The second budget memo and corresponding policy was released Tuesday by the ISU provost’s office outlining a new salary adjustment policy for faculty.

“The policy is intended to provide a common understanding regarding the purpose of salary adjustments, establish the rationale for annual salary adjustments, and guide consistency and accountability in compensation practices for employees covered by the policy,” according to an interoffice communication letter signed by Provost Elizabeth Hoffman.

“This policy promotes a mutual understanding regarding the purpose of salaries, establishes rationale for annual salary adjustments, and guides consistency and accountability in compensation practices for employees covered by this policy,” according to the memo.

The policy, which is effective Jan. 14, outlines several reasons for awarding a salary adjustment including a performance-based, merit salary adjustment for employees who consistently meet their position’s standards of performance. Other increases include, a market or equity need based adjustment and a retention adjustment.

Parameters for the performance-based adjustments will be established during the annual budget development process and be effective July 1. The process will include “consultation with the faculty senate, consistent with the faculty handbook and the P&S Council,” according to the memo. “This policy does not cover all aspects of compensation administration and other types of salary adjustments.”