Lay Staff Remuneration PRO-PEO-09

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1 Process Lay Staff Remuneration PRO-PEO-09 Purpose To support the Lay Staff Remuneration Policy to achieve a consistent approach to remuneration for lay staff of the Queensland Synod. Scope This process applies to all positions that are not covered by a Modern Award, not aligned to a Modern Award or ministry agents stipend. This process also applies to a management position that is covered by a Modern Award, where the position is approved as a salaried position and the remuneration grade ensures the employee is better off overall than the Modern Award. Process 1. Methodology The Mercer Evaluation System is the approved process to determine the work value points for all positions covered by POL-PEO-09 within the Queensland Synod to enable the position to be assigned to a grade and the remuneration range attached to each grade. The assigned remuneration values to each of the 9 levels for the remuneration table will be adjusted annually by Mercer after the completion of its general market salary review. In each remuneration range, the midpoint is considered the most appropriate position for the Queensland Synod. As prescribed under the By-Laws, the GNRC will determine a defined annual remuneration increase for lay staff. The approved increase by the GNRC will then be used to determine the increase for each position covered by POL-PEO-09 assuming that the incumbent remains within their position s assigned grade and remuneration range. The GNRC approved increase percentage and the table of annual remuneration data from Mercer will be provided to senior managers each year as part of the salary review process. 2. The Position Review Panel The People & Projects Manager and the Human Resource Manager constitute the Position Review Panel and are responsible for maintaining their currency in knowledge of the Mercer Evaluation System through training. The Position Review Panel must ensure that they have the capacity to evaluate all positions in accordance the Mercer Evaluation System Methodology and seek independent advice where necessary. 3. Requirements for Evaluating a Position A position description for the role must be completed and reviewed by the Human Resources team in consultation with the senior manager prior to an evaluation being conducted. In some cases, additional information may be sought by Human Resources to assist in the evaluation, such as budget responsibility, team structure, or other key performance indicators. After the position description is finalised as agreed by Human Resources in consultation with the senior manager, the position evaluation will be completed by the Position Review Panel in consultation with the senior manager to determine the position s value points and assign the appropriate grade using the table below. PRO-PEO-09_V1.0 1 of

2 Grade Work Value Range Midpoint of Work Value Range The evaluation process may result in additional changes to the position description. Once evaluated, the position description must be approved as per the Delegations of Authority Matrix. In the case of a new position (regardless of whether the position has been budgeted or is outside budget), the evaluation must be included as part of the business case seeking approval for the new position. 4. Remuneration Determination The total aggregate of the work value points from the evaluation process will determine the grade in the remuneration table developed by Mercer. To ensure that the position placement is correct, the evaluation and the grade determination will be checked for relativity against other positions across the Queensland Synod. The specific remuneration to be offered to an employee will be subject to approval in accordance with the Delegations of Authority Matrix. The following guide can assist in determining an appropriate position within the remuneration range for the assigned grade. Minimum Midpoint Maximum For employees who are new to the role or are developing capability. Positioning within this range will be at the discretion of the selection panel and the senior manager responsible for the role. Employees will have demonstrated a satisfactory to level of competence in all key areas of accountability. Positioning an individual at this level is discretional to the senior manager subject to validation through performance appraisal. Employees who are remunerated at this level will have demonstrated and sustained superior competence and contribution to the Synod Office. Positioning an individual above this range will be subject to the approval of the General Secretary. Where a premium is required to be paid to fill a high market demand role, or the knowledge, skills and ability of the applicant or employee justify a remuneration offer which exceeds the maximum remuneration for the grade, approval to proceed must be obtained from the General Secretary in consultation with the Human Resource Manager, who may seek external advice to determine an appropriate remuneration. Approval of the remuneration position will be in accordance with the Delegations of Authority Matrix. PRO-PEO-09_V1.0 2 of

