Frequently Asked Questions for the FY2024 Merit Planning Process

The FY2024 merit award planning process is now underway. 

Each year we pause to assess and recognize the value that our employees bring to Cook Children’s and their contributions toward helping us reach our goals. The merit award process is one of the ways we communicate our appreciation for all of their hard work and dedication. This year, with the rollout of the new Performance and Development process, the merit increase process will change slightly, separating the performance discussion from the pay discussion. This is a good change as the performance process focuses on feedback for growth and development as well as creates the opportunity to recognize employee contributions. The merit process will align those contributions with the appropriate recognition via a merit increase. 

Further questions should be directed to the employees’ immediate supervisor. 

The New Process 

Q: Why is the merit increase process changing? 
A: A year ago, we were fortunate to implement the Workday application. This tool allows us to increase transparency of pay programs, be more efficient and create more robust learning development opportunities for our employees. The Performance and Development module is designed to do just that. With it, we can better identify, recognize and reward each level of excellent performance. 

Q: What is changing about the merit increase process? 
A: There are three primary changes. 

First, we will return to matching merit increase awards with employee performance and development (formerly known as PACE) ratings rather than providing the same increase amount to everyone. 

Secondly, we will determine the amount of increase for each performance rating AFTER the performance and development process ends. This allows us to have a specific focus on the growth and development of employees. 

Finally, there will be one increase timeline, so that executive and non-executive pay increases will be implemented during the same time period, as appropriate. 

Q: Are the merit increase amounts based on the final rating category (i.e., “Exceptional”, “Strong”, “Inconsistent”) or the number rating? 
A: The increase amounts will be granted based on final rating category 

Q: May we communicate the increase amounts to employees, now? 
A: Leaders may communicate the increase amounts to employees now. Please note that employees will also receive a compensation statement via Workday and a more general communication to the entire Cook Children’s population will go out closer to the effective date of the increase. 

Plan Year and Eligibility 

Q: Who is eligible for the Nov. 17 merit increase? 
A: Cook Children’s employees who: 
• Were hired before June 15, 2024 
• Are in an active status 
• Employees on an approved leave of absence (note they will receive the increase upon their return to work) 

Q: Who is not eligible for the Nov. 17 merit increase? 
A: Cook Children’s employees who: 
• Occupy Physician roles 
• Occupy Teacher roles (will have a merit increase during a different time of the year) 
• Are paid via a flat rate 

Q: What happens if a manager does not submit a performance review on time? 
A: Employees who do not have a performance review rating will not receive a merit increase on November 17th. However, please reach out to your Employee Relations representative to discuss specific circumstances. Note, employees who are on a leave of absence will have an opportunity to receive a performance review and merit increase upon return to work. 

Q: Are we able to modify a performance review that has been submitted? 
A: Performance reviews that have already been submitted may not be changed. If there is a need to include comments/rebuttals, etc. there will be a Performance Evaluation Addendum available within Workday. That document is being finalized and once the process guide and security set up has been completed, leaders will be able to access it from CookNet. 

Q: How do I access Manager Dashboards in Workday? 
A: Manager Dashboards provide leaders with the merit increase amounts, lump sums and new pay rates for their employees in advance of the effective date. The Manager Dashboard will be available starting on Friday, Nov.  8, via Workday by the end of the day. Non-leader employees do not have access to the Manager Dashboard but will receive a compensation statement on Nov. 17, that details their merit increase, lump and new pay rate amounts. 

Leaders may access the dashboard, at any time, by following these steps: 

1. Ensure the dashboard app is visible in the “Your Top Apps” section of your Workday home page. If you need to add it, select “Menu” in the left-hand corner, then select “Add Apps”, in the search bar type, “Manager Dashboard”, once it appears select the “plus icon” . 
2. If the dashboard is already present in the “Your Top Apps” section then select “Manager Dashboard” from the “Your Top Apps” section 
3. Select the “Compensation” tab to view the reports available. 

Q: Will employees who started late in the year receive the full merit increase? 
A: Merit increase amounts will be prorated by the number of days the employee was eligible for an increase during the plan period. 

Q: What is the merit plan year (i.e. the period of performance that the increase covers)? 
A: This year’s merit increase awards are based on the performance period, which is Oct. 1, 2023, to Sept. 30, 2024. 

