APPENDIX TWO HNZ00087553
TeWhatu Ora
Health New Zealand
POLICY
Woikoto
Remuneration - Individual  Employment Agreement Employees
Policy Responsibilities and Authorisation
Department Responsible for Policy
Human Resources
Document Facilitator Name
Alicia Taiaroa
Document Facilitator Title
Human Resources Business Partner
Document Owner Name
Jacquie snernome
1982
Document Owner Title
Executive Director Organisational support
Target Audience
All staff
Act
Authorised By
Executive Leadership Team
Date Authorised
14 October 2021
Disclaimer: This document has been developed by Te Whatu Ora Waikato specifically for its own use.
use of this document and any reliance on the information contained therein by any third party is at their
own risl< and Te Whatu Ora Waikato assumes no responsibility whatsoever.
Information
Policy Reviiew History
Official
Version
Updated by
Date Updated  Summary of Changes
07
J Gledhill
12/6/2018
Tidy up, process to review job evaluation
the
10ll/2018
Amended:
• Includes provision of step increases at time of offer for
developmental roles.
• Includes requirement for agreement to higher duties
allowances to alian to a career develooment olan.
under
08
J Sherbome
519/2021
Language, roles, higher duties allowance darification,
refe11ence to PSC guidelines.
T Ashworth
20/2/2022
Addition to coverage clause to mal<e clear it covers IEA
roles
Released
Doc ID:  I  0013
Version:  I 08
I  Issue Date:  1 SEP 2022
Review Date:  I  1 SEP 2025
F acililator Trtle:
HR Business Partner
Department:
Human Resources
IF THIS DOCUMENT IS PRINTED, IT IS VALID ONLY FOR THE DAY OF PRINTING
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TeWhatu Ora
Health New Zealand
POLICY
Woikoto
Remuneration - Individual  Employment Agreement Employees
Contents
1
Introduction ....... .
.3
1.1  Purpose ..... .
.3
1 .2  Scope ........ .
.3
1.3  Exclusions ..
.3
2
Definitions ......... .
. 4
1982
3
Policy statements ......... .
.5
4
Policy Processes .......... .
.5
4.1  Roles and Responsibilities ........... .
.5
Act
4.2  Factors Detennining Remuneration ......... .
.5
4.3  Design and Operation of Job Bands ........ .
. 6
4.4  Review of Job Bands ................... .
.7
4.5  Annual Salary Review .................. .
.7
4.6  Conditions of Employment for IEA Employees ..................... .
.7
5
Audit.. ................ .
.8
5.1  Indicators .. .
Information
.8
6
Legislative Requirements .................... .
.8
7
Associated Te Whatu Ora Waikato Documents .....
.8
Official
the
under
Released
Doc ID:
I 0013
Version:  I 08
I  Issue Date:  1  SEP 202 2
Review Date:  I  1  SEP 2025
Facilitator Trtle:
HR Business Partner
Department:
Human Resources
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TeWhatu Ora
Health New Zealand
Woikoto
POLICY
Remuneration - Individual  Employment Agreement Employees
1  Introduction
1.1  Purpose
Te Whatu Ora Waikato has adopted this remuneration policy to assist in its vision, mission
and values by:
• Ensuring that we attract, retain and motivate high performing managers and leaders.
• Ensuring that remuneration is competitive while still remaining affordable.
1982
• Appropriately linking remuneration outcomes to performance.
• Supporting clear career pathways and development opportunities.
Act
• Meeting the Governments expectations for pay and employment in the state sector.
1.2  Scope
This policy applies to
• Te Whatu Ora Waikato employees who hold an appointed position of manager and/ or
professional / technical advisor.
• All Individual Employment Agreement (IEA) rotes (other than those whose job is
Information
covered under Te Whatu Ora Waikato Collective Agreements or Multi Employer
Collective Agreements (MECAs)
• Other positions may be identified for inclusion by the applicable Executive Director
(Level 3 delegation).
