SALGA annual report 2016/17 SALGA ANNUAL REPORT 201617 PRINTED FINAL | Page 254

Performance Management and Remuneration Committee The organisation’s individual performance management system (iPMS) focuses on the enabling behaviour. The enabling behaviour that is supported by the organisation espouses the following values: (i) We will uphold the highest level of organisational ethics and adhere to policies and procedures (ii) We will be responsive and member centric (iii) We will strive for and recognise excellence (iv) We will work collectively in co-operative teams (v) We will communicate timeously, accurately and appropriately (vi) We will promote mutual respect All of the above mentioned behaviours have their sub-behavioural statements which will help as measures when deciding on the rating: The performance measurements of the behaviour’s charter is conducted through the application of a 360 degree assessment which include feedback from an employee’s subordinates, peers and supervisor, as well as a self-evaluation 1.6 Remuneration packages that are on “Personal to Holder” basis SALGA has as part of its remuneration escalation management efforts, sought to provide very tight salary grading and remuneration curve for all positions per HAY grading system and with this remuneration modelling exercise it has identified employees which are remunerated within the range at the time of adopting the HAY grading system and also identified employees that are outside the approved grading scales. The organisation’s remuneration and benefits policy recognises that there are a few instances where individual employees might be receiving salary packages which exceed the maximum of the relevant salary band within the organisation’s salary framework. Examples of such instances include: • Individual salaries inherited during the amalgamation of some of its provincial offices into the organisation 254 • • • Where the need for a certain skill requires SALGA’s salary offer to exceed the maximum of the salary band in order to attract this specific skill (note this will only be in instances where the successful candidate’s existing salary package is equal to or higher than the maximum of the SALGA salary band within the framework) Where an employee has, due to higher annual salary increases as a result of continuous excelling performance, moved outside of the band irrespective of the fact that the bands may have been adjusted with the base cost of living increase on an annual basis Where certain employees’ salary packages exceed the maximum of the respective salary bands within the framework. These employees who are outside this range, are ring-fenced as employees whose remuneration is being managed on a “personal to holder basis” until their contract employment term expires. SALGA employs its executive management team on a fixed term contract. This applies to the incumbent Chief Executive Officer and his direct reports. The Chief Executive Officer’s current remuneration has been identified to be one of those categories of employees who are on a “personal to holder basis” till the expiry of the contract or through natural attrition or earlier. This means that when SALGA recruits a replacement candidate, it shall remunerate that new employee on the basis of the approved remuneration scale that will be substantially less than the current “personal to holder” legacy packages that is disclosed in the annual report. Notwithstanding, the efforts to manage the escalation of remuneration at SALGA, particularly those of Executives, it is important to note that SALGA had to review its remuneration policies as it pertains to its Executives and benchmark these with municipalities particularly Metro’s since metropolitan municipalities pose the greatest direct remuneration competitor to SALGA. The review exercise was necessitated by the recent recruitment and poaching of top SALGA Executives over the past three years by the Gauteng Metropolitan municipalities that