mcomp mgt tools
TRANSCRIPT
Workshop for
Managers
IntroducingM Compensation
Management Tools
Presented byJ.-C. Provost & J. Leake
Designed by J.-C. Provost, S.F. Marcil &
Salary Administration Team
February-May 2003
Agenda
1. Reasons for a new compensation system
2. Basic principles
3. Roles (Managers, HR )
4. Review the decision making process: Vacant position Special salary adjustments
5. Review highlights
New Compensation System
Objectives: Maintain pay equity
Simplify the system
Create a new “mindset”
Give managers more autonomy
Increase transparency
Planning tools for Manager
Help You:
Manage your staff resources Manage:
Expectations Career progression
Salary progression
Budget
Develop your organization
Become more autonomous in HR management
Administration Communications Finance Human ResourcesInformation Systems & Technology
Logistics &Facilities
Student & Academic Srvs
Administration FacultyDepartment, Unit
ResearchAdministration
ADM4AADM3AADM2AADM1A
ADM4BADM2BADM1B
University SecretariatLegal
ADM4C
University SecretariatTranslation
ADM3DADM2D
University SecretariatArchives Curator
ADM4EADM2E
University SecretariatAdministration
ADM1F
Administration &Area Personnel
ADM3GADM2G
Internal ExternalRelations
COM4ACOM3ACOM2ACOM1A
Development &Alumni Relations
COM4CCOM3CCOM2CCOM1C
Publications
COM3DCOM2DCOM1D
AccountingInvestments
FIN4BFIN3BFIN2BFIN1B
Audit Security
FIN4CFIN1C
Purchasing
FIN3DFIN2DFIN1D
Staffing - Placement Transition - Personnel Administration
PER4APER3APER1A
Compensation, Benefits Payroll, Pensions
PER4BPER3BPER2BPER1B
Staff Relations
PER4CPER3CPER2C
Area Personnel
PER3DPER2D
Academic Personnel
PER4E
Systems Development
IST4AIST3AIST2AIST1A
Telecommunications & Operations
IST4BIST3BIST2BIST1B
Training & Communications& Help Desk Services
IST3CIST2CIST1C
Facilities OperationsMaintenance
LOG4ALOG3ALOG2ALOG1A
Security, SafetyEnvironment
LOG4BLOG3BLOG2B
Planning & DesignLOG4CLOG3CLOG2CLOG1C
Services Operations
LOG3DLOG2DLOG1D
Admissions &Registrar
Financial Aid, Placement Counseling Services
Student Affairs
SAF4ASAF3ASAF2ASAF1A
SAF4BSAF3BSAF2BSAF1B
SAF4DSAF3DSAF2DSAF1D
Job Families
Example #1
Admissions, Recruitment & Registrar
SAF 4 A
IST 3 A ADM 2 G
ADM 1 A
COM 2 A
COM 1 DSAF 3A IST 2B
IST 1ASAF 2A(10)
SAF 1A(15)
Example #2
NCS
IST 4B(3)
IST 4A(2)
IST 3 C(1)
IST3B(4)
IST2B(6)
IST 1B(1)
IST 3A(9)
IST 2A(9)
IST 1A(3)
ADM 1A(2)
Example #3
Accounting
FIN 4B(5)
IST 2A(3)
IST 2 C(1)
FIN 3B(4)
FIN 2B(4)
FIN 1B(6)
IST 1A(3)
ADM 1A(1)
IST 1C(3)
Vacant Position -Decision Process
Same sub-family?
Yes
No
Needs changed?
Identify appropriate sub-family and level
Identify appropriate
level
Review Family Role Profiles
Review role Profile
Yes
NoNeed to fill the position?
Yes
No
No action/standby
Initiate Job Posting
Process
Vacant Position – Scenario 1Staff Data Comparison & History
Profile Current Salary Time in Position Merit CategoryPrevious Related
Experience
1999 2000 2001
Kim Lee $55,000 1 year n/a n/a A 6 years
Joe Blake $49,000 2 years n/a B B 4 years
Ed Stuart $55,000 12 year B B B 3 years
Lara Kall $61,000 4 years B B B 6 years
Julie Côté $51,000 .5 year n/a n/a n/a 4 years
Bill Dove $54,000 .5 year n/a n/a n/a 4 years
Lori Webb $64,000 4 years A A B 9 years
Ann Duval $65,000 14 years B B B 4 years
Lou McKee $48,000 .5 year n/a n/a n/a 3 years
IST1A fromOther dept.
