IN-CONFIDENCE
Remuneration and
Benefits Policy
Part of the Children and Young People’s Commission Human Resources Policy Framework
November 2023
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Ihirangi |
Table of contents Version control
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Te aronga | Policy purpose
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Tauākī | Policy statement
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Ngā mātāpono | Policy principles
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Ngā whakatinanatanga | Policy application
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Ngā haepapa | Responsibilities
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Te pūnaha utu nama | Overview of the remuneration system
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Other benefits
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Ngā tuhinga pākanga | Related legislation, regulations and documents
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Kuputaka | Definition of terms
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Version control
Policy owner
Mana Mokopuna – Children and Young
Person’s Commission Board
Policy Manager
Chief Executive/Human Resources Manager
Created
11 October 2023
Last modified
Effective date
27 November 2023
Next annual review date
November 2023
Approval authority
I confirm this policy was approved by the
Board.
This policy will take effect on 27 November
2023 and will remain in effect until updated
or replaced.
Dr Claire Achmad
Chair and Chief Commissioner
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Te aronga | Policy purpose
This policy specifies the approach to remuneration for Mana Mokopuna - the Children and
Young People's Commission (the Commission).
Tauākī | Policy statement
The Commission is committed to paying kaimahi fairly for the work that they do. The
Commission’s remuneration ranges and benefits are intended to attract and retain talented
kaimahi, while maintaining fiscal responsibility and sustainability.
Ngā mātāpono | Policy principles
The following principles underpin the Commission’s approach to remuneration:
• Fair, transparent and recognises living wage rates.
• Affordable and financially responsible.
• Evidence based and consistent.
The Commission is committed to giving effect to Te Tiriti o Waitangi in all aspects of the
commission’s policies, practices, and decision-making processes. We strive to ensure we are
recognising our kaimahi in the context of their whānau, hapū, iwi and community.
Ngā whakatinanatanga | Policy application
This policy applies to all the Commission as follows:
• kaimahi and managers.
Ngā haepapa | Responsibilities
Kaimahi responsibilities
• Understand the approach the Commission takes to remuneration as outlined in this
policy.
Manager responsibilities
• Seek advice from Human Resources when considering salary offers and out of cycle
pay increases.
• Ensure any pay increases for kaimahi are aligned with this policy, budget, and
delegations.
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Human Resources responsibilities
• Maintain oversight of remuneration for the tari and provide advice that ensures
consistency and fairness.
Te pūnaha utu nama | Overview of the
remuneration system
The remuneration system applies to all kaimahi within the tari, including managers. The
components of the remuneration system are:
• job evaluation is undertaken for all new or substantially changed positions
• market linkage assessment considering the living wage rate and public sector
information is used to determine appropriate remuneration ranges
• annual review of remuneration ranges (based on market linkage assessment)
• annual review of individual remuneration.
Remuneration system components
Job evaluation
The Commission uses the Korn Ferry Hay job evaluation system to size new or substantially
changed positions and uses this information to determine an appropriate salary range for the
role.
The Korn Ferry Hay system considers several factors to evaluate a role, including:
• Knowledge required to undertake the role to a competent level
• Freedom within the role to problem solve (whether problem solving in the role is
restricted by tight boundaries and rules, or more ‘blue skies’ problem solving is
required)
• Level of contribution the role makes to the overall outcomes of the Commission
• Scale of impact the position has in its work.
Job evaluation is undertaken by Human Resources, with input from managers and kaimahi as
needed.
Acknowledging that the Korn Ferry Hay system can be limited in the way that mātauranga
Māori or cultural competence is sized, Human Resources will make it clear through the job
evaluation process that the Commission sees mātauranga Māori and cultural competence as
equivalent to, or in some cases, higher than a tertiary qualification or equivalent extensive
experience.
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Market linkage assessment
A market linkage assessment is undertaken annually to ensure that remuneration ranges are
fair. Part of the information that will inform this assessment is an analysis of the Korn Ferry Hay
global compensation survey.
These surveys provide data on the latest remuneration practices in the market. Korn Ferry is
commonly used across the public service, and it is used by the Commission in our market
linkage assessment to ensure our remuneration levels are aligned to the median of other
public service organisations.