Official
This policy should be read in conjunction with applicable employee's Individual
Employment Agreement (IEA).
the
1.3  Exclusions
The policy does not apply to:
• Employees (including non-union members) whose position falls within the coverage of
Te Whatu Ora Waikato  Collective Agreements or Multi Employer Collective
under
Agreements (MECAs)
• Direct reports to the Chief Executive.
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TeWhatu Ora
Health New Zealand
POLICY
Woikoto
Remuneration - Individual  Employment Agreement Employees
2  Definitions
Base Salary
Is the amount of annual remuneration without the indusion of any cash
payments or benefits.
RE
Regional Director
Eligible employees
Are employees employed in pennanent positions and at current salary
for a period of greater than six months as at 1 July.
No remuneration increase shall apply to employees employed for less
1982
than one year on a fixed tenn IEA as at 1 July.
An employee With a fonnal warning in effect at the time of the review
shall not be eligible for a base salary increase that year. The fonnal
warning may be for ongoing poor perfonnance or behaviours.
Act
Executive
Chief Executive alld direct reports.
IEA
lndivi<lual Employment Agreement
Job Bands
A range of job evaluation points, to which jobs of similar size are
allocated for remuneration management. Dollar ranges are then applie<l
to Ban<ls based upon pay practice.
Job Evaluation
The method of <letennining the relative size of positions or groups of
positons within an organisation. An external, vali<lated methodology
Information  is
used. Training an<l accreditation in the method is required.
Job Evaluation
Membership as designate<l by the Director HR Shared Services an<l
Committee
trained in job evaluation methodology. Committee purpose to be the
slotting or evaluation (as appropriate) of new positions into applicable
job ban<l, or, if deemed necessary the job evaluation of significantly
Official
changed positions ..
Level3
Executive <lirectors an<l managers who hol<l a level 3 <lelegation under
the Delegations of Authority.
the
Level4
Directors and managers who hold a level 4 delegation un<ler the
Delegations of Authority.
MECA
Multi Employer Collective Agreement
under
Median
When all values are ranked in ascending or<ler, the median is the mi<l-
point in the range of values (the point or value at which 50% of values
are lower an<l 50% are higher).
Position in Range
This is an employee's current Position in Range or PIR, determined by
<lividing base salary (exduding KiwiSaver) by the mi<lpoint of the
applicable Te Whatu Ora Waikato ban<l or gra<le.
Remuneration Ranges
The range of base salary applicable to a job ban<l, which is set aroun<l
Released
the market median of the public sector for that ban<l.
Total Base
Is base salary plus other guaranteed cash payments or benefits to
Remuneration
which an annualise<l cash equivalent may be attributed. For Te Whatu
Ora Waikato employees on a Pure IEA, this is base salary plus
employer contribution to KiwiSaver.
Doc ID:  I  0013
Version:  I 08
I  Issue Date:  1 SEP 2022
Review Date:  I  1 SEP 2025
Facilitator Trtle:
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Department:
Human Resources
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TeWhatu Ora
Health New Zealand
wolkOlO
POLICY
Remuneration - Individual  Employment Agreement Employees
3  Policy Statements
It is the Te Whatu Ora Waikato policy that remuneration for IEA employees will provide
competitive  remuneration to enable the recruitment and retention of employees who will
enable Te Whatu Ora Waikato to deliver on its strategic objectives,  annual budget and
contract performance.
4  Policy Processes
1982
4.1  Roles and Responsibilities
Managers
Act
• Providing regular feedback to employees about their performance.
• Undertaking performance reviews annually, including a career development plan.
• Approving salary increases for eligible IEA employees in accordance with salary review
parameters approved by the Regional Director (RD) each year.
• Remuneration changes and payments are in accordance with this policy and annual
salary review parameters, unless otherwise approved in accordance with this policy.
Information
IEA Employees
• Participating in an annual performance and development review.
Organisational Support
• Provide managers with information regarding where their employees are being paid
Official
within  job bands.
