Management and Confidential Excluded (MAC) Group Salary Administration Policy
- Related Documents: MAC and Non-Union Premium Pay Schedule
- Owner: Human Resources
- Approver: Vice-President, Administration and Operations
- Approval Dates: January 2007, October 2012
Introduction
The Salary Administration policy outlines the principles, rules and guidelines used to assign appropriate salary levels and premium pay entitlements for employees in the Management and Confidential group of Toronto Metropolitan University (the "University").
Purpose
The purpose of this policy is to maintain consistent treatment of salaries within the Management and Confidential group, and address issues related to internal and external equity.
This policy provides a framework for managers to make salary decisions and to exercise discretion in determining what increases should be awarded to employees.
Policy
1. Salary Structure:
MAC grades have an established salary structure. Positions are assigned to grades through the job evaluation process, using the Decision Band Method (DBM). Employees are paid within the salary range for the grade to which their positions are assigned.
2. Salary Structure and Across the Board Adjustments:
Changes to number, size and components of the salary ranges are considered adjustments to the salary structure and will be made, as required, based upon internal and external factors. Adjustments are determined after taking into consideration the rise in the cost of living, adjustments received by other constituent groups, government grants and the University's financial circumstances, and market data .The University regularly participates in salary surveys to obtain market salary data and to assess the University's competitiveness with the external market. When an adjustment to the structure is approved, the new salary structure normally comes into effect on July 1st of a year.
Approval process: Human Resources provides comprehensive compensation analysis and makes appropriate recommendations to the Executive Group regarding adjustments to the salary structure, at least every three years.
The Executive Group will determine annually whether there will be across the board adjustments and/or changes to the salary ranges, and the percentage amount of adjustments, if any.
3. Starting Salaries for New Hires:
The starting salary of new MAC employees is determined based on the salary range for the grade their position is assigned to, the employee’s skills, competencies, qualifications and relevant experience, and labour market conditions. The starting salary of all such appointments can only be confirmed with the new appointee by Human Resources.
In order to maintain internal equity and to ensure consistency within the salary administration system for the MAC group, the recommended hiring range for all positions is up to 90% of the job rate of the relevant salary band. This provides a 10% gap available for salary progression while the new employee gains the necessary on the job experience to perform at the satisfactory level, after entering the position with all necessary qualifications.
The hiring manager should consult with Human Resources concerning the appropriate hiring rate related to qualifications of the successful candidate, and for any requests to place the new employee beyond 90% of the job rate in the appropriate salary band. In some cases, the market conditions surrounding recruitment will also influence the amount of the starting salary. The approval of the Assistant Vice President, Human Resources is required prior to any salary offer above the job rate.
New hires are eligible for a pro-rated merit increase on the first July 1 merit date after they have completed probation.
Please refer to the underfill policy for determining starting salaries for potential high quality candidates who do not have the minimum qualifications to fill the position they are considered for.
4. Underfill:
From time to time, recruiting conditions, particularly for positions with specialized skills, may be such that a person with minimum qualifications cannot be found. In such cases an under-qualified person with high potential may be hired.
When an underfill situation exists, a detailed development plan, including specified timelines and deliverables must be drafted, discussed and signed by both the supervising manager and the employee. Upon successful completion of the development plan, the employees’ salary is adjusted to the appropriate salary band for their position. Underfill employees do not perform the full range and complexity of duties and responsibilities required by a position.
Should an underfill situation arise, all aspects of the proposed arrangement, including the level of the underfill, the projected time period, development plan, and the appropriate starting salary should be discussed with the assigned Human Resources Management Consultant prior to formally offering a position under these conditions to the prospective incumbent.
For employees in an underfill assignment, the appropriate starting salary is established in a salary range within the grade level representing the value of the underfill assignment, typically one or more grades below that of the grade assigned to the position. The employee’s salary is administered in the underfill salary range for a specified period of time during which the employee gains, through education or on-the-job training, the minimum qualifications and experience.
5. Merit Increases:
Merit increases are designed to compensate employees for performance. For this reason, they do not provide an automatic movement through the salary range. Rather, this salary administration policy reflects a pay-for-performance component. Pay-for-performance gives managers an opportunity to reward performance appropriately.
A merit adjustment is available to MAC employees whose positions have been evaluated under Decision Band Method of job evaluation used for MAC positions, have completed their probationary period, and who have received a current performance evaluation specifying the level of merit adjustment, if any, to be awarded tied to performance. Merit adjustments are awarded to eligible employee, if applicable, on the common date of July 1.
When an employee’s salary is at or above the salary scale maximum in the appropriate grade for their position, their salary is maintained or “frozen”, and the employee receives any adjustments including merit awards as lump sum or one time only payments until such times as the salary scale is adjusted to a point where the employee’s salary falls below the maximum of the range.
