Systems and mechanisms for determining pay levels and adjustments | ||||||
|
Australia |
Canada |
New Zealand |
Singapore |
United |
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 |
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 |
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 |