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Report
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Report To: General Government Committee
Date of Meeting: September 4, 2018
Report Number: CAO -011-18 Resolution: GG -403-18, GG -406-18
File Number: By-law Number:
Report Subject: Exceptional Compensation Policy B8 Update
Recommendations:
1. That Report CAO -011-18 be received; and
2. That the updated Policy B8 (Attachment #3) be approved.
Municipality of Clarington
Resort CAO -011-18
Report Overview
Page 2
Report CAO -003-18 noted that the policies respecting employee performance and
recognizing exceptional performance would be reviewed in 2018. This Report
summarizes the changes that will be made to Performance Appraisal Policy 137 and
recommends that Council approve specific changes to Exceptional Compensation Policy
138.
1. Background
1.1 Attached to this Report (Attachment 1) is a copy of administrative Policy B7
(Performance Appraisal) which includes the form of appraisal currently being used for
non-affiliated employees.
1.2 Also attached to this Report (Attachment 2) is a copy of Policy 138 (Exceptional
Compensation) that was approved through Council's approval of the Gazda study on
January 31, 2011. The Policy identifies the following 4 types of exceptional
compensation: (1) market sensitive position; (2) additional skills / qualifications; (3)
acting or dual role; and (4) special project or assignment.
2. Performance Appraisal Policy B7
2.1 In Report CAO -003-18, it was noted that the CAO would be working with Department
Heads to make changes to the way in which performance appraisals are undertaken.
The review of Policy B7 (Performance Appraisal) is continuing, with in-depth
Department Head consultation and a review of best practices.
2.2 Changes to the appraisal form attached to Policy B7 will include,
(a) eliminating ratings (the current form requires a formal assessment or rating of 32
separate competencies);
(b) strengthening section (h) (Goals or Projects to Consider in Upcoming Year(s)")
such that it establishes clear, measureable goals and objectives;
(c) eliminating the section dealing with exceptional compensation in its entirety;
(d) adding a section that addresses skills development; and
(e) adding a section that deals with career development.
Municipality of Clarington Page 3
Report CAO -011-18
2.3 The new appraisal form will be provided to Council for information once it is complete.
3. Exceptional Compensation Policy 138 Update
3.1 The Exceptional Compensation Policy B8 has been reviewed. Based upon a review of
practices in other municipalities and taking into account the comments of Council in
response to Report CAO -003-18, it is recommended that three of the four types of
exceptional compensation (Market Sensitivity, Additional Skills/Qualifications and Special
Project or Assignment) be removed from Policy B8. It is recommended that the remaining
type (Serving in an acting role, dual role) be preserved with some modifications for
reasons set out below.
3.2 Positions may become temporarily vacant for a number of reasons including retirement,
job change, approved short-term leave of absence, illness, injury, and maternity or
paternity leave. In some circumstances the absences are lengthy, such as long —term
illnesses and maternity leave which now extends up to 18 months. The replacement of/or
temporary filling the role of a vacant senior position may take considerable time given the
relevant market conditions and due diligence required to ensure the position is
advertised, interviewed and filled in an appropriate manner. If there are no appropriate
measures put in place by the Municipality, it could lead to service interruptions_
3.3 It is therefore recommended that Policy B8 preserve the opportunity for the CAO to
approve exceptional compensation for a non-affiliated employee who either,
(1) fills a higher vacant position on a temporary basis (e.g. a Manager "acting" as an
interim Director); or
(2) continues to do his or her own duties while "covering" the responsibilities of a vacant
position (for example a peer) on a temporary basis.
3.4 In the first situation ("acting"), it is recommended that the level of compensation be set at
an appropriate level within the compensation grid for the "acting" period in order to be
consistent with pay equity principles.
3.5 In the second situation ("covering"), it is recommended that the exceptional compensation
be a maximum of 10% of the employee's level of pay for the period of coverage.
3.5 In both situations, it is recommended that exceptional compensation only be considered if
the temporary absence exceeds 4 weeks.
