University of Florida Bonus Policy

1. Purpose

The University of Florida (UF) Bonus Plan is designed to comply with Section 1012.978, Florida Statutes; Florida Board of Governors Regulation 9.015; and UF Regulation 1.202. These laws and regulations collectively allow for the use of bonuses to enhance employee performance, facilitate the recruitment of highly qualified candidates, and support the retention of valuable employees. The Bonus Plan aims to:

• Recognize and Reward Excellence: Provide financial incentives to employees who demonstrate outstanding work performance, achieve significant milestones, or exceed established goals;
• Enhance Recruitment Efforts: Attract top-tier talent by offering competitive recruitment bonuses to candidates with specialized skills, exceptional experience, or unique qualifications aligned with UF’s strategic goals; and
• Support Employee Retention: Retain critical talent by offering retention bonuses to employees who receive verified competing offers, face significant market salary disparities, or complete key career development and certification programs.

These bonuses promote a high-performing, motivated, and stable workforce that advances UF’s mission in education, research, and public service. Incentive bonuses may be awarded for work performance, recruitment, and retention.

This policy also outlines accountability measures and procedural guidelines for administering the Bonus Plan, including:

• Roles and responsibilities of HR Liaisons in tracking metrics and repayment obligations;
• Detailed eligibility and calculation guidelines to ensure fairness and consistency; and
• Required written approval for deviations from policy by the Vice President or designee of the applicable unit and the Vice President for Human Resources or designee

2. Applicability

This Policy applies to Eligible Employees, as defined herein, which include UF faculty, TEAMS, and Law Enforcement Officers, subject to applicable collective bargaining obligations. This Policy does not apply to UF Health, UF’s Direct Support Organizations (DSOs) or UF’s affiliated legal entities.

3. Definitions

• Eligible Employee means an employee who meets the criteria outlined in the Bonus Plan communication and is active and in good standing at the time of payment per UF Regulation 1.202.
• HR Liaison means the designated UF Human Resources representative responsible for managing HR processes within a specific UF unit or department.

4. Policy Statement

• Bonus payments may be made for work performance, recruitment, or retention, using designated bonus earnings codes.
• Bonuses are processed in accordance with department and UF guidelines and regulations.
• The Bonus Plan Approval Request Form must be completed in its entirety, with approval signatures obtained and submitted to UFHR Classification & Compensation at compensation@ufl.edu for review and approval by the Vice President or their designee of the applicable unit and the Vice President for Human Resources or their designee.
• Vice Presidents or their designees must notify Eligible Employees of potential bonuses and define performance or eligibility criteria.
• Deviation from the bonus plan requires written approval from the Vice President or their designee of the applicable unit and the Vice President for Human Resources or their designee.
• Bonus payments will be issued as gross amounts and will be subject to applicable tax withholdings in accordance with IRS regulations. UF will not “gross up” bonus amounts to offset an employee’s tax liability. Employees are responsible for all federal, state, and FICA taxes on the full value of any bonus received.
• The Vice President for Human Resources retains final authority to deny bonus requests.

4.1. Work Performance Bonuses

Bonuses may be awarded based on documented, successful work performance, including one or more of the following:

• Temporarily increased duties and responsibilities;
• Completion of a special project;
• Attainment of established goals;
• Superior performance; or
• Specific achievements or assignments of significance

Additional provisions:

• Work performance bonuses tied to project milestones must be based on specific deliverables.
• An employee may receive a work performance bonus no more than once in a 12-month period, unless exceptional circumstances exist and approval is granted by the Vice President for Human Resources.
• The bonus may not exceed 15% of the employee’s base salary.
• Any request exceeding the 15% threshold requires approval by the Vice President or their designee of the applicable unit, the Vice President for Human Resources, the Executive Vice President for Academic Affairs, and CFO.

4.2. Recruitment Bonuses

Recruitment bonuses may include two types of incentives:

• Signing Bonus: A one-time payment to attract candidates with specialized skills, exceptional experience, or in response to competitive market conditions. The bonus may not exceed 15% of the employee’s base salary.
• Relocation Bonus: A one-time payment to offset reasonable costs associated with relocating for the position. The bonus may not exceed 10% of the employee’s base salary.

Additional provisions:

• Any request exceeding the above-mentioned threshold requires approval by the Vice President or their designee of the applicable unit, the Vice President for Human Resources, the Executive Vice President for Academic Affairs, and CFO.
• Recruitment bonuses are not available to current faculty, TEAMS, or Law Enforcement Officers.

4.3. Retention Bonuses

Retention bonuses may be awarded under one or more of the following circumstances:

• Verified offers of competing employment;
• Market conditions where external salaries significantly exceed current compensation;
• To address salary compression or inversion; or
• Successful completion of career development, training, or certification programs that support UF’s mission.

Additional provisions:

• Retention bonuses are intended to address specific, time-sensitive needs and must not be used as recurring compensation.
• An employee may receive a retention bonus no more than once in a 12-month period, unless exceptional circumstances exist and approval is granted by the Vice President for Human Resources.
• The bonus may not exceed 15% of the employee’s base salary.
• Any request exceeding the 15% threshold requires approval by the Vice President or their designee of the applicable unit, the Vice President for Human Resources, the Executive Vice President for Academic Affairs, and CFO.

4.4. Collective Bargaining Agreements

• Bonuses must comply with any applicable provisions outlined in an applicable collective bargaining agreement.

4.5 Repayment of Recruitment and Retention Bonuses

• If an employee voluntarily separates from UF within 12 months of the date they receive a recruitment or retention bonus, they must repay a proportionate share of the payment.
  • For 9- or 10-month appointments, the amount to be repaid is calculated based on the number of full months remaining in the appointment at the time of separation.
• The repayment amount will be calculated as follows:
  (12 – number of months completed) / 12 × payment amount)
• HR Liaisons are responsible for tracking repayment obligations and coordinating communications with resigning employees.
• The calculated repayment must be clearly communicated to the employee.
• Vice Presidents and Deans are responsible for ensuring repayment language is included in offer letters or bonus agreements and for explaining repayment terms to the employee at the time of offer or award.

4.6 Annual Reporting Requirement

Board of Governors Regulation 9.015 requires UF’s President to submit an annual report, on a schedule established by the UF Board of Trustees. The report shall include the following:

• A description of the Bonus Plan;
• The President’s certification that all bonuses paid during the reporting period complied with the criteria in UF’s Bonus Plan and were paid from funds within the approved UF budget; and
• The total amount paid during the reporting period for performance, recruitment, and retention bonuses.

This report shall then be submitted annually by the President to the Board of Governors.

4.7 Review and Adjudication

The following is the department, office, or individual responsible for overseeing implementation of and assuring compliance with this Policy. Anyone with questions about this Policy should contact:

UFHR – Classification and Compensation
903 West University Ave.
P.O. Box 115009
Gainesville, FL 32611
(352) 392-2477

4.8 Policy Violations

Failure to comply with this Policy could result in disciplinary action, up to and including termination.

5. References and Related Information

• Board of Governors Regulation 9.015
• Section 1012.978, Florida Statutes
• UF Regulation 1.202
• UF Hiring and Compensation Policy
• UF Bonus Plan Website

History