If an increase to base would move the base salary beyond the maximum of the range, the base salary is adjusted to the maximum and any increases beyond that would be paid out as a one-time-only payment.
6. Promotions:
An employee who is promoted to another position in a higher grade is eligible to receive a promotional increase.
The amount of the increase in salary should take into consideration the same factors that are used to determine starting salary for a new employee, such as the employee’s skills, competencies, qualifications and relevant experience, and labour market conditions. The amount of increase should also ensure that internal employees are not disadvantaged compared to external candidates, when successful in attaining a new position at the University.
Managers should consult with Human Resources about the appropriate amount for a promotional salary increase. A promotional increase will, at least, place an employee at the minimum of the new salary grade. In exceptional circumstances, with prior approval of the Assistant Vice President, Human Resources, the employee could receive an increase to place their new salary above the job rate.
7. Employee Transfer from Another Group:
In order to apply the appropriate salary rate when an employee transfers from another group to a position in the MAC group the current salary must be reviewed against the salary range of the new position.
If the salary is below the job rate of the new MAC position, the move is considered a promotion, and related salary rules would apply.
If the salary is at or above the job rate of the new MAC position, the move is considered a lateral transfer, and related salary rules would apply.
Employees transferred from another employee group are eligible for merit increase on the next July 1st cycle following their transfer, prorated to the months worked in the MAC group, provided they have passed their probation, are in a graded position, and received a performance review, indicating the level of performance and percentage of merit increase.
8. Reclassification to a Higher Grade:
An employee whose current MAC position is reclassified to a higher grade will normally receive an increase to place their new salary between the minimum and the job rate of the new position grade.
If the employee enters the new grade with a salary at or above the job rate, no salary increase is necessary; however consideration may be given to providing an employee with an increase. If a reclassification increase places the new salary above the job rate, the approval of the Assistant Vice President, Human Resources is required.
Managers should consult with Human Resources about the appropriate amount for a promotional salary increase.
9. Reclassification to a Lower Grade:
An employee's whose current MAC position is evaluated at a lower grade level as a result of organizational requirements (e.g. reorganization of department/unit, reassignment of duties, etc.), will retain his/her existing salary for a period of twelve (12) months only, from the effective date of the change. Thereafter his/her salary will be adjusted appropriately at the lower grade level. If at the time of the grade change the employee's salary is higher than the maximum of the lower graded position, his/her salary will be adjusted to the maximum of the lower graded position after the twelve (12) months following the effective the date of the move to the new position.
10. Demotion:
An employee’s move to a lower graded position could be the result of voluntary transfer to a lower graded position, or involuntary transfer to a lower graded position due to inability to meet requirements of the position or in order to address performance issues. For salary administration purposes the same rules apply in both situations.
If the salary is not above the maximum of the lower level position, the employee will retain his/her current salary in the lower graded position. All future increments are subject to the maximum of the salary grade.
If at the time of the grade change the employee's salary is higher than the maximum of the lower graded position, his/her salary will be adjusted to the maximum of the lower graded position effective the date of the move to the new position.
11. Lateral Transfer:
Transfers within the same salary grade benefit both the employee and the University. Lateral transfers aid the University in cross training and enhancing the employability of staff. The University encourages such moves and supports learning and development opportunities for staff.
A lateral transfer occurs when an employee successfully applies for a MAC position with the same grade as their own, or transfers from another employee group, with a salary at or above the job rate of their new MAC position.
As a result of a lateral transfer, an employee’s salary will normally remain the same. In some circumstances, managers can recommend an increase in salary taking into consideration the same factors that are used to determine starting salary for a new employee, such as the employee’s skills, competencies, qualifications and relevant experience, and labour market conditions. If the salary increase places the new salary above the job rate, the approval of the Assistant Vice President, Human Resources is required.
Managers should consult with Human Resources about the appropriate salary treatment related to a lateral transfer.
The transfer of a position to another unit or department does not constitute a lateral transfer and requires no change in salary for the employee in the position.
12. Acting Assignments:
When an employee is assigned additional duties and responsibilities, on a temporary basis, that clearly exceed the employee’s grade level, and constitute a significant portion of the employee’s job, i.e. does not fall within additional duties and responsibilities that employees perform from time to time within their job, the additional work may represent an acting assignment.
If changed duties and responsibilities are significant enough to warrant designation as an acting assignment, the employee continues to be paid his/her current rate for the first 20 working days of such an assignment. Should the assignment exceed 20 working days, the staff member is paid a suitable rate within the grade appropriate to the additional duties and responsibilities, and is retroactively compensated at such rate up to and including the first day of the assignment.
Acting assignments should not exceed one year. If it appears as though the duties and responsibilities are performed by the employee will be required on an ongoing basis, a new position should be created or the employee’s position should be reevaluated. The approval of the Assistant Vice President, Human Resources is required to extend an acting assignment beyond one year.
