Mcomp Mgt Tools

Workshop for

Managers

IntroducingM Compensation

Management Tools

Presented byJ.-C. Provost & J. Leake

Designed by J.-C. Provost, S.F. Marcil &

Salary Administration Team

February-May 2003

Agenda

1. Reasons for a new compensation system

2. Basic principles

3. Roles (Managers, HR )

4. Review the decision making process: Vacant position Special salary adjustments

5. Review highlights

New Compensation System

Objectives: Maintain pay equity

Simplify the system

Create a new “mindset”

Give managers more autonomy

Increase transparency

Planning tools for Manager

Help You:

Manage your staff resources Manage:

Expectations Career progression

Salary progression

Budget

Develop your organization

Become more autonomous in HR management

Administration Communications Finance Human ResourcesInformation Systems & Technology

Logistics &Facilities

Student & Academic Srvs

Administration FacultyDepartment, Unit

ResearchAdministration

ADM4AADM3AADM2AADM1A

ADM4BADM2BADM1B

University SecretariatLegal

ADM4C

University SecretariatTranslation

ADM3DADM2D

University SecretariatArchives Curator

ADM4EADM2E

University SecretariatAdministration

ADM1F

Administration &Area Personnel

ADM3GADM2G

Internal ExternalRelations

COM4ACOM3ACOM2ACOM1A

Development &Alumni Relations

COM4CCOM3CCOM2CCOM1C

Publications

COM3DCOM2DCOM1D

AccountingInvestments

FIN4BFIN3BFIN2BFIN1B

Audit Security

FIN4CFIN1C

Purchasing

FIN3DFIN2DFIN1D

Staffing - Placement Transition - Personnel Administration

PER4APER3APER1A

Compensation, Benefits Payroll, Pensions

PER4BPER3BPER2BPER1B

Staff Relations

PER4CPER3CPER2C

Area Personnel

PER3DPER2D

Academic Personnel

PER4E

Systems Development

IST4AIST3AIST2AIST1A

Telecommunications & Operations

IST4BIST3BIST2BIST1B

Training & Communications& Help Desk Services

IST3CIST2CIST1C

Facilities OperationsMaintenance

LOG4ALOG3ALOG2ALOG1A

Security, SafetyEnvironment

LOG4BLOG3BLOG2B

Planning & DesignLOG4CLOG3CLOG2CLOG1C

Services Operations

LOG3DLOG2DLOG1D

Admissions &Registrar

Financial Aid, Placement Counseling Services

Student Affairs

SAF4ASAF3ASAF2ASAF1A

SAF4BSAF3BSAF2BSAF1B

SAF4DSAF3DSAF2DSAF1D

Job Families

Example #1

Admissions, Recruitment & Registrar

SAF 4 A

IST 3 A ADM 2 G

ADM 1 A

COM 2 A

COM 1 DSAF 3A IST 2B

IST 1ASAF 2A(10)

SAF 1A(15)

http://www.mcgill.ca/hr/mcompensation/scales/






Example #2

NCS

IST 4B(3)

IST 4A(2)

IST 3 C(1)

IST3B(4)

IST2B(6)

IST 1B(1)

IST 3A(9)

IST 2A(9)

IST 1A(3)

ADM 1A(2)

Example #3

Accounting

FIN 4B(5)

IST 2A(3)

IST 2 C(1)

FIN 3B(4)

FIN 2B(4)

FIN 1B(6)

IST 1A(3)

ADM 1A(1)

IST 1C(3)

Vacant Position -Decision Process

Same sub-family?

Yes

No

Needs changed?

Identify appropriate sub-family and level

Identify appropriate

level

Review Family Role Profiles

Review role Profile

Yes

NoNeed to fill the position?

Yes

No

No action/standby

Initiate Job Posting

Process



Vacant Position – Scenario 1Staff Data Comparison & History

Profile Current Salary Time in Position Merit CategoryPrevious Related

Experience

1999 2000 2001

Kim Lee $55,000 1 year n/a n/a A 6 years

Joe Blake $49,000 2 years n/a B B 4 years

Ed Stuart $55,000 12 year B B B 3 years

Lara Kall $61,000 4 years B B B 6 years

Julie Côté $51,000 .5 year n/a n/a n/a 4 years

Bill Dove $54,000 .5 year n/a n/a n/a 4 years

Lori Webb $64,000 4 years A A B 9 years

Ann Duval $65,000 14 years B B B 4 years

Lou McKee $48,000 .5 year n/a n/a n/a 3 years

IST1A fromOther dept.

