service, the employee forfeits any remaining unpaid installment of their bonus.

The "period of consecutive service" follows eligibility rules for state service credit and leave accruals. Periods of leave without pay do not count toward the required 12 months of service.

3. Exemptions from Repayment

An employee is not required to repay any amount of a sign-on or retention bonus if the employee's transfer or termination of employment was due to:

1. Death or severe illness requiring hospitalization of the employee or the employee's parent, spouse, sibling, or child; 
2. Employee was unable to perform all of the position's essential duties because of a medical condition;
3. Elimination of the employee’s position; or
4. A reduction in force. 

4. SHRA Employees

Specific repayment requirements for SHRA employees are outlined in the State Human Resources Manual, Sign-On and Retention Bonus Policy.

E. Sign-On Bonuses

1. Criteria

Sign-on bonuses are discretionary and intended to serve as a recruitment incentive. A sign-on bonus must be based on at least one of the following specific, demonstrated recruitment needs:

a. For a Specific Job Classification

To enhance the ability to recruit qualified candidates during labor market shortages, a division may recommend offering sign-on bonuses to candidates hired into positions for a specific job classification within the University or division. To qualify, the division must demonstrate that the job classification is critical to the University’s mission, there is a labor market shortage, and the inability to hire qualified candidates would impair delivery of essential services. Requests for a specific job classification requires prior coordination and approval from the Associate Vice Chancellor for Human Resources.

b. For an Individual Position

A division may request to offer a sign-on bonus for an individual position if the division can demonstrate that the position is critical to the University’s mission, the labor market is particularly competitive for the skillset and experience required for that position, and the University’s inability to recruit and hire a qualified candidate would negatively affect the delivery of essential services. This option is typically reserved for instances where the position is the sole individual, or one of two individuals, fulfilling a role at the University. 

2. Requirements and Limitations

1. To be eligible for a sign-on bonus, the candidate must not have worked for the University as a permanent employee in the last 12 months and the position must require that the employee works at least 20 hours per week.
2. Any EHRA sign-on bonus that exceeds $5,000 will be paid in at least two installments. Any SHRA sign-on bonus that exceeds $2,500 must be paid in at least two installments by State policy. Payment of the final installment of such bonuses is subject to the requirements of Section III.H below.
3. Any EHRA sign-on bonus may not exceed the lesser of $25,000 or 20 percent of the annualized base salary of the position without seeking the approval of the UNC System president. Any SHRA sign-on bonus that exceeds 10% of market reference rate requires UNC System approval (up to 15%) or OSHR approval (above 15%).

F. Retention Bonuses

1. Requirements and Limitations

1. To be eligible for a retention bonus, an employee must work at least 20 hours per week.
2. Retention bonuses may not be awarded in an across-the-board manner to broad classes of employees unless they are awarded in conjunction with sign-on bonuses based on critical labor market needs as identified in Section III.E.1 for a specific job classification.
3. Any EHRA retention bonus that exceeds $5,000 will be paid in at least two installments. Any SHRA retention bonus that exceeds $2,500 must be paid in at least two installments consistent with State Human Resources Manual, Sign-On and Retention Bonus Policy. Payment of the final installment of such bonuses is subject to the requirements of Section III.H below.
4. Any EHRA retention bonus may not exceed the lesser of $25,000 or 20 percent of the employee’s current base salary without seeking the approval of the UNC System President. Any SHRA retention bonus that exceeds 10% of market reference rate requires UNC System approval (up to 15%) or OSHR approval (above 15%).

G. Approvals 

Divisions must submit all requests to pay any sign-on or retention bonus to SHRA and EHRA staff employees to the Human Resources Department. Requests for any applicable bonuses for EHRA faculty must be submitted to the Office of the Provost. Such requests must include the documented need and/or justification for the requested bonus.

All sign-on or retention bonus requests for Tier I senior academic and administrative officers (Tier I SAAOs, University Policy 102.9) must be approved by the Board of Trustees.

Additional approval requirements for sign-on and retention bonuses are outlined below. 

1. Approvals for Sign-On Bonuses

a.  Sign-on bonuses for SHRA and EHRA Staff employees must be approved by the Associate Vice Chancellor for Human Resources (with the exception of SAAO Tier I employees, which require approval from the Board of Trustees). Sign-on bonuses for EHRA faculty employees must be approved by the Provost (with the exception of SAAO Tier I employees, which require approval from the Board of Trustees).

b.  Charlotte-level approvals are as follows:

1. Sign-on bonuses exceeding $5,000 require written approval from the Vice Chancellor of Business Affairs.

2. Sign-on bonuses exceeding $10,000 require written approval from the Chancellor.

These approvals apply to permanent staff and faculty, with the exception of bonuses for SAAO Tier I employees, which require approval from the Board of Trustees.

2. Approvals for Retention Bonuses

a. Retention bonuses for SHRA and EHRA staff employees must be approved by the Associate Vice Chancellor for Human Resources (with the exception of bonuses for SAAO Tier I employees, which require approval from the Board of Trustees). Bonuses for EHRA faculty employees must be approved by the Provost (with the exception of bonuses for SAAO Tier I employees, which require approval from the Board of Trustees).

b. Charlotte-level approvals are as follows:

1. Retention bonuses exceeding $5,000 require written approval from the Vice Chancellor of Business Affairs.

2. Retention bonuses exceeding $10,000 require written approval from the Chancellor.

These approvals apply to permanent staff and faculty, with the exception of bonuses for SAAO Tier I employees, which require approval from the Board of Trustees.

H. Eligibility for the Final Installment of SHRA and EHRA Sign-On and Retention Bonuses

An employee in an active pay status is eligible for the final sign-on or retention bonus installment if the employee remains employed at Charlotte and in the same occupational area for the defined period of consecutive service.

Notwithstanding the above, an employee is not eligible for the final sign-on or retention bonus installment if:

1. the employee’s overall performance rating at any time is not at a minimum of “Meeting Expectations” or the employee has documented disciplinary actions for misconduct or performance;
2. the employee subsequently transfers to another UNC System institution or state agency before the completion of the defined period of consecutive service; or
3. the employee’s employment terminates before the defined period of consecutive service.