Download Performance and Pay Review

myplace training
CREATING
GREAT
PLACES FOR
LIFE
May 2014
Mirvac FY14 Performance and Pay Review – May
2014
Agenda
Myperformance
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Process, purpose & expectations
Key Dates
Completing the performance review process
Performance and Development planning
Discussions
Using myplace for performance
Mypay
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Pay principles & elements of pay
Pay review process
Fixed pay and STI
Key Dates
Using mypay for pay reviews
Mirvac FY14 Performance and Pay Review – May 2014
myperformance
Mirvac FY14 Performance and Pay Review – May 2014
Performance Management:
The Mirvac Way
Performance
&
Development
Review
Mid-Year
Review
Performance
and
Development
Planning /
Review
Pay
Discussion
Mirvac FY14 Performance and Pay Review – May 2014
Performance
&
Development
Planning
Ongoing
feedback &
Support
Performance Timelines
FY 14 Year End Performance Reviews
• 26 May
• 20 June
• 04 July
• 7 July to 16 July
• 18 July
• by 14 September
myperformance opens
Employee self-assessments due
Manager Reviews due
Calibration sessions
ELT approval of ratings
Manager releases review to employee
FY 15 Planning and Development
• by 15 August
• by 14 September
• by 30 September
Employee creates Performance and Development plan
Manager meets with employee to discuss
Manager approves Performance and Development plan
Mirvac FY14 Performance and Pay Review – May 2014
FY14 performance review
Mirvac FY14 Performance and Pay Review – May
2014
FY14 Performance &
Development Review
Review
 Employee and manager make comments based on
performance and development objectives (including Values,
behaviours, technical and job-related skills) in myplace;
Rate
 Manager provides an overall rating, which is
validated through calibration sessions and
approved by ELT;
Discuss
 A one-on-one discussion of the current year’s
Performance and Development accomplishments
takes place; and
Close
Mirvac FY14 Performance and Pay Review – May 2014
 Employee acknowledges
the discussion has
occurred and the
review process is
finalised.
Ratings Definitions
Rating
Definition
5 – Exceptional (EX)
Highly effective in meeting all job requirements and made additional valued contributions; and
Achieved identified stretch outcomes for most KPI’s; and
Modelled Company values/behaviours and seen as a benchmark relative to peers; and
Performance and outcomes seen as a benchmark relative to peers
4 – Exceeds Expectations (EE)
Highly effective in meeting job requirements; and
Exceeded some KPIs; and
Demonstrated Company values/behaviours and often illustrated the spirit of Mirvac’s values; and
Frequently exceeds performance relative to peers
3 – Meets Expectations (ME)
Effectively met job requirements; and
Achieved all KPI’s; and
Demonstrated Company values/behaviours; and
Achieved solid performance relative to peers
2 – Below Expectations (BE)
Not all job requirements met; or
Not all KPI’s achieved; or
Did not consistently demonstrate Company values/behaviours; or
Displayed inconsistent performance relative to peers
1 – Unsatisfactory (U)
Did not meet job requirements; or
Did not achieve KPI’s; or
Did not demonstrate Company values/behaviours; or
Immediate and sustained improvement required
0 – Not Rated (NR)
Been in the role for less than 3 months;
Worked less than 3 months in the performance year
Mirvac FY14 Performance and Pay Review – May 2014
Calibration Sessions
The practice of performance calibration refers to the steps taken to ensure that managers apply a
consistent set of standards in determining performance ratings.
 Multiple managers come together to discuss employees’ performance ratings;
 Objective assessments are made based on past performance and in relation to other
employees in similar job families or on projects;
 Opportunity for managers to use the same language and develop an understanding of what
performance means at Mirvac; and
 Brings equity into the pay for performance equation.
Mirvac FY14 Performance and Pay Review – May 2014
Purpose of the Review
Conversation
Focus on
Results
Clear
Accountability
Gain Commitment
Deal with Differences Directly
Build and Maintain Trust
Mirvac FY14 Performance and Pay Review – May 2014
Links individual objectives to organisational goals
Encourages transparency between performance, reward
and recognition
Improves communication & planning
Fosters employee engagement
A dual focus on performance/results (the What) and on
behaviours (the How)
An opportunity for coaching conversations
Performance Review Workflow
– in myplace
Calibration
(outside of system)
Major changes include:
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Only Summary Comments & Overall Rating are mandatory;
All comments and ratings must be entered before submitting for approval/calibration;
Submitting for approval does not release the review to the employee;
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Weightings removed (Note: Values is no longer weighted 25% but the principle remains, if an employee
does not behave in line with Mirvac Values, they should receive a performance rating of 2.)
