SALARY MANAGEMENT GUIDELINES For . - University Of Calgary
SALARY MANAGEMENT GUIDELINESforManagement and Professional StaffTOTAL REWARDSHUMAN RESOURCESFebruary 2012Revised April 2018
Table of ContentsI.Introduction . 3II.Compensation Philosophy and Guiding Principles . 3Compensation Philosophy Statement . 3III.Market Definition and Positioning. 4IV.Competitive Market Assessment . 4V.Career Framework . 5VI.Career Development . 5VII.Job Classification . 6Job Evaluation . 6Job Review . 6VIIISalary Structure . 6IX.Targeted Salary Position. 7X.Annual Performance-Based Salary Increases . 8Salary Increase Budget . 8Salary Increase Guidelines . 8XI.Other Salary Decisions . 8New Hire Starting Salaries . 8Promotions . 9Lateral Moves . 9Movement to a Lower Level Zone . 10Secondments . 10Temporary Assignments . 10Market Adjustments . 11Red Circle Rates . 12XII.Ongoing Program Maintenance . 12XIII.Glossary . 13XIV.Contact Information . 13Appendix I 14
I.IntroductionThis document and its appendices have been prepared to provide information to Managers onthe foundational philosophy, guiding principles, and guidelines which are supported by theapproved University of Calgary’s Compensation Framework.This document contains detailed information to facilitate consistent and effective salarydecisions as well as provides an overview of linkages to the Performance ManagementProgram. Section XIII provides a glossary of terms for reference purposes.The Compensation Program is continuously monitored and periodically evaluated. Ongoingrecommendations will be made to ensure it continues to align with the University’s strategicdirection and accordingly these Salary Management Guidelines will evolve as required.Please note these Salary Management Guidelines apply only to Management andProfessional Staff. While the University of Calgary fully intends to adhere to the policies andpractices contained in this document, the statements and guidelines neither provide nor intendto establish strict procedures in all instances. Rather, they define intent and provide direction they are not and should not be considered a contract of any kind, express or implied.Although the guidelines reflect current policy, they may be changed or rescinded at any time, atthe University’s sole discretion.II.Compensation Philosophy and Guiding PrinciplesCompensation Philosophy StatementAttracting and retaining a diverse group of qualified faculty and staff is fundamental to thesuccess of the University’s mission and mandate. The University of Calgary provides acomprehensive total rewards program including salary, group benefits, pension and otherprograms and services, designed to attract, retain, reward and motivate employees’commitment and performance. The compensation approach is built upon the foundation ofpartnership and shared accountability between the University and its employees and recognizesthe diversity and needs of the various employee groups.The University’s total rewards program is designed to support its attraction and retention goals,subject to the legal and fiscal restraints the University works within. The program supportsemployees’ security, protects employees against financial hardship due to illness, and supportsemployees in retirement. The compensation awarded to staff at the University of Calgary isdetermined by the role they perform, the market for their skills, knowledge and experience andtheir overall performance in their role. The program is designed to be competitive with othereducational institutions and the various markets in which we compete for talent.The University also commits that Compensation Programs will be administered in a way whichis fair and consistent and without regard to gender, sexual orientation, age, marital status,religious beliefs or ethnic origin.The philosophy provides the framework within which pay policies, programs, and practices aredeveloped. Specific underlying principles for Management and Professional Staff include: Compensation is linked to the organization’s strategic direction and human valuesSalary Management Guidelines 3
Rewards are based primarily on performance (achievement of objectives and demonstratedbehaviours defined through competencies)Model is affordable and sustainableSystem provides fair and equitable funding across the organizationDecisions are decentralized and are based on organizational compensation guidelinesSufficient to attract, retain, develop and motivate key contributorsIII.Market Definition and PositioningThe University has identified various markets in which it competes for talent. Different kinds ofroles dictate different competitive labour markets or “peer groups.”The following market definition and weighting apply to the Management and Professional Staffgroup:Peer GroupComparable Alberta Public Sector Institutions(like The Government of Alberta, Alberta HealthServices, Larger Cities, other Post SecondaryInstitutes, and the Workers Compensation Board)Alberta Private Sector ( 500M - 1B in revenue)Weighting50%50%Annually, a market assessment is conducted to ensure the salary structure targets the medianbase salary (50th percentile) of the above defined market.IV. Competitive Market AssessmentHuman Resources (HR) conducts a market assessment of the compensation levels on a regularbasis to determine the competitive market rates for Management and Professional Staff roles.Data is secured from compensation salary surveys from major third party consulting firms andcustomized surveys when required.Market Pricing is the process of determining the “going rate” in relevant labour markets for“Benchmark Jobs” in accordance with the University’s defined market and targeted position.Benchmark Jobs are jobs whose functions and scope of responsibility are comparable acrossa large number of organizations in the market and can be commonly found in externalcompensation surveys.The market data linked to benchmark jobs is what is used to establish the salary structure.When the market data for benchmark jobs changes, the salary structure will changeaccordingly.Non-benchmark Jobs are those jobs whose functions and scope of responsibility are notcomparable to other organizations and cannot be found in external compensation surveys.As there is no market data available for non-benchmark jobs, such jobs are reviewed andassigned through the job evaluation process.Salary Management Guidelines 4
