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Compensation and Position

Title
Classification System (CPCS)
for GOCCs

PRESENTATION FOR GOCCs


June 2016
Slide TitleAgenda
Discussion
• CPCS Guiding Principles and Rewards Philosophy
• Position Classification System
a. Business Unit Size
b. Career Bands, Career Levels and Job Grades
• Compensation Items
a. Salary Ranges
b. Fixed Bonuses and Fixed Cash Allowances
c. Performance-Based Bonuses
d. Other Items in and beyond the CPCS
• Implementation Guidelines of the CPCS
• Communications Planning and Key Messages
• Job Titles and Typical Qualification Standards
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Slide Title

CPCS Guiding Principles and Rewards


Philosophy

3
Background of the Compensation and Position
Slide Title
Classification System (CPCS) for GOCCs
 GOCC Governance Act of 2011 (Republic Act 10149), the GOVERNANCE
COMMISSION FOR GOVERNMENT-OWNED OR -CONTROLLED
CORPORATIONS (GCG) was mandated to:
(a) Classify GOCCs;
(b) Develop and recommend a competitive compensation and remuneration
system which shall:
— attract and retain talent
— allow the GOCC to be financially sound and sustainable
(c) Develop a COMPENSATION AND POSITION CLASSIFICATION SYSTEM
(CPCS) which shall apply to all officers and employees of GOCCs.

4
Slide Guiding
CPCS Title Principles
1. Provide GOCCs with adequate operational autonomy and flexibility towards
ensuring efficient and effective implementation of a total compensation framework
to ensure:
(a) The adoption of reasonable, justifiable and appropriate remuneration
schemes to prevent or deter the granting of unconscionable and excessive
remunerations packages;
(b) Generally be competitive with the private sector doing comparable work,
and in compliance with prevailing laws on minimum wage;
(c) Operate within their affordability limits and sustainability capacities,
and in accordance with their overall size as provided herein;
(d) Adhere to the principle of equal pay for work of equal value; and
(e) The rewards system supports and encourages performance-driven,
productive, and efficient organizations.

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Guiding Principles (cont’d)
Slide Title

2. The CPCS shall be updated periodically by GCG based on


the following:
(a) A review of the GOCC compensation rates;
(b) The performance of the GOCC and its overall
contribution to the national economy;
(c) Drastic changes in market or business environment;

3. The CPCS shall cover all positions, on full or part time basis

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Slide Title
Excluded Positions
Individuals hired by GOCCs without employer-employee relationships and paid from
non-Personal Services appropriations/budgets:

(a) Members of the Governing Board;

(b) Consultants and experts hired to perform specific activities or services with
expected outputs;

(c) Laborers hired through job contracts (pakyaw) and those paid on piecework
basis;

(d) Student laborers and apprentices;

(e) Individuals or groups of people engaged through job orders, contracts of


service, or others similarly situated.

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Slide Title
Covered GOCCs
• All GOCCs and their subsidiaries

• Charted or non-chartered

• Including those previously exempted from the coverage of the


Salary Standardization Law (SSL), Republic Act No. 6758.

• All GOCCs that are losing and/or highly subsidized in their operations
shall maintain their current compensation framework. Such GOCCs may
apply with GCG to implement the CPCS, if it can be determined that their
operations improve and the GOCC shall remain financially viable

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Slide Title
Excluded GOCCs

• GOCCs expressly outside the coverage of R.A. No. 10149


• Bangko Sentral ng Pilipinas
• State Universities and Colleges (SUCs)
• Cooperatives
• Local Water Districts (LWDs)
• Economic Zone Authorities
• Research Institutions

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Slide Title

Position Classification System

10
Classifications of GOCCs
Slide Title
(Under R.A. No. 10149 and E.O. No. 203)
 To ensure that GOCCs are aligned with rates and practices of private sector
entities doing comparable work
 By Sector
1. Government Financial Institutions (GFIs) and Gaming
2. All Other Sectors
— Energy and Materials
— Utilities and Communications
— Area Development, Trade and Tourism
— Agriculture, Fisheries and Food
— Educational and Cultural
 By Overall Size - each GOCC shall be compared or benchmarked with private
sector entities similar in size in terms of finances and operations

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Slide Title
Position Classification Process

Determine the Size of the Organization (to be done


by GCG based on data submitted by GOCCs)
Grade of the organization based on:
a. Company financials
b. Number of full time equivalent (FTE) employees
c. Geographical scope and Business Complexity/Diversity

