Workshop

for

Managers
February-May 2003

Introducing
M Compensation
Management Tools
Presented by
J.-C. Provost & J. Leake
Designed by
J.-C. Provost, S.F. Marcil &
Salary Administration Team
 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

 Job Families
Information Systems Logistics & Student &
Administration Communications Finance Human Resources & Technology Facilities Academic Srvs

Administration Faculty Internal External Accounting Staffing - Placement Systems Development Facilities Operations Admissions &
Department, Unit Relations Investments Transition - Personnel
IST4A Maintenance Registrar
ADM4A COM4A FIN4B Administration
IST3A LOG4A SAF4A
ADM3A COM3A FIN3B PER4A
IST2A LOG3A SAF3A
ADM2A COM2A FIN2B PER3A
IST1A LOG2A SAF2A
ADM1A COM1A FIN1B PER1A
Telecommunications LOG1A SAF1A
Research Development & Audit Security Compensation, Benefits & Operations
Administration Alumni Relations Payroll, Pensions Security, Safety Financial Aid,
FIN4C IST4B Environment
ADM4B COM4C FIN1C Placement Counseling
PER4B IST3B LOG4B
ADM2B COM3C Services
PER3B IST2B LOG3B
ADM1B COM2C Purchasing PER2B SAF4B
IST1B LOG2B
University Secretariat COM1C PER1B SAF3B
FIN3D Training & Communications Planning & Design SAF2B
Legal FIN2D
Publications Staff Relations & Help Desk Services LOG4C SAF1B
ADM4C FIN1D
COM3D PER4C IST3C LOG3C Student Affairs
University Secretariat COM2D PER3C IST2C LOG2C
Translation IST1C LOG1C SAF4D
COM1D PER2C
SAF3D
ADM3D Services Operations SAF2D
ADM2D Area Personnel
LOG3D SAF1D
PER3D
University Secretariat LOG2D
PER2D
Archives Curator LOG1D
Academic Personnel
ADM4E
ADM2E PER4E
University Secretariat
Administration
ADM1F
Administration &
Area Personnel
ADM3G
ADM2G
Example #1
Admissions,
Recruitment
& Registrar

SAF 4 A IST 3 A ADM 2 G COM 2 A

SAF 3A IST 2B ADM 1 A COM 1 D

SAF 2A IST 1A
(10)

SAF 1A
(15)
Example #2

NCS

IST 4B IST 4A IST 3 C ADM 1A

(3) (2) (1) (2)

IST3B IST 3A
(4) (9)

IST2B IST 2A
(6) (9)

IST 1B IST 1A
(1) (3)
Example #3

Accounting

FIN 4B IST 2A IST 2 C ADM 1A

(5) (3) (1) (1)

FIN 3B IST 1A IST 1C

(4) (3) (3)

FIN 2B
(4)

FIN 1B
(6)
Vacant Position -Decision
Process Yes Review
Need No Initiate
role Needs
to fill the Job Posting
Profile changed?
position? Process

Yes
No

No action/ Review Family

standby Role Profiles

Identify
No
appropriate Same
sub-family sub-family?
and level

Yes

Identify
appropriate
level
 Vacant Position – Scenario 1
Staff Data Comparison & History
Previous Related
Profile Current Salary Time in Position Merit Category
Experience

IST 2A 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 from
$41,000 2 years
Other dept.
Vacant Position – Scenario 2
Staff Data Comparison & History
Previous Related
Profile Current Salary Time in Position Merit Category
Experience

IST 2A 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

IST2B
from other $54,000 8 years
dept.
 Vacant Position – Scenario 3
Staff Data Comparison & History

Previous Related
Profile Current Salary Time in Position Merit Category
Experience

IST 2A 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

External $60,000/year
n/a n/a n/a 4 years
Candidate contract
 Salary Scale

71%
IST 2A 90% 100%

%
81

%
82

%
%

%
%

96
91

97
72

73

76

l l l
$47,517 $60,234 $66,927
Min. Max.
Base Salary
Salary Data of Grade 5
High → $64,000
Low → $48,000
% = Staff members’ compa-ratio Avg → $54,666
Establish Salary of External Candidate
Position
current salary
on new scale

Calculate
compa-ratio

Compare
education &
experience
with other staff
members
 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 Levels
Level 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 Responsibilities
Decision Process
Employee strong
Yes performance Recognized
Evolution of
Why? through
the position?
Merit exercise

New Dept.
objectives
& needs
Same
No grade
Another
Responsibilities Profile Identify
evolve? potential Lower *
Profile grade

