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The New Management Classification and Compensation Framework

Implementation Information: Considerations Related to Hiring

TheI introduction of the new Management Classification and CompensaiotnCompensation framework is intended to bring the public service in line with other progressive organizations that have sought to modernize their management compensation policies, decrease the associated administrative burden, and effectively manage costs. The new framework will better enable Ministries to respond to competitive labor markets and recognize employee contribution.

The new framework replaces the current nine-level management classification plan with three broad management bands, that are called “Leadership Roles’.. Specific leadership role criteria will be usedtilized to assign positions to one of the three management bands.

A number of questions have arisen concerning hiring and how the new framework is to be applied. The following describes the intent in some key areas related to hiring management employees under the new framework.

Lateral Transfer

  • A lateral transfer is a move from one position or work assignment to another where the work is within the same Leadership Role.
  • As has always been the case for lateral transfers , an assessment of competence will be expected, but the method is up to the Manager. There is no requirement to conduct a formal assessment process.
  • Approvals to enact a lateral will be the same as they currently are – as per Ministries’ delegation matrices.
  • For salary treatment, refer to the Pay Guidelines..”

Movement between Leadership Roles

A permanent move (or a temporary assignment over 7 months in duration) to a Role with a higher maximum salary range is not a lateral transfer, and thus requires formal assessment of eligible applicants and consideration of the factors of merit.

Temporary assignments to other Leadership Roles for less than 7 months in duration do not require formal assessment. There is a need to consider competence and non-partisanship.

If an employee voluntarily chooses to move to a Role with a lower maximum salary range but the pay is not reduced, the hiring assessment would be the same as for a lateral transfer.

If the move to a Role with a lower maximum salary is involuntary, and there are entitlement changes, the matters would be handled specific to the case and issues involved, similar to workforce adjustment or restructuring.

The terms “promotion” and “demotion” are not defined or useful under this Framework.

In line with the definition of a lateral transfer, Aa permanent move (or a temporary assignment over 7 months in duration) to a Role with a higher maximum salary range is not a lateral transfer, and thus requires formal assessment of eligible applicants and consideration of the factors of merit.

For Ttemporary assignments to another Leadership Roles for less than 7 months in duration,duration do not require formal assessment. There is a need to consider competence and non-partisanship. is not required.

A permanent move to an assignment in a Role with a lower maximum salary lower is also not a lateral transfer. In a situation where anIf an employee voluntarily chooses to move to a Role with a lower maximum salary range and but the pay does not go downis not reduced, the hiring assessment would be the same as for a lateral transfer.

Where there is anIf the involuntary move to a Role with a lower maximum salary is involuntary, and there are entitlement changes, the matters would be handled specific to the case and issues involved, similarly to workforce adjustment or restructuring..

Use of the terms ‘promotion’ and ‘demotion’ are not defined nor useful under this Framework.

Posting and Advertising

Traditionally the “Posting” system has automatically included the salary range and corresponding classification level on the notice, as well as many media advertisements. This has never been a policy requirement. A question raised is: What salary and/or classification information goes on the posting or advertisement?

With respect to salary, a Manager would have a number of options, depending on how he/she intends to compensate the work and manage the competition. Some of the options include, but are not limited to:

  • Identify a specific salary amount (i.e. target rate) that the Manager has determined for the work; or
  • Identify a specific salary range (can be any amount within a Role, depending on what range the Manager has determined. It does not need to be, and may be highly unlikely to be, the full range for the role); or,
  • Do not indicate salary or,
  • Indicate “salary commensurate with skills and qualifications, or a similar phrasing; or
  • Indicate that “this position will be of interest to those currently remunerated in the XXX range”.

There are also options regarding identifying the classification on the advertisement/ posting. For example, the Leadership Role could be included or not.

Salary Issues

The matter of pay is considered separately as it flows from the Manager’s determination under the Pay Guidelines, which describe the considerations when moving an employee to a new work assignment. Refer to Pay Guidelines for information on:

  • Salary Protection and Salary on Appointment
  • Salary Administration and how performance impacts the decision
  • Understanding the Budget aspects of the Management Framework

Posting and Advertising

Traditionally the “Posting” system has automatically included the salary range and corresponding classification level on the notice, as well as many media advertisements. This has never been a policy requirement. A question raised is: What salary and/or classification information goes on the posting or advertisement?

With respect to salary, a Manager would have a number of options, depending on how he/she intends to compensate the work and manage the competition. Some of the options include, but are not limited to:

Identify a specific salary amount (i.e. target rate) that the Manager has determined for the work; or

Identify a specific salary range (can be any amount within a Role, depending on what range the Manager has determined. It does not need to be, and may be highly unlikely to be, the full range for the role); or,

Do not indicate salary or,

Indicate “salary commensurate with skills and qualifications, or a similar phrasing; or

Indicate that “this position will be of interest to those currently remunerated in the XXX range”.

There are also options regarding identifying the classification on the advertisement/ posting. For example, the Leadership Role could be included or not.

Temporary Assignments

Temporary work assignments for managers can be handled using the principles of the Lateral Transfer – that is, if the work is within the same Leadership Role, the assignment can be made without a formal assessment. There is a need to consider competence and non-partisanship

Where a temporary work assignment for managers is outside the Leadership Role of those being considered, a more formal assessment considering the factors of merit will be required if the work is > 7 months (consistent with the Public Service Act).

The matter of pay is considered separately as it flows from the Manager’s determination under the Pay Guidelines, which describe the considerations when moving an employee to a new work assignment.

Issues outside Hiring purview:

Refer to Pay Guidelines for information on:

Salary Protection and Salary on Appointment

Salary Administration and how performance impacts the decision

Understanding the Budget aspects of the Management Framework

Date: 7/12/20061