HUMAN RESOURCES at MIT

7.2 Annual Performance Review

Each year the Compensation Office gathers a wide variety of salary data for representative positions in all employee categories in selected, comparable educational institutions and industrial organizations. These data are analyzed in light of current local and national economic indicators and the Institute's budgetary constraints. From this analysis the Compensation Office develops proposals as to the amount that should be made available for distribution in the various annual reviews. These proposals are reviewed by the senior officers of the Institute and authorized by the Executive Committee of the Corporation.

It is the Institute's compensation policy that departmental annual review allocations be distributed to employees on the basis of their individual contribution and performance levels. It is essential that departments make a systematic and fair assessment of each of their employees' duties and responsibilities and that they objectively analyze, qualitatively and quantitatively, how well these duties are being carried out. Recommended increases must, within established budgets, be related to these evaluations.

It is essential that outstanding employees be retained by the Institute. Individuals who demonstrate superior performance must therefore be recognized with significant review increases at or above the established review allocation amounts, even though lesser amounts will be available for individuals who demonstrate average performance.

No increase should be recommended for any employee whose performance has been unsatisfactory. Continued unsatisfactory performance should be closely monitored by supervisors and may be grounds for termination. (See Section 6.3, Termination for Poor Performance or Failure to Comply with Institute Policies.)

7.2.1 Annual Review Eligibility and Effective Dates

  • Administrative Staff
    Members of the administrative staff whose appointments are effective on or before January 1 in a given year are eligible to be considered in that year's performance review which is normally conducted in the spring. Salary increases approved in this review become effective on July 1 and are reflected in the July paychecks.

  • Sponsored Research Staff
     Members of the Institute's sponsored research technical and administrative staff (other than Senior Research Scientists/Engineers/Associates), whose appointments are effective on or before July 1 in a given year, are eligible to be considered in that year's performance review. The review is conducted in the late fall and becomes effective on January 1 with recommended increases first reflected in the January paychecks.

    Senior Research Scientists, Senior Research Engineers, and Senior Research Associates are reviewed concurrently with the Institute's faculty by separate guidelines and allocation. (See Policies and Procedures, Section 2.5.1).

  • Support Staff
     Members of the support staff whose appointments are effective on or before the last Monday in November in a given year are eligible to be considered in that year's performance review which is conducted in January and February. Salary increases approved in this review become effective at the beginning of the pay period closest to April 1 and are first reflected in the paychecks received at the end of the following week.

7.2.2 General Review Schedule and Process

At the time of the reviews for the administrative staff and sponsored research staff categories, the Compensation Office forwards to each dean, vice president and other senior officers the annual review guidelines, overall review allocation, and individual worksheets for the departments under his or her jurisdiction. Individual department budget allocations are then determined and forwarded to department heads with their separate worksheets. The support staff review materials are sent directly to the department heads for review and distribution.

Department heads are requested to confer with their appropriate supervisory personnel to assess performance and recommend, within their established review allocations, increases that reflect these assessments. Suggested performance evaluation quidelines and forms are provided by the Personnel Department.

Departmental recommendations are reviewed by senior officers and are submitted through the Personnel Department to the Executive Committee of the Corporation for final review and approval. Personal notification letters are prepared by the Personnel Department and forwarded to the deans, vice presidents and other senior officers (or to supervisors in the case of the support staff review) for distribution to individual employees.

7.2.3 Review Procedures for New Employees

Every effort is made to establish a new employee's starting salary in an equitable manner, which takes into account his or her individual job experience, training, and special qualifications, and at the same time is properly related to the salaries of other individuals in the organizational structure into which he or she is hired. Once established, a new employee's salary should be reviewed and adjusted by the same annual performance review process that applies to all current employees.

Employees hired after the review eligibility date for their staff category are eligible to be considered for salary increases at the time of their new employee performance assessments. Recommendations for such increases should be governed by the guidelines established for the current annual review and should normally become effective upon the completion of the employee's probationary period. (See Section 2.6.4, Probationary Period.) Such new employee increases are given for reasons of satisfactory performance and to offset the long waiting period for employees whose hire dates make them ineligible for the current year staff review.

A new employee hired within the annual review eligibility period should not be recommended for a salary increase at the time of his or her new employee performance assessments. Such an employee is eligible for consideration in the next regular annual review process and should be considered with other current employees at that time.

7.2.4 Review Procedures for Union Service Staff

Union service staff employees will be reviewed by separate procedure as provided for by the various collective bargaining agreements. The Human Resources Officer for the area and the Labor Relations staff in the Human Resources Department should be contacted for information regarding review policies and procedures.

7.2.5 Salary Equity Review Process for Women and Minority Group Members

The annual review instructions, which are sent individually to each department, specify that particular attention is to be given to assuring that the salaries of women and minorities are commensurate with their responsibilities, qualifications, and levels of performance and that these salaries are equitably related to the salaries of other similarly qualified employees in their organizational units with comparable positions.

In addition to the special efforts that are made during the annual review process, the Compensation Office initiates and responds to a number of equity issues throughout the year. These issues may arise as a result of special studies initiated with the Human Resources Department or they may be initiated from a variety of sources including individuals, department administrators, and the Special Assistants to the President.