Post on 24-Aug-2020
Salarynegotiationsintheinsurance
sector
Aguideformanagersandemployees
FinanceFinland
ServiceSectorEmployersPalta
TheUnionofInsuranceEmployeesinFinlandVvL
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Contents1Introduction............................................................................................................................................3
2Salarynegotiations..................................................................................................................................4
3Paystructureintheinsurancesector......................................................................................................4
3.1Fixedtotalsalary..............................................................................................................................4
3.1.1Guaranteedsalaryelementdeterminedbyjobdifficulty.........................................................5
3.1.2Personalsalaryelementdeterminedbyqualificationsandperformance................................5
4Dutiesofthesalarynegotiationsgroup..................................................................................................8
4.1Monitoring.......................................................................................................................................8
4.2Principlesofpaypolicy.....................................................................................................................9
4.3Salarynegotiationstraining..............................................................................................................9
4.4Paystatisticsandpaygradeinformation.........................................................................................9
4.5Disagreements................................................................................................................................10
5Preparingforsalarynegotiations..........................................................................................................11
6Havingsalarynegotiations....................................................................................................................12
6.1Personalsalarynegotiations..........................................................................................................13
6.2Changesinjobdifficulty.................................................................................................................13
6.3Assessmentofqualificationsandperformance.............................................................................13
6.4Summaryofthesalarynegotiations..............................................................................................14
6.5Salaryincrease................................................................................................................................14
7Protectionoftheindividual...................................................................................................................15
7.1Righttoreceivetrainingandstatisticalinformation......................................................................15
7.2Righttosuspendnegotiations........................................................................................................15
7.3Exceptionalcircumstances.............................................................................................................15
7.3.1Short-termabsences...............................................................................................................15
7.3.2Absencesthatspanbetweensalarynegotiationsrounds.......................................................16
7.4Thethree-negotiationrule.............................................................................................................16
7.5Disagreements................................................................................................................................16
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1IntroductionTheinsurancesectoradoptedthesalarynegotiationsmodelin2009,anditisnowappliedtoallofficepersonnelthatfallwithinthescopeoftheinsurancesectorcollectiveagreement.Summerhelpandemployeeswithfewworkinghours(regularworkingtimeaverageslessthan16hoursperweek)falloutsidethescopeofthecollectiveagreementandthusdonotundergosalarynegotiations.Oneofthemainobjectivesofthesalarynegotiationsistoenableemployeestofeelthattheirpayanditsdevelopmentarefairandmotivatingandthattheirearningsdevelopmentiscompetitive.Anotherkeyobjectiveistoincreasecompany-leveldecision-makinginpaymatterstogetherwiththepersonnel.Forsalarynegotiationstobesuccessful,companiesmusthaveanup-to-datepaypolicy,andbothmanagersandemployeesmustbefamiliarwiththecurrentcompensationsystemandreceiveenoughtrainingtohavesalarynegotiations.Asalarynegotiationsmodelthatisusedwellenablesafairandmotivatingcompensationsystem,createsbetterconditionsforcompaniestosucceedanddeveloptheiractivities,andallowsemployeestoimprovetheirprofessionalskillsandcompetence.Withwishesofsuccessfulnegotiations,FinanceFinlandServiceSectorEmployersPaltaTheUnionofInsuranceEmployeesinFinlandVvL
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2SalarynegotiationsSalarynegotiationsaretherightoftheemployeeandthedutyofthemanager.Theemployerdeterminesthemanagerwithwhomtheemployeehasthesalarynegotiationsandensuresthattheemployeeisawareofthis.Salarynegotiationsareusedtoassesstheemployee’sjobdifficulty,qualificationsandperformanceandtoachieveaconsensusonwhethertheemployeewillreceiveasalaryincrease.Ifanemployeerefusessalarynegotiations,themanagerdecideswhetherthatemployeewillreceiveasalaryincrease.Salarynegotiationsclearlyestablishhowdutiesandperformanceaffectsalary.Thesalarynegotiationsmodelalsoservesasaleadershiptool,allowingmanagerstoincludemoreincentives.Whendoneright,salarynegotiationscreatepaysatisfaction,steeroperationalchangesandencourageemployeestoachievekeygoals.Theobjectiveofsalarynegotiationsistoguaranteeemployeesafairandmotivatingsalaryanditsdevelopment.Successfulsalarynegotiationsthusrequirethatmanagerscanexplainwhyanemployeewillreceiveasalaryincrease,aminorincreaseornoincreaseatall.Thetimeframeofsalarynegotiationsisdeterminedbytheemployerrepresentativesandemployeestogether,asperthepossibleinstructionsofferedbythecompany’ssalarynegotiationsgroup.Inanycase,salarynegotiationsmustalwaysbeheldbeforethepayrisedeadlinesdeterminedinthecollectiveagreement.Managersmustalsoinformemployeerepresentativeswellinadvanceoftheperiodduringwhichsalarynegotiationswillbeheld.