$41,000 2 years
IST 2A
Staff Data Comparison & History
Profile Current Salary Time in Position Merit CategoryPrevious Related
Experience
1999 2000 2001
Kim Lee $55,000 1 year n/a n/a A 6 years
Joe Blake $49,000 2 years n/a B B 4 years
Ed Stuart $55,000 12 year B B B 3 years
Lara Kall $61,000 4 years B B B 6 years
Julie Côté $51,000 .5 year n/a n/a n/a 4 years
Bill Dove $54,000 .5 year n/a n/a n/a 4 years
Lori Webb $64,000 4 years A A B 9 years
Ann Duval $65,000 14 years B B B 4 years
Lou McKee $48,000 .5 year n/a n/a n/a 3 years
IST2B from other dept. $54,000 8 years
Vacant Position – Scenario 2
IST 2A
Staff Data Comparison & History
Profile Current Salary Time in Position Merit CategoryPrevious Related
Experience
1999 2000 2001
Kim Lee $55,000 1 year n/a n/a A 6 years
Joe Blake $49,000 2 years n/a B B 4 years
Ed Stuart $55,000 12 year B B B 3 years
Lara Kall $61,000 4 years B B B 6 years
Julie Côté $51,000 .5 year n/a n/a n/a 4 years
Bill Dove $54,000 .5 year n/a n/a n/a 4 years
Lori Webb $64,000 4 years A A B 9 years
Ann Duval $65,000 14 years B B B 4 years
Lou McKee $48,000 .5 year n/a n/a n/a 3 years
External Candidate
$60,000/yearcontract
n/a n/a n/a 4 years
Vacant Position – Scenario 3
IST 2A
Salary Scale
High → $64,000 Low → $48,000 Avg → $54,666
Base Salary
71% 90% 100%
Salary Data of Grade 5
l l l $47,517 $60,234 $66,927 Min. Max.
IST 2A
72%
76%
73%
81%
82%
91%
96%
97%
% = Staff members’ compa-ratio
Establish Salary of External Candidate
Positioncurrent salary on new scale
Compare education & experience
with other staffmembers
Calculate compa-ratio
Example – New Position
As the new Controller of the Accounting Department, you are reviewing the organizational structure, and the range of services offered by the various units.•You want to create two (2) new positions responsible for financial analysis, cost analysis, revenue forecasting, and tax advice for the University.•You want to attract candidates with 3-8 years experience & professional designation.•You expect the role will evolve over time, and you are uncertain whether these positions should be matched to a level 2 or level 3 role profiles (FIN–B).
Role Profile LevelsLevel 1:
Supervisory positions Specialized administrative & technical positions
Level 2: Professionals Supervisory positions
Level 3: Unit managers Senior professionals
Level 4: Managers of major units, with University wide impact,
leading a team of professionals & support staff.
Type of Salary Adjustments
1. Additional responsibilities (base)
Significant and measurable impact within the same profile
Aligned with unit priorities
2. Special project (non-base)
Assigned by Manager Work related project Align with departmental priority For a limited period Payment at project-end
Type of Salary Adjustments (cont’d)
3. Market adjustment (base salary)
Market pressure created recruitment difficulty.
Turnover has increased.
4. Market adjustment (non-base salary)
Temporary shortage due to Labour market changes.
Current high demand skills • Review every 1-2 years
Type of salary adjustment (cont’d)
5. New skills & competencies
Discussed and planned prior with the Manager.
Directly work related.
Completion of formal education program above and beyond basic requirements.
Observable and measurable knowledge, skills and behaviors.
Additional ResponsibilitiesDecision Process
Evolution of the position?
Yes
No
Why?
•No change in role profile•No salary adjustment
Employee strong performance Recognized
through Merit exercise
New Dept. objectives & needs
Responsibilities evolve?
Another Profile
Same Profile & Level
Possibilityof salary
adjustment
Identify potential
Profile
Same grade
Highergrade
Promotion
Lowergrade
*
* The employee salary would be “Red circled”
Review internal equity
Additional Responsibilities
Data Comparison & History
Profile Current Salary Time in Position Merit CategoryPrevious related
experience
1999 2000 2001
Xu Wei $44,000 2 years n/a B B 2 years
Susan Roe $39,250 2 years n/a B A N/A
Jean Dubé $39,250 1 year n/a n/a B N/A
Mia Azoca $39,250 3.5 years B B B N/A
Bob Venne $41,000 1 year n/a n/a A 1 year
Sean Kaye $45,000 2 years n/a A B 2 years
NOTES
Average salary for: Average of years in position: 19 SAF1A in dept.: $41,000 In dept.: 2 years26 SAF1A at McGill.: $41,000
SAF 1A
Salary Scale: SAF 1A
High → $45,000 Low → $39,250 Avg → $41,290
Base Salary
71% 90% 100%
Salary Data of Grade 3
l l l $39,059 $49,510 $55 012 Min. Max.
