REWARD AND RECOGNITION OF PROFESSIONAL STAFF: A FRAMEWORK DRAFT PURPOSE OF CHANGES

Transcription

1 PURPOSE OF CHANGES The fllwing draft guidelines detail key principles t guide the future develpment and implementatin f reward and recgnitin initiatives in departments acrss the University. This is a new HR strategy dcument. REWARD AND RECOGNITION OF PROFESSIONAL STAFF: A FRAMEWORK DRAFT July, 2007

2 Intrductin The Prfessinal Staff Reward, Recgnitin and Retentin (RRR) Framewrk has been develped by the University f Melburne with the aim f prviding an verarching plan that supprts the Grwing Esteem implementatin and, in particular, the University s visin t: strive t develp exemplary emplyment practices fr attracting, retaining and assisting the prfessinal develpment f a talented and diverse staff and supprt the educatinal gals f an inclusive, multi-cultural and humanitarian university. i The Framewrk details key principles t guide the future develpment and implementatin f reward and recgnitin initiatives in departments acrss the University. By prviding a brad framewrk fr staff reward and recgnitin, the University recgnises that a cmmitment t these principles is fundamental t retaining quality staff, supprting Grwing Esteem and making Melburne a Great Place t Wrk. The RRR Framewrk fr prfessinal staff encmpasses a transparent and cnsistent university-wide plicy framewrk which will enhance its ability t attract, retain and mtivate quality staff t achieve rganisatinal gals. It will endeavur t achieve this thrugh the develpment f a high perfrmance culture fcused n cntinuus imprvement. Integral t this is the recgnitin and reward f cntributins and innvatins f individual prfessinal staff and teams f prfessinal staff. Cntext The RRR Framewrk supprts and draws frm the fllwing plicies, prgrams and plans: Grwing Esteem Strategic Plan Making Melburne a Great Place t Wrk Strategic Framewrk Staff Equity and Diversity Framewrk Career Develpment Prgram Perfrmance Develpment Framewrk Higher Educatin Wrkplace Relatins Requirements (HEWRR s) This framewrk specifically fcuses n the reward and recgnitin aspects f retentin. A culture f reward and recgnitin is just ne f a range f factrs impacting n why staff chse t remain with an emplyer. Critical t any brader retentin strategy are rganisatinal develpment and equity initiatives ii. i The University f Melburne Grwing Esteem: University Plan ii Organisatinal Develpment initiatives such as the develpment f career pathways, mentr prgrams, staff exchanges and leadership develpment prgrams are nted as imprtant factrs t cnsider in brader retentin strategy develpment. The pprtunity t learn, grw and advance careers are ften rated higher in significance than ther reward strategies

3 Eligibility The Reward, Recgnitin and Retentin Framewrk prvides an verarching strategy fr prfessinal staff individual and team rewards acrss the University. Specific reward plicies flwing frm the RRR Framewrk will specify if eligibility prvisins exist. Nte: Clse examinatin f visa cnditins shuld ccur prir t cntemplating mnetary rewards fr verseas lcally engaged emplyees. Implementatin Recgnitin in the frm f psitive feedback and celebratin f achievement shuld be a matter f daily management and gd business practice. Imprtantly, all managers are respnsible at the lcal level fr cntributing t a culture that rewards and recgnises staff achievements. Managers f wrk units will: Implement reward prgrams in a manner that is cnsistent with the principles f the Reward, Recgnitin and Retentin Framewrk Cnsult with Human Resurces n the develpment and implementatin f reward initiatives Strive t develp a culture f cntinuus and sincere reward and recgnitin f staff achievements Human Resurces will: Prvide guidelines regarding rewarding and recgnising staff Wrk in partnership with departments in develping reward strategies Oversee the use f reward prgrams Review and update reward prgrams in line with best practice and rganisatinal suitability Prcess applicable mnetary rewards Backgrund A reward is defined as that which is given fllwing the ccurrence f certain behaviur, with the intentin f acknwledging the psitive nature f that behaviur, and ften with the additinal intent f encuraging it t happen again. Rewards can be intrinsic r extrinsic in nature. Intrinsic rewards are internal t the individual, such as cntributing t a cmmn gd, mentrship r 'giving back'. Extrinsic rewards are rewards external t the individual, such as payments and prmtins (tangible) r praise and public recgnitin (intangible). The University f Melburne aims t find a balance between prviding adequate extrinsic rewards and valuing the intrinsic needs f emplyees

