ATTRACTION AND RETENTION ALLOWANCES POLICY


Date approved:	14 May 1996	Date Policy will take effect:	On approval	Date of Next Review:
Approved by:	Administrative Committee
Custodian title & e-mail address:	Manager, Professional and Organisational Development Services pods@uow.edu.au
Author:	Julie Croft
Responsible Faculty/ Division & Unit:	Professional and Organisational Development Services, Personnel Services
Supporting documents, procedures & forms of this policy:	Performance Planner Performance Agreement Performance Enhancement & Career Development Record Attraction & Retention Performance Agreement Form
References & Legislation:	Recruitment and Selection Policy
Audience:	Public – accessible to anyone
Expiry Date of Policy:	Not applicable

Contents

1 Purpose of Policy 2
2 Definitions 2
3 Application & Scope 2
4 Nature of Allowances 2
5 Criteria 3
6 Procedures 3
7 Roles & Responsibilities 4
8 Version Control and Change History 4

1 Purpose of Policy

1. The University's general salary policy for staff is to pay the rates specified under the classification level for the respective position and to recognise and reward the performance of individual staff through a range of measures including the promotions and reclassification systems, progression through incremental ranges, including accelerated incremental progression and the University's awards programs.
2. The University also acknowledges the need to supplement the above framework to reward exceptional performance, where promotion or accelerated incremental progression may not be an option, and the need to adopt additional measures aimed at improved attraction and retention of key staff.
3. In some situations, this may include payment of additional salary or benefits, by way of an attraction and retention allowance.

2 Definitions

Not Available

3 Application & Scope

1. Academic and general staff members at all levels are eligible to receive attraction and retention allowances. An allowance will only be considered and approved on an individual case by case basis.
2. Requests for the payment of allowances will be subject to approval (on the recommendation of the Director, Personnel Services), by the Deputy Vice-Chancellor (Operations) in the case of academic staff, and by the Vice-Principal (Administration) in the case of general staff.

4 Nature of Allowances

1. The amount of any allowance will be limited to a maximum of 35% of salary
2. Allowances can be provided as:

a. salary, paid fortnightly;
b. salary that is packaged into any alternative benefit agreed to by the University and provided for under the salary packaging arrangements in the staff member's contract of employment. (noting that all costs, including fringe benefits tax and administration, will be included in the package costs);
c. a lump sum periodic payment eg. a lump sum paid at the end of each year based on achievement of a pre-agreed performance measure(s);
d. a lump sum at the end of the specified term eg. a lump sum which accrues over a term and is payable if the staff member remains with the University for that term or is otherwise forfeited;
e. any combination of the above.

3. An allowance will normally be for a maximum fixed term of 2 years but may be renewable subject to a further application. Lump sum payments, which have the aim of retaining or rewarding a staff member for the duration of a contract, may have a longer duration but may not exceed 5 years. Unless the allowance is renewed or varied, it will cease at the end of the period. The duration and nature of the allowance will be a matter for recommendation by the Dean /Director or equivalent.
4. Where an allowance is taken in the form of a salary packaged benefit e.g. a motor vehicle and the allowance subsequently ceases, the benefit must continue to be funded from the employee's salary for the remainder of the lease.
5. Allowances are generally not superannuable i.e. they are not matched by additional superannuation payments.
6. Any staff member in receipt of an allowance must enter into an individual performance related agreement with respect to the allowance. This will be regularly reviewed and submitted to the Deputy Vice Chancellor (Operations) for academic staff and Vice Principal (Administration) for general staff, through the Dean /Director or equivalent. Any continuation of the allowance will be subject to the review outcomes.
7. The objectives in the performance agreement may relate to one or more of the following:

a. the achievement of goals as indicated by specified measures;
b. contribution to and success of key strategic projects;
c. significant leadership responsibility of a strategically important research entity.

8. The allowance agreement must include an explanation of what happens if the objectives are not met. Market forces may be a condition i.e. changed market conditions may affect the renewal or otherwise of an allowance.
9. The amount of an attraction and retention allowance will not be indexed to general salary movements i.e. the dollar amount initially approved will be maintained for the period of the allowance.

