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University Staff

Regular (not temporary) university staff employees may be eligible for a base pay increase (across-the-board, merit, cost of living, minimum wage, and/or range progression, etc.) each year if approved by the ¶¶Òõ¶ÌÊÓƵ Board of Regents, contingent upon a completed performance evaluation with a rating of meeting expectations or higher. The university staff performance management cycle is July 1 through June 30. 

When annual increases are funded, they are typically effective January 1 with eligibility based on the performance evaluation score received from the most recently completed performance evaluation cycle.

Annual pay increases are applied to base salary only, not to any additional temporary, non-base building pay. Pay increases for purposes other than merit (e.g.compression, promotion, retention) should be addressed outside of the January 1 merit increase process throughout the year as they arise. 

For additional information about this process, please visit the employee compensation FAQs FY23-24, the university staff standardization pay increase allocation process, and the Compensation Cycle Shift FAQ pages to learn more. 

Classified Staff

Regular (not temporary) classified staff employees may be eligible for a cost of living, across-the-board, and/or merit-based increase each year if approved by the Colorado General Assembly and the ¶¶Òõ¶ÌÊÓƵ Board of Regents, contingent upon a completed performance evaluation with a rating of meeting expectations or higher. The merit process begins April 1st with increases becoming effective July 1st of that year. Employees must have an active regular classified staff appointment as of June 30th to be eligible, contingent upon guidelines provided each year by the Colorado Department of Personnel & Administration (DPA).

Classified Annual Pay Increase Process

The Colorado General Assembly reviews the state’s budget each year which includes any increases to state classified employee salaries. If increases are approved, the decision is typically made at the end of the legislative session in May. 

Guidelines for implementing a cost of living, across-the-board, and/or merit-based pay increase for regular classified staff employees are provided each year by the Colorado Department of Personnel & Administration (DPA) and may vary from year to year. Each ¶¶Òõ¶ÌÊÓƵ campus implements classified staff annual increases per ¶¶Òõ¶ÌÊÓƵ Board of Regents approval and in consideration of DPA guidance and campus-based processes.

Classified staff cost of living, across-the-board, and/or merit-based increases are typically applied to base salary only (with some exceptions) and are limited to the employee’s pay grade range set by DPA. Pay increases for other purposes (e.g.compression, promotion) should be addressed outside of the July 1 increase process throughout the year as they arise.

Human Resources provides position review and compensation services for all staff and many research positions. We strive to help campus departments achieve their business goals while maintaining quality standards of equitable pay for equitable work.

Retention offers, often referred to as counteroffers or stay bonuses, are a financial tool utilized to retain key personnel with critical, strategic skills necessary to maintain campus operations or business continuity. Retention offers can be either one-time bonuses or base-building salary increases.

Definitions

• A retention offer is a pay increase retention strategy used in response to a verifiable external offer of employment (outside of the ¶¶Òõ¶ÌÊÓƵ system). A base-building retention offer is typically processed through an addendum letter as it results in an amendment to the terms of the original offer letter for the position. If a change in job duties is part of the retention offer, an updated position description must be completed and approved in advance.
• A preemptiveretention increase is a proactive strategy used for an individual or group of employees to incentivize current employees to stay in their positions when there is a critical staffing shortage risk. A preemptive retention increase for a group of employees shall be consistently applied across similar groups of positions and is implemented as part of a documented department retention plan or recognition program approved by campus HR and the appropriate campus officer.
• Providing a retention offer is not required and should be limited to positions that are critical to business needs and difficult to fill (as further defined below). If provided, the same employee shall not receive more than one retention payment in a 12-month period.

For the purpose of this guidance, the term ‘retention offer’ is used generically and may refer to either of the definitions above.

When are Retention Offers Recommended?

• When the labor market is hot for certain critical skills impacting the campus’s ability to deliver its mission due to the inability to recruit and retain key personnel.
• When a high number of vacancies exist in key roles such that losing additional current employees puts the operation at risk of shutting down or severely impairs its ability to function properly.
• When an employee has a highly specialized skillset that is critically needed to meet the campus’s mission and is not easily replaced without significant development time and cost.

To Whom May Retention Offers be Provided?

• Individuals in mission critical employment groups that are difficult to recruit and retain as demonstrated by a high number of open positions and multiple unsuccessful searches, OR
• An employee, typically at a highly specialized or mid-level management level and above, whose talent or knowledge is necessary to maintain business continuity, OR
• Key employees with highly marketable skills who may be recruited by other organizations and where the campus is unlikely to successfully re-fill the role in a reasonable period of time, OR
• Employees whose loss would significantly impact a work unit’s ability to operate leading to a staffing crisis for the area and an inability to provide services, OR
• Employees expected to be furloughed or laid off but who are needed to maintain services until the effective date of the reduction in force, OR
• Other similar situations with campus HR approval.
• All scenarios must be approved in advance by campus HR.

What are Some Limitations for the Use of Retention Offers?

• Employees must be meeting or exceeding performance expectations for the most recent final overall performance evaluation or as verified by the employee’s supervisor to be eligible for a retention offer.
• Retention offers are uncommon and should be limited to unusual and critical circumstances.
• Retention offers are rare when unemployment is high and the recruitment market is stable.
• There is no central funding pool for retention offers; units must ensure they have adequate resources available.
• Providing a retention offer is not required even if the circumstances appear to support it.

What Process Must Mangers Follow Prior to Making a Retention Offer?

• A retention offer must be reviewed in advance by the campus HR position management/compensation consultant assigned to the department. Managers may not proceed with a retention offer until this review has been conducted.
• The hiring manager should ensure the reason for the retention offer is verified through verbal or written confirmation of a counteroffer or through data available documenting a high number of open positions or unsuccessful searches.
• Under Colorado’s Equal Pay for Equal Work Act, a retention offer shall not create a pay inequity with employees performing substantially similar work except as may permissibly result from variability in education, training, and experience; seniority systems; merit raise systems; geographic location; travel requirements; and the quantity and quality of production.
• A base-building retention offer must be made within the pay grade assigned to the position and follow campus pay setting guidelines.
• If considering a retention program affecting multiple employees, the hiring department will develop a retention program document for review and approval by campus HR and the appropriate campus officer.
• Base-building retention increases are processed through an addendum letter requested in the .
• One-time bonus retention offers may be processed through the or through an addendum letter requested in the .  Additionally, a Memorandum of Understanding (MOU) may be used to document the terms and conditions of accepting the bonus payment. Any language provided in an addendum letter or MOU must not be in conflict with a university staff employee’s at-will status.