• Advise and assist managers regarding remuneration bands for IEA employees.
the
• Monitor and audit remuneration movements and policy compliance.
4.2  Factors Determining Remuneration
under
• Determining factors for remuneration:
o Internal relativity 0ob evaluation)
o Market relativity (external market position)
o Recruitment and retention issues
o Performance of the employee
o Ability to pay/affordability.
• Public Service Commission guidelines regarding remuneration in the public sector.
Released
• Base salary applies under this policy,  which excludes employer contribution  to
KiwiSaver.
• Te Whatu Ora Waikato will seek to align job bands to the median of the NZ Public
Sector. Market benchmarking is carried out every second year.  In alternate years,
market data may be 'aged'  appropriately, or no change made and general market
commentary noted for information only.
Doc ID:
I  0013
Version:  I 08
I  Issue Date:  1 SEP 2022
Review Date:  I  1 SEP 2025
Facilitator Trtle:
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Department:
Human Resources
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TeWhatu Ora
Health New Zealand
wolkOlO
POLICY
Remuneration - Individual  Employment Agreement Employees
• The Director HR Shared Services may approve the alignment of identified positions
against the median of specialist/technical markets, or against the applicable  profession.
The reason for alternative alignment must be clearly identified, such as difficulty
recruiting or retaining staff in functional areas.
4.3  Design and Operation of Job Bands
• Using job evaluation,  positions are grouped together in job bands of a similar job 1982
evaluation. Te Whatu Ora Waikato does not provide employees with their Position in
Range (PIR) at this point in time, as we do not publish our  remuneration ranges.
• Each job band has a base salary range around 80% to 115% of the identified market
Act
median.
• The assignment of job bands to new positions not previously job evaluated will be
determined by the Evaluation Committee which is chaired by the Remuneration
Manager.
• A review of  the job evaluation of current positions will only take place if there has been
a substantial change in position. If  the employee feels that the job has changed or that
a pay review is required, the employee must first discuss this with their line manager. If
Information
the line manager supports the review, the request for job band review must be sent in
writing via the applicable level 4 (or above) manager to the Evaluation Committee.
• Should a position's band change as a result of a job evaluation review, any change
may apply from the date the amended position description is submitted to the
Evaluation Committee. Any salary change may not exceed the median of the new job
band unless approved by the applicable level 3 Executive Director. Any remuneration
Official
increase is not automatic or entitled based upon a change in band.
• Criteria on appointment:the
o Recruiting manager (unless level 3, or above) may appoint up to the median of the
position's job band.
o Appointment above the median of the band for reasons of greater skill and
experience, or, hard to recruit areas, requires the approval of the applicable level 3
under
executive director.
o A development plan and targeted r,emuneration increases may be included in the
appointment letter; these increases will replace the annual salary review detailed in
4.5 below for the year(s) in which they apply. The end point of targeted
remuneration increases to be not more than the median of the position band at the
time of appointment.
• Any remuneration changes outside of  policy including but not limited to, salary
Released
increases out  of the annual remuneration cycle, payments not included in  the
employee's IEA or this Policy, remuneration above the job band range; require the
approval of the RD and the Executive Director Organisational Support.
• If the non-standard payment/remuneration is for an employee reporting to the
Executive Director Organisational Support, this will be  referred to the RD only.
Doc ID:
I  0013
Version:  I 08
I  Issue Date:  1 SEP 2022
Review Date:  I  1 SEP 2025
Facilitator Trtle:
HR Business Partner
Department:
Human Resources
IF THIS DOCUMENT IS  PRINTED, IT IS VALID ONLY FOR  THE DAY OF PRINTING
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TeWhatu Ora
Health New Zealand
wolkOlO
POLICY
Remuneration - Individual  Employment Agreement Employees
4.4  Review of Job Bands
• Every second year Te Whatu Ora Waikato will review, but not necessarily increase or
change, job band ranges.
• Any change to job band ranges will be effective from 1 July in the applicable year.