5 Criteria

1. The criteria to be used to establish a case for any allowance will be :

a. University and Faculty or Divisional priorities. The payment of allowances must be in keeping with agreed priorities. Strategic plans including strategic retention plans will be particularly relevant.
b. Individual Performance. The staff member's performance record and the need to demonstrate exceptional and sustained performance will be a key factor in determining the case for and reviewing the continuing need for any allowance to existing staff.
c. Market forces. Relevant evidence will range from remuneration surveys, University based surveys, advertisements and substantiated offers of alternative employment. It is recognised that personal merit may generate competitive bids for the staff member concerned.
d. Retention considerations. The forecast need to retain the staff member, the reasons for such a requirement and the period of need. This may be based on an assessment of the availability of alternative appointees.

6 Procedures

1. Allowances are subject to the financial position of the respective Faculty or Division and the University as a whole. Allowances may not be continued (or maintained) if the Faculty and/or the University's financial position does not permit.
2. Each year, Personnel Services updates its staff retention plan via interviews and discussions with Deans and Directors. That plan seeks to identify those key staff whose performance needs to be rewarded through various mechanisms including attraction and retention allowances. Normally, requests for attraction and retention allowances will be consistent with this staff reward and retention plan.
3. A request for the payment of a retention allowance to an existing member of staff, will be made by a Head of Unit through the respective Dean/Director or equivalent to the Director Personnel Services in the required format and include supporting documentation from the staff member's annual development review. The request will then be forwarded to the Deputy Vice Chancellor (Operations) in respect of academic staff and the Vice-Principal (Administration) in respect of general staff, who will consider the request against the criteria, and any other information deemed relevant. Further information may also be requested from the Head of Unit or Dean/Director.
4. In the case of new appointees, a selection committee may propose an allowance. The request shall be submitted by the Chair of the Committee to the the Deputy Vice Chancellor (Operations) or Vice-Principal (Administration) for consideration. Where the relevant Dean/Director or equivalent is not the Chair of the selection committee the request must be made through them.
5. The format of cases should be as follows:

name and Unit;

who lodges the case - e.g. Head of Unit;

comments of the Dean/Director or equivalent;

amount of allowance being sought;

method of payment of the allowance;

criteria under which the allowance is sought;

justification of the case in terms of the criteria;

any supporting documentation including a copy of the staff member's CV;

the proposed performance agreement.

6. The total case (not including any supporting documentation) may not exceed 3 pages.
7. Each request for an allowance based on market forces must provide evidence of the market forces that apply. An assessment of the relevant market pressures will also be made by Personnel Services. Some relevant indicators may be:

market remuneration surveys;

university based surveys;

advertisements; and,

substantiated offers of alternative employment.

8. It is also recognised that personal merit may generate competitive bids by other organisations for an individual staff member or prospective staff member regardless of broader market forces.
9. There is no process for members of staff to personally apply for allowances.
10. Applications can be made at any time but a case will not normally be considered within 2 years of a previous application.
11. Prior to consideration by the Deputy Vice Chancellor (Operations) or Vice Principal (Administration), Personnel Services staff will check the case and comment on any comparative or relevant allowances already in place and on any labour market issues raised.
12. Normally, a case will be considered within 1 month of receipt.
13. The decision of the Deputy Vice Chancellor (Operations) or Vice Principal (Administration) shall be final. There will be no right of appeal. However, the Dean/Director or equivalent may seek reasons for the decision.
14. Allowances must be funded by the relevant Faculty or Division.

7 Roles & Responsibilities

1. Roles and responsibilities are as detailed in this policy.

8 Version Control and Change History

Version Control	Date Effective	Approved By	Amendment
1	14 May 1996	Administrative Committee	Extension to General Staff
2	6 May 2009	Vice Principal (Administration)	Migrated to UOW Policy Template as per Policy Directory Refresh

Last reviewed: 27 August, 2009

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