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Systems and mechanisms for determining pay levels and adjustments

 

Australia

Canada

New Zealand

Singapore

United
Kingdom

Summary

Is a formal private sector comparison used to  inform pay adjustments? No - but adjustments must be within an agreed financial budget No – but emphasis on comparability and must be within agreed budget No - but adjustments must be within an agreed financial budget Yes – calculated as a comparator to private sector pay No - but adjustments must be within an agreed financial budget
The trend is towards a less mechanistic way of determining pay increases which allows agencies to address their individual  needs, whilst operating within a broad centrally determined framework
What is the main role of central agencies in pay determination?- to agree or to set
  budgets for pay
  increases?
Agree overall financial budgets Strong central role in both budgets and detailed pay adjustments Agree overall financial budgets Determine overall financial budgets Agree overall financial budgets
 - to provide advice and
   guidance or to set broader pay policy issues?
To provide advice and guidance To set direction and determine broader pay policies To provide advice and guidance and set parameters To set direction and determine broader pay policies To provide advice and guidance and agree negotiating parameters
Experience of introducing performance-based rewards

 

Australia

Canada

New Zealand

Singapore

United
Kingdom

Summary

Is there widespread use of performance related pay (PRP)?

 

Yes – most staff have some form of PRP Minimal – for a small number of senior civil servants up to 20% of pay may be “at risk” Yes – most staff are eligible for some form of PRP Increasing - linked to  performance of the individual and the economy as a whole Yes – most staff are eligible for some form of PRP

PRP is now widely used, particularly for senior staff

Are performance awards consolidated into base pay?  Yes for some staff Yes, for some staff Yes, increasingly for most staff Yes for some staff Yes for most staff
Is it paid as a one-off (non-consolidated) bonus?  Yes for some staff Limited to senior civil servants Yes for some staff Yes for some staff Use of bonuses limited to exceptional circumstances
Are there team-based performance rewards? Some use – typically paid on completion of a project  Very limited Very limited – bonuses typically paid on completion of project Very limited Limited – still seen as experimental. Whilst the broad principle is generally embraced there have yet to emerge significant numbers of successful examples
Has a robust performance management framework been developed? Most forms of appraisal are used and increasingly 360 degree assessment. Skills development is ongoing. Traditional approach to appraisal for most staff with lack of consistent standards Well established systems and high skills level - self appraisal and 360 degree assessment are common. Reports are structured around competencies. Traditional but rigorous system. Recent emphasis on development of balanced scorecard approach Most forms of appraisal are used and increasingly 360 degree assessment. Skills development ongoing. A key component to support performance related pay but requires significant education  and skills development to engineer behavioural change
Experience of simplifying and decentralising pay and grading administration

 

Australia

Canada

New Zealand

Singapore

United
Kingdom

Summary

Have there been moves to establish flatter, less hierarchical structures through simplification of pay and grading systems? Yes -  only 11 grades in the Australian Public Service This is on-going. The current system is highly complex system with 72 occupation groups, 105 sub groups and 840 separate levels Yes –most Departments and Agencies have independently introduced flatter more flexible structures with fewer ranks/bands Some simplification in recent years, particularly amalgamation of pay bands at senior levels  Yes –most Departments and Agencies have independently introduced flatter more flexible structures with fewer ranks/bands In all cases there is a drive towards less complex pay and grading systems aimed at increasing local flexibility
Is a formal job evaluation system used? Yes, to some degree.  Each group of duties is classified according to its work value requirements Yes, an off-the-shelf system is used for executives. For other positions,  whole job comparison is used and grouped by occupations Yes, either a position-based comparative job survey is used or an off- the-shelf system where there is no comparator role. Yes, to some degree Yes – a civil service wide grading system is in operation The trend is towards broad, generic occupational groupings and a move away from narrowly defined job descriptions

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