V.Career FrameworkIn 2013, the University of Calgary implemented a new Career Framework for Management andProfessional Staff.The University of Calgary’s Career Framework contains five (5) Career Bands that reflect therange of work and responsibilities for all Management and Professional Staff jobs across theorganization. All jobs are mapped to Career Bands and Career Levels.Each Career Band has multiple Career Levels reflecting distinct and progressive expectationsand responsibilities for jobs at each level.More information on the Career Framework can be found on the Human Resources website.VI.Career DevelopmentThe Career Framework serves as the foundation for Total Rewards strategies and programsincluding career development. Beyond growth in a new job Managers may want to rewardemployees through special projects or increased responsibility, these career developmentopportunities can be non-compensable. The knowledge, skills and abilities that develop throughthis path enable planning and decision making for immediate and future career opportunities,please see section XI for further information.Salary Management Guidelines 5
VII. Job ClassificationJob EvaluationJob evaluation occurs when a new job is created. Job evaluation is a systematic method fordetermining the relative value of Management and Professional Staff roles and responsibilitieswithin the University of Calgary to ensure internal equity across different job levels. It is acareer-based approach that establishes a hierarchy of jobs within a series of career bands andlevels. The assignment of a job to a career band and level is achieved by profiling the jobagainst specific criteria and then checking the placement using internal comparisons with similaror equivalent jobs.Job ReviewA job review occurs when there is a significant and sustained change to existing job functionsand scope of responsibility. A standard University of Calgary job profile is completed by the Manager and approved by thenext level Manager The request is then provided to their HR Partner or Advisor for submission to the HRCompensation department for review Compensation department will identify the career band and level along with a correspondingsalary rangeReview of a job does not necessarily equate to a new placement at a different career band,career level, or a salary increase.VIII.Salary StructureThe existing salary structure for Management and Professional Staff can be found in Appendix1. A new salary structure will be phased in and communicated each fiscal year. The salarystructure has a defined number of salary ranges to accommodate the range of market datarepresented by the jobs.A salary range represents a group of jobs that are approximately equal as determined by thecompetitive market assessment for benchmark jobs and internal equity for non-benchmark jobs.All salary ranges have a minimum, mid-point (50th percentile), and a high performance maximum. Minimum — represents the lowest pay or entry level pay the University would pay for jobs inthe salary range. Typically employees with beginning skill levels for a job are paid close to theminimum. Mid-point (50th percentile) — reflects the market median as defined by the University’stargeted market positioning. It is appropriate for an experienced and fully-qualified employeewhose performance fulfills the requirements of the job to be paid around the mid-point. Control Point (66th percentile) — represents the top of the middle third of the salary rangeand is usually the highest salary a Manager can offer a new hire, without securing approval ofthe Director or equivalent Level 3 authority as per the Signing Authority Matrix (SAM) in thatarea.Salary Management Guidelines 6
High Performance Maximum — represents the highest pay the University would ordinarilypay for jobs in the salary range. Typically, only highly experienced, consistently highperforming employees with outstanding skills are paid close to the maximum.The salary ranges overlap from one to the next within the salary structure, which is important,because it recognizes that a highly capable and performing employee in one career band andlevel may contribute as much or more than a new employee in a higher career band and level.Salary ranges will be reviewed on an annual basis and adjusted as appropriate (with ExecutiveLeadership Team (ELT) approval) based on a market assessment. Adjustments to salaryranges do not trigger an across the board increase for employees.Advancement through the salary range is based on individual performance. The ranges arewide enough to provide flexibility with salary management, so the University can recognize andreward differences in individual performance and contribution through the PerformanceManagement Program. (See Section X)IX.Targeted Salary PositionDetermining appropriate salary placement of employees within the salary ranges can bechallenging, especially when working within a limited budget and managing equity relative toother members in a team or department. Leaders will carry the accountability for making salarydeterminations and justifying decisions to employees in their areas as well as to other similarareas across the University of Calgary.Employee salary decisions should be made in the context of a targeted salary position fromwithin the salary range (e.g. new hire starting salary, processing a promotion, etc.). Thefollowing