Municipality of Clarington Page 4
Report CAO -011-18
3.7 Attached to this Report (Attachment 3) is an amended Policy B8 that would implement
these recommendations.
4. Financial Implications
4.1 The estimated maximum annual cost to accommodate the "acting" and "covering" types
of exceptional compensation, net of the savings attributable to gapping, would be
$20,000 which could be accommodated in a contingency allowance included in the
Municipality's annual budget. Exceptional compensation allocations have not previously
been included in annual budgets.
4.2 The updated policy would apply to the current situation with the Director of Finance and
potentially the Director of Planning Services.
5. Concurrence
This Report has been reviewed by the Director of Corporate Services who concurs with
the recommendations.
6. Conclusion
6.1 If a position were to remain vacant for an extended period of time, there may be a need to
assign the responsibilities of the position to a contract employee or a consultant. If the
responsibilities are assigned to an existing employee, there may be significant cost
savings. Policy B8 (as amended) will provide a mechanism to realize such savings.
6.2 It is therefore recommended that the amended Policy B8 (Attachment 3) be approved.
7. Strategic Plan Application
Not applicable.
Municipality of Clarington Page 5
Report CAO -011-18
Submitted by:
z A
Andrew C. Allison, B. Comm, LLB,
CAO
Staff Contact: Andrew Allison, Chief Administrative Officer, 2002 or aallison@clarington.net
There are no interested parties to be notified of Council's decision.
Attachment 1: Policy B7 (Performance Appraisal)
Attachment 2: Policy B8 (Exceptional Compensation) - Existing
Attachment 3: Policy B8 (Exceptional Compensation) - Proposed
Corporate Policy
ATTACHMENT 1
TO REPORT CAO -011-18
41
(iLeading the Wav
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ordinator at 905-623-3379 ext. 2131
POLICY TYPE:
POLICY TITLE:
POLICY #:
POLICY APPROVED BY:
EFFECTIVE DATE:
REVISED:
APPLICABLE TO:
1. Purpose:
Compensation
Performance Appraisal
B7
Chief Administrative Officer
November 23, 1999
September 12, 2016
Non -Affiliated Employees
To provide a method of evaluation and feedback that reflects an employee's
working performance and the job expectations for the purpose of improving the
employee's value and contribution to the organization.
2. Policies/Procedures:
a) Performance appraisals must be performed once a year on all non-affiliated full-
time staff by the immediate supervisor. The appraisal shall cover the prior year
performance in the current position and must be conducted regardless of
whether or not a salary adjustment is anticipated.
b) A Performance Appraisal form shall be used to conduct the performance
appraisal and must be completed by the supervisor through a one-on-one
meeting with the employee.
c) Any salary adjustment shall be in accordance with the following scale:
Rating
U Unacceptable Performance No adjustment
W Working to achieve the expected level No adjustment
S or E Strong Performer/Exemplary One step adjustment
d) The completed Performance Appraisal form must be submitted to the
Department Head for approval prior to submission to the Chief Administrative
Officer for signature and processing.
3. Appendix:
Performance Appraisal Form
137 — Performance Appraisal Page 1 of 1
Hppenaix io roucy est
Municipality of Clarington
Performance Management Review
JIName: ;Title: Department:
IlReview Period:i From: to: II
Supervisor Name: Title Department:
AODA Com
ia'n'c;� ------------------------------------------------------------------------
1) consider when completing this form, if there is anything you are / or should be aware of that would impact the employee's
ability to meet performance expectations - if so - adjust your assessment accordingly.
2) Ask the following question to the employee at the beginning of the performance interview: Are there any AODA or
accessibility conditions or requirements that would affect your performance or competency over this review period?
Y_es.......... No_. .......
_ _ ___ _ _____ _ _ _ _ _ _ _ _ _ _ _ _ _ _________ ___ ___ ___ ___ ___
Purpose: to provide feedback on How the iob is performed, not What the iob entails. - - - - -
Assessment Rating:
W
Working to achieve the expected level.