Determining the Band of the Job


 Nature of contribution
 Level of Contribution

Determining the Career Level and Job


Grade
The size of the organization determines the number
of Job Grades a GOCC may have. It also impacts the
Job Grades of Jobs in the Executive Band of the
CPCS.
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Step 1: Determining
Slide Title Size of the Organization

CLASSIFICATION OF GOCCS BY OVERALL SIZE. – For purposes of the CPCS,


GOCCs are classified in accordance with their overall size determined by getting the
average of the following three (3) factors:

(a) Company Financials;


(b) Number of Full-Time Equivalent (FTE) Employees; and
(c) Geographical Scope and Business Complexity.

If the resulting average grade is a decimal number, the figure shall be rounded off to
the nearest whole number for the GOCC’s overall grade / size as categorized below:

CLASSIFICATION AVERAGE GRADE

Small 16
Medium 17 to 18
Large 19 and Up
The classification shall be based on an official certification issued by GCG, covered by supporting instruments and
documents. GCG may change a GOCC’s classification 13
Step 1: Determining
Slide Title Size of the Organization

1. Company Financials shall be based 2. Number of FTE Employees. – GOCCs


on the average of the prior three (3) shall have a grade based on the number of
years’ audited financial statements; FTE Employees as follows:
GOCC FINANCIAL RANGE (P) (USD TO PHP GOCC
NO. OF FTE EMPLOYEES
GRADE CONVERSION C/O GCG) GRADE
16 < 3.0 billion 16 Up to 89
17 > 3.0 billion and < 6.5 billion 17 90 to 240
18 > 6.5 billion and < 22.0 billion 18 241 to 620
19 > 22.0 billion and < 43.5 billion 19 621 to 1,600
20 > 43.5 billion and < 87.5 billion 20 1,601 to 4,100
21 > 87.5 billion and < 218.0 billion 21 4,101 to 10,600
22 > 218.0 billion and < 436.5 billion 22 10,601 to 27,500
23 > 436.5 billion and < 2.0 trillion 23 27,501 to 75,000
24 > 2.0 trillion and < 4.0 trillion 24 75,001 to 200,000
25 > 4.0 trillion 25 More than 200,000

*The computation of Company Financials will be done by GCG * Consider the approved headcount in the
in consideration of the operations and mandates of each plantilla of the approved organizational
GOCC. structure

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Step 1: Determining
Slide Title Size of the Organization

3. Geographical Scope and Business Complexity. – The grade for the GOCC’s
Geographical Scope and Business Complexity shall be determined as

3.1 Geographical Scope

GEOGRAPHICAL SCOPE Global 20 22 24

International 19 21 23

Domestic 16 18 20

Low Medium High


BUSINESS COMPLEXITY

Geographical Scope. –
(a) Domestic if majority of operations are based in a single country or a small cluster of countries
within one region
(b) International if the organization is characterized by multi-function operations across an entire
region or in several countries in two continents.
(c) Global if the majority of functions are represented across three or more continents.

All GOCCs are automatically classified as domestic unless there is clear and substantial basis to
classify the GOCC’s actual operations otherwise. 15
Step 1: Determining
Slide Title Size of the Organization

3. Geographical Scope and Business Complexity. – The grade for the GOCC’s
Geographical Scope and Business Complexity shall be determined as:
3.2. Business Complexity – assumes that the GOCC Governing Board has end to
end control of the business

CATEGORY DESCRIPTION

Low GOCC’s operations involve only one of the activities specified below.

Medium GOCC’s operations involve only two of the activities specified below.

High GOCC’s operations involve all three of the activities specified below.

The three types of activities considered:

i. Regulatory; and/or
ii. Revenue-Generation; and/or
iii. Social Services
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Step 2: Determine
Slide Title the Career Band of the Job

The CPCS Position Classification differentiates jobs on


both their nature and level of contribution to the organization
CPCS POSITION CLASSIFICATION MAP
MANAGEMENT
TRACK
CONTRIBUTOR TRACK
INDIVIDUAL

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Step 2: Determine
Slide Title the Career Band of the Job

• Typically, one downs of CEO/President/Business Unit Heads


• Primarily involved in the development, evolution and approval of long-
Executive (EX) term vision across a market function, division, region or country
• Impacts broader organization performance directly
• Main focus is on strategy setting (with Org-wide impact)

