Policy Name Guide to Compensation
Policy Group Employees
Policy Number/code II HR
Date Issued June 2014
Revised July 2015
Review Date
Responsible staff person Executive Director
Applies to All employees
Compensation at Toronto Workforce Innovation Group (TWIG)
Toronto Workforce Innovation Group strives to ensure that employee compensation programs fairly and adequately represent the duties, responsibilities and contributions of its employees. The objectives of the Agency’s compensation programs are designed to remain competitive within the sector as well as with a broad range of comparator employers that TWIG may compete with in the recruitment and retention of employees, wherever possible. The primary purpose of our compensation programs are to attract, retain and motivate qualified and productive employees and to ensure that there is a credible, logical and consistent process for making compensation decisions.
TWIG’s Compensation Program is anchored in:
· Experience in the Job: consideration for sector- and job-specific experience, skills, knowledge, training and/or education.
· Tenure with the Agency: recognition of experience and loyalty to the Agency.
· Agency’s Overall Performance: rewarding employees based on the overall performance of the Agency, including achievement of outcomes and financial health of the Agency and its ability to provide competitive compensation.
The Agency may also consider “Pay for Performance” when determined appropriate and/or necessary for the purposes of pay adjustments and/or when increases are to be delayed and/or withheld.
Introduction to the Guide
It is important that the organization has a framework for how individual employee pay is determined. Understanding the Agency’s compensation programs and knowledge of how pay and salaries are determined provide TWIG with confidence that employees are paid fairly, that the Agency is monitoring events in the external market place and knows what is required for employees to progress. This document has been divided into the following sections:
1. Compensation Strategy
2. Position Titles and Salary Reviews
3. Salary Ranges
4. Placement on Salary Range
5. Adjustments to Compensation, Salary Ranges and Additional Payments
6. Glossary of Terms
7. Appendix A: Salary Grades and Ranges
Section 1: Compensation Strategy
TWIG’s Compensation Practice
TWIG’s competitive strategy will enable the organization to attract, retain, develop and motivate high caliber people who share TWIG’s values and will contribute to the success of the organization. TWIG will, if feasible, recognize exceptional performance and contributions as well as to recognize continued service with the Agency.
Competitive Positioning
Market Comparators
TWIG will compare primarily with similar agencies and other organizations of similar size and scope of operations where relevant data is available. For specific positions or where comparators cannot be found, the Agency will look at other industries and employers in a broader range to determine appropriate comparators.
Market Survey Methodology
TWIG may participate in appropriate salary surveys and/or may purchase surveys covering a diverse group of agencies across the province and potentially across the country, where applicable data can be found. TWIG will consult not-for-profit salary survey data, including but not necessarily limited to, the Charity Village annual survey report.
Other Considerations
TWIG will consider the following factors when looking at Market Survey and Market Comparators data:
· Trends in not-for-profit compensation, funding, etc.
· Annual cash compensation by:
o Overall average
o Quartile data
o Region/Geographic location (Toronto/GTA)
o Organizational Jurisdiction (Municipal)
o Organizational Revenue
· Other considerations as may be deemed appropriate.
Section 2: Position Titles and Salary Reviews
Position and Salary Reviews
Position and salary reviews will be conducted by the Executive Director (or designate) and may include consultation with the various stakeholders.
Positions and/or salaries will be considered for review when at least one of the following criteria is met:
1. Annual review and compilation of revised salary/market data.
2. A new job is approved for which no previous review was conducted.
3. A substantial change occurs in the scope and responsibility of a job.
4. A change in technology significantly alters job duties and required skills.
NOTE: Minor changes; shifts in duties and responsibilities or increased volume of the same core duties and responsibilities will typically not justify the review of an existing job.
Position Titles
Position titles are outlined in Appendix A.
Internal Comparison
TWIG is able to compare all jobs within the Agency and develop job classifications and categories that are contained in Appendix A: Salary Grades and Ranges.
External Comparison
TWIG will, wherever possible, compare primarily with similar agencies of similar size and scope of operations where relevant data is available.
For details outlining roles and responsibilities for job titles, please refer to the position/job description.
Section 3: Salary Ranges
Once a position review is completed and a job description is finalized, all jobs are assigned to a salary range in Appendix A.