4 A wide bdy f research indicates that rganisatins which fail t reward and recgnise staff fairly and cmpetitively in cmparisn t their cmpetitrs run the risk f lsing staff t mre lucrative pprtunities. Hwever, the key verriding message stemming frm this research is that mney alne will nt be enugh t retain quality staff, as fr many, it is nt the majr mtivatr t perfrm well in their jbs. Intrinsic, nn-mnetary frms f reward such as challenging and meaningful wrk; prfessinal grwth; empwerment; wrking relatinships; wrk/life balance and flexibility are ften cited as key wrk mtivatrs. The University will therefre ensure a brad range f strategies are available t cater fr different preferences and values in relatin t reward and recgnitin. The University f Melburne prvides a range f benefits and mechanisms t encurage and supprt the attractin and retentin f staff. Hwever, while the University has ntable structures in place, current changes in Australia s wrkfrce will place increasing demands n the university t attract and retain quality staff. The pririties in the RRR Framewrk aim t supprt the University in meeting these challenges and remaining an emplyer f chice. T ensure a crdinated and meaningful apprach t rewarding and recgnising staff achievements, the University f Melburne will fcus n a ttal reward package, encmpassing cre remuneratin strategies; brader nn-mnetary strategies; emplyee benefits; and an rganisatinal cmmitment t measuring the success and cntinually imprving reward strategies. This is summarised belw: Mnetary Incentives Ensure the University remains cmpetitive while prtecting the integrity f the classificatin systems. Benefits Ensure a range f benefits are available t all staff emplyed at the University. REWARD AND RECOGNITION OF PROFESSIONAL STAFF Nn-Mnetary Incentives Ensure a range f nn-mnetary incentives exist t reward staff. Raise awareness f these incentives. Organisatinal Knwledge Ensure the University has the relevant infrmatin t infrm RRR strategy develpment. The Reward, Recgnitin and Retentin Framewrk will ensure: a brad range f reward and recgnitin strategies are available that can be utilised by managers t reward, recgnise and retain high perfrming staff; strategies place significant emphasis n nn-mnetary frms f reward and recgnitin; strategies are cntinually reviewed and updated t ensure they are relevant, meaningful and effective; strategies reinfrce rganisatinal values and recgnise achievements that cntribute t the verall bjectives f the University

5 Statement f Principles The University f Melburne s RRR Framewrk fr prfessinal staff is underpinned by the fllwing principles which will guide decisin-making relating t reward and recgnitin practices in a university cntext. These principles are t: 1 Attract, mtivate, reward and retain high perfrming staff 2 Ensure that the University s remuneratin structure remains cmpetitive in rder t recruit, retain and mtivate quality staff 3 Prmte a clse link between perfrmance and remuneratin 4 Reward significant utstanding perfrmance that advances the University s gals and values and are tied t specific accmplishment 5 Prvide timely recgnitin fr individual and team achievement 6 Prvide rewards that are valued and meaningful t staff 7 Be fairly and cnsistently develped and applied 8 Be financially sustainable t the wrk unit 9 Be simple t understand and perate 10 Be clearly cmmunicated t staff - 5 -

6 Reward and Recgnitin f Prfessinal Staff: A Framewrk Principle 1 Attract, mtivate, reward and retain high perfrming staff The University recgnises that high perfrming staff are fundamental t achieving rganisatinal gals (as expressed in Grwing Esteem) and making Melburne a Great Place t Wrk. There is a challenge fr all rganisatins t attract and retain quality staff in such a cmpetitive and labur-shrt market. The University f Melburne aims t distinguish itself within the higher educatin sectr with emplyment practices that recgnise high perfrming prfessinal staff with mdern, innvative and meaningful reward and recgnitin practices. Principle 2 Ensure that the University s remuneratin structure remains cmpetitive in rder t recruit, retain and mtivate quality staff Higher Educatin institutins in Australia are recgnising the difficulty t cmpete with external salaries and cnditins t attract and retain quality staff. Universities must find a balance between ffering flexibility in mnetary reward plicies whilst prtecting the integrity f classificatin structures. The University f Melburne has a cnsistent apprach t establishing the value f psitins, via a jb classificatin system and assciated salary grades. Building n this, the University has a number f supplementary mnetary incentive strategies which may be used t cver demands in attracting, rewarding and retaining staff. Mnetary rewards may encmpass the fllwing: Incremental advancement Linked Advancement Accelerated Increment Prfessinal Recgnitin Ladings Perfrmance Bnus Scheme Nte that each scheme will have its wn eligibility requirements, which shuld be cnsidered in determining the mst apprpriate apprach

