JOB EVALUATION, PERFORMANCE REVIEW AND SALARY ADMINISTRATION Approved by Council: October 25, 2016 Resolution #

Transcription

1 1. PURPOSE This policy sets out a process for new or changing job evaluation, ensuring and documenting performance review within the organization, and regular review of compensation for pay equity and market competitiveness. This policy shall apply to all permanent full-time and permanent part-time employees in the Town of Mono. 2. JOB EVALUATION The job evaluation procedure provides a consistent and unbiased method for evaluating all positions, ensuring internal equity and that the Town is in compliance with applicable legislation. 2.1 An accurate Job Information Questionnaire (JIQ) shall be maintained for all positions within the organization. A relevant Job Description may be maintained where a Job Information Questionnaire has never been prepared for a position. 2.2 All Job Information Questionnaires will be evaluated for the administration of remuneration and benefits. 2.3 New Positions: The evaluation process for new positions shall follow the Flow Chart below: Department Head: a. creates a JIQ upon approval of a new position b. obtains CAO/Clerk approval c. forwards documentation to the CAO/Clerk CAO/Clerk: a. reviews above and consults as necessary with the Department Head b. provides an evaluation of the position with an opportunity to source an external compensation advisor familiar with the rating system and the organization s internal equity c. advises the Department Head of the job evaluation decision d. ensures consistent application of the policy across the organization Page 1 of 7

2 External Compensation Advisor: a. reviews the JIQ and related information, rates the position, interviews the employee/department Head as required and prepares the required rating documentation b. ensures equity and consistent application of the b. ensures equity and consistent application of the rating tool across the organization c. ensures compliance with Pay Equity 2.4. Existing Positions: In the event that a position has undergone significant and/or material changes, and/or following the first year of a new position, a job may be reviewed. The process described above will be applied. Department Heads, after discussions with the CAO/Clerk will determine the magnitude of changes and if a re-evaluation is warranted. It is anticipated that jobs may undergo significant and/or material changes in situations where there is a change in reporting relationships and accountabilities, service delivery and resource allocation. Department Heads are also encouraged to review job content and determine whether there is a significant and/or material change in the job at the time of the annual and interim performance reviews with their employees. 2.5 Reviews will be received on an annual basis and updated JIQ s will need to be submitted no later than January 30th in order to be considered for the current year. Changes in job value will be effective on January 1st of the year in which the job was reviewed or at the time the material change took place, at the direction of the CAO/Clerk. 2.6 A review for pay equity compliance will be performed by an external consultant as required. 3. PERFORMANCE MANAGEMENT The Town of Mono is committed to providing an environment wherein performance is measured in a fair and equitable manner, where successful performance is compensated appropriately and where the requirement for performance improvement are identified. Performance management provides the necessary framework for both individual and corporate success by aligning individual performance expectations and career planning objectives with goals of the operating units and ultimately the Town of Mono. 3.1 All employees will have a formal performance evaluation conducted, at a minimum, annually by their Supervisor. The CAO/Clerk will have a formal annual evaluation conducted by Council. Interim and informal feedback will also be encouraged to recognize and address issues and provide every opportunity for Page 2 of 7

3 an employee to achieve their objectives and to meet the goals of the Town and the employee. 3.2 Interim reviews are intended as a checkup for the employee and Supervisor to discuss the competencies advanced and status towards goal attainment. Goals should be reviewed and adjusted if required with the involvement of the employee should there be extenuating circumstances. 3.3 The annual performance review shall be completed on or near the anniversary date of employment or the anniversary date of the last significant change of employment status (i.e. Salary Grid Revision). Both the Supervisor and the employee will sign the completed annual performance review form before submission to the CAO/Clerk for signature and filing. A copy of the completed evaluation will also be provided to the employee. 3.4 Where the employee and their Supervisor do not agree with results, these may be appealed to the CAO/Clerk. 3.5 The CAO/Clerk and/or Treasurer will identify salary adjustments associated with all performance reviews and notify payroll for appropriate adjustments. Any approved salary adjustment arising from a performance review will be applied at the employee s anniversary date following the completion of the performance review and subject to budget approval. Any employee receiving a pay equity or job evaluation pay increase will revert to a January 1 st anniversary date. 3.6 Performance management information shall be used by the Supervisor and the management of the Town of Mono to support decisions pertaining to: Selection (promotion or transfer) Organizational goal setting and budgeting Salary adjustments Succession planning Training and development requirements Restructuring Recognition Goals for employees need to be individual and distinct; however, any performance tools utilized by Management shall ensure the following components for employee goals and recognizing that SMART criteria - Specific, Measurable, Achievable, Realistic and Time based. shall be used when setting goals: Strategic priority objectives as determined by Council Achievement of Operating and Capital Budget program objectives Achievement of Council resolutions/directions Page 3 of 7