The Commission will also have regard to pay guidance provided by Te Kawa Mataaho.
Living wage
The Commission is committed to paying kaimahi no less than the official Living Wage rate in
line with the following principles:
• The starting rate of pay for all new appointees will not be less than the Living Wage
rate. This threshold applies to all kaimahi, i.e. permanent full-time and part-time
kaimahi, fixed term (temporary) full-time and part-time kaimahi and casuals.
• Adjustments may be made to salaries at any time to ensure they are paid the living
wage as a minimum. However, any adjustments to meet the living wage do not flow
on to kaimahi who are already being paid above the living wage.
Annual review of salary ranges
The Commission’s salary ranges are reviewed annually against the living wage rate and market
linkage and may be adjusted accordingly. Salary ranges may be adjusted by the Chief
Executive, with support from the Board.
An increase to a salary range does not automatically result in an increase to kaimahi salary.
The exception to this is where a kaimahi is on a salary that is lower than the minimum of the
adjusted salary range, in which case the kaimahi salary would be increased to the minimum of
the adjusted range.
Annual review of individual remuneration
Annual remuneration review comprises of three steps:
1. Review of salary ranges
2. Increase of base salary to new minimum of the range following adjustment (where
applicable)
3. Review of salary of individual kaimahi.
Recommended changes to individuals’ salaries, subject to Chief Executive approval, will be
implemented from 1 July each year.
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Eligibility for individual remuneration review
Permanent and fixed term kaimahi who commenced prior to 1 March of that year will be
eligible to have their salary reviewed through this process. Kaimahi who commence in a new
role on or after 1 March will not be eligible for a salary review at 1 July.
Remuneration reviews for kaimahi on secondment or in acting arrangements will consider
both their base salary and any allowances they may be receiving as part of their secondment
or acting arrangement. Allowances may be reduced by the amount of any salary increase
applied through an individual review.
Kaimahi on parental leave will be included in the remuneration review process and any
approved increases will be applied to their base salary effective from the date they return from
parental leave.
Out of cycle increases
An out of cycle increase is made outside of the annual review cycle outlined in this policy.
Out of cycle increases may be approved for a number of reasons in exceptional circumstances,
including recognition of high contributing kaimahi who are low in their salary range, or to
address recruitment issues.
To seek approval for an out of cycle review managers need to assess the salary with the Human
Resources Manager. If the proposal for an out of cycle increase is supported by the Human
Resources Manager and can be made within budget, then it will be put to the Chief Executive
for their consideration.
Kia Toipoto – pay gaps
As outlined in
Kia Toipoto, the
Public Service Pay Gaps Action Plan 2021–24, the Commission
understands that pay gaps are indicators of workplace inequities which can result from factors
including bias and discrimination.
Through our commitment to closing pay gaps and ensure equity across the Commission, we
take the following actions:
Salary range information
Our recruitment adverts include the salary range the role sits in, to help inform the candidates’
salary expectations and the discussion on placement in the salary range. Research shows that
women in general, and both males and females from some ethnic groups, are less likely to
discuss their salary expectations.
Giving candidates the salary range for the job ensures they understand they can discuss their
placement in the salary range based on their knowledge, skills, and experience. A key driver of
a gender pay gap is often an incorrect appointment salary, and these guidelines are aimed at
ensuring there are no gender pay gaps within starting salaries at the Commission.
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Not asking for current salary information
If managers are influenced by the previous salary of a candidate when they set starting salaries,
they risk perpetuating the gender and ethnic pay gaps candidates have experienced in the
past. Managers must not request current/previous salary information from candidates and
must focus on what the role is worth and the skill/experience of the candidate.
When discussing salary expectations, managers must not lower their intended offer if the
candidate asks for less. Managers should appoint based on what the candidate is worth, even
if they may accept less.
Transparency around salary offers
It is important that people trust our appointing practices and have confidence that they are
being paid fairly. We encourage managers to provide context to new kaimahi on how they
have arrived at their appointing salary, while keeping others’ individual arrangements
confidential.
Monitoring starting salaries
Human Resources monitor salary offers to ensure they are equitable.
Setting starting salaries
The Commission is committed to achieving fairness and consistency of salary when appointing
candidates to a new role. Human Resources will work with hiring managers to ensure that the
following factors are considered when determining appropriate starting salary for candidates.