• Implements organization strategies through the effective direction and


management of resources
Supervisory/ • Sets discipline or area strategy consistent with established organization
strategies
Management (M) • Focused on policy making and/or implementation
• Accountable for managing people, setting direction and deploying resources

• Primarily involved in direct contact with clients to acquire new business or


Customer/Client develop existing accounts
• Participates in sales presentations, developing bids, and responding to
Management & proposals
Sales (S) • At senior levels, likely to set/negotiate product/service terms
• A portion of their compensation is likely to be based on sales results

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Step 2: Determine
Slide Title the Career Band of the Job

• Work is primarily achieved by an individual or through project teams


• Qualified professionals who are expected to use their judgment to apply
expertise gained through education and/or experience
• Progression within the career band is defined by increasing depth of
Professional (P) professional knowledge, project management, and ability to influence
others
• Typically requires mastery of a specialized field of expertise related to
professional qualification which may be in the form of a professional
certification (e.g., Engineers, CPA, etc.)

• Performs technical tasks required to support on-going


business operations (e.g., Technicians, IT Administrators)
Technical Support • Requires vocational training or the equivalent experience,
(T) but does not require a university degree
• Skilled technician in a hands-on environment, often highly
specialized

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Step 2: Determine
Slide Title the Career Band of the Job

• Supports the business through performing


clerical/administrative support tasks
• Work is typically rule-based, covered by standard
General Staff operating procedures, and jobholder has very limited
(G) opportunity to deviate from agreed processes and
standards
• May require vocational training or the equivalent
experience, but does not require a university degree

• Performs operational, craft or manual tasks


• Performs tasks according to established procedures, with
Labor (L) limited opportunities for independent decision-making
• Typically performs unskilled or semi-skilled work

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Step 3: Determining the Career Levels and Job
Slide
Grade
Title
CPCS POSITION CLASSIFICATION MAP
MANAGEMENT
TRACK
CONTRIBUTOR TRACK
INDIVIDUAL

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Slide Title
Sample Output of Job Leveling

The Position Classification Matrix allows for easier review of the alignment of jobs
vertically in the same function/unit, and across units/functions.
CAREER JOB
ACCOUNTING AUDIT LEGAL
LEVEL GRADE
M4: Grp Mgr 16 • LEGAL
COUNSEL (M4)
M3: Sr Mgr 15 • ACCOUNTING • AUDIT MANAGER
MANAGER (M3) (M3)

CONTROLLER (M3)
M2: Mgr 13 • ACCOUNTING • AUDIT
ASSISTANT SUPERVISOR (M2)
MANAGER (M2)

CONTROLLERSHIP
SUPERVISOR (M2)

• ACCOUNTING
SUPERVISOR (M2)
M1: P3: 11 • FINANCIAL ANALYST • SENIOR AUDITOR
Supv Career (M1) (P3)
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Slide Title

Compensation Items

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Slide Title System in the CPCS
Compensation
 The total compensation granted shall include:
 Basic Salaries
 Standard Allowances and Benefits
 Specific-Purpose Allowances and Benefits
 Variable Pay
 Excluded are indirect compensation regulated under existing laws
 Life and retirement insurance benefits
 Employee compensation insurance
 Health insurance
 Pag-IBIG fund benefits
 Provident Fund benefits
 There will be non-diminution of the authorized amount of monthly basic salary as of
December 31, 2015 for incumbent employees

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Basic Monthly Salaries:
Slide Title
Developing the Salary Ranges

Defined the Classified the Conducted cash


guiding GOCC competitive Developed
principles jobs Analysis salary ranges
of the CPCS Using CPCS

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Basic Monthly Salaries:
Slide Title
Difference between SSL and CPCS
FROM TO

• SSL-covered GOCCs CPCS Salary Ranges


• SSL-exempt GOCCs • Job Grades 1 to 11: Single Salary Ranges
• Job Grades 12 and above: Salary Ranges
differentiated according to Sector
a. Government Financial Institutions (GFIs)
and Gaming
b. All Other Sectors

• SSL: 33 salary grades, • CPCS pay structure identifies a Minimum


8 steps per grade and Maximum pay for each job grade

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Salary Ranges
Slide
Job Title1-11
Grades
Current SSL Fourth Tranche CPCS Salary Ranges
Monthly Salary Schedule

Job Grade Minimum Maximum

1 11,068 11,756
2 11,761 12,461
3 12,466 13,209
4 13,214 14,787
5 14,788 16,547
6 16,548 18,518
7 18,519 20,722
8 20,754 25,946
9 25,947 32,439
10 32,440 40,557
11 40,558 50,702

 Reference date of Salary Ranges is as of January 1, 2016.