Compensation for acting assignments is paid in the form of an acting allowance on top of the employee’s base salary. Managers are required to define the duties and responsibilities, and terms and conditions of the temporary assignment in writing either prior to the assignment or within the first 30 days of the assignment.
Human Resources will determine the grade to which the temporary duties and responsibilities are valued at. The employee shall continue to be entitled to receive merit adjustments based on recommendations contained in performance reviews, as well as ATB adjustments during an acting assignment. In such circumstances, the base salary of the home position will be adjusted and the acting allowance will be recalculated.
Acting assignments are not meant to provide compensation for work at the same grade level. If additional work is assigned at the same grade level and results in overtime, refer to the Premium Pay policy. In some situation, a Special Salary Adjustment may also be considered.
13. Temporary Assignments:
When a MAC employee is assigned to another MAC position, on a temporary basis, salary administration rules for promotions, lateral transfers or demotions will apply, as applicable. Once the appropriate salary administration rule has been applied, a new, temporary base salary is established for the employee. During the period an employee is in a temporary assignment, merit adjustments may be applied to the temporary position. The employee shall be entitled to receive ATB adjustments applicable to the temporary position.
When an employee in a temporary assignment returns to her/his former position, the employee’s salary may be recalculated. ATB adjustments that were effective during the period the employee was in the temporary assignment will be applied to the base salary that the employee had received prior to the temporary assignment effective upon the date of return.
Merit adjustments, for which the employee would have been eligible, may be applied. If the employee received a merit increase in the temporary position, the amount of that increase will be applied to the base salary of the home position upon return to the home position. If no merit increase was applied in the temporary position, the amount of the merit adjustment to the base salary of the home position will be based on the joint recommendation of the manager of the home position and the manager of the temporary position, considering performance in both positions. No retroactive payments will be made for ATB or merit applicable to the home position upon return.
14. Special Salary Adjustments:
In exceptional cases, this policy provides some flexibility for managers to address internal salary anomalies and issues of inequity in terms of placement in the salary range. There may also be circumstances where the differential between supervisors and subordinates or between employees with longer and lesser service, results in inequities.
Managers may request a special salary increase for an employee by documenting the rationale for the increase based on factors such as past practices, the skills and experience of the employee, the skills and experience of other relevant employees (co-workers, subordinates, etc.). Managers should consult with Human Resources about the appropriate salary treatment related to special adjustments. This consultation process will ensure that the internal and external market issues have been reviewed and an appropriate recommendation has been made.
Managers may submit requests to the Assistant Vice President, Human Resources for salary increases if a review of the circumstances and issues surrounding the situation indicates that such consideration is warranted.
15. Premium Pay Entitlements:
Employees may be entitled to additional pay based on the hours worked, including additional pay for overtime, shift assignment, on call responsibilities and for work during statutory holidays or the midyear break, as outlined in the MAC and Non-Union Premium Pay Schedule.
Overtime is paid for hours of work approved and assigned in a week in excess of regular work hours; i.e. in excess of 36.25 hours per week. Overtime may be compensated as additional pay or as compensating time off (CTO). CTO hours may be accumulated to a maximum of seventy-two and a half (72.5) hours.
Shift Premium is paid where more than fifty percent (50%) of the hours worked on any regular shift fall between the period of 4pm – 12am and 12 am – 8am, the appropriate shift premium shall be paid for those hours.
On-call Pay is paid when an employee is assigned to be "on-call". For each occasion the employee is assigned to "on-call", if the employee is called, additional premium pay is provided.
Holiday Pay is paid when an employee is authorized and assigned to work during statutory holidays as per Employment Standards Act (external link) , or during the officially designated mid-year break.
Cost
The cost of across the board (ATB) and other structural adjustments, as well as annual merit costs, are normally covered by a central funding source available for such adjustments. Any other salary administration costs, such as promotions, reclassifications, special adjustments and premium pay are the responsibility of the applicable department(s). For more details, please refer to Financial Services policies.
Roles and Responsibilities
Assistant Vice President, Human Resources: The approval of the Assistant Vice President, Human Resources is required prior to processing all salary movements that represent anomalies or exceptions to the current policy.
Human Resources: Human Resources develops, maintains, interprets, administers and coordinates the implementation of the salary administration policies.
Deans and Senior Directors: Senior directors and deans are responsible for making decisions in situations where their discretion is available under this policy. They also may make recommendations to the Assistant Vice President, Human Resources in relevant circumstances.
Leaders/Supervisors: Leaders/Supervisors are responsible for understanding and communicating the provisions of this policy to MAC staff who report to them. Where there is discretion available in the application of this policy, managers are responsible for assessing the particular circumstances of a case and recommending or determining appropriate action. Managers are also responsible for taking an active role in the performance planning and evaluation process.