7 Principle 3 Prmte a clse link between perfrmance and remuneratin Effective reward systems prvide a link between perfrmance and remuneratin strategies, and prvide a means fr the University t reward high perfrming staff. The University links remuneratin and perfrmance at bth the rganisatinal and individual level. At an rganisatinal level, the University may determine thrugh plicy and/r enterprise agreements t prvide rganisatinal wide remuneratin increases n the achievement f certain targets. At an individual level, remuneratin increases and rewards are directly linked t individual utcmes evidenced in the perfrmance management prcess. University plicies relating t mnetary rewards will place significant emphasis n linking such a reward t utcmes evidenced in the Perfrmance Develpment Framewrk (PDF). Principle 4 Reward significant utstanding perfrmance that advances the University s gals and values and are tied t specific accmplishment A deliberate and systematically designed Reward, Recgnitin and Retentin Framewrk is an imprtant tl t supprt and reinfrce the link between the University s visin, values and bjectives (as expressed in Grwing Esteem and Divisinal plans) n ne hand and staff member perfrmance n the ther. The University aims t encurage and reward utstanding perfrmance and cntributin t rganisatinal success. Reward and recgnitin strategies will supprt and reinfrce the University s gals, values and visin. The University s Perfrmance Develpment Framewrk (PDF) ffers pprtunities fr staff t achieve persnal and prfessinal gals, which are aligned with the strategic and peratinal bjectives f the University. Perfrmance bjectives shuld be measurable, aligned within the Department/Divisin plans and the staff member s career develpment plans. Staff shuld have an understanding f hw their rle cntributes t the verall achievement f rganisatinal gals. Reward strategies shuld reinfrce the University s staff values. Staff values utline the qualities that members f the University cmmunity admire and cntinually strive t exhibit individually and cllectively as an rganisatin. Expressin f these values shuld be - 7 -

8 celebrated and rewarded in a wrk unit. The Making Melburne a Great Place t Wrk Strategic Framewrk details cre staff values fr the University f Melburne, apprved by Cuncil in May The values are: A cmmitment t quality and innvatin where creativity and excellence in all areas f endeavr are recgnised and rewarded. High standards f ethics and integrity where all staff are pen, fair, hnest and cnsistent in their dealings with each ther and the brader University cmmunity The prvisin f safe and supprtive wrk envirnments where individuals are encuraged and empwered t realise their full ptential in an envirnment free frm physical and emtinal harm The enhancement and sharing f rganisatinal knwledge where individuals willingly prmte cllabratin and cnsultatin acrss the university Tlerance and diversity where individual differences are respected and valued A shared sense f scial purpse where all staff appreciate the intrinsic value f educatin and research. At an rganisatinal level, recgnitin awards will be directly linked t rganisatinal gals and values. Principle 5 Prvide timely recgnitin fr individual and team achievement Recgnitin in the frm f psitive feedback and celebratin f achievement shuld be a matter f daily management and gd business practice. The timing f reward and recgnitin is very imprtant, and shuld ccur as clse t the actual activity as pssible. The University encurages reward and recgnitin f bth individual and team accmplishments. A variety f ptins are available fr lcally recgnising utstanding perfrmance and achievements f teams and individuals. These ptins shuld frm part f every day activities and include managers taking initiatives such as: Certificates and/r letters f appreciatin, Publicly recgnising the psitive impact r achievement, Implementatin f a staff idea/prpsal, Rewards in the frm f wrk related gifts. These ptins allw fr mre immediate recgnitin than ther awards

