LOADING, ALLOWANCES AND PERFORMANCE BONUS PROCEDURE

Related Policy

Remuneration and Employment Benefits Policy

Purpose

This procedure details the general conditions, eligibility and process for the payment of discretionary loadings and performance bonus benefits.

Scope

This procedure applies to all staff members, except casual staff, and outlines the process for managers to follow when determining the following payments:

* Attraction/Retention Loading

* Responsibility Loading/Higher Duty Allowance

* Performance Bonus

* Pre-Retirement Loading

Attraction/Retention Loading

1. Attraction/Retention Loading

An Attraction/Retention Loading allows managers flexibility to attract and retain staff with specialised expertise in their discipline or profession, recognising the demand within the current employment market. The payment of such loadings to staff members ensures the University maintains its competitive edge in the higher education sector.

1.1. Eligibility and Conditions

The criteria for deciding eligibility for an Attraction/Retention Loading, and the level at which it should be paid, includes determining whether:

1.1.1. There is difficulty, or anticipated difficulty, attracting suitably qualified or experienced staff in the relevant field of a discipline/profession.

1.1.2. Retention of existing staff is difficult due to evidence that higher salaries are being paid by other external organisations for positions of a similar nature.

1.1.3. The skills or attributes being remunerated through the loading are aligned with the University's strategic objectives.

Conditions for an Attraction/Retention Loading are that:

1.1.4. The loading can only be offered with the explicit approval of the staff member holding the relevant delegated authority.

1.1.5. Any offers of appointment made to applicants that include a loading will be invalid without the approval of the staff member holding the relevant delegated authority

1.1.6. The decision made by the staff member holding the relevant delegated authority is discretionary and final.

1.2 Process for Requesting Payment of an Attraction/Retention Loading

Responsibility: Head of School/Branch Head

1.2.1 Initiate the application for the payment of an Attraction/Retention Loading to a staff member.

1.2.2 Determine that the skills, experience and attributes of the staff member or new appointee (to be assessed for the loading) are at a significantly high level and are in high demand within the employment market.

1.2.3 Where the University is paying the loading, assess the financial position of the School or Branch and its ability to commit to the payment of a loading for the period requested.

1.2.4 Consider consistency with other staff members receiving a loading.

1.2.5 Consider the ability of the School/Branch to meet their strategic objectives if the staff member or new appointee is not retained or appointed.

1.2.6 Provide completed Loading Request Form and consider input from the HR Consultant and, where appropriate, attach supporting documentation.

Responsibility: Executive Dean/Corporate Manager/ Divisional Head

1.2.7 Consider loading payment requests recommended by Heads of School/Branch Heads within the approval limit of up to 25% of maximum base salary for the classification and within the approved budget, up to $50K. (Base salary is the amount payable for the classification of the position as defined in the Enterprise Agreement (as amended), and does not include any loadings or other negotiated salary).

1.2.8 Approve or decline the requests for loading and any future extensions. Refer to Duration and Review of Loading in this procedure.

1.2.9 If approval is granted, forward to the Human Resources Branch to action payment and if not approved, ensure feedback is given to Head of School/Branch Head.

Responsibility: Vice-Chancellor and President

1.2.10 Consider loading payments for Executive Deans/Corporate Managers/Divisional Heads/Pro Vice Chancellors and Level E Academics, where a loading request for any other staff member exceeds 25% of maximum base salary for the classification of the position.

1.2.11 Recommend the request for the loadings for Deputy Vice-Chancellor and Vice-President and Vice Presidents to the Senior Executive Review Committee for approval.

1.3 Source of Funds

1.3.1 The Faculty/Division is financially responsible for any external salary review request.

1.3.2 The respective School/Branch is responsible for the cost of the loading and any continuation to the loading. Loadings will be charged to the same cost centre to which the staff member's salary is charged.

1.4 Details of Loading

1.4.1 The loading will be paid fortnightly and is included in the salary package. As such, when the individual is on paid leave the loading will continue to apply (e.g. annual, maternity leave).

1.4.2 The loading will be expressed as a fixed dollar amount, which does not increase with salary increments or with pay increases to the base salary.

1.5 Duration and Review of Loading

1.5.1 The attraction and retention loading will only be granted for a specified period up to a maximum of three years, after which the loading will cease.