S
Strong erformer - Displays the appropriate behaviour at the required level.
E
Exemplary - Always displays the behaviour above expected level; considered exceptional.
U
Unacceptable Performance
N/A
Not Applicable to this review.
ore Responsibilities:
Leadership, Mentoring, & Management Effectiveness
1 Promotes teamwork within and across departments; working co-operatively with all partners.
2 Transfers knowledge to Direct Reports to enable them to effectively respond in the absence the Supervisor.
3 Promotes employee training and learning opportunities.
4 Encourages Leadership development by empowering employees and supporting their decisions.
5 Displays empathy and understanding in dealing with subordinates and co-workers .
6 Understands effectiveness of making changes together that will produce mutual interest -based success.
7 Values, respects and recognizes employee efforts and results.
8 Actions reflect principles aligned with Corporate and professional standards; mentoring others to do same.
9 Hiring & Promotion recommendations reflect succession planning insight.
-----------------------------------------------------------------------------
Communication Effectiveness
1 Communication is respectful and professional at all levels.
2 Communication style uses effective methods, adapting as appropriate to the sensitivity of the situation.
3 Shares and communicates information effectively within the department, & across the organization
4 Research and reports - produced on a timely basis, factual & accurately addressing organization's objectives.
5 Effectively communicates with external stakeholders; providing accurate & timely information to right audience.
6 Conflict management skills; ability to resolve difficult situations or conflicting views among or with peers or subordinates.
7 Activelv listens to ensure full understandina of issue.
C. Customer Service Focus
1 Appreciation for how the Municipality interacts with/and responds to residents concerns and issues.
2 Co-operatively interacts with internal customers to produce a positive experience reflecting excellence in service.
3 Demonstrates understanding of how trends & changes in the industry affect the success of the service this Department
provides to its residents/customers.
4 Effectively and professionally represents the Municipality.
D- Corporate Strate Endorsed and Reflected
1 Endorses and Promotes Strategic Plan initiatives identified for own Department.
2 Ability to link long-range Corporate visions & concepts to Departmental direction.
3 Provides effective support to CAO by providingrelevant and pertinent information.
4 Contributes to development of strateaies to achieve aoals & obiectives of the Corporation.
E. Technical Skills, Knowledge & Political Acumen
1 Awareness of politically sensitive situations and responds appropriately.
2 Maintains networking opportunities to advance professional / technical skills & knowledge.
3 Effectively monitors and responds to department's budget program.
R
A
T
I
N
G
Name: :Title: Department:
Page 2
Review Period:: From: to:
4 Attendance at Corporate meetings is consistent and/ or assigned designate is appropriately informed of issues.
5 Knowledge of departmental issues conveyed with confidence at meetings where Council/ key stakeholders are present.
6 Efficient & timely review of departmental policies, updating as appropriate, reflectin corporate philosophy.
7 Computer literacy and knowledge of applications applicable to department services.
8 Ability to cope with stressful situations, and changing riorities of Council or Management.
F. Health & Safety Promotion and Endorsement
1 Promotes a safe & healthy workplace by ensuring adherence to legislation & policy.
2 Encourages staff to participate on the Joint Health & Safety Committee
3 Health & Safety forms part of staff meeting agendas.
4 Participates-as a_me_mb_er of the Joint Health &_Safety Committee. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ __
Department Specific Skills To be completed with / or - by applicant - list Core Functions Only]
1
2
3
4
-------------------------------------------------------------------------------------
G. Recommendations, Comments or Feedback by Supervisor
H. Goals or Projects to Consider in Upcoming Year s
Recommendations & Approval
Grid Movement
From:
To:
Effective Date of Adjustment
Level
Step
Recommendation for Exceptional Compensation - Awarded only on CAO Recommendation, based on Criteria
Criteria Eligibility Detail
1) Market Sensitive Position
2) Skills Exceed Position Requirements
3) Additional Duties Performed
4) Major Project Outside of Normal Job
Recommended Exceptional Compensation Adjustment to be Paid -
to a maximum of 10% of Current Salary
$
Approval
Andrew Allison, Chief Administrative Officer Date
Employee Signature:
Date:
Su ervisor Signature: Date:
Distribution
Ori final - Personnel File
IPayroll Notified by CAO if Adjustment
Corporate Policy
ATTACHMENT 2
TO REPORT CAO -011-18
•
Leading the Way
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ordinator at 905-623-3379 ext. 2131
POLICY TYPE:
POLICY TITLE:
POLICY #:
POLICY APPROVED BY:
EFFECTIVE DATE:
REVISED:
APPLICABLE TO:
1. Purpose:
Compensation
Exceptional Compensation
B8
Chief Administrative Officer/Council
September 30, 2011
September 30, 2015
Non -Affiliated Employees
a) To implement Council approved Exceptional Compensation for special purpose
use, i.e., 1) market sensitive positions, 2) succession planning, 3) acting pay,
and 4) recognition for employees undertaking special projects or assignments
outside the scope of their normal responsibilities.
b) To specify criteria for the award of Exceptional Compensation.
c) To outline guidelines and procedures pertaining to the administration of
Exceptional Compensation.
d) To set limits on the size of the awards of Exceptional Compensation to
qualifying non-union employees.
2. Policies:
a) Exceptional Compensation shall be restricted to the four purposes stated in the
Purpose Section (ref. 1-a).
b) The CAO shall review and approve on a case by case basis each non-union
employee who is recommended for consideration for Exceptional
Compensation.
c) Market Sensitive Positions
Classification of a non-union position as market sensitive shall be determined
each year based on: 1) market compensation survey data from similar size
B8 — Exceptional Compensation Page 1 of 3
municipalities, primarily in or near the GTA, and 2) the Municipality's current
experience in recruiting candidates for vacant non-union positions.
d) Succession Planning
Exceptional Compensation can be used for purposes of succession planning
when a position incumbent brings more than the required skills and
qualifications to a position as he/she is being groomed/developed to fill
potentially a higher position that will become vacant in the near term (e.g.,
impending retirement).
e) Acting Pay
There are two types of situations where Exceptional Compensation shall apply
to acting pay: 1) a non-union employee fills a higher vacant position on a
temporary basis, e.g., a Manager "acting" as interim Director until the position is
staffed on a permanent basis, and 2) a non-union employee continues to carry
out his/her position while "covering" the responsibilities of a vacant peer position
for a period of time.
f) Special Projects or Assignments
Exceptional Compensation can be used to recognize employees completing a
special project or assignment outside the scope of their normal responsibilities.
This use shall not represent a permanent assignment of new or additional
responsibilities to the non-union employee. As such, special projects or
assignments will not be eligible for inclusion in any pay equity review or
assessment.
g) Awards Contingent on Satisfactory Performance
To qualify for consideration for any Exceptional Compensation award, the
performance of a non-union employee must be assessed as satisfactory or
better for the year.
h) Size of Awards for Exceptional Compensation
Appendix A specifies the basis for the awards at the 5% and 10% levels for
each application of Exceptional Compensation.
i) Proration of Exceptional Compensation
For a non-union employee serving in an acting or dual role starting in one year
and continuing into the next, the employee's award will be prorated based on
the time served in the role during the year.
B8 — Exceptional Compensation Page 2 of 3
j) Maximum Award for Acting Pay
In circumstances where two or more employees share the responsibilities of a
vacant position, the maximum Exceptional Compensation to be awarded shall
not exceed 10% of the job rate of the highest paid position. The award shall be
split among two or more employees based on their respective share of the work
performed and (as noted in g), the extent of satisfactory performance in the role.
