Human Resource Services
Incentive Efficiency Program
The purpose of the Incentive Efficiency Program (IEP) is to provide an opportunity for university employees to suggest new ideas related to the reallocation of existing resources or realization of new or improved revenue opportunities for the University of Florida to implement.
The eligibility of the suggestion or the suggestor, the amount and type of award, and any or all policies or procedures pertaining to the IEP are determined within the guidelines and procedures established by the University of Florida IEP committee. The committee has the exclusive authority to determine policies and procedures and reserves the right to terminate, amend, or modify the IEP at any time.
- Eligibility
- Definitions
- Use of Savings and Revenues
- Time Limits
- Incentive Bonuses
- Appeal Process
- Suggestion Form
Eligibility
Employee Eligibility
All current faculty, Technical, Executive, Administrative, and Managerial Support (TEAMS), University Support Personnel System (USPS), and Other Personnel Services (OPS) employees of the University of Florida are eligible to submit proposals for cost savings or revenue enhancements. Two or more eligible employees may submit a suggestion, defined as a joint suggestion.
Suggestion Eligibility
For a suggestion to be considered eligible for a cash award, it must meet certain criteria. Click here for more information.
Administrative Incentive Eligibility
Administrative incentives only may be paid to the supervisor of the employee who made the suggestion and to the next higher level supervisor-provided, however, that the supervisors at the level of vice president or its equivalent and above shall not be eligible to receive administrative incentives. A bonus for a supervisor shall not exceed one-half the bonus given to each employee who made the suggestion.
Members of the IEP committee do not qualify for administrative incentives solely because of service on the committee.
Up to 10 percent of the net savings or new revenue may be used for administrative incentive bonuses.
The implementation plan shall specify the procedures used to allocate awards.
If an administrator who is eligible for an administrative incentive personally develops and submits a suggestion, the administrator may receive an incentive either through the suggestion program or the administrative incentive program, whichever is greater, but not both.
Definitions
Definition of Eligible Revenues
In order to be eligible under the program a revenue must:
- Provide a source of discretionary revenue.
- Supplant discretionary revenue, which had been allocated to a specific purpose. The supplanted revenue must be reallocated to another purpose.
- Only the net discretionary revenue, less the cost of any obligation attached to the revenue, is eligible for an incentive.
Revenues which are not eligible for incentive under the program:
- Revenues from student or employee fines or fees.
- Revenues normally generated through the University of Florida Foundation.
- Revenues from personal services.
Definition of Net Savings or New Revenue
The term “net savings or new revenue” shall mean the estimated permanent savings or permanent new revenue generated in the first year of full implementation of an employee suggestion for reducing expenditures or generating new revenue. Such savings or revenue will be less a prorated share of the total investment (cost) necessary to implement the suggestion, if any, which also will be prorated on the basis of the estimated useful life of the investment.
Definition of Cost Savings and New Revenue
The program is intended to generate actual, tangible savings or new revenue following certain guidelines.
The program is intended to generate actual, tangible savings or new revenue as follows:
- Reductions to existing programs or to current costs.
- Elimination of existing programs or functions.
- Reductions in the elements of cost, (i.e., travel, printing) relative to historic trends or conditions without reducing the quality or level of service.
- Non-recurring issues that have been continued for three or more years and are discontinued purposely by the university to realize savings. These savings shall be considered the equivalent of permanent savings.
- One-time cost savings or new revenue shall be considered the equivalent of permanent savings or revenue provided the cost is not expected to recur.
- Combination of programs and functions that result in a net savings.
- Reallocation of the “base” appropriation to fund a new program or improvements to an existing program, while simultaneously reducing costs in an existing program.
- Reductions of net cost as a result of introducing automation or other productivity measures.
- Creation of new revenue either by increasing the amount of revenue received by the university from current revenue sources through improved assessment or collection procedures or by identifying revenue sources.
Items which are not included as a cost savings under the program:
- A shift in expenses from one source of funds to another without a reduction in expenditures.
- A shift of the cost of a function from one operating unit to another with no net reduction in cost to the university.
- Temporary savings. The suggestion must provide evidence of the permanence of the proposed reductions.
- Savings that are the result of actions which reduce the quality of those services which are a primary mission of the university or of other necessary services provided to students, staff, or faculty.
- Savings which are the result of actions or circumstances outside the university and which are not the result of deliberate actions by the university staff.
- A shift of cost from one activity to another activity which is not a priority of the university.
- Suggestions which should have been an anticipated product of an employee’s responsibilities or assignment.
Use of Net Savings and New Revenues
Net savings and new revenues beyond those used for bonuses may be used to implement the university master plan and to address other university priorities. However, legislative restrictions on the use of funds shall constrict allocation options. The reallocation of savings must maintain the integrity of the appropriation and funding methodology.
Time Limits
All suggestions will be kept on file for two years from the date of original receipt in the IEP office.
Incentive Bonuses
Incentive bonuses do not have to be paid directly from saved funds or new revenue but must be based on the amount of net savings or revenue.
Incentives shall be calculated based on estimated net savings or new revenue.
If the budget of the area generating savings is reduced as a result of the suggestion, incentives may be paid at the time of budget reduction based on the amount of the budget reduction.
Incentives may only be paid to individuals or to the estate of individuals who were employed by the University of Florida at the time they submitted the suggestion.
Any individual may designate the use of his or her incentive bonus to enhance the University of Florida. Incentives donated to the institution must be used for scholarships, library resources, equipment, or other non-recurring expense approved by the Finance/Facilities committee of the Board of Education.
Up to 10 percent of the estimated net savings or new revenue may be used as a cash bonus to the employee or employees who made the suggestion. Up to 20 percent of the estimated net savings or new revenue may be used for bonuses for individuals in the work unit(s) which will generate the net savings or new revenue. A bonus for an individual, other than the employee(s) making the suggestion, in the work unit(s) will generate the net savings or new revenue shall not exceed one-half of the bonus given to each employee who made the suggestion. No individual may receive a bonus in excess of $25,000 per suggestion.
Appeal Process
An employee may request a review of determinations made by the IEP committee. The employee has 30 days from the date of the notification letter stating the suggestion has not been approved to initiate procedures for requesting reconsideration of the decision.
The request for reconsideration should outline reasons why the determination of disapproval may be inappropriate. The IEP committee or designated representative(s) shall meet with the employee to discuss the concerns and issues raised and shall recommend to the university President final action as specified in the university’s implementation plan.
This process is the exclusive, final, and binding procedure for resolving any disputes arising under the IEP. Disputes shall not be subject to any other grievance or review process.