REMUNERATION MATTERS WITHIN THE PUBLIC SERVICE

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• REMUNERATION MATTERS WITHIN THE PUBLIC SERVICE

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OUTLINE

• Background (2006 PER)
• Remuneration Policy
• Latest developments in remuneration
• Occupation Specific Dispensations
• Revised Salary Structure for Salary levels 1-12
• Impact on Job Evaluation

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BACKGROUND

• The 2006 PER highlighted the following areas of
  the Public Service remuneration framework as
  requiring attention
• The ability to recruit and retain professionals
  and specialists
• The movement of employees between departments
• The competitiveness of the remuneration framework
  and the ability to compete for skills in the
  general market
• The negative impact of inequitable salaries as a
  result of inconsistent application of job
  evaluation and remuneration principles
• The need for a sound centralised remuneration
  governance structure and policy with an element
  of decentralised execution

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2006 PER KEY RECOMMENDATIONS

• Equal pay for work of equal value
• Broad occupational differentiation in pay
• Position on degree of market relatedness required
• Greater degree of performance related pay
• Remuneration of professionals, specialists and
  scarce skills occupations a priority
• The PER informed the new remuneration policy for
  the public service which provided for the
  development of OSDs, with distinct (sound) career
  paths and salary scales for the different
  professions.

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VISION

• To improve the Public Services position to
  become an employer of choice by attracting and
  retaining sufficient numbers of employees with
  the required competencies, and motivating such
  employees, with the view to improve service
  delivery within the context of a developmental
  state

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STRATEGIC OBJECTIVES

• Positioning the Public Service as an Employer of
  Choice
• Raise public service performance without
  increasing the wage bill as a share of GDP
• Introduction of performance based remuneration
  systems
• Introduction of Occupation Specific
  Dispensations, including career pathing
  dispensations

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KEY QUESTIONS TO BE ANSWERED BY A SUCCESSFUL REM
POLICY

• Is remuneration policy able to keep the workforce
  motivated and productive?
• Is remuneration policy aligned to skills and
  competencies?
• Is remuneration policy enhancing career
  progression of professionals?
• Is remuneration policy facilitating the
  attraction and retention of skills?
• Is performance-based remuneration system working?
• ELEMENTS OF REM POLICY
• OSDs, Performance Based Pay, Benefits and
  Allowances, Systems

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OCCUPATION SPECIFIC DISPENSATIONS

• The new Remuneration Policy framework include the
  element of the development and implementation of
  occupation specific dispensations (OSDs) for
  targeted occupations due to the following
  challenges
• Inability to competitively remunerate the diverse
  occupational categories
• Absence of adequate career pathing and promotion
• Too little differentiation amongst professionals
  in the public service - either based on
  performance or experience
• Research suggests the following
• entry level salaries of certain occupational
  categories in the public service are fairly high
  when compared to the private sector, therefore
  the problem is not about attracting skills, but
  retaining them
• the remuneration levels for public service
  professionals are markedly lower than the private
  sector, leading to skills loss
• A new dispensation providing a career path with
  salary progression is essential to retain
  professionals in the PS

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OCCUPATION SPECIFIC DISPENSATIONS (1)

• Unique salary structures per occupation
• Centrally determined grading structures and broad
  job profiles
• Career pathing based on competencies, experience
  and performance
• Pay progression within the salary levels for
  identified occupations
• The alignment of remuneration per occupation with
  market trends where necessary (competitive
  salaries)
• Grade progression without competing for vacancies
  or promotion to higher posts

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ADVANTAGES

• Based on the correct grading of positions derived
  from centrally determined benchmark job
  descriptions
• Centrally determined salaries attached to each of
  the identified grades
• Centrally prescribed skills/competency
  requirements
• Clear career paths and grade progression
• Improved compliance by departments
• Curtail job hopping between departments and
  provinces (in the same occupation)
• OSDs are not general salary increases, but a
  systematic way to improve the salaries of
  employees after predetermined periods based on
  performance, qualifications, scope of work,
  experience, etc.

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REVISED SALARY STRUCTURE

• The PSCBC Resolution 3 of 2009 provides for
• Revised salary structure, not an OSD
• Grade progression model
• Implementation of JE outcomes, in particular for
  ASDs and DDs
• This Resolution is applicable to employees on
  salary levels 1 to 12 who are
• Appointed in terms of the Public Service Act,
  1994 and
• Not covered by an OSD referred to in PSCBC
  Resolutions 1 of 2007 and 3 of 2009

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REVISED SALARY STRUCTURE

• Reduction in number of notches per salary level
• Salary level 1 five (5) notches
• Salary levels 2 12 twelve (12) notches
• 1, 5 fixed percentage increment between notches
• Progression to a higher notch within scale is
  based on performance (Existing Departmental
  Performance Management and Development Systems)
• Job Evaluation Where the job score falls in the
  discretionary area between two consecutive salary
  ranges from levels 1 to 12, an Executive
  Authority must grade the post at the lower weight
  range.

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IMPLICATIONS JOB EVALUATION SYSTEM

• OSD
• Centrally determined by MPSA
• EAs no longer have the authority to job evaluate
  OSD posts or deviate from them.
• Revised Salary Structure
• Grade progression model does not suspend Job
  Evaluation system in the Public Service
• The PSR prescripts for JE remains applicable,
  except where changed by the directive
• The MPSA directed that where the job score falls
  in the discretionary area between two consecutive
  salary ranges from levels 1 to 12, an Executive
  Authority must grade the post at the lower weight
  range
• The grades for ASD DD have centrally been
  determined on salary levels 9 and 11 respectively
• This suspends the authority of EAs to grade ASD
  DD jobs at salary levels 10 12 respectively

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THANK YOU