3. Procedures:
a) The Exceptional Compensation award shall generally be at the 5% or 10% level
as a lump sum payment. The CAO may vary the percentage amount if deemed
necessary. Receiving an award in one year shall not entitle an employee to
receive Exceptional Compensation in a subsequent year.
b) Exceptional Compensation shall cease to apply when:
i) a position is no longer determined to be market sensitive;
ii) a non-union employee ceases to perform in an acting or dual role for a
vacant position;
iii) a non-union employee completes the special project or assignment outside
the normal scope of his/her responsibilities.
c) No additional compensation shall be paid to incumbents in market sensitive
positions when the current job rate is at or above the 65th pay percentile based
on the latest Market Survey.
Appendix A — Exceptional Compensation — "Triggers" and Guidelines
B8 — Exceptional Compensation Page 3 of 3
Appendix A to Policy B8
Appendix A — Policy B8 Page 1 of 1
Exceptional
Compensation "Triggers"
and Guidelines
Type of Exceptional
Amount of Award
Compensation
"Trigger(s)"
Contingent on
(Level 6 or Level 7)
Paid as
Comments
1. Market sensitive
Currently classified as a
Satisfactory performance
5% or 10%
Lump sum
The CAO and Director Corporate
position
market sensitive position at
of the position incumbent;
Services/Human Resources would
Clarington
incumbent now paid
review the Municipality's list of
below the 65th pay
market sensitive positions annually
percentile
and adjust as necessary
2. Employees bringing
Approved use for succession
Satisfactory performance
5% or 10% depending
Lump sum
Exceptional compensation for this
more than required
planning, grooming/
of the position incumbent
on extent of employee's
application would cover both new
skills/qualifications to
development
skills/qualifications
and existing employees
the position
3. Serving in an acting
Acting role in a higher
Satisfactory performance
5%, at least one month
Lump sum
It is recommended, especially in the
role, dual role
position for more than one
of the position incumbent
but less than 4 months
initial implementation of Exceptional
month
compensation, that the application
10%, 4 months or more
be as simple and straightforward as
possible (i.e., a 5% or 10% award,
Dual role (own position and
Satisfactory performance
5%, at least one month
Lump sum
no scaling between 5% and 10%)
peer position) for more than
of the position incumbent
but less than 4 months
one month
10%, 4 months or more
4. Special project or
Project or assignment scope
Continued satisfactory
5% or 10% depending
Lump sum
To reduce questions/concerns at the
assignment
is significant (i.e., not a small
performance in current
on project scope,
time of Exceptional compensation
completion
project or task) and clearly
position, successful
duration and success
award, the CAO and members of
outside the normal
completion of project/
the Senior Management Team
responsibilities of the
assignment
would discuss the projects
employee's position
considered for a 5% award vs. those
intended for a 10% award
Appendix A — Policy B8 Page 1 of 1
Corporate Policy
ATTACHMENT 3
TO REPORT CAO -011-18
•
Leading the Way
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ordinator at 905-623-3379 ext. 2131
POLICY TYPE:
POLICY TITLE:
POLICY #:
POLICY APPROVED BY
EFFECTIVE DATE:
REVISED:
APPLICABLE TO:
1. Purpose:
Compensation
Exceptional Compensation
B8
Council
September 17, 2018
September 17, 2018
Non -Affiliated Employees
a) To implement Council approved Exceptional Compensation where appropriate.
b) To outline the policies and procedures pertaining to the administration of
Exceptional Compensation.
c) To set limits on the amounts of Exceptional Compensation to be given to
qualifying non-affiliated employees.
2. Policies:
a) Eligibility
The CAO shall consider eligibility for Exceptional Compensation on a case by
case basis.
