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Policy Number: 5.50.9
Contact officer: Associate Director, HR Client Services and Remuneration
Date Approved by Senate: 30/11/2009
Date Last Amended: 30/11/2009
Date for Next Review: 30/11/2012
Related Policies:
1. Overview
Background
The University is committed to attracting and retaining high quality Academic and Professional staff. The payment of market loadings may be justified to provide managers with the flexibility to apply a loading to attract or retain staff where the impact of taking no action will detrimentally impact on the achievement of key objectives.
This policy and associated procedure provides a framework to ensure consistency and transparency in applying market loadings. It provides criteria and approval mechanisms for the payment of market loadings.
Scope
This policy and associated procedure applies to all staff excluding casual staff and staff members whose remuneration is determined by the Senior Staff Remuneration Framework.
Market loadings will be funded from the organisational unit budget of the recommending Head or Director, unless the approving officer agrees to subsidise the loading in part or in full.
Market Loadings effective at a date of departure – whether by resignation, cessation of fixed term period, redundancy or otherwise - will be included in the value of any leave entitlements and redundancy payments on payout.
2. Market Loadings - Description
A market loading is payment of additional salary of up to 25 percent of base salary. The market loading is part of salary and may or may not be superannuable and will be applied subject to the rules of the relevant superannuation scheme.
Market loadings are normally expressed as a percentage of the base salary.
2.1. Market Retention Loadings - Criteria for loadings for existing staff
A market loading to retain an existing staff member may be paid when the relevant approving officer is satisfied by the written recommendation from the Head of the organisational unit. The rationale may include the following:
a. a differential exists between the remuneration at the maximum salary pay point of the level of a position and the remuneration for similar positions in the private and public sectors;
b. there is significant strategic or operational advantage to the University in retaining the services of the staff member;
c. the staff member is performing at a sustained high level as evidenced by their most recent annual appraisal; or
d. the staff member would be able to command an increase in remuneration from competing employers.
2.2. Market attraction loadings - Criteria for loadings for new appointees
Appointments are normally made to the first increment point for the applicable classification scale. Appointments may be made to a higher increment point based on the successful candidate’s qualifications, capabilities and experience or remuneration with their current employer.
A recommendation for payment of a market loading must be justified by the candidate’s superior qualifications, knowledge, skills and experience or evidence that the market loading is necessary as a result of scarcity of suitable candidates in the market.
3. Approval Authority
The “approving officers” for payment of a market loading for staff within their respective areas of responsibility are:
a. where the agreement to pay a market loading is negotiated as part of an appointment process, then the approval process should follow Policy 5.30.2 Approval of Staff Appointments;
b. for existing staff, the Senior Deputy Vice-Chancellor, relevant Deputy Vice-Chancellor, Pro Vice-Chancellor or Executive Dean / Institute Director, University Secretary and General Counsel or Executive Director (Operations) on recommendation from the Head of the organisational unit, up to 25% of base salary; and
c. Where the quantum of the recommended market loading is more than 25% of the base salary, the Vice Chancellor or Senior Deputy Vice Chancellor on recommendation from the relevant senior executive.
4. Review
4.1. Market loadings are usually agreed for a period no greater than five years and should be reviewed annually by the relevant supervisor, subject to satisfactory performance.
4.2. Market loadings can be rescinded in the following circumstances:
a. the staff member is assessed as “Requires Improvement” or “Unsatisfactory” in the annual performance appraisal process;
b. allegations of misconduct / serious misconduct have been substantiated;
c. the Senior Deputy Vice Chancellor, relevant Deputy Vice Chancellor, Pro Vice Chancellor, Executive Dean / Institute Director or Executive Director (Operations) having conducted an ad hoc review, have found that based on market indicators or operational requirements, a market loading should cease.
In the above cases, the salary reverts to the base salary from the date of the documented decision. The decision to rescind a market loading in accordance with this procedure will be final.
5. Procedures for Existing Staff
5.1. Recommendation
The Head of an organisational unit who wishes to recommend that a staff member should receive a market loading must submit a written recommendation to the relevant approving officer that may cover any of the following:
a. Evidence that the staff member is performing at a sustained level of high achievement. This will include:
§ for professional staff - the Recognition and Development Form, General Staff; or
§ for academic staff the Annual Review forms - A – Academic Portfolio of Achievement, B – Achievements and Objectives and C – Head of School Summary Report.
It should also include the recommending manager’s summary of the particular aspects of the staff member’s performance which justify the recommendation.
b. Evidence that the staff member is actually or potentially able to obtain higher remuneration from another employer. This may be:
§ a written job offer from another employer; or
§ salary/remuneration data for a similar role in the relevant industry group, obtained from a recognised remuneration data source. This information can be obtained from the Human Resources Division.
c. Evidence that the University would benefit significantly from the continued employment of the staff member, or the staff member could not readily be replaced.
d. Confirmation that the market loading can be accommodated within the organisation unit’s budget and the extent to which market loadings are used within the organisational unit.
e. The recommendation has been reviewed by the Director Human Resources or their delegate, to ensure the rationale for the recommendation is in line with this procedure.
5.2. Approval
The approving officer will make note on the recommendation document the outcome of the request and:
a. if approved, sign-off on the document and forward to the relevant Human Resources officer of the staff member’s organisational unit; or
b. if declined, will return all documentation to the Head.
Further discussions may be pursued by the approval authority with regard to the merit or amount of the recommended market loading.
6. Procedures for New Appointments
6.1. Recommendation
6.1.1. Recommendation for payment of a market loading must be made in writing to the relevant approval authority as outlined in section 3 above.
6.1.2. The recommendation may include salary/remuneration data for a similar role in the relevant industry group.
6.1.3. If the quantum of the recommendation is more than 25% of the base salary, then the recommendation must be reviewed by the Director, Human Resources, prior to forwarding to the relevant approval authority.
6.2. Approval
The approving officer will make a note on the recommendation document of the outcome of the request and:
a. if approved, sign-off on the document and forward to the relevant Human Resources officer of the staff member’s organisational unit; or
b. if declined, will return all documentation to the Head.
Further discussions may be pursued by the approval authority with regard the merit or amount of the recommended market loading.
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