3Paystructureintheinsurancesector
3.1FixedtotalsalaryWiththeimplementationofthesalarynegotiationsmodel,thesalaryofallofficepersonnelwhosejobbelongstothepaygradesorabovethemisdeterminedindividually.Thetotalsalaryreflectsthejob’sdifficulty,theemployee’squalificationsandpersonalperformance,andtheprincipleofequalcompensationforequalorequivalentwork.Thefollowingaffectofficepersonnel’ssalary:
• dutiesandchangesinthem(jobdifficulty)• experience• qualifications(competenceandmaintaininganddevelopingone’sprofessionalskills)• performance(workqualityandambition)• developmentofownworkandworkingmethods• cooperationandinteraction.
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3.1.1GuaranteedsalaryelementdeterminedbyjobdifficultyJobdifficultydeterminestheguaranteedsalaryelement,i.e.thepaygradeforeachemployee.Jobdifficultyassessmentconsidersallthedutiesoftheemployeeandscoresthejobasawhole.Theassessmentlooksatactualduties:itevaluateshowdifficultthejobisandexamineswhattheemployeeactuallydoes,notwhattheemployee’spersonalqualitiesareorhowwellheorsheperforms.Allemployeeswhodoequalorequivalentworkwillreceivethesamescoreandthusfallinthesamepaygrade.Theemployermustinformallemployeesabouthowtheirjobisscoredandwhatmakesuptheirtotalsalary,includingthedifferentsalaryelementsandincentives.AssessingjobdifficultywhendutieschangeJobdifficultyisreassessedwheneveranemployee’sdutieschange.Ifthedutieschangeessentially,theemployeewillreceiveasalaryincreasestartingfromthebeginningofthemonthfollowingtheassessment.Thisraiseamountstoatleastthedifferencebetweenthenewandoldpaygrade.Examplesofessentialchangesinclude,forexample,organisationalrestructuringorappointmenttoanotherrole.Ifanessentialchangedoesnotresultintheemployeebeingtransferredtoahigherpaygrade,thenewrole’seffecttothesalarywillbediscussedatthenextsalarynegotiations.Ifthechangestothedutiesarenotessential,theemployee’snewdutiesarecomparedagainstthejobdifficultyscaleinthesalarynegotiations.Ifthejobisdeemedmoredifficult,theresultingsalaryincreaseisawardedinthesalarynegotiations.3.1.2PersonalsalaryelementdeterminedbyqualificationsandperformanceQualificationsandperformanceInthesalarynegotiations,themanagerandemployeedescribetheemployee’sdutiesanddiscusshisorherqualificationsforandperformanceintheseduties.Theunionshavedeterminedhowthequalificationsandperformanceofemployeescoveredbythecollectiveagreementareassessedinsalarynegotiations.Theemployerandemployeeunioncan,however,determineotherassessmentcriteriaatthecompany.Company-specificinterpretationguidelinesforthecriteriacanalsobeissuedbythesalarynegotiationsgroup.Thesalarynegotiationsareusedtoassesshowemployeeshaveperformedintheirduties.Theycanalsobeusedtoaddressupcomingchangesindutiesandresponsibilitiesandtodeterminepossibleareasofdevelopmentinregardtocurrentandfutureduties.
Thesalarynegotiationsareusedtoassesshowemployeeshaveperformedintheirduties.
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Forsalarynegotiationstobesuccessful,eachemployeemusthaveanup-to-datejobdescriptioninwriting.Thejobdescriptionmustbewrittenontheformdrawnupbytheunionsunlesstheemployerandemployeeunionhavelocallyagreedtouseadifferentmodel.AssessmentcriteriaforqualificationsandperformanceTheassessmentcriteriaforqualificationsandperformancedeterminedbytheunionsarethefollowing:
• professionalskills,competenceandexperience• cooperationandinteraction• qualityofwork• personalperformanceandambition
Thefollowingwillbeconsideredinassessingprofessionalskills,competenceandexperience:Assessmentcriteria Unionexamples Company-or
department-specificcriteriamaintaininganddevelopingprofessionalskillsandcompetence
handlingvariouspension/insurance/compensationcasesindifferentroles,makingindependentsolutions,andprocessingmandate
accumulatingworkexperience accumulatingworkexperienceindifferentrolesorduties,notjustyearsservedatthecompany
developingoneselfandthemotivationtodevelop
makingconnectionswithe.g.theskillsmapping,pursuingtrainingopportunities,e.g.degreesinthefield,andacquiringcompany-specificsystemlicensesandtype-specificlicenses
developingone’sworkandworkingmethods
workingtogetherwithcolleaguesandthemanagertodevelopworkbye.g.suggestingimprovements
multipleskills beingcompetenttohelpotherteams/people,beingabletodotheworkofothersduringpeakseasons,beingabletodovariousstagesofawork/serviceprocess,beingabletosolvedifferenttypesofinsurance,compensationorpension,beingwillingtoputone’sskillstouseindutiesotherthanownduringrushtimes,testingchanges/reformsbeforetheyareimplemented
languageskills usingoneormoreforeignlanguagesatwork
formanagerialpositions:leadership