• A change or increase in a job band does not necessarily increase the salary of
employees paid within that band, unless they fall below the minimum of the new range.
1982
4.5  Annual Salary Review
• Each year the  Regional Director will approve the total cost and percentage available (if
Act
any) for IEA employees annual salary review.
• Eligible employee's remuneration will be reviewed (but not necessarily increased) as at
1  July each year. A process will be developed and approved each year for such
increase.
• Within approved parameters the manager will consider the following when determining
any employee's increase:
o overall performance of the employee, including whether the employee has any
higher substantial accountabilities that have not been recognised as part of any
Information
other process and should ideally be. Such accountabilities need to require a
significantly increased level of contribution by the employee and be more than what
would normally be expected as part of growth and development in the position.
o significant recruitment and retention issues.
a  budget.
Official
a  Public Service Commission pay guidelines, if applicable.
4.6  Conditions of Employment for IEA Employees
the
• Terms and conditions of employment for employees are set out in their IEA.
• If the employee is required by their manager to substantially perform the duties and
carry out the responsibilities of a position in a higher band than the employee's own for
a period of four weeks or more; an allowance may be paid and pro-rated to the
under
proportion or the year the higher duties are performed and percentage of full time
worked. The higher duties should be part of a career development opportunity and
align with individual career development plans.
• The amount of any Higher Duties Allowance (HOA) is determined by the difference
between the eligible employee's current base remuneration and the minimum rate of
the grade or band applicable to the position the employee is acting into, or a 6% salary
increase, whichever is the greater. This amount is then paid on a pro-rata basis (time
Released
and hours).
• A HOA may be shared between up to 4 employees, on the principle that Te Whatu Ora
Waikato is 'no worse off if up to 4 employees are sharing a HOA than if only one
employee were acting in a higher position.  Whilst not standard and requiring a level of
maturity and planning, sharing a larger position and HOA may enable filling a position
that would not otherwise be possible internally.
Doc ID:  I  0013
Version:  I 08
I Issue Date:  1 SEP 2022
Review Date:  I  1 SEP 2025
Facilitator Trtle:
HR Business Partner
Department:
Human Resources
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TeWhatu Ora
Health New Zealand
POLICY
wolkOlO
Remuneration - Individual Employment Agreement Employees
• An employee with level 5 (or below) delegation who is required by their manager to
participate in an on-call roster outside normal business hours may be paid an annual
amount in recognition of this requirement. This amount may be incorporated into base
salary or paid as an annual allowance and forms part of total remuneration. Such an
allowance will be removed if the  on-call roster duty is no longer performed.
• The inclusion of terms, conditions or payments other than those included in this
policy or the standard Te Whatu Ora Waikato management IEA; require the approval of
the Executive Director Organisational  Support.
1982
5  Audit
Act
5.1  Indicators
• Effective implementation of the policy - as determined by a post-review analysis of the
Annual Remuneration Review each year.
• Compliance with the policy
6  Legislative Requirements
Information
Te Whatu Ora Waikato must comply with the following legislation (this list is not exclusive):
• Health and Safety at Work Act 2015
• Human Rights Act 1993
• Privacy Act 2020
Official
• Employment Relations Act 2000
• Treaty ofWaitangi Act 1975the
7  Associated Te Whatu Ora Waikato Documents
• Delegations of Authority oolicy (Ref. 2175)
under
• Development and Performance policy (Ref. 0012)
• Managing Poor Performance and Behaviour policy (Ref. 5250)
• Standard Individual Employment Agreement (IEA)- Managers/ Advisors
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Doc ID:
I  0013
Version:  I 08
I  Issue Date:  1 SEP 2022
Review Date:  I  1 SEP 2025
Facilitator Trtle:
HR Business Partner
Department:
Human Resources
IF THIS DOCUMENT IS PRINTED, IT IS VALID ONLY FOR  THE DAY OF PRINTING
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Document Outline

0013 CDAF Remuneration for IEA Employees
0013 Remuneration for Individual Employment Agreement (IEA) Employees policy