 Salary Ranges are typically reviewed every 2-3 years.


GCG shall periodically update the CPCS based on
parameters outlined in the EO. 27
Salary Ranges
Slide
Job Title12 and above
Grades
Current SSL Fourth Tranche CPCS Salary Ranges
Monthly Salary Schedule GFIs and Gaming
Job Grade Minimum Maximum
12 53,814 73,186
13 73,186 99,534
14 99,534 135,366
15 138,897 180,566
16 180,567 234,736
17 238,579 322,080
18 322,081 434,808
19 434,809 586,991
20 591,339 798,307
21 804,221 1,085,699
All Other Sectors
Job Grade Minimum Maximum
12 55,652 72,348
13 72,348 94,052
14 94,052 122,268
15 124,985 156,231
16 156,231 195,289
17 195,289 244,111
18 244,111 305,139
19 310,446 403,579
20 403,579 524,653 28
21 524,653 682,049
Standard Allowances and Benefits
Slide Title
(Fixed Bonuses and Allowances)
• These items are given across-the-board based on the prescribed rates in line
with the private sector practice

• Shall include the following:

All Sectors
Type Annual Amount
Fixed Bonus Mid-Year Bonus (13th 1.00 x Monthly Pay
month)
Year-end Bonus (14th 1.00 x Monthly Pay
month)
Fixed Cash Rice Php 16,000
Allowances Clothing Php 6,000
Meal Php 18,000

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Design Principles of Variable Pay:
Slide Title
Performance-Based Bonus Systems
Parameters and considerations in designing the PBB
A. Individual Performance-Based Bonus (IPBB)

 Linked to individual performance


 Target amount differs depending on Job Grade

B. Organizational Performance-Based Bonus (OPBB)

 Linked to organizational performance


 Target amount is 1.0 monthly basic salary for all

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Elements of the Individual Performance-
Slide Title
Based Bonus (IPBB)*
Element Provisions
Eligibility • Officers and Employees who occupy regular positions
• Should have rendered at least six (6) months of service in the GOCC
for the performance year
Plan Funding • Targeted PBB payout should be included in the payroll expense
budget for the coming year plus a buffer of 10%
• If unspent, the amounts shall revert as savings for the GOCC
• The budgeted amount shall also take into consideration the
affordability constraints of the GOCC
Performance • Overall Organization Performance
Measures • Individual performance

Payout Criteria • Pursuant to the “Performance Evaluation System for the GOCC
Sector” (GCG MC No. 2013-02):
- Achieve a weighted-average score of at least 90% on its
Performance Scorecard
- Comply with the Good Governance Conditions prescribed by
GCG
*The IPBB is separate from the Organizational Performance-Based Bonus (OPBB) 31
**GCG shall issue Memorandum Circulars on the implementation of the various PBB systems.
Elements of the Individual Performance-
Slide Title
Based Bonus (IPBB)* (cont’d)
Element Provisions
Calibration between • Individual performance measured by the GOCC’s Strategic Performance
Measures & Awards Management System (SPMS) or equivalent
• Ratings shall be quantified to allow for ranking based on the following
performance brackets.
• Labor, General Staff, Technical Support bands (JG 1-7)
• Client Management/Sales, Professional, Management/Supervisory bands
(divided into JG 8-11, and JG 12-15)
• Executives (JG 16-21)
• Target payout for each performance bracket, expressed as a multiple of
monthly base salary:
Performance Category JG 1-7 JG 8-11 JG 12-15 JG 16-21

Top 10% 1.50 2.00 2.50 3.50


Next 25% 1.25 1.75 2.25 3.25
Remaining 65% 1.00 1.50 2.00 3.00
Below “Satisfactory” None None None None

Performance Period • Performance period to follow the calendar year


and Payout • Annual payout, generally during the first half of succeeding year
Frequency
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Amount • Based on monthly basic salary
Individual Performance-Based Bonus (IPBB):
Slide Title
Illustration
 Step 1: Evaluate GOCC
performance
Yes No
No
GOCC hits target?
Pay-Out
X
Rank
employees 

