Salary negotiations in the insurance sector Aguide for managers and employees Finance Finland Service Sector Employers Palta The Union of Insurance Employees in Finland VvL
Salarynegotiationsintheinsurance
sector
Aguideformanagersandemployees
FinanceFinland
ServiceSectorEmployersPalta
TheUnionofInsuranceEmployeesinFinlandVvL
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Contents1Introduction............................................................................................................................................3
2Salarynegotiations..................................................................................................................................4
3Paystructureintheinsurancesector......................................................................................................4
3.1Fixedtotalsalary..............................................................................................................................4
3.1.1Guaranteedsalaryelementdeterminedbyjobdifficulty.........................................................5
3.1.2Personalsalaryelementdeterminedbyqualificationsandperformance................................5
4Dutiesofthesalarynegotiationsgroup..................................................................................................8
4.1Monitoring.......................................................................................................................................8
4.2Principlesofpaypolicy.....................................................................................................................9
4.3Salarynegotiationstraining..............................................................................................................9
4.4Paystatisticsandpaygradeinformation.........................................................................................9
4.5Disagreements................................................................................................................................10
5Preparingforsalarynegotiations..........................................................................................................11
6Havingsalarynegotiations....................................................................................................................12
6.1Personalsalarynegotiations..........................................................................................................13
6.2Changesinjobdifficulty.................................................................................................................13
6.3Assessmentofqualificationsandperformance.............................................................................13
6.4Summaryofthesalarynegotiations..............................................................................................14
6.5Salaryincrease................................................................................................................................14
7Protectionoftheindividual...................................................................................................................15
7.1Righttoreceivetrainingandstatisticalinformation......................................................................15
7.2Righttosuspendnegotiations........................................................................................................15
7.3Exceptionalcircumstances.............................................................................................................15
7.3.1Short-termabsences...............................................................................................................15
7.3.2Absencesthatspanbetweensalarynegotiationsrounds.......................................................16
7.4Thethree-negotiationrule.............................................................................................................16
7.5Disagreements................................................................................................................................16
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1IntroductionTheinsurancesectoradoptedthesalarynegotiationsmodelin2009,anditisnowappliedtoallofficepersonnelthatfallwithinthescopeoftheinsurancesectorcollectiveagreement.Summerhelpandemployeeswithfewworkinghours(regularworkingtimeaverageslessthan16hoursperweek)falloutsidethescopeofthecollectiveagreementandthusdonotundergosalarynegotiations.Oneofthemainobjectivesofthesalarynegotiationsistoenableemployeestofeelthattheirpayanditsdevelopmentarefairandmotivatingandthattheirearningsdevelopmentiscompetitive.Anotherkeyobjectiveistoincreasecompany-leveldecision-makinginpaymatterstogetherwiththepersonnel.Forsalarynegotiationstobesuccessful,companiesmusthaveanup-to-datepaypolicy,andbothmanagersandemployeesmustbefamiliarwiththecurrentcompensationsystemandreceiveenoughtrainingtohavesalarynegotiations.Asalarynegotiationsmodelthatisusedwellenablesafairandmotivatingcompensationsystem,createsbetterconditionsforcompaniestosucceedanddeveloptheiractivities,andallowsemployeestoimprovetheirprofessionalskillsandcompetence.Withwishesofsuccessfulnegotiations,FinanceFinlandServiceSectorEmployersPaltaTheUnionofInsuranceEmployeesinFinlandVvL
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2SalarynegotiationsSalarynegotiationsaretherightoftheemployeeandthedutyofthemanager.Theemployerdeterminesthemanagerwithwhomtheemployeehasthesalarynegotiationsandensuresthattheemployeeisawareofthis.Salarynegotiationsareusedtoassesstheemployee’sjobdifficulty,qualificationsandperformanceandtoachieveaconsensusonwhethertheemployeewillreceiveasalaryincrease.Ifanemployeerefusessalarynegotiations,themanagerdecideswhetherthatemployeewillreceiveasalaryincrease.Salarynegotiationsclearlyestablishhowdutiesandperformanceaffectsalary.Thesalarynegotiationsmodelalsoservesasaleadershiptool,allowingmanagerstoincludemoreincentives.Whendoneright,salarynegotiationscreatepaysatisfaction,steeroperationalchangesandencourageemployeestoachievekeygoals.Theobjectiveofsalarynegotiationsistoguaranteeemployeesafairandmotivatingsalaryanditsdevelopment.Successfulsalarynegotiationsthusrequirethatmanagerscanexplainwhyanemployeewillreceiveasalaryincrease,aminorincreaseornoincreaseatall.Thetimeframeofsalarynegotiationsisdeterminedbytheemployerrepresentativesandemployeestogether,asperthepossibleinstructionsofferedbythecompany’ssalarynegotiationsgroup.Inanycase,salarynegotiationsmustalwaysbeheldbeforethepayrisedeadlinesdeterminedinthecollectiveagreement.Managersmustalsoinformemployeerepresentativeswellinadvanceoftheperiodduringwhichsalarynegotiationswillbeheld.
