ATTRACTION AND RETENTION ALLOWANCES POLICY


Date approved:	14 May 1996	Date Policy will take effect:	On approval	Date of Next Review:	December 2014
Approved by:	Administrative Committee
Custodian title & e-mail address:	Manager, Professional and Organisational Development Services pods@uow.edu.au
Author:	Director, Human Resources
Responsible Faculty/ Division & Unit:	Human Resources Division
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 Attraction and Retention Allowances 2
5 Movement of an Academic Staff Member to a Higher Level 5
6 Roles & Responsibilities 5
7 Version Control and Change History 6

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 normal promotions and reclassification procedures, 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:

a. payment of additional salary or benefits, by way of an attraction and retention allowance; or
b. In exceptional circumstances, the movement of a key academic staff member to a higher level outside of the normal promotions cycle to address an imminent retention risk relating to that staff member.

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, Human Resources), by the Senior Deputy Vice-Chancellor in the case of academic staff, and by the Vice-Principal (Administration) in the case of general staff.
3. Key academic staff may be eligible to be moved to a higher level up to and including Academic Level E in exceptional circumstances where there is a real and immediate risk in relation to the retention of that staff member, Movements will only be considered and approved on an individual case by case basis in accordance with this policy.
4. Movements of academic staff to a higher level will be subject to approval by the Vice-Chancellor in accordance with the procedures outlined below.

4 Attraction and Retention 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 Senior Deputy Vice-Chancellor 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.

Criteria

10. 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.

Procedures

11. 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.
12. Each year, Human Resources Division 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.
13. 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, Human Resources in the required format and include supporting documentation from the staff member's annual development review. The request will then be forwarded to the Senior Deputy Vice-Chancellor 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.
14. 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 Senior Deputy Vice-Chancellor 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.
15. 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.

16. The total case (not including any supporting documentation) may not exceed 3 pages.
17. 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 Human Resources Division. Some relevant indicators may be:

market remuneration surveys;

university based surveys;

advertisements; and,

substantiated offers of alternative employment.

18. 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.
19. There is no process for members of staff to personally apply for allowances.
20. Applications can be made at any time but a case will not normally be considered within 2 years of a previous application.
21. Prior to consideration by the Senior Deputy Vice-Chancellor or Vice Principal (Administration), Human Resources Division staff will check the case and comment on any comparative or relevant allowances already in place and on any labour market issues raised.
22. Normally, a case will be considered within 1 month of receipt.
23. The decision of the Senior Deputy Vice-Chancellor 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.
24. Allowances must be funded by the relevant Faculty or Division.

5 Movement of an Academic Staff Member to a Higher Level

1. In circumstances where there is a real and immediate risk in relation to the retention of a key member of academic staff, a Dean may make a case to the Vice-Chancellor through the Deputy Vice-Chancellor (Research) or the Senior Deputy Vice-Chancellor. The case must include:

a. the specific details and evidence of the nature and likelihood of the retention risk;
b. the strategic importance of the staff member to the Faculty and the University and why it is critical that the University seek to retain their service;
c. a summary of the performance and contribution of the staff member to UOW; and
d. a full curriculum vitae.

2. Where the case is for movement up to Level D, the Vice-Chancellor will consider the case and make a decision as to whether the staff member may be promoted to the next academic level outside of the normal promotions cycle.
3. Where the case is for movement to Level E and the Vice-Chancellor considers that a prima facie case exists for consideration of movement outside of the normal promotions cycle, the Vice-Chancellor will convene an advisory committee, the composition of which will reflect the Professorial Promotions Committee, as follows:

a. Vice-Chancellor (Chair);
b. 3 Deputy Vice-Chancellors,
c. Chair of Academic Senate; and,
d. 2 professors appointed by the Academic Senate to the Professorial Promotions Committee

4. Should any members of the committee not be available, the Vice-Chancellor shall co-opt replacement members of the same or similar standing.
5. The committee will consider the case and make a recommendation to the Vice-Chancellor as to whether;

a. the staff member meets all of the UOW criteria for promotion to Level E: and;
b. the circumstances warrant movement to Level E outside of the normal cycle.

6. Where the committee’s decision is to move the staff member to Level E, the Vice-Chancellor may approve the promotion with immediate effect. Any decision by the Vice-Chancellor is final and cannot be appealed.
7. Any decision made to move a staff member in accordance with this clause (clause 5) will be reported to the next meeting of the University Council.

6 Roles & Responsibilities

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

7 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
3	4 December 2009	University Council	Amendments to introduce provisions for movement of Academic Staff to higher levels outside of the normal promotion cycle in exceptional circumstances.
4	9 March 2010	Vice-Principal (Administration)	Future review date identified in accordance with Standard on UOW Policy
5	26 August 2010	Vice-Principal (Administration)	Updated to reflect divisional name change from Personnel Services to Human Resources Division
6	1 March 2011	Senior Manager, Policy & Governance	Updated to reflect change in title from Deputy Vice-Chancellor (Operations) to Senior Deputy Vice-Chancellor.