Knowledge, skills, and experience
The knowledge, skills and experience the candidate brings to the role and the team are the
key factors considered when deciding on an appropriate salary offer. Candidates will generally
be appointed between the minimum and midpoint of the salary range to allow for future
growth and progression.
Mātauranga Māori and cultural competence is highly valued by the Commission. We recognise
that the acquisition of this mātauranga is a lifelong journey which is often as comprehensive,
if not more, than gaining a tertiary qualification. This is taken into consideration when
determining an appropriate salary.
Team relativities
It is important that salary offers are equitable based on candidates’ knowledge, skills and
experience (as above), when compared to the salary of current kaimahi in the same or similar
roles.
When considering team relativities, the manager will determine what would be equitable to
offer based on what the candidate would bring to the team and their skills and experience as
compared to similarly experienced kaimahi.
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Note that a reduction to the intended starting salary is not the preferred mechanism for
addressing any team relativities.
Budget
As a responsible public service organisation, budget is a consideration when determining
starting salaries. However, it is important that candidates are appointed at the correct salary
for their skills and experience and that offers are not made with budget as the sole determining
factor. Before advertising a position, managers should confirm that there is budget available
to offer appropriate remuneration.
Allowances for secondments, acting or additional duties arrangements
A current kaimahi may agree to an internal secondment or acting arrangement in a position
that is in a higher salary range than their usual salary. Where a kaimahi agrees to a secondment
or acting arrangement for 10 consecutive working days or more, they will be paid an allowance
that is the difference between their usual salary and the salary they would receive if they were
permanently appointed to the role.
Where a kaimahi performs only some of the duties and responsibilities of a higher position,
they will be paid a proportional amount of the allowance or may agree to some other form of
recognition.
Where a kaimahi agrees to take on additional duties on top of the responsibilities of their
substantive role for a period of 10 consecutive working days or more, they will be paid an
allowance up to a maximum of 5% of their base salary (or 2.5% if the employee is paid above
the top of their pay band) or some other form of agreed recognition.
Other benefits
On top of agreed remuneration, the following benefits apply for permanent kaimahi.
Vision care support
The Commission offers a financial contribution towards vision care for permanent kaimahi who
use a computer or screen (iPad, mobile phone etc) for more than half of their working time,
and experience eyesight difficulties.
The Commission will reimburse for the costs of an eye test. If the test shows that the kaimahi
requires prescription eyewear, or an upgrade to existing prescription eyewear, the Commission
will reimburse the staff member for the cost of prescription eyewear, or upgrade of existing
prescription eyewear, up to the amounts as set out below (inclusive of the costs of the eye test
and GST).
Amounts that can be claimed:
• Cost of eyewear and test: up to $400 (GST inclusive).
• Cost of eyewear upgrade and test: up to $200 (GST inclusive).
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An amount equal to 33% of the claimed amount will be added to the claim to account for
PAYE. Where a staff member receives the maximum payment for costs of eyewear within a
two-year period, no further benefit will be payable for the remainder of that period.
To claim this benefit kaimahi must complete a reimbursement form and provide this along
with receipts to the Financial Management Accountant for payment.
Holiday programme support
Kaimahi who have mokopuna between the ages of 5 - 14 years old dependant on them for
care are entitled to up to $150 per each school holiday period (to a maximum of 4 school
holiday periods each per annum).
To claim this benefit kaimahi must complete a reimbursement form and provide this, along
with receipt, to the Financial Management Accountant for payment.
Ngā tuhinga pākanga | Related legislation,
regulations and documents
Related legislation and regulations
This policy is guided by the following legislation and regulations:
• Employment Relations Act 2000
Related documents
Related documents include:
• Employment Agreements
• Te Kawa Mataaho Pay Guidance
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Kuputaka | Definition of terms
Terms
Term
Definition
Kaimahi
Employee
Remuneration
Includes salary, wages, fees, superannuation, and any
other payments made to kaimahi for their
employment
Base salary
The salary paid to kaimahi for their employment, does
not include superannuation or any other payments
Living wage
Set by the Living Wage Movement Aotearoa, this is
the rate deemed necessary for kaimahi to be able to
live with dignity
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