Employees who receive a substandard rating must be placed on a Special Review cycle. Performance Reports must be completed every 30-60 days until the employee either receives a standard rating, or is demoted or dismissed. When an employee receives a substandard rating (i.e. Improvement Needed or Unsatisfactory), the performance objectives developed for the next review period cover only the next 30-60 day period. When an employee at salary step A, B, C, or D receives an annual performance evaluation rated below standard, his/her merit increase (step increase) should be denied. If the employee’s performance does reach a standard level, a merit increase should be granted effective the following pay period.