9 Principle 6 Prvide rewards that are valued and meaningful t staff The success f a RRR Framewrk at the University f Melburne depends n recgnising and addressing bth internal and external demands, celebrating and marketing benefits available t staff, and ensuring that reward and recgnitin strategies cntinually evlve and have relevance and meaning t prfessinal staff. T achieve this: Reward and recgnitin strategies shuld take int cnsideratin the diverse nature f the wrkplace. Differences such as age, race, cultural backgrund, religin, time fractin and general interests shuld be taken int accunt when cnsidering reward and recgnitin prgrams. There is n ne-size-fits-all apprach t reward and recgnitin. Managers that are aware f diversity (e.g. generatinal diversity) and hw this applies t the wrkplace will be equipped with the right infrmatin n hw t mtivate and retain staff. Human Resurces will play a key rle in prmting clarity n the range f rewards available, and the impact f diversity issues in relatin t reward and recgnitin. Managers will play a key rle in recgnising and prmting clarity at the lcal level. Reward and recgnitin strategies shuld be regularly reviewed and updated. Maintaining reward strategies ver time will require: 1. Evaluatin prcesses t measure the effectiveness f strategies and its acceptance by staff and ensure practices are cnsistent with the Framewrk principles; 2. Cntinued investigatin and awareness f trends and standards relating t reward and recgnitin, and hw these may apply in the university cntext. Emplyee engagement will be a pririty fr the University f Melburne. Staff feedback is critical t ensure the cntinued value f RRR initiatives. Emplyee engagement measures emplyee attitude twards their rganisatin and its values; their mtivatin and passin t cntribute, what aspects f wrk are mst imprtant t staff, their cmmitment t their rganisatin and hw lng they stay because f that cmmitment. Emplyee engagement results will infrm University and human resurce strategy develpment; instil a culture f cntinuus feedback and imprvement; and reinfrce the University s cmmitment t Making Melburne a Great Place t Wrk

10 Principle 7 Be fairly and cnsistently develped and applied The University aims t ensure equity, transparency and fairness in all aspects f reward and recgnitin plicy, in accrdance with the principles underpinning the University s equal pprtunity plicy. Reward and recgnitin strategies, when delivered apprpriately and cnsistently, imprve bth perfrmance and mrale at all levels. Managers will: take int cnsideratin the impact f recgnitin strategies acrss wrk units, fr example, the impacts n staff mtivatin and the effect n team based wrk; ensure reward strategies d nt disadvantage r unfairly discriminate, but rather reward staff fairly and cnsistently; and ensure the nature f the reward is cmmensurate with the achievement. Plicies and decisin making prcesses in relatin t rewards shuld be transparent, cnducted in gd faith and with apprpriate levels f cnfidentiality. Linkages t the PDF (in particular reference t mnetary rewards) and t specific utcmes and achievements will ensure transparency in decisin making. Principle 8 Be financially sustainable t the wrk unit A pwerful reward strategy places significant emphasis n a brad range f strategies, bth mnetary and nn-mnetary. Any decisin pertaining t mnetary reward strategies shuld take int cnsideratin budgetary and ther business cnstraints. University statutes prevent the use f university funds fr purchases that are extravagant r persnal: Extravagant purchases are defined as, spending much mre than is necessary r wise; wasteful. Judgment is required with each purchase t avid extravagance. Persnal purchases are purchases incurred directly by the individual. T ensure the University cmplies with regulatins, purchases must nt be made by the individual, ther than when prir apprval has been made by an apprpriate delegatin. Managers shuld exercise cautin in prviding certain fringe benefits t staff as there are ptential taxatin implicatins fr the University and individual staff members

11 Principle 9 Be simple t understand and perate As much as pssible, reward and recgnitin prcesses will be managed at the lcal level. Reward and Recgnitin Prgrams cver tw areas: Frmal rewards - pre-determined reward and recgnitin structures detailed in the University f Melburne Enterprise Agreements and Human Resurce Plicy Infrmal rewards - spntaneus, sincere and persnal appreciatin f the effrts f individuals and/r teams Frmal reward prgrams will have specific eligibility and apprval prcesses as detailed in the relevant plicy. Infrmal reward prgrams will as much as pssible prvide simple, lcal management and prvide recgnitin at any time fr cntributins t the gals and bjectives f the rganisatin r wrk unit and/r t acknwledge individual r team accmplishments. Principle 10 Be clearly cmmunicated t staff The University aims t ensure staff are aware f the brad range f RRR strategies available that can be utilised by managers t reward, recgnise and retain high perfrming staff. This will be achieved via: A dedicated website: A dedicated Reward and Recgnitin Website is available at (link). The website will cntain guidelines fr managers regarding rewarding and recgnising staff. Training and develpment initiatives: University leadership and rganisatinal develpment prgrams will incrprate reward and recgnitin principles. Public recgnitin events: Organisatinal-wide reward strategies (such as Awards fr Outstanding Service) will be advertised n an annual basis and recipients publicly acknwledged at a frmal recgnitin frum. At the lcal level, managers will: be respnsible fr develping a culture f cntinuus and sincere reward and recgnitin f staff achievements; reward staff fairly and cnsistently; play a key rle in recgnising and prmting diversity f staff and its impact n reward and recgnitin at the lcal level