Each salary range consists of a range minimum, a range midpoint and a range maximum as shown on the illustration below:
Range Range Range
Minimum Midpoint Maximum
Target Market Position
The range midpoint is the “average” or “going market rate” for the position. An employee paid at or around the range midpoint is typically fully qualified and performing all job duties in a competent manner.
The range minimum and maximum are the available range limits or salaries to be paid for jobs assigned to a salary range. Generally, all employees will start at or near the minimum of the salary range for their job. Based on a candidate’s superior education, skills and/or experience, the hiring manager may start the employee at a higher rate of pay but may not exceed the maximum of the range. Internal equity should be considered when starting new employees above the minimum.
Over time, all employees ought to progress to the range midpoint. Employees who consistently perform at an “exceptional” level over a number of years can be paid between than the range midpoint and maximum, or, where appropriate they may be promoted to a new job and new salary range.
Below Range Minimum
All employees should typically be paid at least the minimum rate of their job salary grade. If the salary range increases, it is possible that an employee could fall below the new minimum. In this case, the employee’s salary should be adjusted to the new minimum unless:
· the employee is in the probationary review period;
· the employee is on a performance improvement plan; or
· the employee is on leave of absence. Exception: Maternity Leave
Above Range Maximum
Employees who are at or above the maximum will be “red-circled”. This means that they will not be eligible to receive a merit or annual increase until such time as the salary ranges are adjusted and the employee’s salary falls within the new range. In exceptional cases this can be reviewed outside the system and must be approved by the Executive Director (or designate).
Compensation for the Executive Director will be the responsibility of the Board of Directors.
Section 4: Placement on Salary Range
A number of factors may be used to determine an employee’s salary and placement in the salary range including:
· Employee experience, skill, knowledge, training and/or education in the role
· Employee sustained performance doing the same or similar job over time (also referred to as “tenure”)
· Annual increases as determined by the Executive Director (or designate)
· Adjustments to salary grades and ranges
· Employee performance over the past year (in certain circumstances)
Individual Employee Pay
Each year, the Agency will develop recommendations for adjustments to salary and salary ranges based on our pay objectives, desired market position, and TWIG’s overall financial performance. An employees’ annual adjustment is determined by several factors, including but not limited to:
· Current placement within the range for the job/grade, and,
· Experience in the job (consideration for sector- and job-specific experience, skills, knowledge, training and/or education), and,
· Recognition of experience and loyalty to the Agency (“tenure”), and,
· The Agency’s annual salary budget, and,
· Marketplace comparators, and,
· Adjustments made to the salary grid (Appendix A), and,
· Current and sustained level of performance.
Typically, employees who are new on the job and are learning and developing new skills will be in the lower end of a salary range. As an employee gains proficiency in their job, their performance will improve and an appropriate salary adjustment will be provided to move them through their range. Employees who consistently perform at an exceptional level can expect to move through their range more rapidly.
Adjustments to the salary grades and ranges are based on recommendations made with consideration of internal equity, external market conditions, salary survey data, the Agency’s financial performance and ability of the Agency to provide for adjustments and employee performance. Recommendations for increases and changes should be presented to the Board of Directors (or designate) for review and approval.
Re-Hires
For employees who have worked with TWIG, special consideration may be given to recognize previous service and contributions during previous employment term(s) with the Agency in assessing the rate of pay for the returning individual. The rate shall not exceed the Range Maximum for the job category. In this instance, the Executive Director (or designate) will review the re-hired employee’s previous experience, performance and time worked in considering placement on the salary schedule.
Section 5: Adjustments to Compensation, Salary Ranges and Additional Payments
Annual Review and Increases
TWIG will evaluate its financial position and sources of revenue to determine adjustments, if any, to Salary Ranges and to individual employee salaries on an annual basis. Employees will be advised of any adjustments prior to implementation.
TWIG will review the compensation guidelines and the salary grid and ranges annually. The review will be conducted by the Executive Director (or designate) in consultation with the Board of Directors, relevant stakeholders and/or with the Agency’s human resources consultant.
Increases to Employee Compensation
Cost of Living Adjustments (COLA)
Each year the Agency may, where financial resources permit, issue a cost of living adjustment. Where a COLA increase is provided the Agency will determine the rate, with consideration to inflation information for the geographic location where employees work, and will determine and communicate the rate of the COLA increase, if any.