• Step 2: Rank eligible employees according to


performance
Performance JG 1-7 JG 8-11 JG 12-15 JG 16-21
Category
Top 10% 1.50 2.00 2.50 3.50
Next 25% 1.25 1.75 2.25 3.25
Remaining 65% 1.00 1.50 2.00 3.00
Below “Satisfactory” None None None None 33
Elements of the Organizational Performance-
Slide Title
Based Bonus (OPBB)*
Element Provisions
Eligibility • All officers and employees of the GOCC

Performance • Overall Organizational Performance


Measures
Payout Criteria • Certification by GCG that a GOCC has achieved a weighted-average
score of at least 90% on its Performance Scorecard for the previous
year

Performance • Performance period to follow the calendar year


Period and • Annual payout in the first quarter of each year
Payout
Frequency
Amount • One month’s (1.00) basic salary
Others • The administration of the OPBB shall follow the same relevant
criteria and processes pertaining to the IPBB, as covered in the EO
*The OPBB is separate from the Individual Performance-Based Bonus (IPBB)
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**GCG shall issue Memorandum Circulars on the implementation of the various PBB systems.
SlideCompensation
Other Title Items in the CPCS
 Standard Benefit – Healthcare Plan
 The Governing Board of a GOCC may, subject to guidelines to be issued by GCG,
procure a Healthcare Plan supplementing benefits received under PhilHealth
 The plan may include the following Benefits:
— Hospitalization Benefit
— Clinical/Outpatient Benefit
— Dental Care
— Optical Benefit
— And others.
 GOCC must be financially capable of sustaining services of the Healthcare Plan
 Procurement is subject to RA 9184 (Government Procurement Reform Act)

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SlideCompensation
Other Title Items in the CPCS
 Specific-Purpose Allowances and Benefits
 Hazard Pay for personnel exposed to hazardous situations
 Overtime pay for Technical Support, General Staff and Labor Bands
 Night-Shift Differential Pay
 Honorarium for individuals concurrently occupying a Board/Corporate Officer
position
 Allowance for lawyer-personnel appearing in court hearings
 Other allowances and Benefits peculiar to certain GOCCs (subject to GCG’s
approval)
 Variable Pay
 Anniversary Bonus
 Productivity Enhancement Incentive (PEI)

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SlideCompensation
Other Title Items in the CPCS

 CNA Incentives, to be extended to cover non-Chartered GOCCs in addition


to Chartered GOCCs (governed by policies of DBM)
 Incentives allowed by CSC (e.g. Program on Awards and Incentives for
Service Excellence)
 The GCG may recommend, for the President’s approval, incentives outside
of the CPCS for certain position titles in consideration of the good
performance of the GOCC.
 Early Retirement Incentive Plan (ERIP) for officers and employees covered
by CPCS who voluntarily elect to be retired or separated. GOCCs must
undergo reorganization under GCG in order to offer this, but do not need to
have implemented CPCS.
Government Service Rates* (based on current salary, not on
CPCS rates)
First 20 years 1.00 * Basic Monthly Pay * No. of years
20 years and 1 day to 30 years 1.25 * Basic Monthly Pay * No. of years
30 years and 1 day and above 1.50 * Basic Monthly Pay * No. of years
37
Slide Title

Implementation of the CPCS

38
SlideofTitle
Role the GOCC
1. Each covered GOCC shall adopt a Total Compensation Framework (TCF), subject
to the approval of the President of the Philippines in accordance with the favorable
recommendation of the GCG.
If no action is taken by the Office of the President within 45 days of receipt, the
same shall be deemed approved unless the Office of the President informs the GCG
otherwise.
2. Implementation of compensation adjustments shall depend on the financial
capability of the GOCC and their Corporate Operating Budget as approved by GCG,
and those approved by the DBM for entities receiving allocations for the National
Government
3. Basic Salaries – if there are affordability concerns, the GOCC may propose a salary
range for each Job Grade that falls below the salary ranges prescribed in the EO, taking into
account the financial standing of the GOCC as well as the sustainability of the compensation
framework.