3 5. Adjustment to Remuneration Should the responsibilities of the position increase or change significantly from when the position was previously reviewed, which should be at least one year ago, the incumbent in the position or the senior manager may request a review by the Position Review Panel of the position. Changes in the position will be assessed using the Mercer Evaluation System using the following aspects of the position to determine whether a re-classification is justified: Impact Expertise Judgement Accountability If an adjustment is required after determining a change in the grade for the position, approval of a change in remuneration and salary grade will be in accordance with the Delegations of Authority Matrix. Note that remuneration ranges overlap between consecutive grades and a change in grade may not necessarily result in a change in remuneration, but may result in a capacity to consider higher remuneration in the future as part of the annual remuneration review. Once approved, the People and Payroll Manager must be provided the paperwork for processing with notification to the senior manager, the incumbent and payroll. The effective date of an approved change in remuneration will be the first full-pay period after the approval date unless specified otherwise. 6. Annual Remuneration Review for Lay Staff The Governance, Nomination and Remuneration Committee (GNRC) has the delegation under Q1.9.6 (c) to determine matters of lay staff remuneration upon the submission of a briefing paper with recommendations from Human Resources. The submission will include internal factors such as the Synod s budget position relating to staff expenditure and external factors such as the preceding Annual Wage Decision of the Fair Work Commission, movement in the Average Weekly Earnings, the Wage Price Index and the Consumer Price Index for Brisbane for the last published quarter prior to the submission being made to the GNRC for their determination. The recommendation to the GNRC will prescribe a standard increase to lay staff based on capacity to pay and community standards within budget constraints. The standard increase will be described as a percentage and an overall maximum dollar value for a full financial year. The proposed standard increase must be determined and submitted to the GNRC for their last annual meeting for determination and resolution. The recommendation and its resolutions must also include that annual remuneration adjustments will not be automatic. The effective date of any increase will be the first full pay period on or after 1 March the following year. The effective date provides for a period of time to complete the recommendation process prior to the effective date determined for the annual increase cycle. 7. Recommendations Process for Increases The process provides for a discretionary component of plus or minus percentage increase approved by the GNRC, providing that all increases do not exceed the maximum budget allocation for increases approved by the GNRC. Discretion may also apply to the effective date being after the first full pay period on or after 1 March each year. In relation to TOO-PEO-09 Lay Staff Remuneration Schedule, the maximum percentage above the increase approved by the GNRC will be stated. PRO-PEO-09_V1.0 3 of

4 Where a lay staff person s remuneration exceeds the maximum remuneration for a salary grade, approval of the General Secretary is required and the approval must be recorded under Comments If the senior manager is recommending an increase that is not consistent with the GNRC approved percentage or effective date, the justification for the variation must be recorded on TOO-PEO-09 Lay Staff Remuneration Schedule under Comments. Each senior manager will approve the annual remuneration increase for each lay staff member covered by POL-PEO-09 in their team using TOO-PEO-09 Lay Staff Remuneration Schedule, which is provided by Human Resources. Where a senior manager reports to a delegated supervisor, the delegated supervisor will approve the senior manager s increase and endorse all increases to proceed. 8. Factors that warrant an Additional Increase An additional increase may be determined by a senior manager in situations where salary equity requires an adjustment to be made between lay staff members. In such cases, and if performance justifies, an additional increase may be determined by the senior manager within the Mercer remuneration range for the position s grade. An additional increase may also be determined by a senior manager as a performance incentive increase where a lay staff member has consistently achieved above expectations for the preceding 12 months, with documented evidence of the achievement (i.e. a completed TOO-PEO-05 Performance Review and Development Form). The proposed additional increase must also ensure that the position is retained within its prescribed Mercer band for remuneration. Determinants for an increase can include, but are not limited to the following; Consistent achievement of the strategic key performance indicators relevant to the position Demonstrated initiative above the expectations of the position Consistent high level of performance, specifically rating above average in the completion of the defined Key Responsibilities for the position. 9. Factors that warrant a Lower Increase A lower (or no) increase may be determined by a senior manager in situations where the incumbent has recently commenced and/or is under a probation period of employment. A lower increase may also be determined by a senior manager where a lay staff member has consistently achieved less than satisfactory achievement for the preceding 12 months, with documented evidence of the achievement (ie a completed TOO-PEO-05 Performance Review and Development Form). Where a lay staff s remuneration exceeds the maximum remuneration for a salary grade and subject to performance and role positioning, the senior manager must give due consideration to reducing the recommended increase. Realignment may occur over successive years to minimise the impact on the lay staff. 10. Factors that warrant a delay in the Effective Date A delay in the effective to after the first full pay period on or after 1 March may be determined by a senior manager in situation where the incumbent is under a probation period of employment, and the revised effective date aligns with the end of the probation period. A delay in the effective date may also be determined by a senior manager where a lay staff member is subject to a formal discipline process (i.e. written warning) and an outcome of the formal discipline process is a period of review. The revised effective date would align with the end of the period of review. PRO-PEO-09_V1.0 4 of

