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Elements and Performance Criteria

1. Develop organisation's remuneration strategy
   • Analyse strategic and operational plans to determine the scope of remuneration and benefits plans
   • Undertake research on current practice, recent developments and legislative parameters for the remuneration strategy
   • Develop options for consideration by relevant managers
   • Present options showing the link to organisational strategic objectives
   • Ensure remuneration policies and incentive plans are agreed and documented
2. Implement remuneration strategy
   • Research occupational groups to determine those which are industrial agreement based
   • Access/undertake market rates surveys regularly to ensure the organisation's required level of competitiveness for particular occupational groups is maintained
   • Align remuneration and benefits plans with performance management system
   • Ensure that employees receive at least their minimum entitlements in accordance with organisational policies and legal requirements
   • Ensure salary packages comply with organisational policies and legal requirements including fringe benefits tax (FBT) and superannuation
   • Ensure incentive arrangements, if included, comply with the organisation's remuneration strategy
3. Review and update remuneration strategy
   • Consult managers and employees about the effectiveness of the remuneration strategy
   • Amend strategy and plans as necessary to meet organisational policies and legal requirements

Required Skills

Required skills

interpersonal skills and ethics to communicate sensitively about remuneration and to observe confidentiality mathematical and technology skills to calculate costs to the organisation to graph salary costs and to link salaries to budgets research skills to determine appropriate models of remuneration and benefits for particular occupational groups and individuals

Required knowledge

leasing arrangements including novated leases models for bonusincentive schemes including gain sharingprofit sharing relevant legislation remuneration principlesmodels and strategies requirements of Australian Tax Office in relation to income tax superannuation reporting FBT and bonus payments award structures for industrial agreements

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge range statement and the Assessment Guidelines for the Training Package
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit	Evidence of the following is essential compliance with all of the legal aspects of managing remuneration and benefits demonstrated capacity to research and apply remuneration strategies to different occupational groups and circumstances application of awards and agreements to structure remuneration processes knowledge of the requirements of the Australian Tax Office in relation to income tax superannuation reporting FBT and bonus payments
Context of and specific resources for assessment	Assessment must ensure access to appropriate documentation and resources normally used in the workplace
Method of assessment	A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit assessment of written reports on remuneration models and approaches direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate review of research undertaken on current practice recent developments and legislative parameters for the remuneration strategy review of remuneration options developed for consideration by relevant managers oral or written questioning to assess knowledge of legislation and the taxation system
Guidance information for assessment	Holistic assessment with other units relevant to the industry sector workplace and job role is recommended for example other units from the Diploma of Human Resources Management

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Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Remuneration and benefits may include:	allowances annual leave bonuses/incentives competency-based progression employee share plans ex gratia payments expense reimbursement family/carer's leave fringe benefits leave without pay long service leave motor vehicle salaries and wages share options sick leave special leave study leave superannuation
Market rates surveys may include:	data from remuneration specialists general community surveys industry salary benchmarking surveys conducted by the organisation
Salary packages refers to:	payment arrangement where the total remuneration and benefits payable to an employee are calculated as total cost of employment (i.e. salary, allowances, motor vehicle, superannuation and fringe benefits) it does not include payroll tax or workers compensation insurance
Incentive arrangements may include:	commission bonuses share plans share options gain sharing profit sharing

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