Market AdjustmentData Comparison & History
Profile Current Salary Time in Position Merit CategoryPrevious related
experience
IST 2A 1999 2000 2001
Kim Lee $55,000 1 year n/a n/a A 6 years
Joe Blake $49,000 2 years n/a B B 4 years
Ed Stuart $55,000 12 year B B B 3 years
Lara Kall $61,000 4 years B B B 6 years
Julie Côté $51,000 .5 year n/a n/a n/a 4 years
Bill Dove $54,000 .5 year n/a n/a n/a 4 years
Lori Webb $64,000 4 years A A B 9 years
Ann Duval $65,000 14 years B B B 4 years
Lou McKee $48,000 .5 year n/a n/a n/a 3 years
Claude Amel $47,517 IST1A from other dept. 2 years
Gil Besner $54,000 IST2B from other dept 4 years
Juliet Candid $58,000 External hire n/a n/a n/a 4 years
Salary Scale
High → $64,000 Low → $48,000 Avg → $54,666
Base Salary
71% 90% 100%
Salary Data of Grade 5
l l l $47,517 $60,234 $66,927 Min. Max.
IST 2A
72%
76%
73%
81%
82%
91%
96%
97%
% = Staff members’ compa-ratio
Market Adjustment - Decision Process
Base salary increase or non-base?
YesMarket
adjustment required?
*
Consider career & staff development, special projects, …
Reviewappropriateness of role profile & discuss market
data with HR
Review position global situation(i.e.: turnover, recruitment issues, etc.)
No
*Is there a market problem elsewhere at McGill for the same type of position?
What is the Market?
Labor market
Reference or comparator markets
• Selected by McGill• For “M” jobs, we recruit Greater Montreal area
• Professional and managerial positions
• Canadian not-for-profit sector,
• Public and university sectors in Quebec,
• Large employers in Greater Montreal area.
High Demand Skills
Knowledge and skills where supply is limited:
• Does not satisfy demand.
Shortage of “qualified” candidates and staff:
• Creates pressure for a higher salary premium.
Hot skills change over time as the labor market changes.
Project Assignment –Decision Process
Is support orreplacement
available?
YesIs the
project over and above current
job?
Review: Project scope, period,precedents & plan deadlines,responsibilities& deliverables
No
Salary stays as is
Does the project increase
job complexity?
No
Yes No
Is non-base payment
appropriate ?What % or $$$makes sense?
Yes
Payment for Special Project ???
•The Administrative Assistant/Officer in your department must coordinate the Cyclical Review for your department. She worked most week-ends and many evenings during the past 3 months, and you want to reward her extra work.
•Your Department will have to move to another building, and you just asked your Administrative Assistant to coordinate the move. She asked if she would be compensated for some of her overtime.
•The Systems Analyst in your department does a lot of extra work for the department during the evening. You have seen him/her during the day helping graduate students and faculty members with their research. He/she never says “no” to a request. You feel you may be “taking advantage”, and you wonder what could be done.
Highlight Review
HR management is a critical function of the manager’s role.
Any decision can not be taken in isolation…Equity!
Many tools and info are available to help you, as managers, towards enlightened decisions!
HR professionals are consultants to support you.
“M” Compensation
Performance Dialogue
Development Plan
Competency Model
Succession Planning
Global HR Approach
Contact List
1. Salary Administration Group:
Manager: Josephine Leake – 3342
Officers:
Johanne Bellefleur – 2681
Laura Fabrizi – 2302Merita Ryan – 8430 Shirley Winstanley – 8699
2. Your APO/R
Other Questions???????…Comments??????
Back-up Material
Administrative process
Basic Principles
Salary Equity
Fair positioning of salary within the scale of each team members with same job profile.
The positioning must take into account;
• year into the job,• related experience, • Job performance, • education level and • Equity with colleagues within the unit.
Basic Principles
Equitable vs. “One Size Fits All”
Equitable means: You have considered all 4 aspects (see previous slide)
to differentiate team members.
“One Size Fits All” means: You treat all team members the same way even
though they have different level of contribution.
New system - Definitions
Salary Adjustment: A change in salary distinct from:
annual salary increase (Merit or General increase) promotional increase.
Salary adjustments may be: base non-base:
lump sum payments premium
Behaviour:
Manner of acting or conducting
oneself in carrying out one’s
work responsibilities.
New system - Definitions
New system - DefinitionsCompetency:
Work related knowledge, skills and behaviors needed to effectively perform a position or role.
Core competencies are behavioral and required by all the professional or managerial positions.