5 11. Approval Process Each year, the senior manager must determine an increase for their designated staff. Where there are recommendations for increases above/below the GNRC increase or a different effective date, these must include reasons justifying the decision. All salary adjustments will be reviewed by the Human Resource Manager to ensure that the determinations comply with the decision of the GNRC. Prior to implementation, the Human Resource Manager will report on the outcome of the recommendations process to the General Secretary. Where the determinations result in the maximum budget allocation approved by the GNRC being exceeded, the Human Resource Manager will recommend moderation of the determinations to the General Secretary for approval. The decision of the General Secretary will be final. The General Secretary must be satisfied that the decision of the GNRC and PRO-PEO-09 has been complied with prior to releasing the remuneration reviews for processing and implementation in the first full pay period after 1 March of each year. The Human Resource Manager must provide a written report back to the GNRC at its meeting immediately after the first full pay period on or after 1 March of the outcomes of the annual remuneration review for lay staff, a summary of the Lay Staff Remuneration Schedules and a summary of the instances where the General Secretary has approved a lay staff remuneration which exceeds the maximum remuneration for a salary grade since the last written report. 12. Staff Notification Process The Human Resource Manager must ensure that lay staff are advised of their increase and effective date in writing, including whether the increase contains an incentive increase in recognition of high performance. The Human Resources Manager must ensure that lay staff who are receiving an increase less than the standard level approved by the GNRC, or an increase effective later than the date approved by the GNRC are advised formally and in person by their senior manager who must discuss the reason/s for the decision with the lay staff member. The People and Payroll Manager will utilise the approval schedules and other documents to process remuneration adjustments, including notifying payroll, preparation of letters for lay staff and updating personnel files. 13. Grievance Process If a lay staff member feels aggrieved by the outcome of their annual remuneration review, POL-PEO-03 Grievance Management must be followed. Dictionary Term Queensland Synod Senior Manager Delegated Supervisor GNRC Meaning Means the work and activities of the Uniting Church in Australia performed within the bounds of the Queensland Synod Office including the Trinity College Queensland, Raymont Lodge Residential College and the Alexandra Park Conference Centre. Means the person in charge of a workplace which may have a title manager or another role title but has the overall responsibility for employees and volunteers in a workplace or engaged in an activity of the Queensland Synod. Means the role within the Synod Office to which a senior manager directly reports. Means the Governance, Nomination and Remuneration Committee as constituted by the By-Laws of the Queensland Synod. References & Related Documents POL-PEO-09 Lay Staff Remuneration Policy TOO-PEO-09 Lay Staff Remuneration Schedule PRO-PEO-09_V1.0 5 of

6 Privacy Act 1988 (Cth), including Schedule 3 - National Privacy Principles POL-PEO-03 Grievance Management POL-PEO-05 Performance Review and Development Queensland Synod By-Laws GNRC Q to Q of Revisions & Reviews # Date Reason Author / Reviewer Approved New process to support new approved GNRC Policy I Waters (People & Projects) and Human Resource Manager DUE Review cycle every 2 years By Human Resource Manager and People and Projects Manager GNRC 24/2/16 Res PRO-PEO-09_V1.0 6 of