evaluatedbasedonleadershipevaluationcriteria(e.g.atmosphere)
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Thefollowingwillbeconsideredinassessingcooperationandinteraction:Assessmentcriteria Unionexamples Company-or
department-specificcriteriaabilitytocreateanatmosphereofcooperationinvarioussituations
sharingpersonalviews/discussingworkplaceatmosphere
handlingmutualmattersandparticipation
participatinginteammeetings,representingstaff,takingpartinsmallgroupprojects
abilitytogiveandreceivefeedback,especiallyinmanagers
Thefollowingwillbeconsideredinassessingthequalityofwork:Assessmentcriteria Unionexamples Company-ordepartment-specific
criteriafeedbackreceivedonthequalityofwork
feedbackisindividualisedandmonitoredthroughouttheyear,thefeedbacksystemisopen,reliableandequal/customerfeedbackorsomeothersystematicwayofassessingthequalityofwork
formanagerialpositions,alsoleadership
Thefollowingwillbeconsideredinassessingpersonalperformanceandambition:Assessmentcriteria Unionexamples Company-or
department-specificcriteriaabilitytoworktowardsobjectives doesnotrefertoquantitativeor
monetaryobjectives,butinsteadtotheabilitytoworkinaccordancewithworkplaceobjectives,e.g.makingcorrectorhigh-qualitycompensationdecisions,providingcomprehensivecustomerserviceandmakingcorrectpensionsolutions
Asummarythatincludestheassessmentformforqualificationsandperformancemustbedrawnupforallsalarynegotiations.Iftheemployee’sjobdescriptionhaschangedsincethepreviousnegotiations,anupdatedjobdescriptionformmustalsobeincluded.
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4DutiesofthesalarynegotiationsgroupEachcompanyhasasalarynegotiationsgroupwithemployerandemployeerepresentatives.Thegroupdeterminesitsownoperationsmodel,organisationandmeetingschedule,buttheemployerisresponsibleforsummoningthegroup.Theemployermustsummonthesalarynegotiationsgroupwhenevernecessary,butatleastonceeverycalendaryear.Groupmembersmustbegivenenoughpaidtimeofffromtheirworktoattendthegroup'smeetingsandtoprepareforthemwithstaffrepresentatives.Staffrepresentativesmustalsobegiventimeofftodotheirduties,andthistimemustbetakenintoaccountintheirworkload,objectivesandtheorganisationoftheirtasks.Thesalarynegotiationsprotocoldefinesthesalarynegotiationsgroup’sresponsibilities.Accordingtoit,thegrouphasthefollowingresponsibilities:
• Monitoringandpromotingthefunctionalityandpracticalimplementationofthesalarynegotiationssystem
• Discussingtheprinciplesofpaypolicyannuallybeforethesalarynegotiationsareheld• Participatingintheplanningandexecutionofthetrainingrequiredbythesalarynegotiations
system• Examiningwherecompany-specificjobtitlesfallingeneralstatisticalnomenclature• Handlinganydisagreementsconcerningsalarynegotiations• Examiningdifferentpaysystemsandhowtheyaremonitoredbasedoninformationofferedbythe
employero Unionrecommendation:Thesalarynegotiationsgroupshouldhandlepaypolicyaspartof
theassessmentsystemsusedinthecompany• Monitoringearningsdevelopmentinthecompany
4.1MonitoringThesalarynegotiationsgroupshoulddiscussfeedbackcollectedaftertheprevioussalarynegotiationsroundandpayparticularattentiontothemattersthatleftthemostroomforimprovement.Feedbackcollectedbytheunionstargetsthefollowingasareasofdevelopment:
• Givingandreceivingjustifications• Poorpreparation• Vagueassessmentcriteriaorlackofaconsistentcompany-widepolicy• Identifyingareasofdevelopmentandagreeingwiththemanagerontheirfollow-
up• Receivingsufficientinformationaboutpersonalperformance
Feedbackcollectedbytheunionstargetsthefollowingasareasofdevelopment
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4.2PrinciplesofpaypolicyForsalarynegotiationstosucceed,itiscrucialthatthecompanyhasapaypolicythatisopen,transparentandfair.Indiscussingthepaypolicy,theemployerandpersonnelshoulddiscusswhatincentivesandbonussystemsthecompanyusesinadditiontotheguaranteedsalaryelementdeterminedbyjobdifficultyandthepersonalsalaryelementdeterminedbyqualificationsandperformance.Indiscussinghowthecompensationsystemworks,thecompanymakesitscompensationschemetransparentandallowsitsemployeestolearnwhoarerewarded,whattheyarerewardedfor,whatrewardsareusedandhow.Thecompensationschemeisnotlimitedtomonetaryrewards,butalsoincludesdevelopmentandtrainingopportunities,opportunitiestoparticipateandinfluence,feedbackreceivedforwork,appreciation,employmentstability,andworking-timearrangements.Discussingpaypolicyalsobringsuptopicssuchasensuringearningsdevelopment,monitoringtherealisationofthepaypolicyandassessinghowwellthecompensationschemeworks.Theemployerdeterminesthecompany’spaypolicyafterithasbeendiscussedinthesalarynegotiationsgroupor,ifthecompanydoesnothaveone,togetherwiththepersonnel.
