SALARY ADMINISTRATION

Department             :         Human Resources

Subject                   :         SALARY ADMINISTRATION    

POLICY

Further, it is the philosophy of the company that employees should be compensated equitably in terms of the relative contribution they make to the achievement of the company's goal.  Goal achievement and performance levels are the prime criteria in determining each employee's position on company salary scales.

The term "salary administration" refers to the administration by Management of salary rates applicable to Company employees, and paid on the monthly payroll.

PROCEDURE

Personnel Department is responsible for ensuring the company's philosophy in respect to salary administration is being effectively implemented. For this reason, the Director of Human Resources, in consultation with Management, must approve all salary matters.

Job Salary Rates

1.    A job salary rate (JSR) for each monthly paid position will be established by the HRD in consultation with Management.  Job salary rates will be determined by comparing and evaluating components, size, level and responsibility of each position, relative to salary rates payable by organizations both within the hospitality industry and the general employee marketplace.

2.    A comparative ratio of the actual rate to the JSR midpoint will allow a statistical and comparative evaluation of the individual monthly paid staff members’ salaries.

3.    The JSR will be prospective rather than retrospective in nature.  Annually, each November, the JSR's are to be increased by the amount of the projected salary movement for the following year, including any adjustment warranted by underestimations in previous years.

Continued…Policies & Procedures for Salary Administration

Given the above system of JSR and annual adjustment, it follows that an employee receiving an average annual increase will retain the same position of the JSR scale. For each percentage point of salary increase above or below the average, the employee's position on the scale will correspondingly rise or decline.

Salary Review

1.    Monthly staff salaries will be reviewed annually with any subsequent salary increase being effective on and from January 1st, or any other date that may be determined by Management.

2.    As indicated, the prime criterion in the salary reviewing process is performance. Accordingly, the review process will begin with the Personal appraisal system at the end of the year.  Salary schedules and review guidelines will be prepared by the HRD and forwarded to the Head of Departments. 

3.    Completed salary schedules with details of salary increase recommendations should be endorsed by the Departmental Manager and returned with completed Personal Appraisals to the HRD for review.  HRD then forwards the schedules to management for approval.  Department Heads are responsible for ensuring that the new salaries are communicated to staff concerned.

4.    Salary increases outside of the above formal review process, excluding promotions etc., will usually not be approved.  However, Management is not inflexible and on occasions (for example during periods of high inflation or sudden market movements), supplementary salary increases may be approved at the discretion of Management.

5.    In the case of promotion, Department Heads should first discuss their recommended new rate of salary with the HRD.