Symposium on SALARY POLICY, SALARY SCALES, SALARY STRUCTURE

1. Symposium onSALARY POLICY, SALARY SCALES, SALARY STRUCTURE 2008-10-30

2. Format of Symposium • Presentation • Historical Background • Present Context • Table Discussion • Each table selects a ‘Rapporteur’ • Reports from the Tables • Summary and Wrap-up

3. Trevor Garland Past President Historical Background

4. MUNASA and Salaries 1976 MUNASA introduced first Pay Equity 1995 McGill attempted Pay Equity without MUNASA 2001 Quebec Legislated Pay Equity – “New M Compensation System” 2003 MUNASA introduces Principles of Performance Planning 2004 MUNASA introduces Competencies Framework 2007 M Compensation Working Group

5. 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

6. 2001 M Compensation System New 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 How Problem Solving Accountability Working Conditions • Job match to Role Profile: • Sub-Family • Level (1-4) • Salary minimum uniformly 75% of salary maximum

7. 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)

8. 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

9. 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

10. Sacha Young Vice-President Present Context

11. 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.

12. Salary Compensation History

13. 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.

14. 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.

15. Evaluating a Merit Pay Plan* - 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)

16. Salary Compensation History

17. 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.

18. Discussion What do you want? Merit or Across-the-Board? Why?