3Paystructureintheinsurancesector
3.1FixedtotalsalaryWiththeimplementationofthesalarynegotiationsmodel,thesalaryofallofficepersonnelwhosejobbelongstothepaygradesorabovethemisdeterminedindividually.Thetotalsalaryreflectsthejob’sdifficulty,theemployee’squalificationsandpersonalperformance,andtheprincipleofequalcompensationforequalorequivalentwork.Thefollowingaffectofficepersonnel’ssalary:
• dutiesandchangesinthem(jobdifficulty)• experience• qualifications(competenceandmaintaininganddevelopingone’sprofessionalskills)• performance(workqualityandambition)• developmentofownworkandworkingmethods• cooperationandinteraction.
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3.1.1GuaranteedsalaryelementdeterminedbyjobdifficultyJobdifficultydeterminestheguaranteedsalaryelement,i.e.thepaygradeforeachemployee.Jobdifficultyassessmentconsidersallthedutiesoftheemployeeandscoresthejobasawhole.Theassessmentlooksatactualduties:itevaluateshowdifficultthejobisandexamineswhattheemployeeactuallydoes,notwhattheemployee’spersonalqualitiesareorhowwellheorsheperforms.Allemployeeswhodoequalorequivalentworkwillreceivethesamescoreandthusfallinthesamepaygrade.Theemployermustinformallemployeesabouthowtheirjobisscoredandwhatmakesuptheirtotalsalary,includingthedifferentsalaryelementsandincentives.AssessingjobdifficultywhendutieschangeJobdifficultyisreassessedwheneveranemployee’sdutieschange.Ifthedutieschangeessentially,theemployeewillreceiveasalaryincreasestartingfromthebeginningofthemonthfollowingtheassessment.Thisraiseamountstoatleastthedifferencebetweenthenewandoldpaygrade.Examplesofessentialchangesinclude,forexample,organisationalrestructuringorappointmenttoanotherrole.Ifanessentialchangedoesnotresultintheemployeebeingtransferredtoahigherpaygrade,thenewrole’seffecttothesalarywillbediscussedatthenextsalarynegotiations.Ifthechangestothedutiesarenotessential,theemployee’snewdutiesarecomparedagainstthejobdifficultyscaleinthesalarynegotiations.Ifthejobisdeemedmoredifficult,theresultingsalaryincreaseisawardedinthesalarynegotiations.3.1.2PersonalsalaryelementdeterminedbyqualificationsandperformanceQualificationsandperformanceInthesalarynegotiations,themanagerandemployeedescribetheemployee’sdutiesanddiscusshisorherqualificationsforandperformanceintheseduties.Theunionshavedeterminedhowthequalificationsandperformanceofemployeescoveredbythecollectiveagreementareassessedinsalarynegotiations.Theemployerandemployeeunioncan,however,determineotherassessmentcriteriaatthecompany.Company-specificinterpretationguidelinesforthecriteriacanalsobeissuedbythesalarynegotiationsgroup.Thesalarynegotiationsareusedtoassesshowemployeeshaveperformedintheirduties.Theycanalsobeusedtoaddressupcomingchangesindutiesandresponsibilitiesandtodeterminepossibleareasofdevelopmentinregardtocurrentandfutureduties.
Thesalarynegotiationsareusedtoassesshowemployeeshaveperformedintheirduties.