2nd level systems approval activated by HR, not by individual’s 2nd level manager;
You decide when to release the review to the employee (post calibration);
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For a full list of changes refer to the Major Changes document on the intranet.
Hub sites > Human Resources > Performance Management > Training Resources & Useful materials
Mirvac FY14 Performance and Pay Review – May 2014
For 2up Managers –
Viewing your Team in myplace
View your direct and indirect reports:
• Current and past reviews
• Current and past plans
Mirvac FY14 Performance and Pay Review – May 2014
FY15 performance plan
Mirvac FY14 Performance and Pay Review – May
2014
FY15 Performance and Development
Planning
“Coaching is the single most important part of expanding others’ capabilities … (It) is the difference between giving orders and
teaching people how to get things done. Good leaders regard every encounter as an opportunity to coach.” Bossidy & R Charan,
2002
When an individual creates their Performance and Development Plan in myplace:
 Individual objectives should be in line with Mirvac’s organisational goals and indicate key success
milestones;
 A Values objective should be included as in previous reviews; and
 Development requirements are defined to support performance and demonstrate behaviours.
These objectives should then be discussed in a one-on-one meeting with you, their Manager.
Mirvac FY14 Performance and Pay Review – May 2014
Performance and Development
Discussion Guidelines
 Majority of discussion should focus on the development plan as opposed to past performance.
 Use past performance and the performance plan to forecast the development needs.
 This conversation is future focussed and about identifying further learning and development needs,
with specific reference to the skills and knowledge the employee will need to be successful and
ensure the achievement of the KPI’s for the next period.
 Ask what ideas they have and what they will do to ensure development needs are met (develops
their ownership).
 Ask what support they need from you (demonstrates your commitment).
 Discuss how you will both informally review progress against the development plan.
 **Note: ratings given on performance reviews do not include the achievement of development
objectives. Development objectives are likely to have a longer time horizon than performance
objectives.
Mirvac FY14 Performance and Pay Review – May 2014
Performance Planning
Major changes to the Planning form include:
1.
2.
One form for Performance and Development Planning;
Simplification through the removal of:
 Progress bars
 Status drop down
 Weightings (Note: Values is no longer weighted 25% but the principle remains, if an employee does not
behave in line with Mirvac Values, they should receive a performance rating of 2. )
 Checkbox for critical objective
3. Single screen approach – add your KPIs into the Strategic Driver, Values & Development fields;
 Resolves previous printing issues
4. We no longer ‘cascade’ our objectives, rather we create them in agreement with our employees.
For a full list of major changes refer to the intranet.
** Note: for this year only, employees will not be able to copy from their previous plan, as we transition to the new form
Mirvac FY14 Performance and Pay Review – May 2014
myperformance Learning
Objectives
https://myplace.mirvac.com/Taleologin.aspx
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Login and Navigation
Completing your Employee Review (as a manager)
Releasing the Review to your employee
Generating a soft-copy to email or print
Looking up previous review forms, or multiple direct/indirect reports
Creating a Performance & Development Plan (as an employee)
Mirvac FY14 Performance and Pay Review – May 2014
Need help?
All training and user materials are located on the Performance Management intranet page, and
the myplace Quick Learn Tutorials page.
Hub sites > Human Resources > Performance Management > Training Resources & Useful
materials
Myplace > my performance support guides
Contact the myplace helpdesk via email [email protected] or phone (02) 9080 8855
Mirvac FY14 Performance and Pay Review – May 2014
mypay
Mirvac FY14 Performance and Pay Review – May 2014
Elements of Pay
Elements of Pay
Purpose
Payment
Form
Type
Eligibility
Market Positioning
Total Fixed Pay
TFP
Acts as a base level reward
for a competent level of
contribution in the role
Cash
Fixed
All
employees
50th percentile, with
the ability to work
within a range
around the median
Short-Term
Incentive
STI
Used to motivate and reward
employees for contributing to
the delivery of annual
business performance
Cash
Variable /
At Risk
All
permanent
employees
Note: FY14 is the first year all
permanent employees are
eligible for STI. A significant
increase in budget. A direct
link to company and individual
performance
Long-Term
Incentive
LTI
Facilitates executive security
ownership
Equity Performance
Rights
Variable /
At Risk
Senior
Executives
(Level 6 and
above)
Employee
Exemption Plan
EEP
Security ownership
Equity Securities
with 3 year
holding lock
Benefit – up
to $1,000
worth of
securities
Permanent
employees >
12 months
service
Mirvac FY14 Performance and Pay Review – May 2014
Up to 75th percentile
in the event that both
the individual and
the business achieve
stretch targets
Pay Review @ Mirvac
How is pay reviewed at Mirvac?
