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University of Waterloo

Salary Administration
October 2009

 Provost’s Advisory Committee on Staff

Compensation (PACSC)
 Hay Evaluation System
 Annual Staff Salary Increase Program
 Frequently Asked Questions
 Time for Questions/Discussion
Provost’s Advisory Committee on
Staff Compensation (PACSC):
 Four Staff Association representatives
 Four Administration representatives
 Manager, Salary Administration - Resource

Responsible for revising and overseeing

compensation-related policies and programs
such as:
salaries (policy 5), overtime (policy 16), paid holidays
(policy 38), vacation (policy 6) and structural changes
to the annual salary adjustment
Role of Human Resources:

Human Resources takes direction from the

PACSC committee on the interpretation
and implementation of policies and programs
related to Salary Administration
Hay Evaluation Method:

A point-factor system which evaluates:

– skill (Know How)

– effort (Problem Solving)
– responsibility (Accountability)
– working conditions
A Hay Job Evaluation is
Comprised of:
 the knowledge required to do the job whether
practical or intellectual (Know How)
 the kind and amount of thinking required to
solve the problems which the job commonly
faces (Problem Solving)
 the responsibilities assigned (Accountability)
 the work environment in which the job is
performed (Working Conditions)
How is the Evaluation Done?
 the manager submits written request to HR along with
an accurate, comprehensive, current job description

 Staff Relations Co-ordinator:

 interviews manager and staff member
 conducts research into comparable UW positions
 discusses the result with manager who conveys to
Frequently Asked Questions:

My job has changed significantly.

Should it be reviewed?
My job hasn’t been reviewed for a
numbers of years. What should I
What if my manager doesn’t agree
with the result?
Annual Staff Salary Increase

 all annual increases are based on merit

 there are no across the board/Cost of Living


 job-values are increased by an amount

recommended by the PACSC after reviewing
relevant data, which may include market
movement, consumer price index (CPI),
national survey data and funding
Performance Appraisals:

 conducted annually
 forwarded to Human Resources,
by mid-March
 paper copy held in HR for 5 years
 ratings are from 1 to 5 with increments of
.25 for ratings above 3
How Do Performance Ratings
Correspond to Salary Increases?
Performance ratings from 1 to 5 represent a position in
the salary range or a “performance goal” over a career.

5 ......................................... 120%

4.5 .......................................... 115%

4 ........................................... 110%

3.5 ........................................... 105%

3 ............................................. 100%
Need to Know More?
For complete descriptions of each rating
see the Performance Appraisal
documentation on the Human Resources

Salary Range:

80% 100% 120%


Compa-Ratio is the relationship of your salary to the

job-value, expressed as a percentage.
The Range for USG 6 Looks
Like This:

80% 100% 120%

Job Value
38,458.95 48,073.69 57,688.42

45,670.01 50,477.37
95% of job value 105% of job value
Individual Salary Increases:
 The departmental merit pool.
 Salary increases have two components:
a) basic increase which can’t be adjusted
b) supplementary increase

 Staffmembers receive salary increases

based on their performance appraisal
rating and their position in the salary
range (compa-ratio).
Some Additional Comments:
 basic increase may not be changed by department
 staff members with compa-ratios over their
performance goals will receive less than the range
 staff members with compa-ratios less than their
performance goals will receive more than the range
 system has been designed to mitigate the effects of
“lavish” and “stingy” evaluators
 staff members who have reached their performance
goal will receive the range adjustment
More Frequently Asked

1. What do I do if I don’t like my performance

2. My manager hasn’t given me my
performance review, what should I do?
3. I didn’t receive the range adjustment, why?
4. How long will it take to reach my target?
5. What happens when I reach my target?
Other Salary Questions:
6. What happens if I’m promoted to another
7. What happens if I transfer to another job?
8. I’m performing the duties of a staff who is on
maternity leave. Should I get paid more?
9. I’m seconded to a project for over a year,
what can happen?
For More Information:
 Alfrieda Swainston, extension 32950
 Peggy Karitsiotis, extension 36645
 your Staff Relations Coordinator
 http://www.hr.uwaterloo.ca/