Memo: M&P Compensation Review Update (Sept. 19, 2013)

Memorandum
Date: Sept. 19, 2013
From: Linda McKnight, Director, Advisory Services, Human Resources, and Michelle Berner, Director, Total Compensation, Human Resources
To: Heads Up, HR Administrators
CC: Human Resources Advisory Services, Total Compensation
Subject: M&P Compensation Review Update


Further to our memos of January 23, 2013 (http://www.hr.ubc.ca/memos/management-professional-compensation-review-jan-23-2013/) and August 11, 2011 (http://www.hr.ubc.ca/memos/2012-mp-compensation-review-aug-11-2011/), this provides an update on the 2011 Compensation Review of M&P jobs.

Background

The Agreement between AAPS and the University recognizes the essential nature of a fair and competitive compensation system to retaining and recruiting Management and Professional Staff. One of our principles is that the University should endeavour to compensate at the 50th percentile of a representative comparator market. In order to approach this fundamental objective in a structured way, the University has committed to conducting a salary survey of a representative comparator market at appropriate intervals.

The University engaged Mercer to conduct a market survey to evaluate the competitiveness of the University’s M&P compensation. Survey results were compiled in late 2011, and presented by Mercer to the University in early 2012.

The University’s Compensation team conducted an extensive costing analysis utilizing the market survey and current M&P compensation data, and proposed changes to the M&P compensation matrix. AAPS grieved the University’s approach, and in December, 2012 mediator Mark Brown assisted the parties in achieving a resolution, which is a phased approach to address salaries behind market, involving four implementation dates:

  • January 1, 2013,
  • January 1, 2014,
  • July 1, 2014 (after any GWI that is negotiated), and
  • December 1, 2014.

The first phase resulted in changes to the salary grade of targeted levels within job families, and was implemented in the spring of 2013.

Phases 2–4

In order to determine the approach for phases 2, 3, and 4, the parties have scheduled a mediation/arbitration for September 20. Following this, planning will begin for the next implementation date of January 1, 2014. The final two phases occur later in 2014.

A number of M&P job family levels will be affected as a result of phases 2-4. We will notify you of the specific effects once they are determined.

Funding

While it is anticipated that departments/faculties will be responsible for funding salary adjustments for all positions, a review will determine whether administrative units will receive central funding.

Conclusion

It is important to the University that M&P compensation remains competitive, given its fundamental nature in retaining and recruiting outstanding staff.

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