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University of Louisville
Employee Suggestion Program
Administrative Manual
 

V. Types of Awards

A. OVERVIEW

1. Awards will be given to eligible employees whose ideas are adopted and implemented by the University. All award winners will be awarded a certificate of recognition by the ER office. All awards require prior approval of ER.

2. Eligible employees may receive cash awards for suggestions that result in measurable dollar savings or increased revenue.

3. An award of one to three days paid leave may be made for suggestions that result in significantly improved processes, programs, or safety for which the benefits are non-quantifiable. An employee may elect to receive $50 per day in lieu of leave.

4. Special awards, subject to approval by the President, may be given for suggestions determined to have extraordinary impact.

B. CASH AWARDS

1. When an adopted suggestion results in tangible benefits to the University, funds for cash payments will come from dollar savings and/or revenue generated by the suggestion. The University will be responsible for making the cash payment and, if necessary, retrieving funds from the appropriate source. If savings are greater or less than the original estimate, the award will be adjusted accordingly.

2. The amount of money awarded for a suggestion shall be as indicated below:

 

Amount of Net
Annual Savings

Cash Award

 

$50,000 or more

10% + 1% of amount over $50,000

$501 to $49,999 10%

$101 to $500 10% or 1 day of leave (employee's option)

$100 or less

No cash award will be made

3. ER will be responsible for the payment of cash awards when the awards become due, and may elect to pay in one of the following ways:

a. The cash award may be paid to the person making the suggestion in a single lump sum payment after the suggestion has been in effect for twelve (12) months.

b. A lump sum may be paid at any time prior to twelve (12) months provided that the full impact of the suggestion has been realized.

c. A partial payment may be granted to the person making the suggestion at the discretion of the implementing department with approval of ER. The remainder of the cash award will be paid in a lump sum payment when total savings are documented.

4. The amount of award for a suggestion made by a group of employees will be divided equally among eligible employees in the group.

C. INTANGIBLE AWARDS

1. When an adopted suggestion results in intangible (non-quantifiable) benefits to the University, days of paid leave shall be awarded based on the calculated impact or value of the suggestion. An employee may elect to receive $50 per day in lieu of leave.

2. In determining the intangible value of a suggestion, points shall be assigned in each of the following categories: degree of improvement, extent of application, cost of adoption, effort on the part of the person making the suggestion, and completeness of the proposal.

EVALUATION CRITERIA FOR SUGGESTIONS YIELDING INTANGIBLE BENEFITS

1. Degree of improvement in operations, forms, facilities, or equipment

None, 0 points; Minor 5 points; Moderate, 15 points; Major, 20 points

2. Degree of improvement in employee relations, working conditions, safety, service to the public, or public attitude

None, 0 points; Minor, 5 points; Moderate, 15 points; Major, 20 points

a. Extent of application:

 

Single operation facility/office

0 points

Multiple operation facilities/offices

5 points

Majority of the employees facilities several divisions

15 points

University-wide

20 points

b. Completeness of proposal:

Not completely or clearly presented or required considerable clarification

0 points

Basic facts sound, needs some refining

5 points

Facts clearly presented, little effort required to put idea into effect

15 points

Facts clearly presented, no further effort required to put idea into effect

20 points

c. Effort involved:

No research involved

0 points

Average substantiation

5 points

Considerable personal research

15 points

d. Cost of Adoption:

Large

0 points

Moderate

5 points

Small

10 points

3. Once the total point value of a suggestion is calculated, the following scale is used to determine the award:

 

Non-Cash Awards

 

Points

Days of Leave

71 - 105

3 days

35 - 70

2 days

19 - 34

1 day

less than 18

none

 

4. Any leave awarded for a suggestion made by a group of employees will be divided equally among the group.

5. If leave is awarded for duplicate suggestions that are received by the ER office on the same day, the amount will be divided equally between the persons making the suggestion.

6. All leave awarded shall be in addition to regular leave earnings and shall be treated the same as compensatory leave (or in the case of a P&A employee, annual leave). Such leave may be included in terminal leave payments provided that the established maximum limits are not exceeded. Faculty and temporary employees are not eligible for leave, so $50 cash per day will be paid in lieu of leave.

D. SPECIAL AWARDS

1. The President may authorize awards that exceed the limits on cash or leave amounts for suggestions determined to have extraordinary impact.

2. Special awards may be designed as incentives for increased employee participation in the suggestion program.

3. All requests for special awards are to be directed to the Employee Relations office by the department head of the person making the suggestion for review and possible submission to the President for approval.

 

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