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?