4.3SalarynegotiationstrainingForsalarynegotiationstosucceed,allmanagersandemployeesmustbefamiliarwithsalarynegotiationsandtrainedtohavethem.Planningandorganisingthistrainingisthereforeanimportantresponsibilityofthesalarynegotiationsgroup.Trainingshouldtargetnewmanagersandemployeesinparticular,buttheemployermustgiveeveryonetimetoattendtrainingandreadtheinstructionsontheintranetduringworkinghours,andmanagersmustensurethatemployeesparticipateinthetraining.Allsalarynegotiationstrainingtakesplaceduringregularworkinghoursandtheemployercoversallitscosts.
4.4PaystatisticsandpaygradeinformationAllemployeesmusthaveaccesstothefollowinginformationbeforesalarynegotiations:theinsurancesector'saverageincomeandincomedevelopment,thecompany’saverageincomeclassifiedaccordingtotheConfederationofFinnishIndustriesEK’snomenclatureofoccupationaltitles,andthecompany’spaygradedistribution.Thesalarynegotiationsgroupshouldensurethatthisinformationisuptodatewellbeforesalarynegotiationsarehad.PaystatisticsareavailableinFinnishatwww.finanssiala.fi
Forsalarynegotiationstosucceed,itiscrucialthatthecompanyhasapaypolicythatisopen,transparentandfair.
Furthermore,allmanagersandemployeesmustbefamiliarwithsalarynegotiationsandtrainedtohavethem.
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ExampleofsalarystatisticsInsurancesector,October2011,womenColumn1 Column2 Column3 Column4 Column5 Column6 Column7 Column84920 Insurancebusiness:
operationaldutiesManaginginsurancepolicies
Region Number EUR/month 10% 50% 90% 1
592
2,802
2,238 2,700 3,404
2 17 2,378
609 2,790 2,214 2,690 3,4044921 Handlinginsured
events1 1,154 2,701 2,213 2,626 3,249
2 21 2,529 1,175 2,698 2,213 2,623 3,424Forexample,10%ofthosewholiveinthecapitalregionandhandleinsuredeventshaveamonthlysalaryoflessthan2,213euros.Howtoreadthistable:Column1:ThestatisticalcodeoftheoccupationaltitleaccordingtotheConfederationofFinnishIndustriesEK’snomenclatureColumn2:OccupationalgroupandoccupationColumn3:Cost-of-livingindexregion(1=capitalregion,2=otherregions)Column4:Numberofthosewiththeoccupationaltitleaccordingtocost-of-livingindexregionsandintotalColumn5:AveragemonthlysalaryColumn6:10%(ofthoseinthegroup)earnlessthanthisColumn7:50%(ofthoseinthegroup)earnlessthanthisColumn8:90%(ofthoseinthegroup)earnlessthanthis
4.5Disagreements Asuccessfulsalarynegotiationsmodelincludesarectifyingprocedure.Thesalarynegotiationsgroupmustthereforeagreeinadvancehowlocalnegotiationsintheircompanyhandledisagreementsandcasesinwhichanemployeehasbeenleftwithouttheaverageincreaseforthreetimesinarow.Ifadecisionhasclearlybeenbasedonincorrectinformation,itmustberectified,orthemanagermustbeinstructedtodoso.Itisintegralthatsalarynegotiationstreatpeopleconsistentlyandequallyandapplythesameprinciplestoall.
