Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures 1. Purpose The Ktunaxa Nation Council (KNC) has developed a position valuation plan designed to make the organization’s direct compensation or pay system equitable / fair, understandable, defensible and externally aligned and congruent with market value. Position valuation is a formal, objective, and systematic process that determines the relative value of each position compared to all other positions within the organization. KNC chose a point factor plan which breaks down each position into a number of predetermined and common compensable factors. Each factor is in turn broken down into predetermined levels, with each level assigned a value in the form of points. Total points associated with all factors will determine a position’s overall value and rank in comparison with other positions. Due diligence will be exercised to ensure results are not biased. 2. Scope 3. Definitions 4. Policy Statement Prerequisites to the determination of relative value of a position The analysis and determination of positions, resulting in the writing of formal and approved position descriptions and position qualifications for all positions of the organization. The position description is considered a living and important document that defines a position’s type and level of responsibility and authority, qualifications and context / environment within which the position resides and operates. The development of a position valuation form that compliments or aids in the valuation of predetermined compensable factors. The appointment of and training of a Position Valuation Committee. The application of the Position Valuation Policies and Procedures. Position valuation factors Position valuation factors represent those components of a position which are compensable. For a factor to be considered compensable it needs to: Be observable and measurable Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 1 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009 Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures Be explainable and easily understood Have some relationship to position value or position content – responsibility Occur in most or all positions Be distinct or separable from other factors in terms of characteristics Factors included in the KNC Position Valuation Process: Education, Training and Certifications (Formal Knowledge) Experience Stewardship Leadership Expertise / Know How Problem Solving Fiscal Responsibility Direction / Guidance / Mentoring (direct supervision / management of other positions) Complexity Consequence Contacts and Communications (includes Coaching) First Nation Culture (includes Heritage, Traditions, Language) Working Conditions Physical Environment Physical Effort Mental / Sensory / Emotional Environment Mental / Sensory / Emotional Effort Travel Requirement Position Valuation Committee (PVC) This Committee is a formally designated group within the KNC organization; it combines and integrates perspectives and valuations. It provides a wide range of experience and skills; different personalities and views; greater idea generation and creativity; promotes collaboration and consensus reaching; can fulfill the requirement for balance, objectivity, credibility, neutrality, knowledge of positions. A Position Valuation Committee shall be comprised of a number of permanent salaried employees of KNC who can come together to form a quorum of three (3) members; that are fully knowledgeable on the position description template, the position valuation process, and the salary administration policies. The Human Resources Manager is a standing member of the Committee. The Position Valuation Committee shall be solely responsible for the formal valuation of all KNC positions in accordance with: Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 2 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009 Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures The approved Position Valuation Committee Terms of Reference The approved KNC Position Valuation Plan, Policies and Procedures. The Committee members are accountable to: Be fully familiar with the Position Valuation Process Maintain a sense of task while contributing to the group effectiveness Recognize and declare biases Listen to and respect the views of all Open sharing; speaking up if there are concerns Express relevant views Help to move the process at an appropriate pace Contribute to a collaborative approach Respect and assist the Facilitator in that role Maintain high confidentiality at all times Support the results. KNC’s Human Resource Manager’s role: 5. responsible for ensuring that all applicable information is prepared and provided to the Position Valuation Committee in order for the Committee to make an informed determination. coordinate all meetings of the Committee be a resource and trainer to the Committee be a non-ranking member of the Position Valuation Committee. Responsibility Sector Directors and Operational Directors Human Resources Position Valuation Committee (PVC) 6. Legislative Context Compliance with Legal Regulations Provisions of the Canada Labour Code, Pay Equity Laws etc. 7. Associated Documents Compensation Policy - Position Description Template Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 3 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009 Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures 8. Implementation Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 4 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009 Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures POSITION REVIEW AND VALUATION PROCEDURES New Position Descriptions All new position descriptions shall be provided to the Human Resource Manager by the applicable Sector Director for review, finalization including authorization Position Description provided to the Position Valuation Committee, and a date set for the committee to meet. The Position Valuation Committee shall review the new position and make a formal determination of relative position value. Where the Committee