Exceptional compensation may be considered for an employee who either,
(1) fills a higher vacant position on a temporary basis (e.g. a Manager "acting"
as an interim Director); or
(2) continues to do his or her own duties while "covering" the responsibilities of
a vacant position (for example a peer) on a temporary basis.
b) Compensation
Where an employee performs in an "acting" capacity to fulfill the responsibilities
of a higher position that is either vacant or on hold for an extended period of
time, exceptional compensation may be considered at the appropriate grid level
B8 — Exceptional Compensation Page 1 of 5
of the vacant/absent position for the acting period. The employee may be
fulfilling dual roles or fulfilling the essential requirements of the vacant or on -hold
position.
Where an employee is absent but is expected to return, and another employee
is "covering" the absence and performing dual roles as a result, exceptional
compensation may be considered in an amount not to exceed 10% of the
employee's existing level of pay.
c) Minimum Period
Exceptional compensation shall not be considered unless the "acting" period or
the "coverage" period exceeds 4 weeks.
d) Timing of Compensation
Exceptional compensation in a "coverage" situation will be paid in a lump sum
net of all applicable statutory deductions.
Exceptional compensation in an "acting" situation will be paid during the time the
employee is "acting".
e) Non -Permanent Attachment to Existing Role
The situations giving rise to exceptional compensation shall not represent a
permanent assignment of new or additional responsibilities to the employee, and
any responsibilities, projects or assignments or actions performed will not be
eligible for inclusion in any pay equity review or assessment.
f) Award Contingent on Satisfactory Performance
To qualify for consideration for exceptional compensation, the performance of
the employee must be assessed as having successfully completed or filled the
assigned roles, responsibilities and/or tasks.
g) Maximum Award for Shared Responsibilities
In circumstances where two or more employees share the responsibilities under
either situation, the maximum exceptional compensation to be awarded shall not
exceed the value that would be attributed to the single award, i.e. 10% of the job
rate of the highest paid position, or the value attributable to the appropriate level
of the grid. The award shall be split among the affected employees based on
their respective share of the work performed, time involved, and the extent of
satisfactory performance.
B8 — Exceptional Compensation Page 2 of 5
h) No Guarantee or Commitment to Renew
Receiving exceptional compensation in one year shall not entitle an employee to
receive exceptional compensation in a subsequent year.
3. Procedures:
a) Form of Request: All requests for exceptional compensation shall be made
in writing using the attached form (Exceptional Compensation Request for
Consideration) and approved by a Department Head. The completed form
must be forwarded to CAO for consideration.
b) Approval: If approved by the CAO, the form would be forwarded to Payroll
for processing, with a copy of the form placed in the employee's personnel
file.
c) Documentation:
For a coverage situation, the approved Exceptional Compensation Request
for Consideration is the final document.
For an acting situation, either the approved Exceptional Compensation
Request for Consideration will be the final document or a letter of
employment will be drafted by Human Resources setting out the relevant
terms and conditions, for approval of the Department Head and final
approval by the CAO. A copy of the letter will be forwarded to Payroll for
processing, and copied to Human Resources for the employee's file.
d) Budget: The CAO will annually review the corporate budget requirement,
and include estimates for any anticipated situations, net of known gapping or
compensation differentials.
Appendix A — Exceptional Compensation Request for Consideration
B8 — Exceptional Compensation Page 3 of 5
Appendix A
Exceptional Compensation Request for Consideration
Date:
Name of Recommending Manager:
Signature:
Title:
Department:
Name of Employee being considered:
Title:
Department:
Recommended Situation:
A) Coverage (Maximum 10% Existing Salary)
•V
B) Acting (Grid Compensation for Vacant or On -Hold Position)
a. Attached is a job requisition form or
b. Letter of Term Conditions of Employment for CAO approval.
"Acting" or "Coverage" Time Period: From
Name and Title of Position being temporarily covered:
Reason for coverage:
Maternity Leave
Illness or other Leave of Absence
Other
to
B8 — Exceptional Compensation Page 4 of 5
Description of situation:
Department Head Authorization to proceed:
CAO Decision: Approval:
Denied: / Reason
CAO Signature:
Cc: Payroll
Personnel File
B8 — Exceptional Compensation Page 5 of 5