MAC Employees: MAC employees are responsible for understanding the provisions of this policy. They are also responsible for performing to the best of their best abilities in the positions they occupy, and are expected to participate in the performance evaluation process.
Scope and Application
This policy outlines the establishment and maintenance of the salary structure, as well as the treatment of employee salaries including starting salaries for new hires, merit increases, across the board increases (ATB), promotions, employee(s) transfer from another group, re-classifications, demotions, lateral transfers, acting assignments and special salary adjustments.
This policy applies to Management and Confidential (MAC) employees, including full time career employees (FTCE) and term employees with contracts greater than 4 months, who are in positions with an assigned DBM grade level of A11 to D72.
Definitions
Across the Board Adjustment (ATB): Adjustments to employee salaries are normally provided on July 1st of each year when available, to maintain the value of salaries against cost of living increases. ATB adjustments are implemented as approved by the Executive Group, usually expressed as a percentage of base salary.
Acting Assignment: When a staff member is assigned additional duties for a temporary period of time, these assignments are referred to as acting assignments for the purposes of salary administration.
Base Salary: Base salaries are paid to eligible employees according to the effective salary ranges. The annual base salary is established on working a full year at the full time weekly hours, 36.25 hours per week. An employee’s actual salary may differ from the base salary. For example, any work based on reduced hours will result in a reduced pro-rated actual annual salary. Acting assignments may also result in an actual salary that is different from the base salary.
Classification: Classification refers to the evaluation of a position and assignment of a grade level based on the job evaluation system.
DBM Job Evaluation Plan: The Decision Band Method (DBM) of job evaluation was adopted and implemented by the University and is used to evaluate all positions in the MAC group. The DBM Job Evaluation Plan is based on the premise that the value of a job to an organization is based on its level of responsibility and accountability. Responsibility is reflected in, and therefore measured by, the decision making requirements of the job. For more specific information on the DBM policy please see the Job Evaluation Resources Section on the University HR page. The DBM evaluation plan is administered by Human Resources.
Demotion: The assignment of an employee to a position that is graded in a lower DBM level.
Grade: An alpha-numeric grade level that is assigned to each position based on the DBM evaluation of the job. Each Grade corresponds to a specific salary range within the salary structure.
Lateral Transfer: A lateral transfer occurs when an employee moves from one position to another within the same grade level.
MAC: Employees in the Management and Confidential group of the University. For the purposes of this policy, only employees who are in positions with an assigned DBM grade level of grades A11 to D72 are included.
Managers: In this policy, manager refers to those who supervise MAC employees, including supervisors, directors, deans, vice presidents, vice provosts, etc.
Merit Pay: An adjustment to an individual's pay based on individual performance measures, or a lump sum payment for employees at the maximum base salary rate. In a merit based salary administration system, progression is not automatic.
Overtime: All hours previously approved and assigned in a week in excess of regular work hours; regular work hours are defined as 36.25 hours per week for MAC employees.
Promotion: The assignment of an employee to another position that is graded in a higher DBM level.
Performance Planning and Evaluation Process: The assessment of employees’ work performance, based on established objectives.
Premium Pay: Pay entitlement for an employee based on the hours worked, including additional pay for overtime, shift assignment, on call responsibilities and for work during statutory holidays or the midyear break.
Reclassification: A reclassification occurs when an employee’s position changes as a result of organizational requirements (e.g. reorganization of department/unit, reassignment of duties, etc.), and a reevaluation of the position results in a change in grade level.
Salary Range: The range of salary rates, from minimum to maximum that are established for a DBM grade. Each grade level in the DBM job evaluation system has a salary range that consists of three points, as follows:
1. Minimum: defined as the lower cap of the salary range, meant to be used for placement of new employees to a position, who have only met the minimum qualifications. Employee’s base salary must be at or above the minimum of the salary range for their position.
2. Job rate: defined as the rate the organization is prepared to pay an employee who is fully functioning in the job. The job rate of a salary range is the primary reference point used by the University in the maintenance of a competitive salary structure. The job rate should be competitive with the job rates of salary ranges paid for similar positions in the appropriate labour market.
3. Maximum: defined as the upper cap of the salary range; the highest rate the University will normally pay an employee in the position. No base salary progression is available beyond this point.
Temporary Assignment: When an employee is temporarily assigned to another position, these assignments are referred to as temporary assignments for the purposes of this policy.
Underfill Status: In situations where an under-qualified person with high potential is hired to fill a vacant position, an appropriate starting salary is established in a salary range below that of the grade level assigned to the position.
Jurisdiction
This policy falls under the jurisdiction of the Vice President, Administration and Finance. The interpretation and application of this policy is the responsibility of the Assistant Vice President, Human Resources. The Vice President, Administration and Finance makes final decisions under this policy, where required.