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Forsalarynegotiationstobesuccessful,eachemployeemusthaveanup-to-datejobdescriptioninwriting.Thejobdescriptionmustbewrittenontheformdrawnupbytheunionsunlesstheemployerandemployeeunionhavelocallyagreedtouseadifferentmodel.AssessmentcriteriaforqualificationsandperformanceTheassessmentcriteriaforqualificationsandperformancedeterminedbytheunionsarethefollowing:
• professionalskills,competenceandexperience• cooperationandinteraction• qualityofwork• personalperformanceandambition
Thefollowingwillbeconsideredinassessingprofessionalskills,competenceandexperience:Assessmentcriteria Unionexamples Company-or
department-specificcriteriamaintaininganddevelopingprofessionalskillsandcompetence
handlingvariouspension/insurance/compensationcasesindifferentroles,makingindependentsolutions,andprocessingmandate
accumulatingworkexperience accumulatingworkexperienceindifferentrolesorduties,notjustyearsservedatthecompany
developingoneselfandthemotivationtodevelop
makingconnectionswithe.g.theskillsmapping,pursuingtrainingopportunities,e.g.degreesinthefield,andacquiringcompany-specificsystemlicensesandtype-specificlicenses
developingone’sworkandworkingmethods
workingtogetherwithcolleaguesandthemanagertodevelopworkbye.g.suggestingimprovements
multipleskills beingcompetenttohelpotherteams/people,beingabletodotheworkofothersduringpeakseasons,beingabletodovariousstagesofawork/serviceprocess,beingabletosolvedifferenttypesofinsurance,compensationorpension,beingwillingtoputone’sskillstouseindutiesotherthanownduringrushtimes,testingchanges/reformsbeforetheyareimplemented
languageskills usingoneormoreforeignlanguagesatwork
formanagerialpositions:leadership
evaluatedbasedonleadershipevaluationcriteria(e.g.atmosphere)
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Thefollowingwillbeconsideredinassessingcooperationandinteraction:Assessmentcriteria Unionexamples Company-or
department-specificcriteriaabilitytocreateanatmosphereofcooperationinvarioussituations
sharingpersonalviews/discussingworkplaceatmosphere
handlingmutualmattersandparticipation
participatinginteammeetings,representingstaff,takingpartinsmallgroupprojects
abilitytogiveandreceivefeedback,especiallyinmanagers
Thefollowingwillbeconsideredinassessingthequalityofwork:Assessmentcriteria Unionexamples Company-ordepartment-specific
criteriafeedbackreceivedonthequalityofwork
feedbackisindividualisedandmonitoredthroughouttheyear,thefeedbacksystemisopen,reliableandequal/customerfeedbackorsomeothersystematicwayofassessingthequalityofwork
formanagerialpositions,alsoleadership
Thefollowingwillbeconsideredinassessingpersonalperformanceandambition:Assessmentcriteria Unionexamples Company-or
department-specificcriteriaabilitytoworktowardsobjectives doesnotrefertoquantitativeor
monetaryobjectives,butinsteadtotheabilitytoworkinaccordancewithworkplaceobjectives,e.g.makingcorrectorhigh-qualitycompensationdecisions,providingcomprehensivecustomerserviceandmakingcorrectpensionsolutions
Asummarythatincludestheassessmentformforqualificationsandperformancemustbedrawnupforallsalarynegotiations.Iftheemployee’sjobdescriptionhaschangedsincethepreviousnegotiations,anupdatedjobdescriptionformmustalsobeincluded.
