1. Presentation to the Canadian Compensation Association June, 1998 TAKING THE LEAP from ENTITLEMENT to toPERFORMANCE-BASED REWARDS REWARDS TAKING THE LEAP from ENTITLEMENT to toPERFORMANCE-BASED REWARDS REWARDS CCA Conference, 1998

2. SETTING THE STAGE CCA Conference, 1998

3. Who is Calgary Vocational Services? l Private, Non-Profit, Accredited Organization l Services:  Employment Preparation  Vocational Assessment/Counseling  Job Search  Employment Placement l 9 Locations in Southern Alberta l 100 Employees

4. CVS Business Context l A “Results-Focus” l Competition, Bottom-line Accountability l Government Policy in the 90’s  Lean, efficient & results-oriented CCA Conference, 1998

5. CVS Business Context l Measuring Business Success  Process vs Outcomes l Change as a Constant  Need for flexibility & adaptability CCA Conference, 1998

6. Impact of Rapid Growth l Cultural Shift l Complex, Illogical Classification System l Elitism and Inequity CCA Conference, 1998

7. Entitlement vs. Accomplishment l Compensation based upon time in the job l Expectation of continuing salary increases regardless of performance l Performance review heavy on personal descriptors and short on accomplishments CCA Conference, 1998

8. Examples of Objectives l To maintain involvement in present committee work l To assist with the supervision of practicum students l To continue to edit agency newsletter CCA Conference, 1998

9. The Old Classification & Compensation Structure l Based on job titles and salary ranges tied to specific contracts l A different salary range for each title l 11 salary ranges with 6 incremental steps l Viewed as inequitably by employees CCA Conference, 1998

10. The Performance Review Process l Subjective discussions l Organizational alignment not a critical element l Objectives but lack of clarity on expectations and measures CCA Conference, 1998

11. Implications for Human Resource Processes l Revise Classification System  Objective standards for comparison Internal equity l Compensation Structure  Link Compensation to Performance l Performance Management  Alignment of objectives Reinforce outcomes-based performance CCA Conference, 1998

12. PROJECT PROCESS CCA Conference, 1998

13. Links between Compensation & Commitment CCA Conference, 1998 Commitment Culture Compensation

14. HUMAN RESOURCE STRATEGY DEVELOPMENT COMMITTED EFFECTIVE EMPLOYEES KEY SUCCESS FACTORS KEY GOALS CLASSIFICATION PERFORMANCE COMPENSATION STRATEGIES MARKET POSITION VALUES VISION DEVELOPMENT STRATEGIES RECRUITING CCA Conference, 1998

15. Critical Success Factors for Design l Support organizational culture l Fit to new strategic direction l Shared decision-making CCA Conference, 1998

16. COMPENSATION REVIEW PROCESS J Review of Jobs & Structure J Review of Jobs & Structure Conduct Market Survey Develop Compensation Structure Options Develop Compensation Structure Options Employee Advisory Committee (reps from each dept) Employee Advisory Committee (reps from each dept) Present Report & Recommendations CCA Conference, 1998 RESULTS Internal/External Equity RESULTS Internal/External Equity

17. Review of Jobs & Organization Structure l Clarify key success factors to ensure alignment l Confirmed benchmark positions with employee advisory committee l Interview sample of incumbents l Written input opportunity for all employees l Draft classification factors & categories CCA Conference, 1998

18. Compensation Review l Market survey l Develop compensation structure l Review l Strategy for implementation l Links to Performance Management Process CCA Conference, 1998

19. Communication Strategies CCA Conference, 1998 l Ongoing input and feedback through Employee Advisory Committee (diagonal slice) l Interim communication updates (monthly or at milestones) l Communication sessions to present new compensation structure

20. Performance Management CCA Conference, 1998 l Factors Contributing to Organizational Success l Review of Department Objectives and Indicators of Success l Clarification of Roles l Alignment of Goals

21. OVERVIEW OF CONTRIBUTION PROCESS CCA Conference, 1998

22. FACTORS CONTRIBUTING TO ORGANIZATIONAL CORPORATE GOALS CONTINUOUS IMPROVEMENT & SERVICE QUALITY EMPLOYEE CAPABILITY & PERFORMANCE SATISFIED CONSUMERS & CUSTOMERS INCREASED REVENUE & FUNDING VALUE-ADDED SERVICES CCA Conference, 1998

23. Alignment of Goals Organizational Goals Team Objectives Individual Objectives Broad Specific CCA Conference, 1998

24. Implementation Process Leadership Workshop Communication of Enhancements & Implementation Process Team Workshops (co-facilitated ) On-going Coaching CCA Conference, 1998

25. RESULTS OF NEW SYSTEMS CCA Conference, 1998

26. Generic Classification System l Simple, easy to understand and administer l Resolved major internal inequities l Standard for comparison l Classification decisions determined by Program Directors CCA Conference, 1998

27. Example of Generic Classification Example of Generic Classification Level CCA Conference, 1998

28. Compensation Structure l Fewer, broader bands (down to 5 bands) l Base salary inequities addressed l Organizational bonuses (Variable) l Performance-based pay l Potential for pay at risk l Increased managerial discretion CCA Conference, 1998

29. 10 11 9 8 7 6 5 4 3 2 1 Changes in Salary Range Structure 4 5 6 3 2 1 CCA Conference, 1998

30. Changes in Salary Range Structure Min Max Min Max Midpt CCA Conference, 1998

31. Enhancements to Performance Management Process l Alignment of individual and team objectives to corporate goals and business strategies l The first stage in defining roles, objectives and measures l Skills training for employees to develop meaningful performance objectives and measures CCA Conference, 1998

32. Setting Objectives & Measures CCA Conference, 1998

33. Setting Objectives & Measures CCA Conference, 1998

34. On-Going Coaching Process CCA Conference, 1998 Plan Review Organizational & Team Goals Review Role Statement Jointly Set Objectives & Measures Coach On-going dialogue re: actual vs planned. Monitor Plans & Performance Guidance on performance improvements Review Self-appraisal Formal contribution review Management Review Develop Identify strengths & areas for development Determine development strategies Link to planning

35. IMPACT OF NEW PROCESSES ON CVS CCA Conference, 1998

36. Classification l Equitable l “It’s not a matter of money, it’s a matter of value.” l Increased morale l Clarity of placement of new positions CCA Conference, 1998

37. Compensation l Attitude shift: Employee buy-in on principle of performance-based rewards l Salary inequities addressed l Quarterly bonus linked to organizational performance, encourages team efforts l Appreciation of CVS in comparison to other organizations CCA Conference, 1998

38. Performance Management l Increased comfort with the goal setting process l Increased commitment to accountability l A clearer understanding of expectations l Performance reviews focus on more on accomplishments less on personality CCA Conference, 1998

39. “The more efficient and effective we are, the greater the rewards to the organization, employees, and clients. “

40. Lessons Learned l Salary ranges are not yet used effectively to differentiate on the basis of performance l Reduce reliance on incremental steps in compensation structure l Further refinement of skills in developing performance objectives and measures CCA Conference, 1998

41. Lessons Learned l l Need for skill development in discussing and providing feedback and coaching performance l l Need for more frequent review and coaching for individuals CCA Conference, 1998

42. Now What? l l Commitment to providing variable bonus for individuals tied to specific performance criteria l l The transition will continue towards:   developing accurate performance measures   tightening the link between performance & rewards CCA Conference, 1998