Market Loadings Policy

Document Number	000794
Date Approved	1 January 2006
Date Last Amended	21 February 2012

1. Introduction

The University of Newcastle is committed to attracting and retaining high quality staff and acknowledges that market loadings may be necessary to assist the University to compete for highly qualified and sought after staff in a global market.

This policy should be considered in conjunction with the University’s Recruitment Policy.

2. Policy Intent

The University will use market loadings (and other benefit mechanisms) in order to recruit and retain highly qualified and sought after staff to address external market forces.

Market loadings may be initiated as part of a recruitment and appointment process or to retain existing staff in discipline areas where there is evidence of the need for market-based salary loadings to compete with comparable universities and / or other sectors.

Loadings are generally subject to review and the maintenance of the loading is contingent upon staff meeting clearly defined performance requirements.

Academic or Professional staff classification levels will not be artificially adjusted or changed as a mechanism to address market forces.

3. Definitions

In the context of this document:

Superannuable loading means a salary loading where 17% employer superannuation contribution is payable on this allowance. As this loading forms part of the staff member’s conditions of employment, the loading is payable while on leave and on termination.

Non-Superannuable loading means a salary loading where the employer superannuation contribution is payable at the appropriate Award superannuation rate. This loading is not payable on leave or on termination.

It is at the discretion of the University whether a salary loading is superannuable or non-superannuable.

4. Policy provisions / principles

4.1 The University will consider discretionary market loadings, as well as other mechanisms, where there is a clear need for enhancing the University’s competitive position in response to market forces. For example:

4.1.1 where repeated attempts to recruit into a specialist role have failed to attract a suitable candidate;

4.1.2 where there is a need to enable access into niche research areas as part of the University’s strategic positioning where the University is in direct competition with other institutions for key staff;

4.1.3 where there is clear evidence of threat to retaining staff due to poaching or counter offers from other employers, and

4.1.4 where there is data in particular relevant remuneration benchmarks from external markets, including comparable universities.

4.2 The use of market loadings will generally, be associated with:

4.2.1 senior appointments

4.2.2 emerging or current disciplines in high demand

4.2.3 professional staff in high demand professions generally at HEW 8 or above

4.2.4 historically hard to fill disciplines

4.3 Market loadings will be subject to review, initially after two (2) years from commencement and then annually. Any review periods are to be clearly identified in any contract of employment. Continuation of the loading will be subject to the review determining:

4.3.1 exceptional performance as assessed against clearly defined performance measures expressed within the Managing for Performance framework, and

4.3.2 the market forces that initiated the loading continue to exist.

The initial two (2) year review period does not negate the necessity for an annual performance review as part of the Managing for Performance cycle.

4.4 In exceptional circumstances, market loadings may be approved as an ongoing commitment, entered into as part of the recruitment negotiation process.

4.5 A determination of exceptional performance for academic staff will be based on specific achievements within the following performance criteria which are directly attributable to the staff member[s]:

4.5.1 Teaching

Exceptional achievement in teaching will entail evidence of at least two of the following:

innovation in program and curriculum design and teaching strategy
outstanding outcomes as evidenced by the receipt of teaching awards
publication in internationally refereed journals dealing with teaching and learning
attraction, retention and high completion rates of students.

4.5.2 Research

Exceptional achievement in research will entail one or more of the following:

Up to and including Level C - exceptional achievement in their discipline in comparison with their peers nationally, as evidenced by:

an outstanding record of achievement in attracting research grants, an/or
the publication of books and/or articles in high ranking national or international journals.

Levels D and E - exceptional achievement in their discipline in comparison with their peers internationally, as evidenced by:

leading successful bids for large nationally competitive grants;
publication in first ranked international journals;
publication by publishers of high international standing;
election to learned societies and academies;
having a leadership role with research teams, and/or
attracting and successfully completing PhD students.

4.5.3 Service

Exceptional academic leadership within the discipline, Faculty and University, will include evidence of:

a) Discipline

Leadership in the discipline which is characterised by exceptional national and international recognition, journal editorial board involvement and leadership roles in professional societies.

b) Faculty

Clear evidence of excellence in a leadership role within the Faculty / University including demonstrating exceptional achievement of goals and outcomes commensurate with the Faculty or University strategic direction.

c) Extension and promotion

Significant roles in activities within and beyond the University which enhance the standing and reputation of the University and the Faculty. There must be clearly articulated benefits derived by the Faculty / University and the benefits to the community.

d) Leadership

The exercise of leadership within the discipline, Faculty, University in relation to developing, coaching and mentoring of colleagues.

4.6 A determination of exceptional performance for professional staff will be based on assessment against the following criteria:

a) Leadership

Exceptional leadership within and beyond the professional field being clearly demonstrated within the University and recognised externally.

b) Professional/technical specialisation

Exceptional achievement in an area of professional or technical specialisation recognised by peers nationally / internationally where this is not reflected in the HEW level for the role.

c) University Contribution - in excess of role expectations

Significant contribution to the University over and above the role of the individual. This would typically be where the contribution is made in a particular area or to an extent not associated with the formal employment relationship.

4.7 A determination of exceptional performance for teachers will be based on the following criteria:

innovation in program and curriculum design and teaching strategy
outstanding outcomes as evidenced by the receipt of teaching awards or acclaim
attraction, retention and high completion rates of students.

4.8 Market loadings, in extreme circumstances may be an ongoing commitment, entered into as part of the recruitment negotiation process. In this instance, the loading will be superannuable.

4.9 Each Pro Vice Chancellor and Divisional Head is responsible for establishing a process within their Faculty or Division to identify instances where a market loading may be appropriate.

4.10 Other mechanisms recognised by the University which may be appropriate for use in the recruitment process include;

a ‘one off’ sign on incentive
assignment / allocation of specific resources and/or facilities
access to special purpose funding
salary packaging of relocation expenses not otherwise reimbursed by the University

4.11 Market loadings are a Faculty or Divisional commitment and will be budgeted and paid for by the Faculty/Division.

4.12 Where the loading is not ongoing in nature, it will be paid as a non-superannuable salary allowance and is determined as a percentage of a staff member’s base salary. The loading will be paid on leave taken within service but not on leave paid out when the staff member ceases employment with the University.

4.13 The loading is to be approved by the Vice-Chancellor (or Deputy Vice-Chancellor (Academic and Global Relations) or Deputy Vice-Chancellor (Research)) based on advice from the Director, Human Resource Services and the appropriate Pro Vice-Chancellor, prior to any employment offer being made to academic staff.

The loading and/or other mechanisms are to be approved by the Deputy Vice-Chancellor (Services) (or Director, Human Resource Services) on advice from the respective Head of School or Director, prior to any employment offer being made to professional staff.

5. Essential Supporting Documents

Recruitment Policy