$41,000 2 years

IST 2A

Staff Data Comparison & History


Experience

1999 2000 2001










IST2B from other dept. $54,000 8 years

Vacant Position – Scenario 2

IST 2A

Staff Data Comparison & History


Experience

1999 2000 2001










External Candidate

$60,000/yearcontract

n/a n/a n/a 4 years

Vacant Position – Scenario 3

IST 2A

Salary Scale

High → $64,000 Low → $48,000 Avg → $54,666

Base Salary

71% 90% 100%

Salary Data of Grade 5

l l l $47,517 $60,234 $66,927 Min. Max.

IST 2A

72%

76%

73%

81%

82%

91%

96%

97%

% = Staff members’ compa-ratio

Establish Salary of External Candidate

Positioncurrent salary on new scale

Compare education & experience

with other staffmembers

Calculate compa-ratio

Example – New Position

As the new Controller of the Accounting Department, you are reviewing the organizational structure, and the range of services offered by the various units.•You want to create two (2) new positions responsible for financial analysis, cost analysis, revenue forecasting, and tax advice for the University.•You want to attract candidates with 3-8 years experience & professional designation.•You expect the role will evolve over time, and you are uncertain whether these positions should be matched to a level 2 or level 3 role profiles (FIN–B).

Role Profile LevelsLevel 1:

Supervisory positions Specialized administrative & technical positions

Level 2: Professionals Supervisory positions

Level 3: Unit managers Senior professionals

Level 4: Managers of major units, with University wide impact,

leading a team of professionals & support staff.

Type of Salary Adjustments

1. Additional responsibilities (base)

Significant and measurable impact within the same profile

Aligned with unit priorities

2. Special project (non-base)

Assigned by Manager Work related project Align with departmental priority For a limited period Payment at project-end

Type of Salary Adjustments (cont’d)

3. Market adjustment (base salary)

Market pressure created recruitment difficulty.

Turnover has increased.

4. Market adjustment (non-base salary)

Temporary shortage due to Labour market changes.

Current high demand skills • Review every 1-2 years

Type of salary adjustment (cont’d)

5. New skills & competencies

Discussed and planned prior with the Manager.

Directly work related.

Completion of formal education program above and beyond basic requirements.

Observable and measurable knowledge, skills and behaviors.

Additional ResponsibilitiesDecision Process

Evolution of the position?

Yes

No

Why?

•No change in role profile•No salary adjustment

Employee strong performance Recognized

through Merit exercise

New Dept. objectives & needs

Responsibilities evolve?

Another Profile

Same Profile & Level

Possibilityof salary

adjustment

Identify potential

Profile

Same grade

Highergrade

Promotion

Lowergrade

*

* The employee salary would be “Red circled”

Review internal equity




Additional Responsibilities

Data Comparison & History

Profile Current Salary Time in Position Merit CategoryPrevious related

experience

1999 2000 2001

Xu Wei $44,000 2 years n/a B B 2 years

Susan Roe $39,250 2 years n/a B A N/A

Jean Dubé $39,250 1 year n/a n/a B N/A

Mia Azoca $39,250 3.5 years B B B N/A

Bob Venne $41,000 1 year n/a n/a A 1 year

Sean Kaye $45,000 2 years n/a A B 2 years

NOTES

Average salary for: Average of years in position: 19 SAF1A in dept.: $41,000 In dept.: 2 years26 SAF1A at McGill.: $41,000

SAF 1A

Salary Scale: SAF 1A

High → $45,000 Low → $39,250 Avg → $41,290

Base Salary

71% 90% 100%


l l l $39,059 $49,510 $55 012 Min. Max.