4 3.7 It is recognized that investment in the competencies and skills of an employee will advance efficiency and effectiveness of the employee s ability to do their job. Additionally, such investment is to assist in succession planning by considering the potential role an employee may play in the future of the organization through career planning. Specific competencies and skills which are considered important for evaluation purposes shall include, but not be limited to: Working with Others Focus on Results and Continuous Improvement Problem Solving and Innovative Approaches Focus on Customer Service Effective Communications Application of Knowledge and Skills Health and Safety 3.8. For Supervisors of work units, they will also be evaluated on the following aspects: Leadership Fiscal Effectiveness Visioning and Planning Decision-Making Dealing with Ambiguity Working with Others Focus on Results and Continuous Improvement Focus on Customer Service Effective Communications Health and Safety 3.9 The CAO/Clerk is responsible for the maintenance and update of this procedure and related tools, including the training of supervisors for the proper use of these tools, monitoring and reporting of the Town of Mono Performance Management Program. Periodically, the CAO/Clerk will undertake a full and thorough review of the Performance Management Policy. 4. The Town of Mono is committed to providing a work environment where all individuals are treated in a fair and consistent manner as it relates to, among other items, the administration of pay. The Town of Mono will maintain a pay policy that is internally equitable, externally competitive and pay equity compliant. The following policy provides a framework for an ongoing and renewable salary administration. It is intended to support and acknowledge the dignity and worth of each individual working with and for Page 4 of 7

5 the Town of Mono and to support retention of employees through a competitive compensation program. 4.1 Pay Equity and Job Evaluation: Page 5 of 7 a) The Town has established and will maintain a job evaluation system which will be applied in a manner that maintains internal equity and pay equity compliance. Job evaluation and pay equity will be reviewed annually following market review to capture any impacts as a result of the market review on pay equity and job evaluation. b) New positions will be evaluated and assessed immediately following their approval. c) The CAO/Clerk will ensure a set procedure for the annual review process is followed to ensure that affected employees are aware of the opportunity and the timelines for such a review. d) Periodically, the CAO/Clerk will undertake a full and thorough review of all positions across the organization to ensure that integrity of the system has been maintained and will provide a comprehensive report to Council. An interval of no more than five (5) years will take place between full reviews. 4.2 Market Competitiveness: a) External competitiveness will be determined by Council who will set the pay philosophy. (i.e., the external market comparators and the desired percentile) by amending this policy from time to time. b) The comparator municipalities for the purposes of evaluating pay for employees under the scope of this policy have been determined to be: Orangeville, Town of King, Township of Essa, Township of Amaranth, Town of Shelburne, Town of Puslinch, Town of Erin, Town of Mulmur, Township of Adjala-Tosorontio, Township of Clearview, Township of Dufferin, County of c) The job rate for each pay grade in the salary grid will reflect the 60th percentile of the comparator group. In other words, the Town will pay at 10% above the midpoint of the salaries for comparable positions within the comparator municipal group.

6 Page 6 of 7 d) A market assessment will be undertaken annually to determine the appropriate amount to budget for salary grid increases. The market assessment will include the average annual gird adjustment for the comparator group. The average annual grid adjustment shall be formally adopted through the Council budget process. A compensation consultant may be accessed to ensure an objective documented review and assessment. 4.3 Salary Grid & Movement Through the Grid: The salary grid is comprised of 5 steps for each salary band, with 3% step intervals. Job Rate is defined as Step 5 on the salary grid. a) Existing Employees: Movement through the salary grid by an employee will be based on delivery of successful performance for the year prior as evaluated in the Performance Management program. Successful performance will enable an employee to progress one step annually (anniversary date) through the salary range towards Job Rate. Successful performance shall be defined through the performance tool. b) New Employees: New employees will be placed at an appropriate step within the salary grid based upon experience, skills and market competitiveness. An assessment of each individual s skills and abilities will be completed before the date of hire to ensure that the individual is placed at an appropriate step on the grid. Progression through the salary grid is to accommodate a learning curve for the job. c) Transfers, promotions, demotions: When an employee is permanently transferred or promoted to a position in a higher pay range, the new rate of pay will provide for an appropriate increase. The percentage differentials that exist between salary levels will allow for a meaningful adjustment, and will provide at minimum, a placement to the next closest step in the new salary pay grade. If an employee is permanently demoted or transferred to a position in a lower pay grade, the present salary level will be continued, (red-circled) unless there is a compelling reason for not doing so. Subsequently, the current salary will increase only when it is within the salary range of the new lower level position Acting Pay a) Acting Pay shall mean remuneration for the period of time that an employee actually performs the essential core duties of a higher job classification as authorized within this policy. b) An employee performing the essential core duties of a position in a higher job classification, and for a period of more than fifteen (15) continuous working days, may be considered for payment of Acting Pay, on the

7 recommendation of their Department Head. Movement into an Acting Pay position must be approved by the Department Head or the CAO/Clerk and, if approved, shall be retroactive to the first day of work in the higher job classification. In the case of an employee assuming an acting management position for more than fifteen (15) continuous working days, the approval of the CAO/Clerk is required. Council approval will be required for Acting Pay for the CAO/Clerk position beyond fifteen (15) days. c) Where an employee assumes the essential core duties of an approved position, he or she shall receive a salary increase of up to ten percent (10%) of their current salary for the duration of his or her appointment to the acting position. Where a 10% increase is determined not to be sufficient for the responsibilities, the incumbent will be placed at an appropriate step within the salary grid respective to the level for the position. d) Payment or entitlement to Acting Pay is not automatic. A request for Acting Pay must be made and approved before remuneration will be provided. 4.5 Red Circled Incumbents a) Red-circling occurs when an incumbent is in a position where the Job Rate of the salary range is less than the current pay of the incumbent. As a result, the pay of that person will be red- circled. b) In general, the pay of incumbents who are red-circled will be frozen with no step movement or market adjustments, until such time as the pay range catches up to the pay of the red-circled incumbent. 4.6 Compression a) The pay of employees in supervisory positions in relation to the pay of employees supervised will be considered in grid step placement to the extent that supervisory employee base salary will be at least 12% more than the employees supervised. Page 7 of 7