Elements and Performance Criteria

Element

Performance Criteria

1

Develop organisation's remuneration strategy

1.1

Analyse strategic and operational plans to determine the scope of remuneration and benefits plans

1.2

Undertake research on current practice, recent developments and legislative parameters for the remuneration strategy

1.3

Develop options for consideration by relevant managers

1.4

Present options showing the link to organisational strategic objectives

1.5

Ensure remuneration policies and incentive plans are agreed and documented

2

Implement remuneration strategy

2.1

Research occupational groups to determine those which are industrial agreement based

2.2

Access/undertake market rates surveys regularly to ensure the organisation's required level of competitiveness for particular occupational groups is maintained

2.3

Align remuneration and benefits plans with performance management system

2.4

Ensure that employees receive at least their minimum entitlements in accordance with organisational policies and legal requirements

2.5

Ensure salary packages comply with organisational policies and legal requirements including fringe benefits tax (FBT) and superannuation

2.6

Ensure incentive arrangements, if included, comply with the organisation's remuneration strategy

3

Review and update remuneration strategy

3.1

Consult managers and employees about the effectiveness of the remuneration strategy

3.2

Amend strategy and plans as necessary to meet organisational policies and legal requirements

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 bonus/incentive schemes including gain sharing/profit sharing

relevant legislation

remuneration principles/models and strategies

requirements of Australian Tax Office in relation to income tax, superannuation reporting, FBT and bonus payments.

award structures for industrial agreements.

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 on-the-job 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.

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