April 21, 1998

To:Strategic Policies and Priorities Committee

From:City Clerk

Subject:Non-union Compensation Program, Development and Implementation

Recommendation:

The Budget Committee on April 20, 1998, recommended to the Strategic Policies and Priorities Committee, and Council, the adoption of the report (April 14, 1998) from the Executive Director of Human Resources and Amalgamation.

Background:

The Budget Committee on April 20, 1998, had before it a report (April 14, 1998) from the Executive Director of Human Resources and Amalgamation, regarding the development of a non-union compensation program.

City Clerk

Barbara Liddiard/rc/cp

Item No. 25

Attachment

 c.Chief Financial Officer and Treasurer

Chief Administrative Officer

Executive Director of Human Resources and Amalgamation

(Report dated April 14, 1998, addressed to the Budget Committee from the Executive Director of Human Resources and Amalgamation)

Purpose:

As part of Strategic Restructuring, work is required to establish new Compensation structures for the City of Toronto. This report is to advise Committee of the significance of and approach to developing a new Total Compensation Program applicable to Non-union employees.

Funding Sources, Financial Implications and Impact Statement:

The Chief Financial Officer and Treasurer has recommended that funding for consulting services related to this project be derived from the Employee Benefit Reserve Fund and that the Chief Financial Officer and Treasurer incorporate the cost in the request to the Province for transition funding. Such cost is a direct result of amalgamating Compensation Programs and Non-union Pay Equity Plans for the City of Toronto.

Recommendation:

It is recommended that the project cost related to the development of a new Non-union Compensation Program be included in the request to the Province for transition funding.

Background:

Following evaluation, it has been determined that the existing compensation programs of the seven former municipalities cannot be used related to legislative requirements and the organizational needs of the (new) City of Toronto.

In November 1997, a Request for Proposals (RFP) for compensation consulting services was issued in order to establish a Total Compensation Program for Non-union positions. It is intended that the Human Resources Compensation Team in consultation with operational management and supported by the consultant will develop the Program including Job Evaluation; Salary Administration; Internal Equity; External Competitiveness; Performance Management; Merit and Competency-based Pay; Team/Individual Gain-Sharing; and Non-Cash Reward and Retention Strategies.

An appropriate project plan and implementation schedule have been determined to meet the City=s requirements. Further, there will be the necessary knowledge transfer from the consultant by the end of the project to ensure successful implementation and on-going administration of the program by City staff. It is imperative that this initiative proceed immediately to ensure that the requirements of the Employment Standards Act equal pay for equal work provisions and the Pay Equity Act are satisfied.

As a result of the RFP, the selection of an appropriate compensation consultant will be considered by the Bid Committee.

Discussion:

Consistent with the Strategic Restructuring - Human Resources Principles and Strategic Directions recently approved by Council, the new Compensation Program applicable to Executive, Management and other Excluded employees will be established within the following framework:

 (a)is compliant with applicable legislation (Employment Standards, Pay Equity);

 (b)is flexible in meeting ongoing changes and challenges;

 (c)is fair, equitable and gender-neutral;

 (d)promotes, recognizes and rewards exceptional performance;

 (e)integrates core competencies and encourages team orientation;

 (f)is able to attract and retain exceptional employees;

 (g)recognizes management accountability and fiscal responsibility in achieving results; and

 (h)ensures appropriate competitive positioning related to high-performing broader public sector and private sector organizations.

There will be integration of this program with the strategic plan to consolidate employee benefit coverage and introduce an appropriate alternative innovative benefit plan design.

Conclusion:

The 9 month project plan supported by the consultant, while aggressive, will appropriately expedite this initiative, thereby assisting to harmonize pay levels and move the organization towards its ultimate business objectives. It will enable the Corporation to maintain legislative compliance.

Contact Name and Telephone Number:

R. Alan Deans, Human Resources, Scarborough Civic Service Centre, (416)396-7759.