Compensation/Salary Administration
EXECUTIVE DIRECTOR POLICY & PROCEDURE MANUAL
SECTION: 6
Compensation/Salary Administration
Table of Contents
POLICY:
The Board directs the University to establish a set of procedures for administering salaries paid to Executive Directors to:
* attract and retain competent and well qualified employees;
* recognize and stimulate a high level of performance;
* pay salaries that compare appropriately with those being paid by the Western Canadian market for comparable positions;
* maintain internal equity through the job evaluation system once market competitiveness is established.
PROCEDURE:
EXTERNAL AND INTERNAL EQUITY
External Equity:
The effectiveness of an organization's pay system can be measured by the extent to which pay rates are competitive with others in the labour market. The University's compensation/salary administration policy requires rates that are responsive to competitive market considerations in order to attract and retain competent and well- qualified employees. Because salaries are only one aspect of how employees are compensated, consideration must also be given to factors contributing to other job characteristics such as employee benefits, job security, physical work environment, opportunity for advancement, and local living costs.
Total compensation data from comparable public and private organizations in the Western Canadian market is collected periodically for Executive Director positions. Where appropriate comparators are not available in the Western Canada market, compensation data will be collected from a more appropriate market, e.g., other universities. The information is used to calculate current market rates for each position and to establish appropriate ranges for Executive Director positions weighing all of the factors contributing to total compensation.
Internal Equity:
Internal equity for Executive Director positions is maintained through job evaluation. A major objective of job evaluation is to develop internal standards of comparison and to measure relative job values within the University. Position descriptions and job information provided by the incumbent provide the necessary job data to make these assessments. Position descriptions and internal measures of job value are both critical tools necessary to examine the relative value of positions within the appropriate external market for the purpose of assigning competitive and equitable salary ranges.
Job Evaluation:
The University job evaluation system is a method of job evaluation with defined factors and degree levels to establish relative job value for all Executive Director jobs. Examples of factors used are know-how, problem solving, accountability, and working conditions. Job descriptions are compared to the definitions of degree levels in order to determine the most appropriate level. The corresponding points for that level are then assigned to the job and are combined for all factors to derive a total score. Total scores for jobs are compared with other appropriate Executive Director jobs in the organization to ensure that internal equity is maintained.
Salary Adjustments Resulting from Job Evaluation:
(Revised June, 1999)
Unless there are extenuating circumstances, the effective date of any salary adjustments necessary as a result of a job evaluation will be the date the questionnaire was submitted to Human Resources in complete form. Where an Executive Director employee's salary is below the minimum of the new range, their salary will be adjusted to the new minimum. Where an Executive Director employee's salary is above the new range maximum, any salary increases will be frozen until the Executive Director employee's salary is within the range. Where ranges are reduced as a result of job evaluation, the incumbent's salary will not be reduced.
SALARY ADMINISTRATION
Salary Ranges:
(Revised
May 25, 2008)
With the suspension of salary ranges, there are no salary maximums
in place for Executive Directors. Assessments of salary ranges
shall be conducted by Human Resources for possible adjustment by considering
market values for comparable positions and inflationary indices. Where
a range has been approved by the President and the Board for an upward
adjustment the salary of each Director will be adjusted by the amount
of the range adjustment. The effective date of any range adjustment
is July 1 annually. The range spread (percentage difference between
range minimum and range maximum) is 50%. Assessments
of salary ranges shall be conductred by Human Resources for possible
adjustment by considering market values for comparable positions and
inflationary indices. All salary ranges and subsequent adjustments
are to be approved by the Board Compensation Committee. Where a range
has been approved for an upward adjustment the salary of each Executive
Director, subject to the approval of the Board Compensation Committee,
will be adjusted by the amount of the range adjsutment. The effective
date of any range adjustment is July 1 annually. The range spread
(the difference between the range minimum and the range maximum) is
50%. The University's economic
ability to pay is a factor when considering annual salary adjustments.
Salary adjustments may be denied in periods of financial constraint.
Promotional Increases:
Promotional increases are the result of additional responsibilities assigned on a permanent basis that move the employee into a position at a higher salary classification. The promotional increase will be at a rate commensurate with the employee's qualifications and experience in relation to the new job considering the criteria that follow:
- a promotional salary adjustment shall be significant enough to recognize the assumption of broader responsibilities.
- any promotional salary adjustment must take into account the current equity of salaries for employees at the same level in the organization.
- the normal maximum promotional increase shall be the total of the previous year's increments resulting from range adjustments and merit (assuming that this brings the promoted employee to the range minimum).
Although it is the responsibility of the President/Vice-President to determine the merits for promotion of Executive Directors, approval for a promotion must be obtained from the Board through the President. The effective date of the promotional increase will coincide with the date the employee assumes their new responsibilities.
Payroll:
All Executive Directors are paid on a monthly basis, in arrears, via direct deposit to the financial institution of their choice. Payday is the last working day of each month. Payroll will issue a Payroll Voucher providing a statement of earnings, deductions, and benefits for each pay period.
Career Progress Increases:
(Revised May 25, 2008)
Salary increases may be awarded to Executive Directors who, based on their annual performance results, meet or exceed goals or expectations of their position. In the process of meeting the expectations necessary to warrant progress through the salary range, each Executive Director employee is expected to grow in their capacity to perform their duties, to demonstrate initiative and institution-wide leadership in their functional area of responsibility. Individual increases are assigned at the Board's discretion based on performance results and recommendations of the President/Vice-President. The effective date for annual career progress increases is July 1. A career progress increase may not increase a Director's salary beyond the range maximum applying to his/her position.
POSITION DESCRIPTIONS
A position description is a summary of the most important functions of a job (duties and responsibilities), including the general nature and level of work performed. It includes job specifications that are skills and abilities required for competent performance of the job. The position description should describe and focus on the job itself and not on any specific individual who might fill the job.
Position descriptions are used for a number of purposes including: job evaluation, establishing performance standards, succession planning, recruitment, organizational design, and salary surveys.
Position Description Format:
(The Position Description Questionnaire may be used instead of a Position Description)
Job Title - titles should identify the department or functional area and describe the nature and the level of work performed.
Job Purpose - a general summary of the nature, level and purpose of the job.
Position Responsibilities and Accountabilities - describe the key areas of responsibility in priority order and the outputs or products expected for each area of responsibility.
Job Specifications - identify the knowledge, skills, education and abilities necessary to competently perform the job.
Additional Duties - a general statement to point out that position descriptions typically do not include every responsibility that a job incumbent may be asked to perform.
Dates and Approvals - indicate the date the position description was approved, the approval of the position's Executive Director. The incumbent must also sign the position description indicating their understanding of the contents. Send approved position descriptions to Human Resources for filing.
Accountability for Preparation:
(Revised June, 1999)
Position descriptions should be prepared by the incumbent together
with the President/Vice-President supervising the position. The incumbent
must be involved in the preparation before the final approval. The
incumbent and their supervisor are responsible for ensuring that position
descriptions are kept up-to-date and reviewed on a periodic basis.
For new positions, position descriptions must be prepared prior
to completing the "Request for Appointment Form". Human Resources
will monitor the timely completion of position descriptions.
Executive Director Policy and Procedures Manual Table of Contents