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5Preparingforsalarynegotiations
CHECKLISTFORMANAGERSPreparingforsalarynegotiations
• Participatingintraining• Gettingtoknowthecompany'spaypolicy• Gettingtoknowthepaystatistics• Gettingtoknowthejobdifficultyscaleandtheassessmentofqualificationsandperformance• Ensuringemployeepreparationbye.g.organisingworksothatemployeeshavetimetoparticipate
intrainingandgettoknowtheintranetmaterials• Gettingtoknowtheemployees’jobdescriptionsandchangesinthem• Followinginformationgivenaboutthenegotiationsanddiscussingit• Preparingassessmentsandreasonsforsuggestedsalaryincreases• Iftheemployeeworksunderseveralmanagers,gettingtoknowthejobdescriptionsofeach
managerProvidinginformation
• Agreeingonthedatesandtimesofsalarynegotiationswiththeemployees• Informingtheemployeerepresentativeofthesalarynegotiationsperiod• Preparingforexceptionalcircumstances• Providingemployeeswithstatisticsonpayandpaygrades
o Availableaverageincomeandincomedevelopmentinformationintheinsurancesectoro Availableaverageincome(accordingtotheclassificationoftheConfederationofFinnish
IndustriesEK)inthecompanyo Paygradedistributioninthecompany
Havingsalarynegotiations
• Describingtheemployee’scurrentdutiesandresultsandensuringthatthejobdescriptionisuptodate
• Discussingtheemployee’squalificationsandperformance,fillingintheassessmentformandstatingconsensusordisagreement
• Discussingtheemployee’ssalaryandthepossibleupgradeofpaygrade• Discussingandseekingaconsensusonincreasingtheemployee’spayandstatingconsensusor
disagreement• Possiblysuspendingsalarynegotiations
Afterthesalarynegotiations
• Implementationofthepossiblesalaryincreaseasagreedinthesalarynegotiations• Implementationofthepossiblegeneralincrease• Goingoverpossiblesupportmeasureswiththeemployeeifoneormoreareasofdevelopment
havebeenidentified,andagreeingonandensuringtheirmonitoring• Providingtheemployeesinformationaboutthesalarynegotiations(averageincreaseineurosand
thenumberofincreasesimplemented)• Archivingthesalarynegotiationsdocuments• Creatingdocumentationforthefollowingsalarynegotiations
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CHECKLISTFOREMPLOYEESPreparingforsalarynegotiations
• Participatingintraining• Gettingtoknowthecompany'spaypolicy• Gettingtoknowthepaystatistics• Gettingtoknowthejobdifficultyscaleandtheassessmentofqualificationsandperformance• Identifyingjobdifficulty,notingchangesinyourjobdescriptionandobjectives,andassessingthe
needtoupgradetoahigherpaygrade• Assessingyourqualificationsandperformanceandpreparingjustificationsforyourassessment• Followinginformationgivenaboutthenegotiationsanddiscussingitwithcolleagues• Preparingreasonsforyoursuggestedsalaryincrease
Acquiringinformation
• Agreeingonthedatesandtimesofthesalarynegotiationswiththeemployer• Seekingsupportfromtheemployeerepresentative• Acquiringpaystatisticsandpaygradedistributioninformationfromthemanager/companyintranet
o Availableaverageincomeandincomedevelopmentinformationintheinsurancesectoro Averageincome(accordingtotheclassificationoftheConfederationofFinnishIndustries)
inthecompanyo Paygradedistributioninthecompany
Havingsalarynegotiations
• Describingyourcurrentdutiesandresults,andensuringthatyourjobdescriptionisuptodate• Discussingyourqualificationsandperformance,fillingintheassessmentformandstating
consensusordisagreement• Discussingyoursalaryandthepossibleupgradeofpaygrade• Discussingandseekingaconsensusonincreasingyourpayandstatingconsensusordisagreement• Possiblysuspendingsalarynegotiations
Afterthesalarynegotiations
• Implementationofthepossiblesalaryincreaseasagreedinthesalarynegotiations• Implementationofthepossiblegeneralincrease• Goingoverpossiblesupportmeasureswithyourmanagerifoneormoreareasofdevelopment
havebeenidentified,andagreeingonandensuringtheirmonitoring• Beinginformedoftheaverageincreaseineurosandthenumberofincreasesimplementedasa
resultofthesalarynegotiations• Creatingdocumentationforthefollowingsalarynegotiations
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6Havingsalarynegotiations
6.1PersonalsalarynegotiationsPersonalsalarynegotiationsareanimportantpartofdetermininganemployee’ssalaryandensuringitsdevelopmentbecausethenegotiationsofferallemployeesanopportunitytodiscusstheirpaywiththeirmanager.Beforethenegotiations,themanagerandemployeemustbothfamiliarisethemselveswiththeformsandassessmentcriteriausedinthesalarynegotiations.Ifeithertheemployeeorthemanagerwishestosuspendthesalarynegotiations,thepartiesmustagreeonwhenthenegotiationswillbecontinuedandreserveenoughtimeforcontinuingthem.Ifanemployeesuspendssalarynegotiations,thenegotiationsmaynotbecontinuedbeforetheemployeehashadanopportunitytocontacttheemployeerepresentative.Oncethesalarynegotiationsareover,themanagerensuresthattherearetwocopiesofalldocumentsandthattheemployeereceiveshisorhercopy.Thedocumentscanalsobeprovidedelectronically,inwhichcasebothpartieshaveaccesstothem.
