1. Purpose of policy
1.1 The purpose of this policy is to detail the remuneration and benefits accessible to senior staff within the University. The policy seeks to ensure the consistent and equitable remuneration and benefits for senior staff. It also seeks to ensure that all senior staff have a clear understanding of the benefits available to them.
2. Policy scope and application
2.1 This policy applies to all staff of the University employed on a common law contract of employment excluding VCP and those staff who are covered by the USC Enterprise Agreement, as varied from time to time. The Vice-Chancellor and President is excluded from the scope and application of this policy as the setting of the employment terms and conditions of this position are the responsibility of the Chancellor and the University Council.
Please refer to the University’s Glossary of Terms for policies and procedures. Terms and definitions identified below are specific to this policy and are critical to its effectiveness:
Base Salary means annual cash salary which is inclusive of annual leave loading.
Total Employment Cost (TEC) means base salary plus the total of the following items:
- superannuation (University contribution including the Superannuation Guarantee Contribution)
- non-superannuable car allowance
Note: the cost of ‘material benefits’ (such as mobile phones, internet access, Laptops, and iPads) are not included in the Employment Cost for market comparison purposes as these benefits are considered ‘tools of the trade’.
Median in the context of this policy means the point where 50% of organisations pay below and 50% of organisations pay above the given value (or the middle of the remuneration grade).
Mercer CED Job Sizing Methodology refers to a proprietary job evaluation tool that provides for the systematic and sound evaluation of positions at all levels based on job content, skill requirements, business/organisation environment, job challenges and position accountabilities.
4. Reward Principles
4.1 USC is committed to attracting and retaining professional, competent and skilled senior staff to drive the organisation’s strategic plan and growth projections. This policy has been developed to support this aim and ensure fairness in remuneration and benefits decisions.
4.2 The principles that underpin this policy include that the reward and recognition will be:
- sufficient to attract, retain, and engage high performing staff;
- aligned to the University’s culture and growth strategy;
- fair and reasonable payment for “whole of job” contribution;
- sufficiently flexible to compete effectively in the market, whilst being financially sustainable;
- internally equitable and consistently applied; and,
- appropriately transparent and clearly communicated.
5.1 The senior staff remuneration grade structure has three grades developed using Mercer’s CED job sizing methodology. The senior staff remuneration grade structure is based on the Total Employment Cost.
5.2 Each grade comprises positions performing work of comparable work value and has a defined remuneration range which allows sufficient flexibility to match the market and reward people for their performance.
5.3 The University will use the remuneration grade structure as a guide in setting and reviewing remuneration packages in the following circumstances:
- proposing, negotiating and setting remuneration packages for new staff;
- adjusting remuneration when roles are changed;
- annual remuneration reviews; and
- approved off-cycle reviews in cases such as contract renewal or to retain key staff.
5.4 Each remuneration grade will include a minimum and maximum pay range that allows for variation and differentiation. In determining an appropriate positioning of roles within the relevant range, the Mercer CED Job Evaluation System will be used. This system will have regard to job related criteria including the complexity, scope, challenge and demands of the role as well as assessing the judgement, expertise, and accountability of the role.
5.5 A review of the remuneration package bands for each senior staff role will occur annually and will comprise benchmarked remuneration data to ensure that salaries remain competitive. Any salary increases to individual senior staff will be based on an assessment of performance against set KPIs.
5.6 Each member of the senior staff will be provided with a car allowance in recognition of USC’s multi-campus operations, and the need for senior staff to maintain a regular presence at each campus.
5.7 To ensure competitiveness, the remuneration ranges for each grade are benchmarked annually and updated as necessary. Factors that will influence an update to the remuneration ranges will include, but will not be limited to, increases to the Consumer Price Index, salary increases provided by the Enterprise Agreement, and market considerations.
6.1 Senior staff will be provided with the following benefits:
- 17% employer superannuation contribution;
- Non-superannuable car allowance; and
- Membership fee of any approved, relevant professional association(s) up to a combined total value of $1000.).
6.2 The cost of providing the benefits described will be borne by the University and charged to the Cost Centre.