CPP-HR-0110_Salary Adjustment_V3

Prepared	M. Martinez		26 Sept 2020
Approved	F. Lenoir		15 Oct 2020

1. Attract and retain competent employees
   
2. Provide recognition of and reward for differences in individual ability and performance
   
3. Establish and maintain competitive salary ranges consistent with the economic requirements of the company and commensurate with other competitors and locations in which the company operates
   
4. Relate salaries paid for the duties and responsibilities of positions to provide a stimulus for employee self-improvement and advancement to greater responsibilities
   
5. Maintain a performance appraisal program which identifies opportunities for employee development and places compensation rewards on an objective basis
   
6. Provide an effective management control system which will permit delegation of responsibility within a framework of policy and procedure
   

3.1     Incentive Scheme  

A team member’s immediate superior establishes one’s team’s Key Result Areas  

(KRAs) and monitors their respective Key Performance Indicators (KPIs). The team member ensures they achieve their KPIs. The achievement of the pre-set KPIs may merit a monthly incentive scheme.  

 

3.2     Promotion  

Employee movement may transpire as a result of a project’s expansion or a job position clarification. The rate of increase in salary will depend on several factors such as:

3.2.1    the existing market rate for the position

3.2.2    the added skills and responsibilities required for the position

3.2.3    the new ratio of people reporting to the promoted employee

3.2.4    the agreed-upon salary level between the Company and the Client         

3.3     Annual Increase  

Performance Management System (PMS) results are considered for salary adjustments using achievement scores from the P.R.I.D.E. Values and Key Performance Indicators (KPI). If one fails the Values score, one can only be entitled to the inflationary increase.

3.3.1     General Considerations

1. Company performance and salary increase budget
   
2. Coverage year salary structure and market data

3.3.2.    Eligibility

1. All regular and/or probationary employees hired as of September 31st of the covered year or team members with at least three (3) months scorecards by end of the year (December 31st).
   
2. All Team Members without any salary increase after October 1 of the covered year (promotion, alignment, regularization, client driven increase).

3.3.3    Salary Increase

1. The final percentage increase will be under review by the ELT and will be cascaded as soon as final and approved. 
   
2. All salary increases are based on the calibrated January to December of covered year’s performance rating. 
   
3. Pro-rated calculation applies as necessary. Salary changes after March 1 of current year will be prorated. Also, based on hiring date of hires from previous year.

3.3.4    Effectivity

1. March 1st of the current year

3.3.5    Timeline

1. January 1 to 15 – All leaders will conduct one on one discussion with team members of their performance 
   
2. January 16 to 20 – All leaders to ensure completion of members performance ratings and to be uploaded in PTMS MyHR system 
   
3. January 16 – VP of P&T Team to send the template file for consolidation of calibrated scores to all OM's and Department heads
   
4. January 21 to 28 – Operations Managers and Department heads will do calibrated ranking based on performance of employees 
   
5. January 29 to February 1 – All Managers and Department Heads will submit to the VP for P&T Team the final calibrated scores for consolidation
   
6. February 4 to 12 – Consolidated scores of all departments will be for review and calibration by the VP for P&T, VP for Operations and VP for Sales and Marketing
   
7. February 13 to 27 – VP for Operations will submit the calibrated ratings to the ELT for review and approval
   
8. February 28 – ELT will proceed with final approval
   
9. March 1 to 4 – VP for Operations and VP for P&T Team will cascade distribution of final list and final roll-out to Mancom with communication plan
   
10. March 5 to 7 – P&T Team will process generation of individual letters
    
11. March 8 – Letter distribution to all Operations Managers and Department heads 
    
12. March 8 to 13 – Operations Managers and Department Heads will facilitate individual discussions with team members and documentation signing
    
13. March 14 to 15 – Signed letters endorsed to P&T Team will be uploaded to the shared drive for preparation of the payroll report
    
14. March 18 – P&T Team will endorse payroll report with adjustment details to the Finance Department
    
15. March 20 – Finance Team to process and implement adjustments in payroll

3.4     De Minimis Benefit  

The De Minimis benefit is applied for salaries above 22,001 PHP in order to minimize taxes paid on people’s salaries. One can enjoy a maximum De Minimis amount of Php 2,133.00.

3.5            Additional Factors for Consideration on Salary Adjustment

3.5.1    Salary recommendations

3.5.2    Salary Expectations and approvals

3.5.3    Merit (optional)

3.5.4    Promotion/reclassification

3.5.5    Demotions (if applicable)

3.5.6    Temporary promotions/out of classification

3.5.7    Lump Sum performances bonus    

4.1    The Executive Committee is responsible for approving company incentive scheme, de minimis amount, and promotion to Director Level and up.

4.2    All appointment / transfer / promotion / acting capacity / salary adjustment papers and official letters on personnel matters are to be recommended and endorsed by respective Department heads, to be reviewed and approved by the VP of P&T Team and VP of Operations.

5.1    Incentive Scheme – as it happens

5.2    Promotion – as it happens

5.3    Annual Increase – 1st Quarter of the year for the Executive Committee and Shared Services Team and upon client contract renewal for the rest of the team members

5.4    De Minimis Amount – is given upon salary adjustment but up to Php 2,133.00 only

6.1    ELT

6.2    Client Solutions Group

6.3    P&T Team

6.4    F&A Team

7.1     Team Leader/Manager conducts a PMS to qualified team member for salary adjustment and recommends to Department Head.

7.2     Department Head will recommend salary adjustment plan to VP for Operations who will review and approve.

7.3     Team Leader/Manager will discuss the salary adjustment with the employee and initiate Employee Movement Form for Salary Adjustment via MyHR for approval by concerned departments    

7.4     P&T Team prepares the approved system generated letter of salary adjustment for endorsement, physically or digitally, to the Team Leader/Manager.

7.5     Team Leader/Manager will present the letter to the team member for acknowledgment and signing. A copy of the team member’s signed letter or acknowledgment will be endorsed to P&T Team for record-keeping and update.

7.6    P&T Team updates the online payroll record of the team member     

7.7     P&T Team will keep a signed copy of the letter of salary adjustment in the team member’s 201 File or shared virtual/digital drive for reference. 

9.1    PMS

9.2    Letter of Salary Adjustment

9.3    201 File

9.4    Sprout Record

9.5    MyHR Record