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4DutiesofthesalarynegotiationsgroupEachcompanyhasasalarynegotiationsgroupwithemployerandemployeerepresentatives.Thegroupdeterminesitsownoperationsmodel,organisationandmeetingschedule,buttheemployerisresponsibleforsummoningthegroup.Theemployermustsummonthesalarynegotiationsgroupwhenevernecessary,butatleastonceeverycalendaryear.Groupmembersmustbegivenenoughpaidtimeofffromtheirworktoattendthegroup'smeetingsandtoprepareforthemwithstaffrepresentatives.Staffrepresentativesmustalsobegiventimeofftodotheirduties,andthistimemustbetakenintoaccountintheirworkload,objectivesandtheorganisationoftheirtasks.Thesalarynegotiationsprotocoldefinesthesalarynegotiationsgroup’sresponsibilities.Accordingtoit,thegrouphasthefollowingresponsibilities:
• Monitoringandpromotingthefunctionalityandpracticalimplementationofthesalarynegotiationssystem
• Discussingtheprinciplesofpaypolicyannuallybeforethesalarynegotiationsareheld• Participatingintheplanningandexecutionofthetrainingrequiredbythesalarynegotiations
system• Examiningwherecompany-specificjobtitlesfallingeneralstatisticalnomenclature• Handlinganydisagreementsconcerningsalarynegotiations• Examiningdifferentpaysystemsandhowtheyaremonitoredbasedoninformationofferedbythe
employero Unionrecommendation:Thesalarynegotiationsgroupshouldhandlepaypolicyaspartof
theassessmentsystemsusedinthecompany• Monitoringearningsdevelopmentinthecompany
4.1MonitoringThesalarynegotiationsgroupshoulddiscussfeedbackcollectedaftertheprevioussalarynegotiationsroundandpayparticularattentiontothemattersthatleftthemostroomforimprovement.Feedbackcollectedbytheunionstargetsthefollowingasareasofdevelopment:
• Givingandreceivingjustifications• Poorpreparation• Vagueassessmentcriteriaorlackofaconsistentcompany-widepolicy• Identifyingareasofdevelopmentandagreeingwiththemanagerontheirfollow-
up• Receivingsufficientinformationaboutpersonalperformance
Feedbackcollectedbytheunionstargetsthefollowingasareasofdevelopment
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4.2PrinciplesofpaypolicyForsalarynegotiationstosucceed,itiscrucialthatthecompanyhasapaypolicythatisopen,transparentandfair.Indiscussingthepaypolicy,theemployerandpersonnelshoulddiscusswhatincentivesandbonussystemsthecompanyusesinadditiontotheguaranteedsalaryelementdeterminedbyjobdifficultyandthepersonalsalaryelementdeterminedbyqualificationsandperformance.Indiscussinghowthecompensationsystemworks,thecompanymakesitscompensationschemetransparentandallowsitsemployeestolearnwhoarerewarded,whattheyarerewardedfor,whatrewardsareusedandhow.Thecompensationschemeisnotlimitedtomonetaryrewards,butalsoincludesdevelopmentandtrainingopportunities,opportunitiestoparticipateandinfluence,feedbackreceivedforwork,appreciation,employmentstability,andworking-timearrangements.Discussingpaypolicyalsobringsuptopicssuchasensuringearningsdevelopment,monitoringtherealisationofthepaypolicyandassessinghowwellthecompensationschemeworks.Theemployerdeterminesthecompany’spaypolicyafterithasbeendiscussedinthesalarynegotiationsgroupor,ifthecompanydoesnothaveone,togetherwiththepersonnel.
4.3SalarynegotiationstrainingForsalarynegotiationstosucceed,allmanagersandemployeesmustbefamiliarwithsalarynegotiationsandtrainedtohavethem.Planningandorganisingthistrainingisthereforeanimportantresponsibilityofthesalarynegotiationsgroup.Trainingshouldtargetnewmanagersandemployeesinparticular,buttheemployermustgiveeveryonetimetoattendtrainingandreadtheinstructionsontheintranetduringworkinghours,andmanagersmustensurethatemployeesparticipateinthetraining.Allsalarynegotiationstrainingtakesplaceduringregularworkinghoursandtheemployercoversallitscosts.
4.4PaystatisticsandpaygradeinformationAllemployeesmusthaveaccesstothefollowinginformationbeforesalarynegotiations:theinsurancesector'saverageincomeandincomedevelopment,thecompany’saverageincomeclassifiedaccordingtotheConfederationofFinnishIndustriesEK’snomenclatureofoccupationaltitles,andthecompany’spaygradedistribution.Thesalarynegotiationsgroupshouldensurethatthisinformationisuptodatewellbeforesalarynegotiationsarehad.PaystatisticsareavailableinFinnishatwww.finanssiala.fi
Forsalarynegotiationstosucceed,itiscrucialthatthecompanyhasapaypolicythatisopen,transparentandfair.
Furthermore,allmanagersandemployeesmustbefamiliarwithsalarynegotiationsandtrainedtohavethem.
