Performance Planning,
Feedback and Merit Allocation
TMG Open Meeting
May 1, 2008
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
Two Elements
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Performance Planning & Appraisal
Merit Allocation
Performance Planning
 Performance Planning provides an
opportunity for discussion between
supervisors and TMG staff:



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to articulate unit/department goals
to clarify expectations
to discuss training/development priorities
to set individual performance goals
The Cycle of Performance Planning
and Appraisal
Assessing
Performance
Performance
Planning
Coaching: Feedback
& Development
Positive work climate
• Engaged employees
• Recognition
• Professional Development
Performance Appraisal
Consider:
 The key responsibilities in the employees’ most
recent job description
 The goals/objectives set the previous year
 The employee’s Personal Development Plan
priorities and/or Assessment of Management
Core Competencies results
 The employee’s file and relevant records/
notes/training information
Total Performance Results
Purpose:
 To summarize achievement of set objectives
 To identify progress toward training and
development targets
 To support individual merit recommendations
Prepare and Return to HRS:
For 2007:
 Objective Setting – Results
 Total Performance Results Summary
or
 Performance Review for Confidential/NonSupervisory Employees (NEW)
For 2008:
 Objective Setting 2008 - Planning
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?
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)
Professional Development Priorities
Purpose:
 Identify training and development needs
 Facilitate discussion of personal developmental
priorities
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
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
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
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)
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%
Compa-Ratio Consideration
Example: Band H - Pay line movement: 4.0%
2007
2008
80
100
90
80
86
90
92
120
100
94
Range Movement 2.0 to 4.6%
ATB: 0.8%
Merit Component: 3.2%
120
Merit Allocation Guidelines
 Developed by Total Rewards Steering
Committee
 Definitions
 Considerations in determining merit allocation
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
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
Critical Deadlines (cont’d):
May, 2007:
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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
Resources on the website:
http://www.workingatmcmaster.ca/totalrewards/
 Performance Appraisal ‘Toolkit’
 Objective Setting forms
 Performance review form for confidential and nonsupervisory staff
 Core Competency Assessment forms
 Personal Development Plan forms
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Performance Appraisal/Merit Allocation Presentation
TMG Salary Ranges
Protocols/Guidelines for Salary Administration
Articles on conducting effective performance reviews
Thank You!
Questions/Comments?