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Salary System and Performance Related Pay. “Building a Professional Civil Service in Kosovo” Pristina, 26-27 June 2008. Mr Peter Reinberg Austria. A. Salary systems in Europe. Austria 8,4 mio inhabitants 84.000 km 2 9 regions traditional civil service systems still career-based

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salary system and performance related pay

Salary System and Performance Related Pay

“Building a Professional Civil Service in Kosovo”Pristina, 26-27 June 2008

Mr Peter Reinberg

Austria

a salary systems in europe
A. Salary systems in Europe
  • Austria
    • 8,4 mio inhabitants
    • 84.000 km2
    • 9 regions
    • traditional civil service systems
    • still career-based
    • civil servants
a salary systems in europe1
A. Salary systems in Europe
  • Austria
    • contractual public employees
    • biennial steps
    • fixed salaries for highest functions
    • uniform public service law in discussion
a salary systems in europe2
A. Salary systems in Europe
  • Austria
    • position-based salary systems
      • federation – basic salary and function allowance
      • Vorarlberg – 29 grades
      • Upper Austria – Hay 25 grades
      • Styria – Hay 24 grades
      • Lower Austria – Hay 25 grades
      • Tyrol – 25 grades
      • equal pay for civil servants and contractuals
      • flattened salary curve
      • extra costs 2 % per year
a salary systems in europe3
A. Salary systems in Europe
  • Belgium
    • 3 regions
    • 3 communities
    • salary systems essentially career-based
    • life-long statutory basis
a salary systems in europe4
A. Salary systems in Europe
  • Belgium
    • A = university degree (master)
    • B = higher education, short studies (bachelor)
    • C = higher secondary school certificate
    • D = no special school certificate
    • allowances
    • management and staff functions (fixed salaries)
a salary systems in europe5
A. Salary systems in Europe
  • European Union
    • life-long appointment as official
    • "other servants" under contract
    • basic salaries grade and step
    • allowances
    • AD (Administrator) AD5 to AD16
    • AST (Assistant) AST1 to AST11
a salary systems in europe6
A. Salary systems in Europe
  • Germany
    • civil servants
      • classical system – maintenance principle
      • basic salary
      • allowances
      • A, B – civil servants
      • A16 – highest
      • W – professors
      • R - judges
a salary systems in europe7
A. Salary systems in Europe
  • Germany
    • public employees
      • collective agreement – "Länder" (regions)
      • 15 pay groups (E grades)
      • E15 – highest
      • steps by function of professional experience
      • steps 4-6 additionally by function of individual performance
a salary systems in europe8
A. Salary systems in Europe
  • Moldavia
    • basic pay related to grade
    • pay supplements
    • performance-related bonus: 50 % of monthly salary
    • OECD recommends max. 10 - 20 % variable performance-related pay
    • decompression ratio only 2,5
a salary systems in europe9
A. Salary systems in Europe
  • Portugal
    • New System of Remuneration (NSR)
    • still a career system
    • various professional groups
    • points between 100 and 900 (general scale)
    • index 2008: 333,61 Euro
    • allowances
a salary systems in europe10
A. Salary systems in Europe
  • Spain
    • career system
    • life-long statutory basis
    • 30 levels (grades)
    • 5 groups A-E
    • Basic remuneration
      • sueldo
      • triennial (seniority)
a salary systems in europe11
A. Salary systems in Europe
  • Spain
    • Supplements
      • level supplement (grade)
      • specific job supplement
      • performance related pay
      • gratifications (bonuses)
    • Compression ratios 2,1 :1 – 19,7 : 1
b performance management
B. Performance Management
  • scepticism towards performance related pay (PRP)
  • Germany 2005 reform project
    • performance variable of 2 %, 4 %, 6 % or 8 %
    • bureaucracy expected
    • current discussion: improving the bonus system
b performance management1
B. Performance Management
  • pros and cons – Francisco Cardona
    • difficult costly and time-consuming
    • only applicable at senior levels
    • no dealing with underperformance
    • improvement in performance or quality of the service not proven
b performance management2
B. Performance Management
  • performance management easier to manage if it has no direct link to pay
    • part of the general strategic procedure
    • strategic goals
    • annual goals object of "contracts"
    • dialogue on goals, degree of their achievement and reasons for it
b performance management3
B. Performance Management
  • performance dialogue
    • proposals for personal development
    • individual training needs
    • horizontal mobility
    • career planning
c salary system for kosovo
C. Salary System for Kosovo
  • Salary reform as part of a broader administration reform
  • Political leaders
  • realistic budget frame
c salary system for kosovo1
C. Salary System for Kosovo
  • Strategic objectives
    • personnel of sufficient quantity and quality
    • being competitive to the private sector
    • ensuring civil servants´ motivation
    • fairness of the system – equal pay for equal work
    • giving security and stability to civil servants
    • higher contributions paid off in reasonable and transparent form
c salary system for kosovo2
C. Salary System for Kosovo
  • reform team
    • HR specialists
    • administrators
    • unions
    • external experts
c salary system for kosovo3
C. Salary System for Kosovo
  • guidelines of a reform
    • all-in monthly salary
    • position-based system
    • 16 grades
    • job families by general regulation of the central HR authority
    • salary tabloid with seniority steps
    • flattened life-earning curve
    • reasonable decompression rate of 5 or 6
c salary system for kosovo4
C. Salary System for Kosovo
  • guidelines of the reform
    • fixed salaries for the highest managerial (and judge) functions
    • appointment revision and renewal every 5 years, except judges
    • no elaborated PRP-system
    • bonuses 1 % of the personnel budget – partially decentralized
    • only 2 performance rates: adequate/not adequate
    • "not adequate" – 10 % deduction – second time dismissal