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Slide Title the Salary Ranges
Implementing
 The implementation of the CPCS is progressive, not retroactive
 Hiring Rate guidelines
 For JG 1-11
— May be set up to minimum during the probationary period, but in no case lower
than the applicable minimum wage rate mandated by law.
— Upon appointment to regular status, pay may be increased to the minimum
— For individuals who exceed the minimum CSC Qualification Standards, the
hiring rate may be set until 5% above the minimum of the salary range
 For JG 12 and above
— The hiring rate may be set up to 10% above minimum if the individual exceeds
the minimum CSC Qualification Standards (e.g. graduation from a reputable
school, relevant experience, having more than the required educational
attainment)

40
Slide Title the Salary Ranges
Implementing

 Promotion – the Governing Board through Management may promote


individuals through:
1. Raise the salary to the minimum of the Job Grade of the vacant plantilla
item which the employee will be promoted to

Job Grade Minimum Maximum

4 13,214 14,787
5 14,788 16,547

Example:
• Current Job: Grade 4, with Salary of Php 14,000
• Promotion to Job Grade 5, with a minimum of Php 14,788
• Raise raise pay to Php 14,788

41
Slide Title the Salary Ranges
Implementing
 Promotion (continued)
2. If the employee’s salary already exceeds the minimum of the Job Grade of said plantilla
item, raise the salary by the percentage difference in the salary range minimum of the
current Job Grade to the new Job Grade

Job Grade Minimum Maximum

4 13,214 14,787
Example: 5 14,788 16,547
• Current Job Grade 4, with Salary of Php 14,800
• Promoted to Job Grade 5, with a minimum of Php 14,788
• Compute for the percentage difference of the minimums
• (Job Grade 5 – Job Grade 4)/Job Grade 4 = (14,788 – 13,214)/13,214
• 11.91%
• Raise salary by 11.91% = 14,800 * (1 + 11.91%) = 16,563.
• Promotion increases cannot exceed the maximum of the new Job Grade; hence the new
42
salary is capped at 16,547
Slide Title the Salary Ranges
Implementing
 Promotion (continued)
3. Raise the salary by the percentage difference in the salary range midpoints of the current
Job Grade to the new Job Grade

Job Grade Minimum Maximum

4 13,214 14,787
Example: 5 14,788 16,547
• Current Job Grade 4, with Salary of Php 14,800
• Compute for Midpoint = (Minimum + Maximum)/2
• Job Grade 4 = (13,214 + 14,787)/2 = 14,001
• Job Grade 5 = (14,788 + 16,547)/2 = 15,668
• Compute for percentage difference = (15,658-14,001)/14,001 = 11.91%
• Compute for the new salary = (14,800 * (1+11.91%) = 16,562
• Promotion increases cannot exceed the maximum of the new Job Grade; hence the new
salary is capped at 16,547
4. If the employee moves from an overtime-earning job to a non-overtime earning job,
43
consider the earning potential lost
Slide Title the Salary Ranges
Implementing
 Merit Increases – in order to support a performance-driven organization,
GOCCs may recommend merit increases subject to GCG’s approval:
 Step 1: Determine the salary increase budget for the year. Consider
projected market salary increase and the GOCC’s affordability to pay
 Step 2: Determine the performance rating distribution under the GOCC’s
Strategic Performance Management System (SPMS) or equivalent.
Implementing guidelines may vary year-on-year depending on considerations
such as budget. The table below shows the recommended distribution of the
GOCC’s population:
Performance Rating Recommended
Distribution
Outstanding 10% of employees
Very Satisfactory 20%
Satisfactory 50%
Unsatisfactory 15%
Poor 5% 44
Slide Title the Salary Ranges
Implementing

 Merit Increases (continued)


 Step 3: Allocate percentage increases depending on individual performance.
The following additional factors may be considered
— Current position in the salary range
— Rate of progress and future potential (increase the time interval and/or
decrease size of increase for individuals approaching what appears to be
the ultimate potential)
— Foreseeable promotion opportunities
— Salary increase budget
 The Governing Board through Management may withhold unearned
increases from a poor performer where appropriate
 In no case shall implementation of a merit increase result in raising the
current salary of an individual above 25% of the maximum for his/her job

45
ILLUSTRATION:
Slide Title
Implementing the Salary Ranges
 Sample Merit Increase matrix considering both position in range and individual
performance

Performance Position in Salary Range

Bell Curve Rating Below Minimum 1/3 to 2/3 2/3 of Above


Distribution Minimum to 1/3 of of Maximum Maximum
Maximum Maximum to
Maximum
10% 4 10.50% 9.75% 9.00% 8.25% 7.50%
40% 3 6.50% 6.00% 5.50% 5.00% 4.50%
40% 2 4.00% 3.75% 3.50% 3.25% 3.00%
10% 1 3.25% 2.75% 2.25% 1.75% 1.25%

Using the two-dimensional matrix is aligned to the pay philosophy of considering


both individual performance and competitiveness against the market.