Q: Is there a cutoff date to be eligible for/included in the merit increase process. 
A: Merit increases for those hired between Oct. 1, 2023, and June 15, 2024, will be prorated. Employees hired after June 15, 2024, will be eligible for a merit increase in the following year.  

Q: How will a job change that became effective during the merit plan year impact my merit increase? 
A: Employees who have a job change, for example, promotion, transfer, and demotion, remain eligible for a merit increase. The merit increase amount will be based on the employee’s pay rate in effect on Nov. 17, 2024. 

Q: When will I know the amount of my merit increase? 
A: The amount of merit increase will be determined after the close of the performance and development period which ends on Oct. 25. Thereafter, a calculation of cost, based on the distribution of performance ratings will be submitted for review and approval by the Executive leadership team. Once approved, a communication to all leaders will be released so that they may discuss the increase amounts with employees. Employees will be able to view their pay changes, in Workday, via the Compensation Statement, starting on Nov. 22. 

Q: Will I receive a merit increase if my performance review has not been completed? 
A: Employees with missing or incomplete reviews will not receive an increase. 

Q: Will employees who received an increase in pay (and/ or lump sum) in September as part of the Pay Adjustment process continue to be eligible for a merit increase or lump sum during the merit process? 
A: Employees who are eligible for a merit increase, will receive a merit increase (and/or lump sum), as appropriate. The merit increase will be in addition to the Pay Adjustment awarded in September. 

Q: Will employees who are currently in the corrective action process receive a merit increase? 
A: Employees who received a final written warning (FWW) during the applicable merit plan year are not eligible to receive a merit increase. Employees in other phases of the corrective action process remain eligible for a merit increase. 

Q: Will employees on an approved leave of absence receive a merit increase? 
A: Eligible Employees on an approved leave of absence, who would have otherwise been eligible for a merit increase, will receive their increase upon return from leave. The increase will be effective as of the pay period the employee returns. 

Increase Amounts 

Q: What amount of increase will be awarded to employees? 
A: Merit increases correspond with the new Performance Development (PD) process’ performance ratings. 

Q: How are the percentage of increases for each performance rating determined? 
A: Cook Children’s leadership determines an appropriate amount of budget for the annual merit award. To ensure that the merit award budget is met, and not exceeded, the amount of award will be determined by the distribution of performance scores. 

Q: Are the merit increase amounts based on the final rating category (i.e., “Exceptional”, “Strong”, “Inconsistent”) or the number rating? 
A: The increase amounts will be granted based on final rating category 

Q: How will rounding of the performance review scores impact merit increase amounts? 
A: The merit increase amount will be assigned based on the final performance rating (i.e., exception, strong, inconsistent). This final rating is based on the calculated rating that is derived from the weighted average of the ratings selected in each section, as such… Exceptional = 2.70 – 3.00, Strong = 1.41-2.69 and Inconsistent = 0.00-1.40. 

Q: Why did an employee receive a lump sum award and not an increase to their base pay rate?
A: If an employee's pay rate is equal to or greater than the max of the range, the employee will receive the appropriate amount of merit increase in the form of a one-time, lump sum payment. If the employee’s pay rate is close to but does not exceed the max of the pay range, the employee will receive the amount of pay necessary to bring their pay rate to the max of the range. Any remainder of the increase will be paid as a one-time, lump sum payment. 

Q: What is the max of the pay range for my role? 
A: Employees should connect with their immediate supervisor to understand their pay range values. This information is available on the Manager Dashboard or employee profile in Workday. 

Q: How are lump sums calculated? 
A: Calculations for lump sum payments include earnings from all eligible hours of the merit plan year, multiplied by the increase percentage awarded. 

Timeline 
Q: When are merit increases effective? 
A: Merit increase awards are effective Nov. 17, 2024, and will be visible in workday on that date. Employees will see the pay change reflected in their Dec. 6, 2024, paycheck. 

Q: How does termination impact receipt of the merit increase award? 
A: If the employee is in active status on the effective date, then the increase or bonus will be given to them on the same pay date as all other eligible employees. 

Q: How and when will I see this pay change in Workday? 
A: Managers may begin communicating pay increase changes as of Nov. 11, 2024. Compensation Statements will be generated in Workday and will be available for viewing on Nov. 17, 2024.