chart provides guidance for leaders to consider when making a decision about whereto position an employee within the salary range. Lower Thirdof Salary RangeNewly hired or new toroleLearning the roleMeets only the minimumrequirements andqualifications for the roleDeveloping skillsPossesses minimum levelof experience necessaryfor the role Middle Thirdof Salary RangeFully proficient andqualified in essentialfunctions of the roleDemonstrates requiredskills and knowledgeActs as a resource toothersFully qualified tointermediate level ofexperience Upper Thirdof Salary RangeConsistently exceedsexpectations for allperformance objectivesEffectively leads,coaches, and influencesothersAdvanced level of skills,fully proficient to expertlevelSeasoned individual, nextcareer step may involvehigher career levelAdvanced level ofexperienceAdditional support is also available from your Partner or Advisor, Human Resources.Salary Management Guidelines 7
X. Annual Performance-Based Salary Increases*Suspended until September 2019 due to Government of Alberta salary freeze*The University of Calgary promotes a performance-based culture. The PerformanceManagement Program strives to encourage excellent performance by setting clear objectives,appraising the achievement of results, recognizing and rewarding performance, and developingemployees in current and for potential future roles.The Review phase of the performance management cycle takes place each year covering theprior fiscal year’s performance. An overall performance rating is determined for each employee.An employee’s overall performance rating and position within the salary range will translate to arecommended salary increase. Performance-based increases awarded for the previous fiscalyear will be processed effective the beginning of the new performance management year.There are no automatic or cost of living adjustments; however market movement is acomponent of the recommended salary increase.Salary decisions will be made within the context of an approved annual salary increase budgetand guidelines.Salary Increase BudgetAn annual salary increase budget will be approved by the University of Calgary Board ofGovernors based on: The University of Calgary’s current pay position in relation to its competitive labour markets Projected market movement The University of Calgary’s financial situation and resourcesSalary Increase GuidelinesEach year, HR will work with the University’s Executive Leadership Team to develop salaryincrease guidelines that promote pay for performance and consistent treatment of employeeswithin the context of the salary increase budget. These guidelines will be provided in the form ofa salary planning matrix.The University of Calgary’s annual salary planning matrix will be developed and distributed inconjunction with the annual salary administration process.XI.Other Salary DecisionsNew Hire Starting SalariesSalary levels for new employees joining the University of Calgary, or existing employees new toMaPS should be established taking into consideration the: Minimum and mid-point (50th percentile) of the salary range for the job Successful applicants’ directly related experience Salaries of existing incumbents in the same or a similar roleManagers will work with their Partner or Advisor, Human Resources to establish the mostappropriate starting salary. Typically, the starting salary will be toward the lower end of theSalary Management Guidelines 8
salary range to allow room for salary increases commensurate with growth in the individual’scontribution. Starting salaries should not be below the minimum of the range or above thecontrol point (66th percentile) of the range. Please see section IX of this document.If an exceptional circumstance arises when hiring an individual who possesses critical skills orsignificant experience that requires a starting salary above the control point, approval must beobtained from the SAM Level 3 authority, prior to extending the compensation offer.PromotionsA promotion occurs when: An employee is the successful applicant for a vacant job which is in a higher career band orlevel than his/her current job, or When an employee’s job has significant growth as a result of new accountabilities and hasbeen re-evaluated to a higher career band or levelPromotions, because they involve movement to a higher career band or level, may beaccompanied by a salary increase. Such increases should be effective the date of transfer ordate the job was submitted to Compensation for review. Promotional increases can range anywhere from 0% to 15%, with the following guidelines: Managers may approve promotional increases 0 – 10% Increases between 10% - 15% require the review and approval of the AssociateVice-President, Human Resources or their designate The salary upon promotion cannot exceed the maximum of the salary rangeIf an employee is promoted from AUPE to MaPS, a manager may provide an increase up to15%, provided the employee remains within the salary range. If the employee is required to beincreased to the minimum of the new salary range, the limit of 15% may be exceeded.The following factors should be considered in developing an appropriate promotional increaseamount: Minimum and mid-point of the new salary range Targeted salary position based on the employees’ directly related experience Relationship of current salary to targeted salary position (e.g. lower, middle, or upper third ofsalary range) Salaries of existing incumbents in the same or a
Leadership Team (ELT) approval) based on a market assessment. Adjustments to salary ranges do not trigger an across the board increase for employees. Advancement through the salary range is based on individual performance. The ranges are wide enough to provide flexibility with salary management, so the University can recognize and
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