46
Slide Title

Communications Planning and


Key Messages

47
Slide Title
Communication Management Objectives

General Objective:
• To identify the appropriate messages for respective audiences to be delivered
through effective communication channels
• To equip the communication core team on change and communication
management for the CPCS

Specific Objectives:
 To identify and understand the key stakeholders and their current perceptions
about the change
 To identify key messages and communication channels to implement the
CPCS
 To create communication toolkits to provide select communication and
change champions to deliver the messages
48
SlideofTitle
Role Communication Core Team
 Advocate of change. Assist in explaining and providing context on CPCS
 Link. Bridge the gap between the employees and management and/or
GOCCs and GCG
 Listen to what employees say about CPCS
 Observe how employees react, feel about the changes
 Act
— Document feedback received
— Provide feedback to Core Team and/or GCG on the concerns received
and observations noted
— Address questions or misperceptions
— Direct questions or misperceptions to the right party
— Participate in communication management meetings and brainstorm on
interventions
— Support GCG in addressing or articulating the responses to issues /
49
questions raised
An effective Communication Strategy
Slide Title
supports the Change Initiative
Objectives Targeted, measurable objectives and the specific strategies needed to achieve
success

Audience Who needs to know when and, for key communicators, what their role is in the
Analysis process

Key Critical messages that become the touchstone for the entire communication
Messages process

Channels Plan Using the right channel for specific communication interventions

Timing Delivering messages in a timely, thoughtful and integrated way

Success
Measures Guidelines for success and methods of data-gathering
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Slide Title
Communication Toolkit

 Overall CPCS Communication Plan


 Executive Order
 Presentation Decks, tailor-fit according to the following audiences:
 GOCC Executives (high-level content)
 GOCC HR and Line Managers (technical content; same material to be used
in train-the-trainer sessions)
 All Employees (for general town hall assemblies)
 Frequently Asked Questions (FAQs)

51
Key Communication Message:
Slide
New Title Methodology
Leveling
• An objective basis for establishing job levels was used
- The CPCS adopted a proven job evaluation methodology used
globally
- Jobs were evaluated based on job content and not on jobholders’
qualifications, tenure or performance

• No comparison may be made between the old index of


occupational services and SSL vs. the new position classification
system
- The job evaluation rating plans are different
- The new system is job-based

The previous SSL salary grades and steps will no longer apply.
The new CPCS job grades will now be adapted.

52
Key Communication Message:
Slide
New Title Methodology
Leveling
CPCS adapted the Towers Watson proprietary job leveling methodology

Global Grades
Career Band • Provide the underpinning
Groups jobs with similar (foundation) for both Executive
level of contribution or Benchmarks and the Career
broad employee Levels
category • Determines the start and end
points of a career progression

Career Level
• Discernible broad step in a career progression
• Consistent across organizations
• Reflects normal market progression of jobs
requiring higher levels of competence and
knowledge as people advance in their careers 53
Key Communication Message:
Slide
New Title Methodology
Leveling
• Perceived move to a lower level
- This is not a demotion.
- There will be no pay cut nor discontinuance of benefits currently enjoyed.
- There may be an opportunity for the incumbent to aspire for a job
commensurate to his qualifications and experience.
- If a new person is hired for the job, the new person’s pay and benefits will be
in accordance with the job level of the job and not the level of the predecessor
incumbent of the role.