 On an annual basis through Pay Review process conducted from July – September.
 Elements of pay reviewed are:
 Total Fixed Pay
 forward looking – pay for new financial year from 1 July onwards
 Short-Term Incentive
 reward for performance in past financial year
End of Year
Perf Review
EEP offer
Jan
Feb
Mar
Apr
Mirvac FY14 Performance and Pay Review – May 2014
May
Jun
TFP & STI
Review
Jul
TFP & STI
Payment
Aug
Sept
LTP offer
Oct
Nov
Dec
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Eligibility and Decision making guidelines
Total Fixed Pay
Short-term Incentives
Eligibility for review of TFP:
 Commenced employment before 1 April 2014
Eligibility for STI :
 Commenced employment before 1 April 2014
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 Permanent employee (not on Sales Commission or
EBAs)
Permanent employee
 TFP increases to be based on considerations such
as:
 Qualifying period – to be eligible for consideration for
a STI payment, employees must have completed a
minimum of three months of active service in the
performance year to which the STI payment relates
excluding any periods of paid or unpaid leave.
 Employed at date of STI payment.
 STI outcomes are directly related to performance
through the individual STI multiplier:
 Diversity considerations should also be taken into
account such as whether males/females are being
equivalently compensated for the same role i.e. Is
there gender pay parity in your team.
Rating
5.
125-150%
4.
100-125%
3.
50-100%
1 or 2
Mirvac FY14 Performance and Pay Review – May 2014
Individual STI multiplier
(% of target)
0%
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Key dates for FY14 Pay Review
#
Activity
Dates (2014)
1.
ELT meeting to approve final performance ratings.
18 July
2.
Mypay system – Go Live for managers to make pay recommendations for :
1. Total Fixed Pay; and
2. Short-Term Incentives (STI) .
23 July – 5 Aug
3.
HRC meeting to approve FY14 STI multipliers and ELT Fixed Pay and STI
recommendations.
7 August
4.
ELT meeting to approve FY14 Pay Review outcomes.
14 August
5.
Mirvac Full Year Results.
21 August
6.
FY14 Pay Review letters distributed to managers for discussions with
employees.
25 August
7.
Managers communicate and discuss Pay Review outcomes with employees.
25 August – 14 Sep
8.
Total Fixed Pay adjustments made (effective 1 July 2014).
15 September
9.
Short-Term Incentives payments made.
19 September
Mirvac FY14 Performance and Pay Review – May 2014
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mypay Learning Objectives
As a mypay manager, you can:
 Review your budget
 Make your Fixed Pay recommendations for eligible employees
 Make your STI recommendations for eligible employees
 Make any special comments to support your recommendations
 Save and Submit
 Run your reports
Mirvac FY14 Performance and Pay Review – May 2014
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mypay – Review your budget
Mirvac FY14 Performance and Pay Review – May
2014
mypay – Fixed Pay and STI
recommendations
Direct Manager View
TFP recommendations
Bonus recommendations
STI
Mirvac FY14 Performance and Pay Review – May
2014
mypay – Fixed Pay History
Employee View
Fixed Pay recommendation
Mirvac FY14 Performance and Pay Review – May
2014
Mypay – STI history and comments
STI recommendation
Comments
Mirvac FY14 Performance and Pay Review – May
2014
mypay - Reports
Reports
Mirvac FY14 Performance and Pay Review – May
2014
Useful contacts and links
mypay Intranet page
Our People > mypay > Useful Links
>
Here you can find detailed information around all aspects of the FY14 Pay Review and the mypay
review system including the following materials:
>
>
>
>
Manager User Guide
Manager Cheat sheet
Glossary
Pay Review Discussion guide
Mirvac FY14 Performance and Pay Review – May 2014
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THANK YOU