Compensation Increase (within the range)
Each year, all employee salaries will be reviewed. For employees who meet and/or exceed their performance expectations, job outcomes and deliverables, a compensation increase may be awarded. Such potential increase shall be done within the salary range and is subject to the financial resources of the Agency.
Performance and Compensation
TWIG does not rely solely on pay-for-performance however in certain circumstances TWIG will consider employee contributions and the performance expectations (using the performance evaluation tool) of an employee’s position and the Agency as a whole. Salary increases may be considered for exceptional performance and similarly increases may be delayed or not provided in the case of poor performance.
Additional (or “Bonus”) Payments
In special cases it may be appropriate to reward an employee with additional compensation in any given year where:
o Additional revenue-generating projects and/or work is obtained and completed (to the satisfaction of the funder)
o Budget surplus is declared
o Exceptional performance
It is expressly understood that additional payments (or “bonus” payments) will not increase the employee’s base salary and will instead be provided as a one-time lump sum payment, minus applicable statutory deductions. It is understood that in such instances where an additional (or “bonus”) payment is issued it will not establish a practice of doing so.
Market Forces
TWIG may be required from time to time to review, evaluate and potentially adjust salaries in response to market forces (e.g., supply and demand, new salary data, retention strategies, high turnover, etc.). In these circumstances adjustments may be made to individual employees and/or to individual position titles on the grid and/or to salary ranges across the Agency.
Section 6: GLOSSARY OF TERMS
GREEN-CIRCLED – is a compensation term that indicates that an employee’s salary is below the range. This situation would occur when an employee has been hired into a job where they do not meet qualifications.
RANGE MAXIMUM – is the maximum value to be paid for a job, representing the top value the Agency places on the output of the work.
RANGE MIDPOINT – is the amount paid to a fully competent, qualified employee. Midpoint represents the going rate value the Agency places on the work.
RANGE MINIMUM – is the minimum value to be paid for a job, representing the minimum value the Agency places on the work.
RED-CIRCLED – is a compensation term that indicates that an employee’s salary is frozen.
Salary Ranges
Executive Director/CEO $75,000 - $90,000
Director, Senior Level $75,000 - $85,000
Project Manager $45,000 - $65,000
Administrative Assistant $35,000 - $45,000
Research Assistant $35,000- $45,000
SALARY GRADES AND RANGES
Effective July 15th, 2015
Grade / Job Category / Representative Jobs/ Job Titles / Salary RangeStart (Minimum) / 1 / 2 / 3 (Midpoint) / 4 / 5 (Maximum)
1 / Reserved for Future Job Titles
2 / Administrative Support / Administrative Assistant / $35,000 / $36,400 / $37,800 / $39,200 / $40,600 / $42,000
3 / Reserved for Future Job Titles
4 / Project Management / Partnerships/ Outreach Manager / $45,000 / $48,000 / $51,000 / $54,000 / $57,000 / $60,000
5 / Policy and Planning / Director / $70,000 / 73,00 / 75,500 / 77,000 / 80,000 / 85,000 -90,000
6 / Leadership / Executive Director
CEO / $65,000 / $70,000 / $75,000 / $80,000 / $85,000 / $90,000
Rules: - Movement across the range is determined by management and is not determined by years of service or “tenure” (for example, after 2 years an employee does not necessarily get paid at the Level 2 rate).
-Rate of pay can fall directly at a “Level” or can fall anywhere between Levels and/or within the established Salary Range for the position.
-Salary ranges may be amended and/or deleted at the discretion of the Agency.
2014 Review (Notes, Conclusion & Assumptions)
1. Salaries for TWIG as of June 2014 appear to be extremely competitive based on salary data reviewed within the not-for-profit sector.
2. Salary data used was from the Charity Village survey (2013) as follows:
Title (TWIG) / Title Used (Survey) / Level / Quartile / NotesExecutive Director / CEO / 1 / 2&3
Manager, Partnerships/ Outreach / Management / 4 / 2&3
Administrative Support / Support Staff / 6 / 2&3
Director, Policy and Planning / Senior Staff / 1.5 / 2 &3
Guide to Compensation Page 1