6.2ChangesinjobdifficultyThepurposeofsalarynegotiationsistodescribetheemployee’scurrentduties,possibleupcomingchangestotheseduties,andtheresultsachieved.Theemployermustinformallemployeesabouthowtheirjobisscoredandwhatmakesuptheirtotalsalary,includingthedifferentsalaryelementsandincentives.Inthesalarynegotiations,thepartiesensurethattheemployee'sjobdescriptionisuptodateandattachajobdifficultyform,jobdifficultyscoreandpaygradetothejobdescription.Jobdifficultyisreassessedimmediatelyafteranemployee’sjobdescriptionundergoesessentialchanges.Ifthereassessmentresultsinahigherpaygrade,theemployee’ssalaryincreasesbyatleastthedifferencebetweenthenewandoldpaygrades.Theincreasetakeseffectfromthebeginningofthemonthfollowingthereassessment.Salarynegotiations
• Describetheemployee’sdutiesandresultsachieved• Discusstheemployee’squalificationsandperformance• Discusstheemployee’ssalarybasedoncurrentandpossibleupcomingdutiesandresponsibilities• Aimtoachieveconsensusonasalaryincrease• Recordthefactorstheemployeecanusetonegotiateasalaryincreaseinthefollowingsalary
negotiations,ifheorshedoesnotreceiveonenow
6.3AssessmentofqualificationsandperformanceTheassessmentofanemployee’squalificationsandperformanceisanessentialpartofsalarynegotiations.Qualificationsandperformanceareassessedusingtheformprovidedbytheunions(seeAppendix,sectionII),unlesstheemployerandemployeeunionhaveagreedotherwiseatthecompany.Theprocessprovidesacomprehensiveassessmentofeachemployee’squalificationsandperformance.Theassessmentcriteriaaretreatedasequalunlessthecompany’spaypolicydeterminesotherwise.Differentdepartmentsandunitsmaychoosetoweightassessmentcriteriadifferently.
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Themanagerandemployeepresentandjustifytheirownviewsoftheemployee’sprofessionalskills,competenceandexperience;cooperationandinteraction;qualityofwork;andthedevelopmentandmaintenanceofpersonalperformanceandambition.Theassessmentseeksaconsensusonwhetherthefactorsareareasofdevelopmentorwhethertheemployee'squalificationsandperformancemeetorexceedthejob'srequirements.Duringthenegotiations,themanagerusesconcreteexamplestodiscusstheareasinwhichtheemployeehasperformedwellandtheareasinwhichtheemployeecouldimproveeitherinqualificationsorperformance.ManagerscanusethetableprovidedinSection3toshareconcreteexamples.Thejustificationsmustbegroundedinthecompany’spaypolicy:howisthepaypolicyreflectedinthisemployee’sworkandhowshouldtheemployeeberewarded?Itisessentialthatemployeesknowhowtheycanaffecttheirsalary.Themanagerfillsintheassessmentformduringthenegotiations.Themanageralsowritesdownwhetherthepartiesreachedaconsensusintheassessmentofqualificationsandperformanceandprovidesreasonsforpossibledisagreement.Themanagerrecordstheidentifieddevelopmentmeasuresonthesummaryform,buttheemployeemustalsoensurethattheyarewrittendown.Themanageralsomustbereadytoofferconcreteexamplesofwhytheemployeeshouldorshouldnotreceiveasalaryincrease.
6.4SummaryofthesalarynegotiationsThemanagerandemployeedrawupawrittensummaryoftheirsalarynegotiations.Thesummarymustincludetheemployee'sjobdescription(ifithaschangedsincethelastnegotiations)aswellastheassessmentformforqualificationsandperformance.Thejobdescriptionform(Appendix,sectionI)mustdescribethemainchangestotheemployee’sduties,possibleupcomingchangestotheseduties,andthedevelopmentmeasuresidentified.Thesalaryincreaseform(Appendix,sectionIII)muststatewhetherthemanagerandemployeeagreeonthesizeofthesalaryincrease.Ifthepartiescannotreachanagreement,theymustprovidereasonsfortheirdifferingviews.Theemployermustarchivethedocumentsforatleasttenyearseitherasahardcopyorelectronically.Theemployeehastherighttoreceivethesalarynegotiationsdocumentsfromtheemployeronrequest.
6.5SalaryincreaseSalarynegotiationsaimtoachieveaconsensusaboutwhethertheemployeeshouldreceiveasalaryincrease.Attheendofthenegotiations,themanagerdecidesontheincrease.Ifnecessary,thesizeoftheincreasecanbestatedinabrieffollow-upmeetingafterallsalarynegotiationshavebeenhad.Theemployee’spossiblegeneralincrease,possiblenegotiations-basedsalaryincreaseandrevisedfixedtotalsalarymustallbestatedonthesummaryform.Theemployee’sfixedtotalsalarycannotdecreaseasaresultofthesalarynegotiations.
Themanagerandemployeepresentandjustifytheirownviewsoftheemployee’sprofessionalskills,competenceandexperience;cooperationandinteraction;qualityofwork;andthedevelopmentandmaintenanceofpersonalperformanceandambition.
