| 2. |
Circular 0026/2003 dealt with the launching of a pilot project to inform employees about the new Staff Performance Management and Development System (SPMDS) which will be fully implemented with effect from 1 June 2004. |
| 3. |
In the first instance the new SPMDS is based on individual performance agreements which must be signed by each employee in conjunction with his or her supervisor. According to a performance agreement, where it will be spelt out what is expected of an employee at his or her level according to a job description, an employee will be measured to establish whether certain goals have been achieved during a prescribed qualifying period. It should be noted that a uniform period of one year, which will run from 1 April of a specific year to 31 March of the next year, will apply. The system will ensure continuous evaluation. |
| 4. |
The most important steps in the SPMDS can be summarised as follows:
An Individual Performance and Development Plan, which will culminate in a Performance Agreement, must be drafted. Progress according to the plan and the performance agreement must be monitored four times annually. An annual performance appraisal/assessment must be done of all employees. An appraisal/assessment certificate must be completed. |
| 5. |
To reward an employee for average and above average work performance, an Incentive Policy Framework, aligned to the SPMDS, has been developed and is being further developed. The following aspects of this incentive policy have been implemented: |
| 5.1.1 |
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All employees at salary levels 1 to 12 were eligible for pay progression within their salary scales up to the maximum notch of the salary scales attached to their posts. |
| 5.1.2 |
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Progression to the next higher notch within the employee`s salary scale has, as of 1 July 2003, been based on seniority (period of continuous service) and performance. In this transitional period progression has been effected automatically in the case of those employees who complied with the other requirements as stipulated below, but performance certificates, of which a copy is attached, must be completed and submitted in respect of all Public Service personnel (non-educators) before 31 January 2004. If a certificate is received with an indication that an employee`s performance was not satisfactory in all respects, the amount that he or she has received will be recovered after thorough investigation, and taking into consideration the legal application of, inter alia, the audi alteram partem rule. |
| 5.1.3 |
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An employee must complete a continuous period of at least 12 months on his or her salary notch on 31 March of a year and must have obtained at least a satisfactory work performance appraisal/assessment. |
| 5.1.4 |
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The pay progression cycle (and therefore the assessment cycle for this purpose) will extend over a continuous period of 12 months, commencing on 1 April of a particular year, but the actual salary notch increase for those who qualify will be implemented on 1 July of each year. In practice the fixed progression cycle may have the effect that an employee appointed in or promoted to a post with effect from 1 May of a year will only qualify for possible pay progression 26 months later. For example, if an employee was promoted to a post on a higher salary grade with effect from 1 May 2003, he or she will receive a first pay progression only on 1 July 2005 after completion of a full qualifying year from 1 April 2004 to 31 March 2005. |
| 5.1.5 |
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The first pay progression in terms of this system has taken place on 1 July 2003. |
| 5.1.6 |
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The granting of pay progression is limited to 1% of the WCED`s wage bill. |
| 5.1.7 |
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Employees on personal notches on their present salary scale, i.e. a notch above the maximum of the salary scale attached to his or her post, as well as employees who have received 2nd or 3rd notches during the qualifying period of 12 months, would not have qualified for pay progression, but have received the annual salary adjustments on their salary scales. |
| 5.1.8 |
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Employees may receive pay progression and other performance-related incentives (e.g. performance bonuses) provided for in departmental performance-related incentive schemes in the same financial year. |
| 5.2.1 |
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A system of performance bonuses which is in operation from 1 April 2003, is similar to the system that was in operation previously. Awards are also granted in two categories, namely 10% and 18%, based on outstanding work performance. The only difference is that at present they are calculated on an employee`s current salary notch and not on the minimum of the salary scale attached to his or her post. |
| 5.2.2 |
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Until the new SPMDS has been fully implemented with effect from 1 June 2004, the evaluation form Z476 will still be used as an interim measure to assess staff for the allocation of performance bonuses. |
| 5.2.3 |
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The granting of Performance Bonuses (and other incentives) will be limited annually to 1,5% of the remuneration budget in respect of Public Service staff of the WCED. It is therefore clear that not every employee will qualify for this incentive, and that the system must be utilised to reward really outstanding performers. |
| 5.3 |
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GRADE PROGRESSION Grade progression is an upward progression from a lower graded to a higher graded post/salary level by means of open competition, i.e. there must be a vacant post before an employee is able to advance to a higher grade. Policies in this regard must, however, still be developed and negotiated. At present all staff are free to apply for advertised posts for which they deem themselves suitable. |
| 6.1 |
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Further information regarding the implementation of the above-mentioned systems will be made available at a later stage. |
| 6.2 |
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Copies of two documents received from the Department: Public Service and Administration with regard to the pay progression system are attached for your records. The certificate referred to in paragraph 5.1.2 is very important and must be completed promptly and submitted to the Personnel Office as indicated please. |
| 6.3 |
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Apologies are offered for the Xhosa version of this circular which is not available yet. It will be issued shortly. |
| 6.4 |
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Kindly bring the contents of this circular to the attention of all Public Service personnel under your control. |
| 6.5 |
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Should further clarity be needed, one of the following persons may be contacted:Mr B Bestenbier Tel. 021 467 2433
Mr WVC Klein Tel. 021 467 2431 |
SIGNED: G.J. ELLIOTT
HEAD: EDUCATION
DATE: 2003:12:04
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