ITCRB Project Bonus Guidelines

Context

Modest project based bonuses can be an important way to reward and recognize employees that go “above and beyond” as part of IT Capital Review Board (ITCRB)-funded IT projects. Recognizing there are currently differing practices across the sponsoring areas with regards to bonuses, these guidelines are intended to establish more consistency and equity in the planning and distribution of project based bonuses.

Guidelines

Effective immediately, all IT projects that request ITCRB (IT Capital Review Board) funding must follow the below guidelines.

Budget Development

  • All project based bonuses must be budgeted in consultation with HUIT finance and must leverage therange of payments shown below (note: the proposal budget estimator will auto-calculate the total bonus budget). HUIT HR should be consulted about the intended bonus program.
  • The intended bonus plan should be reviewed with HUIT finance as part of the quarterly forecast discussions.
  • If a project needs to cut costs, bonuses cannot be cut without HR approval. It is important for project based bonuses to be treatedconsistently across ITCRB projects.

Bonus Distribution

  • The distribution of the bonus plan is dependent on the financial health of the University.
  • Only employees that perform extraordinary work or go “above and beyond” their core work responsibilities are eligible for a project based bonus (the expectation is that not everyone on an ITCRB project will be eligible for a bonus). Project Managers will make the determination of what “above and beyond” means and will have to provide sufficient rationale for proposed recipients.
  • Project based bonuses can only be distributed after a critical milestone is achieved.
  • The employee must have worked on the project at least 6 months or more to be considered for the bonus.
  • To distribute project based bonuses:
  • The Project Manager must consult with each team member’s local managerbefore the official bonus request is placed with HR to ensure the employee is continuing to perform well in his / her operational duties and to understand if he / she has received any other bonuses. This ensures that the local manager is aware of all project based bonuses for a staff member since they affect year-end bonus distributions (per HR guidance below about multiple bonuses).
  • A Project Bonus template (see Appendix A) must be completed by the Project Manager and sent to their HUIT finance partner for review and sign-off. After HUIT finance sign-off, the bonus request should be sent to HUIT HR for review, approval and processing. PMs should notify the project’s executive sponsor of the intended bonus distribution. The award earnings code for HR to use isBPU (unexpected).
  • On the template, Project Managers must clearly describe the rationale for an individual’s proposed project bonus, including describing his / her role, the level of effort applied, and the overall impact this individual had on the milestone or project. This information will help support the proposed bonus amount (within the guideline range).

Broader Rationale for Project Bonuses (linked to “FY15+ Central Administration - CADM Bonus Guidelines”)

Project bonuses were created because:

  • Some positions offer project bonuses in the market (e.g., IT, building/construction are the most common);
  • They provide modest recognition for individuals or teams working on large scale projects (e.g. systems installations, conversions); and
  • They acknowledge when a milestone, goal or critical outcome is achieved.

These bonuses reward extraordinary efforts or a significant commitment beyond regular job responsibilities. Roles eligible for a project bonus should be identified and budgeted as part of the project plan.

Bonus Range

The following table includes allowable bonus ranges for Tier 1 and Tier 2 sized projects, assuming employees meet eligibility requirements. Please note bonus eligibility is for projects greater than $1M in size with a duration of at least 1 year. Smaller projects that are less than $1M and shorter than 1 year, including ITCRB Small Ask projects, are not eligible for ITCRB project bonuses.

  • Tier 1 Projectsare eligible for ITCRB bonuses.
  • Scope: $1M-$3M project budget
  • Time: 1-3 years
  • Tier 2 Projectsare eligible for ITCRB bonuses.
  • Scope: $3.1M+ project budget
  • Time: 2+ years

Guidelines for Project Bonus Awards:

GRADE / PROJECT TIER / RANGE OF PAYMENT
For life of Project
55/56 / Tier 1
Tier 2 / $500 - $1,000
$1,000 - $1,500
57 / Tier 1
Tier 2 / $1,000 - $1,500
$1,500 - $2,000
58/59 / Tier 1
Tier 2 / $2,000 - $3,000
$3,000 - $4,000
60/61+ / Tier 1
Tier 2 / $2,000 - $4,000
$3,000 - $6,000

Project bonuses should be paid at a significant milestone (if project is multi-year) or at the end of the project. Project Managers can decide whether bonuses are milestone based or paid at the end of the project. The range of payment estimates represent the total amount an individual can receive over the duration of the project.

Note on Multiple Bonuses

If a staff member is eligible for both a year-end performance bonus and received a project bonus at any time during the year, it is recommended that the year-end bonus be adjusted (decreased) by ½ of the project bonus amount so as not to “double-dip”.

Example:

  • Employee is eligible for a project bonus of $1,000 and receives $1,000
  • Based on grade, performance, and annual guidelines, employee is eligible for a $2,500 year-end performance bonus
  • The year-end bonus is reduced by 1/2 of the amount of the project bonus ($2,500 - $500 = $2,000)
  • Employee receives a $2,000 year-end variable bonus (BPV)
  • Total amount of bonuses received is $3,000 for that fiscal year

Note: ITCRB bonus guidelines published in November 2016.

Last Updated: October 2016Page 1