Theemployee’sfixedtotalsalarycannotdecreaseasaresultofsalarynegotiations.
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7Protectionoftheindividual
7.1RighttoreceivetrainingandstatisticalinformationBeforethesalarynegotiations,employeesandmanagersmustbefamiliarwithandtrainedtousethejobdifficultyscale,theassessmentofqualificationsandperformance,theprinciplesofpaypolicy,andthesalarynegotiationsprocedure.Itisespeciallyimportanttoensurethatthoseusingtheassessmentformforqualificationsandperformancearefamiliarwiththecriteriaandtheircompany-ordepartment-specificinterpretations.Managersandemployeesmustalsobefamiliarwiththecontentsofthecollectiveagreement,anycompany-specificagreementsandthesalarynegotiationsprocedure.Moreover,bothpartiesmustgainaccesstothefollowingstatisticalinformationwellbeforethenegotiations:theinsurancesector'saverageincomeandincomedevelopment,thecompany’saverageincomeaccordingtotheclassificationoftheConfederationofFinnishIndustriesEK,andthecompany’spaygroupdistribution.
7.2RighttosuspendnegotiationsBoththemanagerandtheemployeehavetherighttosuspendsalarynegotiationsforagoodreason.Suchreasonsincludeacquiringfurtherinformation.Furtherinformationcanbeacquired,forexample,fromtheemployeerepresentative,themanager’smanager,thehumanresourcesdepartment,theoccupationalsafetydelegates,theUnionofInsuranceEmployeesinFinlandVvL,FinanceFinlandorServiceSectorEmployersPalta.Othergoodreasonsforsuspendingsalarynegotiationsincludeoneparty’sinappropriatebehaviouroraheateddebate.Itmayalsobenecessarytosuspendnegotiationsifonepartycomestothenegotiationsunpreparedorifexternalfactorsdisturbthenegotiations.Ifanemployeesuspendssalarynegotiations,thenegotiationscannotbecontinueduntiltheemployeehashadanopportunitytocontacttheirrepresentative.
7.3Exceptionalcircumstances
7.3.1Short-termabsencesIftheemployeeisunabletohavesalarynegotiationsontheagreeddateduetoashort-termabsence,thenegotiationsshouldbehadbeforetheabsenceifthesizeofthenegotiations-basedincreaseisalreadyknownandnootherreasonpreventsthenegotiations.Ifthesalarynegotiationscannotbehadbeforetheabsence,thenegotiationsshouldbehadremotelyviaelectroniccommunicationscommonlyusedatthecompany.Forremotenegotiationstobesuccessful,thepartiesmustensuregenuineinteraction,confidentialityandapersonalatmosphere.Ifthiscannotbeensured,thesalarynegotiationsshouldbehadimmediatelyaftertheemployeereturnstowork.
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7.3.2AbsencesthatspanbetweensalarynegotiationsroundsIftheabsencespansbetweensalarynegotiationroundsandisduetofamilyleave,illness,militaryservice,civilserviceorvoluntarymilitaryservice,theemployeeisguaranteedapayriseequaltoorhigherthantheaverageincreaseinthecompany.Allemployeesalwaysreceivethegeneralincrease.
7.4Thethree-negotiationruleThesalarynegotiationsgrouphandlesallcasesinwhichanemployee'ssalaryincreasehasbeenlowerthanhalftheaverageincreaseinthreeconsecutivesalarynegotiations.Thisallowsthesalarynegotiationsgrouptoexaminehowtheemployeehasdevelopedhisorherqualificationsandperformance,howthemanagerhaspromotedthedevelopmentoftheemployee'squalificationsandperformance,iftheemployeehasbeentreatedfairlyandequallyincomparisontootheremployees,andifthepoorpaydevelopmentcanbeexplainedwithreasonsrelatedtotheworkplaceorworkingconditionsthatcanbeaffected.Theemployermustintroducetothesalarynegotiationsgroupallcasesthatmeettherequirementsofthisthree-negotiationrulewithintwomonthsoftheimplementationofthenegotiations-basedincrease.Employeeshavetherighttorefusethesalarynegotiationsgroupfromhandlingtheircase.Therefusalmustbegiveninwriting.