•No change in Higher

Same
role profile grade
Profile &
•No salary Level
adjustment

Possibility Review
of salary internal
adjustment equity Promotion

* The employee salary would be “Red circled”

 Additional Responsibilities
Data Comparison & History
Previous related
Profile Current Salary Time in Position Merit Category
experience
1999 2000 2001
SAF 1A
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 years
26 SAF1A at McGill.: $41,000
 Salary Scale: SAF 1A
71% 90% 100%

l l l
$39,059 $49,510 $55 012
Min. Max.
Base Salary
Salary Data of Grade 3
High → $45,000
Low → $39,250
Avg → $41,290
 Market Adjustment
Data Comparison & History
Previous related
Profile Current Salary Time in Position Merit Category
experience

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

IST2B from other

Gil Besner $54,000 dept
4 years

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

 Salary Scale

71%
IST 2A 90% 100%

%
81

%
82

%
%

%
%

96
91

97
72

73

76

l l l
$47,517 $60,234 $66,927
Min. Max.
Base Salary
Salary Data of Grade 5
High → $64,000
Low → $48,000
% = Staff members’ compa-ratio Avg → $54,666
 Market Adjustment - Decision Process

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

Review
appropriateness
of role profile &
discuss market
data with HR

Yes
Market Base salary
adjustment increase or
required? non-base?
*
No

Consider career &

staff development,
*Is there a market problem elsewhere special projects, …
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
Review: Project
scope, period, Is the
precedents & project over Yes Is support or
plan deadlines, and above replacement
responsibilities current available?
& deliverables job?

Yes No
No

Is
No Does the Yes non-base payment
Salary stays project increase appropriate ?
as is job What % or $$$
complexity? makes sense?
 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.
 Global HR Approach
“M” Compensation

Succession Performance
Planning Dialogue

Competency Development
Model Plan
 Contact List
1. Salary Administration Group:
Manager:
Josephine Leake – 3342
Officers:
Johanne Bellefleur – 2681
Laura Fabrizi – 2302
Merita 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
New system - Definitions

Behaviour:
Manner of acting or conducting
oneself in carrying out one’s
work responsibilities.
New system - Definitions
Competency:
 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 - Definitions
Profile 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.
New system - Definitions
Competency Model Facilitates:

 Recruitment activities

 Promotion decisions

 Development strategy
New system - Definitions
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.
Definitions (cont’d)

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.
 Definitions (cont’d)

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.
 Definitions (cont’d)

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.
Definitions (cont’d)

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
Definitions (cont’d)

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 Yes
Consult High performer
employee’s employee merit
a base salary Why? Margin before 90%
file Good experience
increase?

No
Determine % of
High performer
base increase or
Why? already close to max.
lump sum
Good experience
considering equity

Recommend increase to Discuss the

V-P, Dean or Delegate recommendation
Received approval and to HR if higher than with APO/Rs
90% of scale (reference point) and agree on it.
Complete form

Inform employee
Complete
Verbally and
Appointment form
by writing
 Job Family
Student & Academic
Services Profiles

Admissions & Financial Aid, Placement Students

Registrar Counseling Services Affairs

SAF 4A SAF 4B SAF 4D

SAF 3A SAF 3B SAF 3D
SAF 2A SAF 2B SAF 2D
SAF 1A SAF 1B SAF 1D
Market Adjustment - Decision Process
Review position Review all
Market Yes
global situation Family role Base salary
adjustment
(i.e.: turnover, Profiles to increase or
required?
recruitment determine non-base?
issues, etc. need *
No

*Is there market problem elsewhere Identify proper reason

at McGill for same type of position? for salary adjustment
No Yes
See process See process
illustrate illustrate Identify best
at slide at slide appropriate role
26 23 Profile with level
Non-base

Base
Salary Complete a Request
Yes
adjustment: for Market review by
Received approval?
Permanent or Human Resources
Temporary? No

File decision in Communicate decision

employee’s file to employee
 Job Family - example
Information Systems &
Technology Profiles

Systems Telecommunications Training & Communications

Development & Operations & Help Desk Services

IST 4A IST 4B IST 3C

IST 3A IST 3B IST 2C
IST 2A IST 2B IST 1C
IST 1A IST 1B
Salary Adjustment – Decision Process

Consult Is a base
employee’s salary adjustment
file justified?
Yes

No Why?

Why?

•Additional responsibilities?
•Special project?
•Market adjustment?
•New skills or
competencies?
•Special adjustment do
not apply
OR
•Special adjustment
apply but already at
top of scale