Specific competencies are relevant to each job family. They include: Behavioral competencies Technical competencies (ex.: accounting, engineering,
human resources management, etc.)
New system - DefinitionsProfile competencies: Know-how needed to effectively perform the key roles
identified in a Role Profile, such as: Skills, knowledge, and behaviors
Profiles within the same job family will share some competencies,
Vary from one level to another as a function of: Know-how, the complexity, problem solving and decision-making.
New system - Definitions
Competency Model Facilitates:
Recruitment activities
Promotion decisions
Development strategy
New system - Definitions
Job family: Role profiles are grouped with:
job families and sub-families
…which share a common purpose or service in support of the University’s mission.
A job family represents: a potential professional or managerial career path
…across and within departments.
Role Profile: Describe in generic terms:
• Responsibilities & accountability of position• Within each sub-family • Within a structure of up to four levels.
Description includes:
General description of:
• Job family, • Key Roles & responsibilities, and• Typical functions.
Definitions (cont’d)
Definitions (cont’d)
Unit Manager: The head of a:
faculty, department or unit.
The term “unit” captures:
All administrative and academic units, which are:
• Neither identified as faculties or departments.
Definitions (cont’d)
Equity Equity within a unit or the university as a
whole, taking into account the various factors that determine an individual’s salary.
Reference point 90% of the maximum of the salary scale of a
grade.
Definitions (cont’d)
Integration Adjustment: (When new scale)
The increase needed to bring an employee’s salary to the minimum of their new scale or an adjustment equal to one quarter (¼) of the amount needed to maintain an employee’s position in their new salary scale.
The formula is:
[{((old salary)-(old min.) X(new max.–new min.))+new min.–old salary}X 1/4] (old max.)-(old min.)
PROVIDE AN EXAMPLE
Reference Point:
90% of the maximum of the salary scale of a grade.
Definitions (cont’d)
Integration Adjustment: (When new scale)
The increase needed to bring an employee’s salary so that he/she can maintain position in the new scale.
The new salary must be at least at the minimum of the new scale
Or equal to one quarter (¼) of the amount needed scale.
PROVIDE AN EXAMPLE
Definitions (cont’d)
Role Profile: Role profiles, describe in generic terms the
significant responsibilities and accountability of positions within each sub-family within a structure of up to four levels.
The description of each role profile includes: general description of the Job family, Key Roles and responsibilities, and Typical functions.
Job match:
Creation of Profiles-Methodology
Hay Guide Chart Methodology: The job evaluation plan used by McGill Pay Equity
Committee to determine the relative value of role profiles.
This plan considers the following factors: 1) Know-how 2) Problem solving 3) Accountability 4) Working conditions
From now on……
Salary Adjustment – Decision Process
Does the employee merita base salary
increase?
Yes
No
Why?
Determine % of base increase or
lump sum considering equity
Received approval
Why?
Recommend increase to V-P, Dean or Delegate
and to HR if higher than 90% of scale (reference point)
Complete form
Consult employee’s
file
Inform employee Verbally and
by writing
Complete Appointment form
High performerMargin before 90%Good experience
High performeralready close to max.
Good experience
Discuss the recommendation
with APO/Rs and agree on it.
Student & Academic Services Profiles
Admissions & Registrar
SAF 4ASAF 3ASAF 2A SAF 1A
Financial Aid, Placement Counseling Services
SAF 4BSAF 3BSAF 2BSAF 1B
Students Affairs
SAF 4DSAF 3DSAF 2DSAF 1D
Job Family
Market Adjustment - Decision Process
Base salary increase or non-base?
Yes
No
Market adjustment required?
*
Identify proper reason for salary adjustment
Identify best appropriate roleProfile with level
Review all Family role Profiles todetermineneed
Review position global situation(i.e.: turnover,
recruitment issues, etc.
Yes
No
Complete a Requestfor Market review by
Human ResourcesNo
File decision in employee’s file
See process illustrate at slide
23
Received approval?YesSalary
adjustment:Permanent orTemporary?
Non-base
Base
See process illustrate at slide
26
Communicate decision to employee
*Is there market problem elsewhere at McGill for same type of position?
Information Systems & Technology Profiles
Systems Development
Telecommunications & Operations
IST 4AIST 3AIST 2AIST 1A
IST 4BIST 3BIST 2BIST 1B
Training & Communications & Help Desk Services
IST 3CIST 2CIST 1C
Job Family - example
Salary Adjustment – Decision Process
Is a base salary adjustment
justified?Yes
No Why?
Why?
Consult employee’s
file
•Additional responsibilities?•Special project?•Market adjustment?•New skills or competencies?
•Special adjustment do not applyOR•Special adjustment apply but already at top of scale