E12. Attraction and Retention Loadings

E12.1 Introduction
E12.2 Policy statement
E12.3 Procedures
    E12.3.1 Criteria for granting loadings
    E12.3.2 Salary loading proposal and application
    E12.3.3 Level and term of loading
    E12.3.4 Effect on conditions and benefits

E12.1 Introduction

E12.2 Policy statement

The University may offer salary loadings to attract and/or retain competent employees where there is a demonstrable difficulty in recruitment and/or retention of employees in particular positions or occupational groups, due to the fact that other employers are offering salaries and conditions which are significantly more attractive.

(Approved by Council 5 June 2000)

E12.3  Procedures

E12.3.1 Criteria for granting loadings

E12.3.1(a) Attraction and retention loadings may be offered to either attract potential employees to vacant positions, or to retain the services of an existing employee where:

• there are clearly demonstrable difficulties in attracting suitably qualified employees to particular positions within the prevailing market conditions; 
• there is a high turnover of employees and higher salaries being paid elsewhere for the particular occupational group have been documented as being a significant contributing factor; or
• there is a clearly demonstrable need to retain a high performing employee who consistently and significantly exceeds agreed objectives, targets and/or key performance indicators, where the loss of such an employee would have a significant impact on the productivity and performance of the faculty or section.

E12.3.1(b) Any loadings to be granted will be determined on the basis of the level at which salaries for a designated area are being sustained in a comparable market place, bearing in mind particular qualification and specialisation requirements, availability of funds and the employee's job performance.

E12.3.2 Salary loading proposal and application

E12.3.2(a) A proposal for an application of an attraction or retention loading is to be prepared by the Category 4 Delegate or above and include evidence of:

• recruitment experience in the area;
• documentation of other relevant market factors, eg turnover of employees, data from relevant external markets and/or comparable Universities;
• in the case of retention, the employee's performance and implications of the loss of the employee; and
• the recommended level of the loading and proposed source of funds (ie cost centre's capacity to pay the allowance).

E12.3.2(b) This proposal will be forwarded to the Category 3 Delegate through the Executive Director, Human Resources for consideration.

E.12.3.2(c) The Category 3 Delegate will consider all evidence submitted by the Category 4 Delegate or above and will decide what salary loading may be appropriate and also the term of application of the loading.

E12.3.2(d) The decision of the Category 3 Delegate will then be conveyed to the Category 4 Delegate or above of the cost centre by the Executive Director, Human Resources.

E12.3.2(e) The full costs of any salary loadings will be met by the Cost Centres concerned from their own budgets.  Full provision will be made for salary loadings in determining the annual budget for each Cost Centre in which such salary loadings are approved for payment.

E12.3.3 Level and term of loading

E12.3.3(a) Other than in exceptional circumstances, salary loadings will not exceed 20% of the current base annual salary of the position. 

E12.3.3(b) The term of application will be determined on the basis of an assessment of the labour market and in any event will normally be offered for no more than three years in the first instance.

E12.3.3(c) A performance review will be conducted by the Category 4 Delegate or above not less than three months prior to the conclusion of the salary loading period. 

E12.3.3(d) Where the relevant delegate determines a need for the loading to be continued at the conclusion of the initial loading period, the level of salary loading applicable to future periods will be based on the employee's performance, the continued operation of market forces, and the continuing availability of funds.

E12.3.4 Effect on benefits and conditions

E12.3.4(a) The salary plus loading will count as "salary" for all periods of paid leave, overtime and penalty rate calculations (where eligible).  However, the loading will not count as "salary" for superannuation purposes.  The effect on higher duties allowances will be assessed on a case-by-case basis.

E12.3.4(b) During the loading period, if an academic employee is promoted, or a general employee receives a reclassification to a higher level, the salary loading will be renegotiated.