Recruitment and Retention Bonuses

Background

One of the most critical issues facing state agencies is the recruitment and retention of competent classified staff.

State agencies may use recruitment or retention bonuses to provide additional financial incentives to attract, hire or retain eligible key classified staff whose unique skills or abilities are vital to achieving significant agency goals.

Recruitment and retention bonuses may be used to staff:

• Critical positions.
• Positions with high turnover rates.
  – or –
• Positions with a shortage of qualified applicants.

Note: Recruitment and retention bonuses have no effect on merit and one-time merit eligibility.

Eligible Employees

Hourly, part-time, temporary and regular, full-time salaried employees may be eligible for a retention or recruitment bonus.

Based on the following criteria, the agency’s chief administrator must consider — on a case-by-case basis — if additional compensation is warranted:

• Evidence the employee and/or position are critical to the operations of the state agency.
• Evidence of high turnover rates among employees filling the position or an extended period during which the position is or has been vacant in the past.
• Evidence of a shortage of employees qualified to fill the position or a shortage of qualified applicants.
• Other relevant factors.

Bonus Certification and Documentation

Before entering into a contract to pay a recruitment or retention bonus, the chief administrator of a state agency must certify in writing to the Comptroller’s office the reasons why the additional compensation is necessary.

The documentation for both recruitment and retention bonuses must include the employee’s:

• Name.
• Last four digits of his or her Social Security number.
  – and –
• Bonus amount.

If the employee information for the recruitment bonus is unavailable when the letter of certification is submitted to the Comptroller’s office, the agency must provide the information when the position is filled.

The letter of certification for either bonus must be received by the Comptroller’s office before an agency can enter into a contractual obligation with an individual. The letter must be submitted to:

To submit your request electronically, send a letter on agency letterhead to payroll.policy.mail@cpa.texas.gov.

The Comptroller’s office will notify the agency when its certification letter has been processed.

Source

Texas Government Code, Section 659.262.