Performance Planning, Feedback and Merit Allocation
TMG Open Meeting
May 1, 2008
Pay for Performance Philosophy
Performance is variable and can be measured Emphasis on rewarding sustained high
performance Distinguish between varying levels of
performance with appropriate merit recommendations
Performance Planning & Appraisal Merit Allocation
Two Elements
Performance Planning
Performance Planning provides an opportunity for discussion between supervisors and TMG staff: to articulate unit/department goals to clarify expectations to discuss training/development priorities to set individual performance goals
The Cycle of Performance Planning and Appraisal
Assessing Performanc
e
Performance Planning
Coaching: Feedback &
Development
Positive work climate
• Engaged employees• Recognition
• Professional Development
Performance AppraisalConsider: The key responsibilities in the employees’ most
recent job description The goals/objectives set the previous year The employee’s Personal Development Plan
priorities and/or Assessment of Management Core Competencies results
The employee’s file and relevant records/ notes/training information
Total Performance ResultsPurpose: To summarize achievement of set objectives To identify progress toward training and
development targets To support individual merit recommendations
Prepare and Return to HRS:For 2007: Objective Setting – Results Total Performance Results Summary
or Performance Review for Confidential/Non-
Supervisory Employees (NEW)
For 2008: Objective Setting 2008 - Planning
Objective Setting & Assessment ToolObjective
What will be accomplished? How does it tie into the department/organization
strategy?
Action Plan How will this be accomplished?
Measures What does ‘successful achievement’ look like?
Results What was achieved?
Mandatory All managers must include responsibility for
Health & Safety as a key objective for 2008/09 Complete Due Diligence, WHMIS and fire safety training Provide health & safety, and site-specific orientation for
new hires Complete workplace inspections; participates in
workplace inspections, when required Host health and safety information sessions Commend health and safety performance Document all training Review/comply with Risk Management policies Identify department first aid provider(s)
Professional Development Priorities
Purpose: Identify training and development needs Facilitate discussion of personal developmental
priorities
Tools for Assessing Training Priorities
Process: Incumbent:
Complete Personal Development Plan and identify personal training and development priorities
Supervisor/Incumbent: Complete Core Competencies Assessment, discuss
outcomes, agree on training/development priorities
or 360 degree assessment:
Incumbent, supervisor discuss and agree on a number of ‘evaluators’ who complete the assessment, provide confidential feedback that supervisor summarizes for discussion to identify training/development priorities
Periodic Review Meetings
Purpose: Continuous opportunity for two-way discussion Timely feedback on projects Review progression toward achievement of
goals Identify challenges Modify or add objectives, as needed
Goals of Merit Allocation Recognize different performance levels or
contribution to the work unit Move individual salary toward the appropriate
section of the salary range Help retain professional high performing
employees Progression through the salary range
Guiding Principles Employees with performance that is less than
satisfactory receive little or no merit The exception to the above point is an employee very low
in the salary range whose performance is steadily improving on the learning curve (typically a new employee)
Larger awards are given to employees who consistently demonstrate fully-competent or better performance with salaries below P60
The salary of a employee who demonstrates successful performance should be moving toward a 100% compa-ratio (i.e., compa-ratio increasing)
Compa-ratio ConsiderationsNOTE: ATB of 0.8% is minimum movement
Goal: To maintain the compa-ratio (e.g., 90)When: Performance is slightly below expectationsIncrease: 4.0%
Goal: To increase the compa-ratio (e.g., to 92)When: Performance meets expectationsIncrease: 6.0%
Goal: To increase the compa-ratio significantly (e.g., to 94)When: Performance exceeds expectationsIncrease: 8.0%
80
80
100
100
120
120
90
86 92
Example: Band H - Pay line movement: 4.0%
2007
2008
Compa-Ratio Consideration
Range Movement 2.0 to 4.6%ATB: 0.8%Merit Component: 3.2%
90
94
Merit Allocation Guidelines Developed by Total Rewards Steering
Committee Definitions Considerations in determining merit allocation
Challenges: What can I do if there is not enough money to
recognize performance? Request additional dollars from the envelope budget Envelope manager has oversight for several work
units where some work units may not spend as much as others
Partial deferral
Critical Deadlines:April, 2007:
Objective Setting (review 2007/08; set 2008/09 goals) Total Performance Results Summary for 2007/08
Or Performance Review for Confidential/Non-Supervisory
Employees for 2007/08 (NEW) Core Competency Assessment
Critical Deadlines (cont’d):May, 2007:
All-TMG information session (May 1) Board of Governors meeting (May 8) Brown-bag lunch sessions for Q & As (May 12-20) Merit allocation process begins (May 20)
June, 2007: Merit allocation/Performance Appraisal deadline
(June 6)
September 2008/January 2009: Periodic Review/Alignment of Objectives
Resources on the website:http://www.workingatmcmaster.ca/totalrewards/ Performance Appraisal ‘Toolkit’
Objective Setting forms Performance review form for confidential and non-
supervisory staff Core Competency Assessment forms Personal Development Plan forms
Performance Appraisal/Merit Allocation Presentation TMG Salary Ranges Protocols/Guidelines for Salary Administration Articles on conducting effective performance reviews
Thank You!
Questions/Comments?