Market AdjustmentData Comparison & History

Profile Current Salary Time in Position Merit CategoryPrevious related

experience

IST 2A 1999 2000 2001










Claude Amel $47,517 IST1A from other dept. 2 years

Gil Besner $54,000 IST2B from other dept 4 years

Juliet Candid $58,000 External hire n/a n/a n/a 4 years

Salary Scale

High → $64,000 Low → $48,000 Avg → $54,666

Base Salary

71% 90% 100%


l l l $47,517 $60,234 $66,927 Min. Max.

IST 2A

72%

76%

73%

81%

82%

91%

96%

97%

% = Staff members’ compa-ratio

Market Adjustment - Decision Process

Base salary increase or non-base?

YesMarket

adjustment required?

*

Consider career & staff development, special projects, …

Reviewappropriateness of role profile & discuss market

data with HR

Review position global situation(i.e.: turnover, recruitment issues, etc.)

No

*Is there a market problem elsewhere at McGill for the same type of position?

What is the Market?

Labor market

Reference or comparator markets

• Selected by McGill• For “M” jobs, we recruit Greater Montreal area

• Professional and managerial positions

• Canadian not-for-profit sector,

• Public and university sectors in Quebec,

• Large employers in Greater Montreal area.

High Demand Skills

Knowledge and skills where supply is limited:

• Does not satisfy demand.

Shortage of “qualified” candidates and staff:

• Creates pressure for a higher salary premium.

Hot skills change over time as the labor market changes.

Project Assignment –Decision Process

Is support orreplacement

available?

YesIs the

project over and above current

job?

Review: Project scope, period,precedents & plan deadlines,responsibilities& deliverables

No

Salary stays as is

Does the project increase

job complexity?

No

Yes No

Is non-base payment

appropriate ?What % or $$$makes sense?

Yes

Payment for Special Project ???

•The Administrative Assistant/Officer in your department must coordinate the Cyclical Review for your department. She worked most week-ends and many evenings during the past 3 months, and you want to reward her extra work.

•Your Department will have to move to another building, and you just asked your Administrative Assistant to coordinate the move. She asked if she would be compensated for some of her overtime.

•The Systems Analyst in your department does a lot of extra work for the department during the evening. You have seen him/her during the day helping graduate students and faculty members with their research. He/she never says “no” to a request. You feel you may be “taking advantage”, and you wonder what could be done.

Highlight Review

HR management is a critical function of the manager’s role.

Any decision can not be taken in isolation…Equity!

Many tools and info are available to help you, as managers, towards enlightened decisions!

HR professionals are consultants to support you.

“M” Compensation

Performance Dialogue

Development Plan

Competency Model

Succession Planning

Global HR Approach

Contact List

1. Salary Administration Group:

Manager: Josephine Leake – 3342

Officers:

Johanne Bellefleur – 2681

Laura Fabrizi – 2302Merita Ryan – 8430 Shirley Winstanley – 8699

2. Your APO/R

Other Questions???????…Comments??????

Back-up Material

Administrative process

Basic Principles

Salary Equity

Fair positioning of salary within the scale of each team members with same job profile.

The positioning must take into account;

• year into the job,• related experience, • Job performance, • education level and • Equity with colleagues within the unit.

Basic Principles

Equitable vs. “One Size Fits All”

Equitable means: You have considered all 4 aspects (see previous slide)

to differentiate team members.

“One Size Fits All” means: You treat all team members the same way even

though they have different level of contribution.

New system - Definitions

Salary Adjustment: A change in salary distinct from:

annual salary increase (Merit or General increase) promotional increase.

Salary adjustments may be: base non-base:

lump sum payments premium

Behaviour:

Manner of acting or conducting

oneself in carrying out one’s

work responsibilities.


New system - DefinitionsCompetency:

Work related knowledge, skills and behaviors needed to effectively perform a position or role.

Core competencies are behavioral and required by all the professional or managerial positions.

Specific competencies are relevant to each job family. They include: Behavioral competencies Technical competencies (ex.: accounting, engineering,

human resources management, etc.)

New system - DefinitionsProfile competencies: Know-how needed to effectively perform the key roles

identified in a Role Profile, such as: Skills, knowledge, and behaviors

Profiles within the same job family will share some competencies,

Vary from one level to another as a function of: Know-how, the complexity, problem solving and decision-making.