1.5.2 Consideration for an extension of a loading must occur three months before the expiry date of the loading.

1.6 Superannuation Implications

1.6.1 Attraction/Retention Loadings (unless approved before the implementation of this policy) are not superannuable except as required to meet the Superannuation Guarantee with respect to superannuation payable on Ordinary Time Earnings. The cost of meeting any superannuation payable will be borne by the Faculty/School/Branch.

2 Responsibility Loading (including Higher Duty Allowance)

A Responsibility Loading provides managers with the flexibility to remunerate a staff member (either an academic or professional staff member) who is appointed to a position/role of increased responsibility or undertakes additional duties at a higher level than their current substantive position, if they are classified below the acting position. Professional staff members who are required to perform duties at a higher level than their existing position, will be entitled to payment as a higher duty allowance rather than a responsibility loading.

2.1 Eligibility and Conditions

Professional Staff

2.1.1 The staff member is required to perform whole or part duties of a position at a higher classification level. Where a staff member is performing some but not all of the duties of a higher classified position, the allowance payment will be calculated in accordance with the proportion of duties performed in the higher classified position.

2.1.2 Where the difference is less than 1.5% of their substantive salary, the higher duties allowance will be paid at the next appropriate increment.

Enterprise Agreement (as amended) - Higher Duties Allowance

2.1.3 The staff member has taken on additional responsibilities while still in their substantive position however the circumstances do not warrant reclassification of the position. The Higher Duties Allowance Form will be completed if this is the situation.

2.1.4 A professional staff member may be paid a responsibility loading where deemed appropriate if higher duty allowance does not apply.

Academic Staff

2.1.5 The staff member is eligible for the payment of a responsibility loading when they undertake a position/role of increased responsibility such as, Head of School or Discipline Head.

2.1.6 Higher duty allowance does not apply to academic staff except in relation to course and coordination allowance payments.

2.2 Process for Requesting Payment of a Responsibility Loading

Responsibility: Head of School/Branch Head

2.2.1 Initiate the application for the payment of a responsibility loading to a staff member.

2.2.2 Assess the financial position of the School or Branch and its ability to commit to the payment of the loading or the continuation of the loading.

2.2.3 Consider the fixed dollar amount of base salary to be recommended for the loading.

2.2.4 Complete a Loading Request Form and include any supporting documentation that will assist the Executive Dean/Division Head to make a judgement on the recommendation.

Responsibility: Executive Dean/Corporate Manager/Division Head

2.2.5 Consider loading payment requests recommended by Heads of School/Branch Heads within the approval limits up to 25% of maximum base salary for the position classification, within approved budget up to $50K. (Base salary is the amount payable in accordance to the Enterprise Agreement (as amended), and does not include any loadings or other negotiated salary, with the exception of clinical loadings.

2.2.6 Approve or decline the requests for loading and any future extensions.

2.2.7 If approval is granted, advise the Head of School/Branch Head and forward to the Human Resources Branch to action payment.

Responsibility: Vice-Chancellor and President

2.2.8 Consider loading payments for Executive Deans/Corporate Managers/Divisional Heads/Pro Vice Chancellors and where a loading for a staff member exceeds 25% of base salary.

2.3 Source of Funds

2.3.1 The Faculty/Division is financially responsible for any external salary review request.

2.3.2 The respective School/Branch is financially responsible for the cost of the loading and any continuation of the loading. Loadings will be charged to the same cost centre to which the staff member's salary is charged.

2.4 Details of Loading

2.4.1 The loading will be paid fortnightly and is included in the salary package

2.4.2 The loading will be expressed as a fixed dollar amount that does not increase with salary increments or with pay increases to the base salary, unless by virtue of a contractual obligation predating this procedure.

2.5 Duration and Review of Loading

2.5.1 The responsibility loading will only be granted for the period that the staff member performs the higher classified role or additional responsibilities, limited as follows:

2.5.1.1 For Head of School the loading payment period is up to five years.

2.5.1.2 For Discipline Head the loading payment period is up to three years.

2.5.1.3 For other staff members who have been awarded a responsibility loading the maximum period is three years.

2.5.2 Conduct an annual review of the loading in line with the Performance Excellence Framework and three months prior to expiry date, for discussion and budget allocation.

