Operationally funded equity may be provided to employees annually. As a reminder, the annual Merit cycle (subject to financial feasibility and leadership approval) is designed to reward performance and contribution, and people leaders are encouraged to wait for that program to address such. Merit awards should also be granted to recognize movement in the external market in addition to performance.

Unit leaders may use discretion for Market pay adjustments but are encouraged to address those situations where:

1. Employees that have a significant salary disparity to meet the appropriate quartile target
2. Employees that may be compressed based on:  
   1. small or no differences in pay and there should be differentiation based on experience, skills, level, or seniority
   2. starting salaries for new employees in a particular job title are too close to the wages of your existing workers
   3. pay compression between managers and their direct reports
3. Employees that have been identified as having critical skills or hard to find jobs
4. Positions that are subject to repeated attrition to market.

Before employing an individual at a rate higher than the entry-level salary, institutions are strongly advised to review the salary levels of all other current employees in the same or similar classifications. In accordance with Georgia Tech and USG policy employees must be paid at the minimum of the grade range, and not the minimum of the quartile. The minimum of the quartile is not guaranteed and subject to other factors, including budget.

Units are requested not to exceed the market quartile range for staff and to collaborate with their HR Representative and Compensation Consultant to address disparity in pay for those employees in similarly situated jobs. Units are asked not to adjust pay for newly hired or placed employees and to address their pay during the annual merit cycle if they are eligible. Employees recently hired into positions cannot require an equity review during the first 6 months in the role and should participate in at least one merit review prior to being considered for additional equity

Reminder:
Market Equity pay adjustments should be paused for employees under the following conditions:

• A most recent performance evaluation whereby the overall rating was below satisfactory or
• Employee has received within the last 6 months a formal disciplinary action: written warning, final written warning, suspension, demotion, or placed on a performance improvement plan (PIP).