Competency Model Facilitates:

Recruitment activities

Promotion decisions

Development strategy


Job family: Role profiles are grouped with:

job families and sub-families

…which share a common purpose or service in support of the University’s mission.

A job family represents: a potential professional or managerial career path

…across and within departments.

Role Profile: Describe in generic terms:

• Responsibilities & accountability of position• Within each sub-family • Within a structure of up to four levels.

Description includes:

General description of:

• Job family, • Key Roles & responsibilities, and• Typical functions.

Definitions (cont’d)


Unit Manager: The head of a:

faculty, department or unit.

The term “unit” captures:

All administrative and academic units, which are:

• Neither identified as faculties or departments.


Equity Equity within a unit or the university as a

whole, taking into account the various factors that determine an individual’s salary.

Reference point 90% of the maximum of the salary scale of a

grade.


Integration Adjustment: (When new scale)

The increase needed to bring an employee’s salary to the minimum of their new scale or an adjustment equal to one quarter (¼) of the amount needed to maintain an employee’s position in their new salary scale.

The formula is:

[{((old salary)-(old min.) X(new max.–new min.))+new min.–old salary}X 1/4] (old max.)-(old min.)

PROVIDE AN EXAMPLE

Reference Point:

90% of the maximum of the salary scale of a grade.


Integration Adjustment: (When new scale)

The increase needed to bring an employee’s salary so that he/she can maintain position in the new scale.

The new salary must be at least at the minimum of the new scale

Or equal to one quarter (¼) of the amount needed scale.

PROVIDE AN EXAMPLE


Role Profile: Role profiles, describe in generic terms the

significant responsibilities and accountability of positions within each sub-family within a structure of up to four levels.

The description of each role profile includes: general description of the Job family, Key Roles and responsibilities, and Typical functions.

Job match:

Creation of Profiles-Methodology

Hay Guide Chart Methodology: The job evaluation plan used by McGill Pay Equity

Committee to determine the relative value of role profiles.

This plan considers the following factors: 1) Know-how 2) Problem solving 3) Accountability 4) Working conditions

From now on……

Salary Adjustment – Decision Process

Does the employee merita base salary

increase?

Yes

No

Why?

Determine % of base increase or

lump sum considering equity

Received approval

Why?

Recommend increase to V-P, Dean or Delegate

and to HR if higher than 90% of scale (reference point)

Complete form

Consult employee’s

file

Inform employee Verbally and

by writing

Complete Appointment form

High performerMargin before 90%Good experience

High performeralready close to max.

Good experience

Discuss the recommendation

with APO/Rs and agree on it.

Student & Academic Services Profiles

Admissions & Registrar

SAF 4ASAF 3ASAF 2A SAF 1A

Financial Aid, Placement Counseling Services

SAF 4BSAF 3BSAF 2BSAF 1B

Students Affairs

SAF 4DSAF 3DSAF 2DSAF 1D

Job Family

Market Adjustment - Decision Process

Base salary increase or non-base?

Yes

No

Market adjustment required?

*

Identify proper reason for salary adjustment

Identify best appropriate roleProfile with level

Review all Family role Profiles todetermineneed

Review position global situation(i.e.: turnover,

recruitment issues, etc.

Yes

No

Complete a Requestfor Market review by

Human ResourcesNo

File decision in employee’s file

See process illustrate at slide

23

Received approval?YesSalary

adjustment:Permanent orTemporary?

Non-base

Base

See process illustrate at slide

26

Communicate decision to employee

*Is there market problem elsewhere at McGill for same type of position?

Information Systems & Technology Profiles

Systems Development

Telecommunications & Operations

IST 4AIST 3AIST 2AIST 1A

IST 4BIST 3BIST 2BIST 1B

Training & Communications & Help Desk Services

IST 3CIST 2CIST 1C

Job Family - example

Salary Adjustment – Decision Process

Is a base salary adjustment

justified?Yes

No Why?

Why?

Consult employee’s

file

•Additional responsibilities?•Special project?•Market adjustment?•New skills or competencies?

•Special adjustment do not applyOR•Special adjustment apply but already at top of scale

Education

Mcomp Mgt Tools