• Perceived move to a higher level


- This is not a promotion.
- An assessment will be made of the person occupying the job to determine
whether his qualifications warrant movement to the level where the job
belongs.
- Once the incumbent is confirmed, all the salaries and benefits attributed to the
level of the job will be accorded the jobholder. Should the qualifications and
experience of the incumbent jobholder not match that of the new role, then
this may be an opportunity to move the incumbent to a job more suitable to his
54
qualifications and experience.
Key Communication Message:
Slide Titleof the New Compensation System
Implications
• The Salary Ranges were developed to be generally closer to the roles in the
private sector doing comparable work, within the affordability limits and
sustainability capacities of the GOCCs

• As an outcome of the updated position classification and Salary Ranges, not


all employees’ current salaries will fall neatly into the new Salary Ranges.
This outcome is typical even with the private sector.
ILLUSTRATION: Current pay vs. new Salary Ranges

55
Key Communication Message:
Slide Titleof the New Compensation System
Implications
Employee Group Key Communication Message
All employees “Your compensation is a private and confidential matter and
should NOT be discussed openly with others.”
Red Circle - “Your pay is above the market. You will continue to receive salary
Employees whose increases but expect these increases to be smaller than the
pay is beyond the average. You will be eligible to receive the variable pay
maximum of the commensurate to your level.”
proposed salary
range.
Green Circle - “A review of your pay will be made to bring it to the level accorded
Employees whose to the range of pay for your job, considering your own
pay is below the performance in the job. The improvements may be spread out
minimum of the across several years based on affordability limits due to regulatory
proposed salary provisions in our concession agreement.”
range.

56
Key Communication Message:
Slide Titleof the New Compensation System
Implications
Employee Group Key Communication Message
New hires “Your salary is set at the minimum of the salary range.
Premium may be extended depending on very special
circumstances and are subject to appropriate approvals.”
Promotions “Promotions are subject to promotion guidelines. Candidates
for promotion must successfully assume the requirements of
the next level role. All promotions are based on the
availability of roles at the higher level.“
CBA-covered jobs “While recognizing the constitutional right of workers to self-
organization, collective bargaining and negotiations, the
Governing Boards of all covered GOCCs may not negotiate
with their officers and employees the economic terms of their
CBAs.”
“CNA Incentives which primarily cover savings from the
COBs of Chartered GOCCs, shall now be extended to non-
chartered GOCCs to promote the uniformity of allowable
incentives within the GOCC Sector.” 57
Slide Title

Job Titles and Typical


Qualification Standards

58
Slide
Job Title
Titling

These are recommended titles that will allow for alignment across GOCCs. These
titles may be applied after the Job Leveling has been approved by GCG.
A. Management
1. Executive Career Band (EX) – Job titling in the Executive Career Band will follow
respective organizational job titles currently used.
Sample Job Titles
Career Band Career Level Job Grade
(For Illustration Purposes Only)

20 Chief Executive Officer

19 Chief Operating Officer

18 Executive Vice President


Executives EX
17 Senior Vice President

16 Vice President

15 Assistant Vice President


59
Slide
Job Title
Titling
2. Supervisory Management Career Band.
GOCC Unit / Department + Prescribed Level Title
Example: Accounting Asst. Manager (M2-JG13)
Logistics Supervisor (M1- JG11)
Career Prescribed Grade Sample Job Titles
Career Band Job Grade
Level Title (For Illustration Purposes Only
Not Applicable (Only for Global and International Organizations)
M5 17

M4 16 Head HR Head

15 Senior Manager HR Senior Manager


M3
14 Manager HR Manager
Supervisory/
Management
13 Assistant Manager HR Assistant Manager
M2
12 Senior Supervisor Compensation Senior Supervisor

11 Supervisor Compensation Supervisor


M1
10 Junior Supervisor Compensation Junior Supervisor 60
Illustration

SlideQualification
Typical Title Standards

Career Qualification Standards


Career Band Job Grade
Level Educational Attainment No. of Years Work Experience

20

19
Bachelor or Post-Graduate 12-15 years prior relevant formal
18 Degree or Professional training or work experience in an
Executives EX
Qualification executive or function strategist
17 role

16

15

61
Illustration

SlideQualification
Typical Title Standards

Career Qualification Standards


Career Band Job Grade
Level Educational Attainment No. of Years Work Experience
M5
17
M4 11-15 years prior relevant formal
16
training or work experience in a
managerial role
15
M3
14
7-8 years prior relevant formal
13
M2 training or work experience in a
Bachelor or Post-Graduate Degree
Supervisory/ managerial role
12 or Professional Qualification
Management
5-6 years prior relevant formal
training or work experience in a
11 supervisory role

M1

4-5 years prior relevant formal


10
training or work experience in a
supervisory role
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Slide Title END

A competitive and reasonable Compensation


and Position Classification System (CPCS) that
supports and encourages performance-driven,
productive, and efficient organizations.
The CPCS will help institutionalize
compensation reforms in the GOCC Sector.