Symposium onSALARY POLICY, SALARY SCALES,

SALARY STRUCTURE

2008-10-30

Format of Symposium

• Presentation– Historical Background– Present Context

• Table Discussion– Each table selects a ‘Rapporteur’

• Reports from the Tables• Summary and Wrap-up

HISTORICAL BACKGROUNDTrevor Garland Past President

MUNASA and Salaries

1976 MUNASA introduced first Pay Equity1995 McGill attempted Pay Equity without MUNASA2001 Quebec Legislated Pay Equity –

“New M Compensation System”2003 MUNASA introduces

Principles of Performance Planning2004 MUNASA introduces Competencies Framework 2007 M Compensation Working Group

1976 “Parity Model”

– Each job individually classified based on personal Job Description (Position Description – one per employee)

– Salary ranges based on UdeM salary ranges– M System evaluates jobs against McGill point

system:– Knowledge (Education and Experience)– Contacts– Supervision Exercised–Working Conditions

2001 M Compensation SystemNew M Compensation Features

• job matching instead of job classification• Job Families and sub-families• Role Profiles – 90 generic job descriptions• Role Profiles evaluated using Hay Group system used by all

Quebec universities:Know HowProblem SolvingAccountabilityWorking Conditions

• Job match to Role Profile:– Sub-Family– Level (1-4)

• Salary minimum uniformly 75% of salary maximum

2003 Principles of Performance Planning

• MUNASA Membership pushes for fair Merit system

• MUNASA publishes “Principles of Performance Planning” and proposes Performance Planning Policy

• McGill rolls out Performance Dialogue to “discuss the achievements and the challenges and to set

objectives ” during summer months (separate from Merit)

2004 Competencies Framework

– lexicon of ‘soft’ skills to tie together – Job Documentation– Recruiting Requirements– Staff Development – Performance Planning

– Based on Lominger Leadership Architect Competency Library

– Staff Development workshops created for skills training

2007 M Compensation Working Group

– Study matches job types to agreed reference markets to compare median salaries

– Comparison of median of actual salaries rather than salary ranges

– Human Resources hints at widening salary grades (min 67% of Max instead of 25%)

– Human Resources set to announce changes November 3rd, 2008 NOON – 1:30PMNew Residence Hall - Ballroom A3625 Avenue du Parc

PRESENT CONTEXTSacha Young Vice-President

Salary Compensation

• At present, in accordance with the McGill Salary Administration Policy, Article 3.4:Annual salary increases may comprise two components:- a salary scale revision, as determined by the University;- a pay for performance (merit) increase, determined on a discretionary basis by the department head within guidelines established by an annual policy statement.

Salary Compensation HistoryYEAR SCALE ACROSS THE

BOARDMERIT

2004 2.0% 2.0% 2.5%

2005 2.0% 1.75% 2.75%

2006 2.0% 1.75% 2.75%

2007 - - 2.5%

2008 - -

Annual Salary Adjustment Components

• Scale- Scale adjustments represent the movement of the entire salary range.

- Salary scale adjustments are generally provided for the purpose of external equity; that is, ensuring that the salary scale for the respective role profiles and grades are reflective of the competitive market.

• Merit- a pay increase granted through a pay-for-performance system.

- represents movement through a pay range that is determined principally, if not solely, on the basis of job performance.- can also determine how far employees are allowed to progress in their pay ranges.

Elements of Merit Pay• Individual differences in job performance should be measurable• Individual differences in job performance must be significant enough to

warrant the time and effort required to measure them and relate pay to them

• The pay range should be sufficiently broad to allow for adequate differentiation in pay based on performance and/or level of experience and skill

• Supervisors and managers must be trained in employee performance planning and appraisal

• Management must be committed, and employees must be receptive to making distinctions in pay based on performance

• Managers must be adequately skilled in managing pay• Sufficient control systems must be implemented to ensure that merit

increase guidelines are followed.

- Employee satisfaction with the pay program- Employee job satisfaction- Employee perception that pay is based on performance- Employee acceptance of and trust in the performance appraisal process- Employee trust in management- Employee and organizational performance- Employee commitment to the organization as demonstrated through reduced turnover and absenteeism- Correlation between actual performance ratings and actual merit increases.

*World at Work Compensation, Benefits and Total Awards (2007, p.326)

Evaluating a Merit Pay Plan*

Salary Compensation HistoryYEAR SCALE ACROSS THE

BOARDMERIT

2004 2.0% 2.0% 2.5%

2005 2.0% 1.75% 2.75%

2006 2.0% 1.75% 2.75%

2007 - - 2.5%

2008 - -

Across-the-Board

• What is it?- Across the Board increases are general increases provided to all employees, given as a fixed dollar amount or a percentage increase; can also be considered as a cost of living increase- Such increases in salary are generally intended to protect employees’ purchasing power against erosion caused by inflation.

Discussion

What do you want?Merit or Across-the-Board?

Why?