deems it appropriate or necessary, the Committee may request to meet with the Sector Director of the position in order to seek clarification. The final determination of the Committee shall be communicated in person and in writing to the relevant Sector Director by the Human Resource Manager. Revised Position Descriptions All revised position descriptions shall be provided to the Human Resource Manager by the applicable Sector Director, for review, finalization including authorization, plus any recommendations to the Position Valuation Committee. Prior to recommendation to the Position Valuation Committee, Human Resource Manager shall meet with the relevant Sector Director to review the existing Position Valuation Form in order to determine significant changes. The Human Resource Manager shall convene the Position Valuation Committee to review the recommendation and conduct a new review, with understanding of the revisions. The Human Resources Manager shall determine if the revised relative position value impacts the salary range administration of the position. The Human Resource Manager shall communicate the revised determination of relative position value and the salary range implications with the relevant Sector Director. Please Note: A revised position description shall not be reviewed for relative position value by the Position Valuation Committee unless it has been determined by the Committee that there has been significant changes to the position description or the required position qualifications. Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 5 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009 Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures Request for the Review of a Determination by the Position Valuation Committee 1. When a Sector Director disagrees with the relative position value assigned to a position within that Sector, the Sector Director shall meet with the Human Resources Manager to determine justification for a challenge. This could result in a revision or rewriting of the position description if there is sufficient difference in how the position was recorded. This could result in a re-valuation by the Position Valuation Committee if it is determined that the committee mis-understood or mis-comprehended the value of factor(s) for this position. 2. The Human Resources Manager shall convene the Position Valuation Committee to re-valuate the position. 3. The Position Valuation Committee shall reassess the relative position value for this position. 4. The Human Resource Manager shall communicate the Sector Director of the determination or decision of the Committee. A request for review shall not be considered by the Position Valuation Committee where: a. b. The perceived inadequacy of the salary range assigned to the position is in question. There is discontent with the salary range to which a position has been assigned and the Sector Director cannot show that the range assignment has been based on inadequate, erroneous or misleading information. GUIDELINES FOR RATING POSITIONS This process is for rating the positions to established and approved compensable factors; the Committee must be vigilant throughout the rating process to not include any information or perception of the current incumbent come into the considerations. Rate the whole position, factor by factor. Sore thumb all positions, factor by factor. After all positions are rated, they are to be sorted by factor for the ‘sore thumb’ process. This allows the Committee to see if there have been inconsistencies in the ratings. Individual Committee members are to first rate the positions individually, then the Committee can discuss the individual results. Committee members are more likely to stick to their answers if they are written down first, there is less likelihood of ‘going along with the flow’ and therefore less bias. Consensus, all Committee members must come to clear consensus. Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 6 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009 Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures It is expected that each Committee member be prepared to demonstrate the evidence from within the written position description and to articulate the reasoning for a rating. When consensus is reached, the rationale for the rating is to be documented. Where there is difficulty in reaching consensus, the position will be set aside and revisited later in the process. Committee members are not to be present for the rating or sore thumbing of their own positions to reduce unnecessary conflict or stressful situations for the Committee Members. Committee members are not to be present for the rating of positions within their Sector or where there may be any form of conflict or perceived conflict. If there is any perceived conflict by a Committee member, this is to be acknowledged and this member withdraws from the rating of this position(s). Salary information is not included in this process. AUTHORIZATION FOR EMPLOYEE’S PARTICIPATION ON PVC The following form to be completed, signed and placed on the personnel file of the employee. Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 7 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009 Ktunaxa Nation HUMAN RESOURCES POLICY MANUAL Policy Section: Employee Value Strategy Name of Policy: Compensation Position Valuation Policy and Procedures POSITION VALUATION COMMITTEE Authorization for Committee Member This is to approve the participation of ___________________________ (employee name) as a standing member of the Position Valuation Committee for the period of ____________. I, __________________________ (employee name) agree to fully participate as a member of the Position Valuation Committee. ________________________________________ Employee Signature ________________________________________ Director Approval ________________________________________ Date Authorized by: KNC Sector Directors and Nation Executive Document Owner: Human Resources Page 8 of 8 Original Issue: Current Version: Review Date: December, 2007 January, 2009