1. Performance Planning, Feedback and Merit Allocation TMG Open Meeting May 1, 2008

2. Pay for Performance Philosophy Performance is variable and can be measured Emphasis on rewarding sustained high performance Distinguish between varying levels of performance with appropriate merit recommendations

3. Performance Planning & Appraisal Merit Allocation Two Elements

4. Performance Planning Performance Planning provides an opportunity for discussion between supervisors and TMG staff: to articulate unit/department goals to clarify expectations to discuss training/development priorities to set individual performance goals

5. The Cycle of Performance Planning and Appraisal Assessing Performance Performance Planning Coaching: Feedback & Development Positive work climate Engaged employees Recognition Professional Development

6. Performance Appraisal Consider: The key responsibilities in the employees most recent job description The goals/objectives set the previous year The employees Personal Development Plan priorities and/or Assessment of Management Core Competencies results The employees file and relevant records/ notes/training information

7. Total Performance Results Purpose: To summarize achievement of set objectives To identify progress toward training and development targets To support individual merit recommendations

8. Prepare and Return to HRS: For 2007: Objective Setting – Results Total Performance Results Summary or Performance Review for Confidential/Non- Supervisory Employees (NEW) For 2008: Objective Setting 2008 - Planning

9. Objective Setting & Assessment Tool Objective What will be accomplished? How does it tie into the department/organization strategy? Action Plan How will this be accomplished? Measures What does successful achievement look like? Results What was achieved?

10. Mandatory All managers must include responsibility for Health & Safety as a key objective for 2008/09 Complete Due Diligence, WHMIS and fire safety training Provide health & safety, and site-specific orientation for new hires Complete workplace inspections; participates in workplace inspections, when required Host health and safety information sessions Commend health and safety performance Document all training Review/comply with Risk Management policies Identify department first aid provider(s)

11. Professional Development Priorities Purpose: Identify training and development needs Facilitate discussion of personal developmental priorities

12. Tools for Assessing Training Priorities Process: Incumbent: Complete Personal Development Plan and identify personal training and development priorities Supervisor/Incumbent: Complete Core Competencies Assessment, discuss outcomes, agree on training/development priorities or 360 degree assessment: Incumbent, supervisor discuss and agree on a number of evaluators who complete the assessment, provide confidential feedback that supervisor summarizes for discussion to identify training/development priorities

13. Periodic Review Meetings Purpose: Continuous opportunity for two-way discussion Timely feedback on projects Review progression toward achievement of goals Identify challenges Modify or add objectives, as needed

14. Goals of Merit Allocation Recognize different performance levels or contribution to the work unit Move individual salary toward the appropriate section of the salary range Help retain professional high performing employees Progression through the salary range

15. Guiding Principles Employees with performance that is less than satisfactory receive little or no merit The exception to the above point is an employee very low in the salary range whose performance is steadily improving on the learning curve (typically a new employee) Larger awards are given to employees who consistently demonstrate fully-competent or better performance with salaries below P60 The salary of a employee who demonstrates successful performance should be moving toward a 100% compa-ratio (i.e., compa-ratio increasing)

16. Compa-ratio Considerations NOTE: ATB of 0.8% is minimum movement Goal:To maintain the compa-ratio (e.g., 90) When: Performance is slightly below expectations Increase: 4.0% Goal: To increase the compa-ratio (e.g., to 92) When: Performance meets expectations Increase: 6.0% Goal: To increase the compa-ratio significantly (e.g., to 94) When: Performance exceeds expectations Increase: 8.0%

17. 80 100 120 90 8692 Example: Band H - Pay line movement: 4.0% 2007 2008 Compa-Ratio Consideration Range Movement 2.0 to 4.6% ATB: 0.8% Merit Component: 3.2% 9094

18. Merit Allocation Guidelines Developed by Total Rewards Steering Committee Definitions Considerations in determining merit allocation

19. Challenges: What can I do if there is not enough money to recognize performance? Request additional dollars from the envelope budget Envelope manager has oversight for several work units where some work units may not spend as much as others Partial deferral

20. Critical Deadlines: April, 2007: Objective Setting (review 2007/08; set 2008/09 goals) Total Performance Results Summary for 2007/08 Or Performance Review for Confidential/Non-Supervisory Employees for 2007/08 (NEW) Core Competency Assessment

21. Critical Deadlines (contd): May, 2007: All-TMG information session (May 1) Board of Governors meeting (May 8) Brown-bag lunch sessions for Q & As (May 12-20) Merit allocation process begins (May 20) June, 2007: Merit allocation/Performance Appraisal deadline (June 6) September 2008/January 2009: Periodic Review/Alignment of Objectives

22. Resources on the website: http://www.workingatmcmaster.ca/totalrewards/ Performance Appraisal Toolkit Objective Setting forms Performance review form for confidential and non- supervisory staff Core Competency Assessment forms Personal Development Plan forms Performance Appraisal/Merit Allocation Presentation TMG Salary Ranges Protocols/Guidelines for Salary Administration Articles on conducting effective performance reviews

23. Thank You! Questions/Comments?