7.5DisagreementsSalarynegotiationsdisagreementsarehandledinaccordancewiththeorderofnegotiationsdescribedinthesalarynegotiationsprotocol.Ifthemanagerandemployeedisagreeontheassessmentofqualificationsandperformanceand/orthesalaryincrease,thedisagreementsanditsreasonsmustberecordedontheformsusedinthenegotiations.Theorderofnegotiationsappliestotheexecutionofsalarynegotiations,theassessmentsmadeinsalarynegotiations,thesalaryincreasesimplementedbasedonsalarynegotiations,andthedisagreementsconcerninglocalagreements.Theorderofnegotiationsdoesnotapplytopaypolicydisagreements,becauseemployersdeterminetheirpaypolicyindependently.LocalnegotiationsDisagreementsarefirstnegotiatedlocallybetweenanemployerrepresentativeandemployeerepresentativeasdeterminedintheinsurancesector’sagreement.Iftheselocalnegotiationsdonotreachanagreement,theemployerrepresentativeoremployeerepresentativecantakethemattertothesalarynegotiationsgroupincompaniesandgroupsthathaveasalarynegotiationsgroup.Ifthedisagreementcannotbesettledneitherinthenegotiationsbetweentheemployerrepresentativeandtheemployeerepresentativenorinthesalarynegotiationsgroup,thepartiesmustimmediatelydrawupamemorandumofthematter.Attheveryleast,thememorandummustincludethefactualinformationconcerningthedisagreementandthepositionsandreasonsofbothparties.
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Union-levelpaysystemgroupIfamattercannotberesolvedinlocalnegotiations,itcanbeintroducedattheunions’jointpaysystemgroup.Asarule,thisunion-levelgroupdoesnothandledisagreementsoverindividualqualificationandperformanceassessments:suchcasescanonlybeintroducedinthepaysystemgroupifthecompanyinquestiondoesnothaveasalarynegotiationsgroup.Theunion-levelpaysystemgrouphandlesallothersalarynegotiationdisagreements.Theunion-levelpaysystemgroupmustavoidunnecessarydelayinhandlingcases.LabourCourtIftheunion-levelpaysystemgroupcannotreachanagreement,theUnionofInsuranceEmployeesinFinlandVvL,FinanceFinlandorServiceSectorEmployersPaltacanbringthecasetotheLabourCourt.IndividualqualificationandperformanceassessmentsmadebymanagerscannotbeintroducedattheLabourCourt.Formoreinformation,contacttheUnionofInsuranceEmployeesinFinlandVvL,FinanceFinlandortheServiceSectorEmployersPalta.TheUnionofInsuranceEmployeesinFinlandVvLcanalsoprovidethedetailsofyourcompany'semployeerepresentativesandmemberassociation.www.vvl.fiwww.finanssiala.fiwww.palta.fi
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AppendixEmployee’sname:_____________________________________________Manager’sname:_____________________________________________IJobdescriptionandpaygrade� Wehavediscussedandupdatedtheemployee’sjobdescriptionandjobdifficultyscore.(Attachtheemployee’sjobdescriptionform)Mainchangesintheemployee’sdutiesandresponsibilitiesTheemployee’spaygrade� willchange.Thenewpaygradeis___________.� willnotchange.Knownorprospectiveupcomingchangestothedutiesandresponsibilities� Theemployeehasrefusedsalarynegotiations.Boththemanagerandtheemployeehavetherighttosuspendsalarynegotiationsforagoodreason,suchastoacquirefurtherinformation.Ifanemployeesuspendssalarynegotiations,thenegotiationscannotbecontinueduntiltheemployeehashadanopportunitytocontacttheemployeerepresentative.
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IIAssessingqualificationsandperformanceInthesalarynegotiations,themanagerandemployeeassesstheemployee’squalificationsandperformanceinrelationtohisorherjobrequirements. Areaof
developmentMeetsthelevelrequiredbytheposition
Exceedsthelevelrequiredbytheposition
Professionalskills,competenceandexperience- maintaininganddevelopingprofessional
skillsandcompetence- experience- developmentandmotivationtodevelop- developingone’sworkandworking
methods- multipleskills- languageskills- leadership(formanagerialpositionsonly)
Cooperationandinteraction- abilitytocreateanatmosphereof
cooperationinvarioussituationso asamanagero asanemployeeo asacolleagueo inrelationtoclients
- handlingmutualmattersandparticipation- abilitytogiveandreceivefeedback
(especiallyinmanagerialpositions)
Qualityofwork- qualityofworkandfeedbackreceived- leadership(formanagerialpositionsonly)
Personalperformanceandambition- abilitytoworktowardsobjectives
Wehavereachedaconsensusontheassessmentofqualificationsandperformance.� Yes� NoManager'sreasonsEmployee’sreasons
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IIISalaryincreaseIfnecessary,thesizeofthesalaryincreasecanbestatedinabrieffollow-upmeetingafterallsalarynegotiationshavebeenconcluded.� Theemployee’ssalarywillbeincreasedbasedonthesalarynegotiationsby___________eurospermonthstarting___________________.� Theemployee’ssalarywillnotbeincreasedbasedonthesalarynegotiations.Generalincreaseimplementedon_______________is__________euros(_____%).Theemployee’sfixedtotalsalarystarting__________________is_________euros.Wehavereachedaconsensusonthesizeofthesalaryincrease.� Yes� NoManager'sreasonsEmployee’sreasonsWehavenotedthefollowingconcerningdevelopmentmeasuresandtheirfollow-up:Dateandplace___________________________________Manager___________________________________Employee______________________________________