2.5.3 A review process in relation to whether to end the payment of a loading or submit a new request for a further loading should commence well before the expiry of the loading so that there is sufficient time for discussion and budget allocation.

2.5.4 The loading must be reviewed when there is a substantial change in responsibilities/role of the position and where the staff member is promoted or reclassified.

2.6 Superannuation Implications

2.6.1 Responsibility Loadings (unless approved before the implementation of this policy) are not superannuable except as required to meet the Superannuation Guarantee with respect to superannuation payable on Ordinary Time Earnings. The cost of meeting any superannuation payable will be borne by the School/Branch.

3 Performance Bonus

Loading

A Performance Bonus provides managers with the flexibility to pay to recognise exceptional and outstanding performance, in achieving specific outcomes. (Excludes DVCs and VPs and VC&P)

3.1 Eligibility and Conditions

The criteria for deciding eligibility for the payment of a performance bonus will include determining whether:

3.1.1 The staff member or group has achieved an exceptional standard of performance in meeting set performance targets, within pre-determined timeframes and budget.

3.1.2 The staff member or group's contribution to a defined project or outcome, both in quality and quantity, has significantly advantaged the University. This provides for the recognition of a once-off extraordinary effort/event/project.

3.1.3 The staff member has outstanding performance that has produced specific outcomes and where the staff member has performed exceptionally but has reached the top of their incremental steps so that an accelerated increment is not an option.

General conditions are as follows:

3.1.4 No staff member is to receive more than one bonus payment in any year without the approval of the Vice-Chancellor and President.

3.1.5 There is no obligation on the University to pay a performance bonus in subsequent years, after one payment.

3.1.6 The consideration of the bonus payment and the outcome of the request will remain confidential.

3.1.7 It is generally expected for a staff member to have participated in the PDR process. An exception to this rule would be where a bonus is paid to recognise efforts in a one-off extraordinary event.

3.1.8 The decision made by the Executive Dean/Corporate Manager and Divisional Head or Vice-Chancellor and President is discretionary and final.

3.2 Process for Requesting Payment of a Performance Bonus

Responsibility: Head of School/Branch Head

3.2.1 Initiate the application for the payment of a Performance Bonus to a staff member.

3.2.2 Assess the financial position of the School or Branch and its ability to pay the one-off performance bonus.

3.2.3 Determine whether the staff member or group's performance is exceptional and their work has contributed to achieving significant outcomes/targets. Exceptional means the performance outcomes are unexpected and outside the normal substantive role and responsibility.

3.2.4 Consider consistency with other staff members in applying the bonus.

3.3 Consider the fixed dollar amount to be recommended as the performance bonus.

3.3.1 Complete a Loading Request Form and include any supporting documentation that will assist the Executive Dean/Division Head to make a judgement on the recommendation.

Responsibility: Executive Dean/Corporate Manager/Division Head

(Executive Dean/Corporate Manager/Division Head has delegations for amounts up to $50K within the approved budget.)

3.3.2 If approval is granted, advise Head of School/Branch Head and forward form to Human Resources Branch to action payment and if not approved ensure feedback is given to Head of School/Branch Head.

Responsibility: Vice-Chancellor and President

3.3.3 Consider recommendations for a performance bonus to a staff member where the payment is greater than $50K.

3.3.4 Consider requests for performance bonus payments where the staff member will receive more than one bonus payment within a twelve month period.

3.4 Source of Funds

3.4.1 The respective School/Branch is responsible for the cost of the bonus payment.

3.5 Details of Bonus Payment

3.5.1 The performance bonus is a one-off payment.

3.5.2 Bonus payments will be expressed as a fixed dollar amount.

3.6 Superannuation Implications

3.6.1 Performance Bonus payments (unless approved before the implementation of this policy) are not superannuable except as required to meet the Superannuation Guarantee with respect to superannuation payable on Ordinary Time Earnings. The cost of meeting any superannuation payable will be borne by the School/Branch.

4. Pre-Retirement Loading

Refer to Pre-Retirement Contract Procedure.

Further Information

If you require assistance in understanding any aspect of this procedure please contact the Human Resources Service Centre, extension 31111 or email hrservicecentre@adelaide.edu.au

Please use the following URL instead of linking to individual documents:
https://www.adelaide.edu.au/policies/3543