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ExampleofsalarystatisticsInsurancesector,October2011,womenColumn1 Column2 Column3 Column4 Column5 Column6 Column7 Column84920 Insurancebusiness:
operationaldutiesManaginginsurancepolicies
Region Number EUR/month 10% 50% 90% 1
592
2,802
2,238 2,700 3,404
2 17 2,378
609 2,790 2,214 2,690 3,4044921 Handlinginsured
events1 1,154 2,701 2,213 2,626 3,249
2 21 2,529 1,175 2,698 2,213 2,623 3,424Forexample,10%ofthosewholiveinthecapitalregionandhandleinsuredeventshaveamonthlysalaryoflessthan2,213euros.Howtoreadthistable:Column1:ThestatisticalcodeoftheoccupationaltitleaccordingtotheConfederationofFinnishIndustriesEK’snomenclatureColumn2:OccupationalgroupandoccupationColumn3:Cost-of-livingindexregion(1=capitalregion,2=otherregions)Column4:Numberofthosewiththeoccupationaltitleaccordingtocost-of-livingindexregionsandintotalColumn5:AveragemonthlysalaryColumn6:10%(ofthoseinthegroup)earnlessthanthisColumn7:50%(ofthoseinthegroup)earnlessthanthisColumn8:90%(ofthoseinthegroup)earnlessthanthis
4.5Disagreements Asuccessfulsalarynegotiationsmodelincludesarectifyingprocedure.Thesalarynegotiationsgroupmustthereforeagreeinadvancehowlocalnegotiationsintheircompanyhandledisagreementsandcasesinwhichanemployeehasbeenleftwithouttheaverageincreaseforthreetimesinarow.Ifadecisionhasclearlybeenbasedonincorrectinformation,itmustberectified,orthemanagermustbeinstructedtodoso.Itisintegralthatsalarynegotiationstreatpeopleconsistentlyandequallyandapplythesameprinciplestoall.
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5Preparingforsalarynegotiations
CHECKLISTFORMANAGERSPreparingforsalarynegotiations
• Participatingintraining• Gettingtoknowthecompany'spaypolicy• Gettingtoknowthepaystatistics• Gettingtoknowthejobdifficultyscaleandtheassessmentofqualificationsandperformance• Ensuringemployeepreparationbye.g.organisingworksothatemployeeshavetimetoparticipate
intrainingandgettoknowtheintranetmaterials• Gettingtoknowtheemployees’jobdescriptionsandchangesinthem• Followinginformationgivenaboutthenegotiationsanddiscussingit• Preparingassessmentsandreasonsforsuggestedsalaryincreases• Iftheemployeeworksunderseveralmanagers,gettingtoknowthejobdescriptionsofeach
managerProvidinginformation
• Agreeingonthedatesandtimesofsalarynegotiationswiththeemployees• Informingtheemployeerepresentativeofthesalarynegotiationsperiod• Preparingforexceptionalcircumstances• Providingemployeeswithstatisticsonpayandpaygrades
o Availableaverageincomeandincomedevelopmentinformationintheinsurancesectoro Availableaverageincome(accordingtotheclassificationoftheConfederationofFinnish
IndustriesEK)inthecompanyo Paygradedistributioninthecompany
Havingsalarynegotiations
• Describingtheemployee’scurrentdutiesandresultsandensuringthatthejobdescriptionisuptodate
• Discussingtheemployee’squalificationsandperformance,fillingintheassessmentformandstatingconsensusordisagreement
• Discussingtheemployee’ssalaryandthepossibleupgradeofpaygrade• Discussingandseekingaconsensusonincreasingtheemployee’spayandstatingconsensusor
disagreement• Possiblysuspendingsalarynegotiations
Afterthesalarynegotiations
• Implementationofthepossiblesalaryincreaseasagreedinthesalarynegotiations• Implementationofthepossiblegeneralincrease• Goingoverpossiblesupportmeasureswiththeemployeeifoneormoreareasofdevelopment
havebeenidentified,andagreeingonandensuringtheirmonitoring• Providingtheemployeesinformationaboutthesalarynegotiations(averageincreaseineurosand
thenumberofincreasesimplemented)• Archivingthesalarynegotiationsdocuments• Creatingdocumentationforthefollowingsalarynegotiations
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CHECKLISTFOREMPLOYEESPreparingforsalarynegotiations
• Participatingintraining• Gettingtoknowthecompany'spaypolicy• Gettingtoknowthepaystatistics• Gettingtoknowthejobdifficultyscaleandtheassessmentofqualificationsandperformance• Identifyingjobdifficulty,notingchangesinyourjobdescriptionandobjectives,andassessingthe
needtoupgradetoahigherpaygrade• Assessingyourqualificationsandperformanceandpreparingjustificationsforyourassessment• Followinginformationgivenaboutthenegotiationsanddiscussingitwithcolleagues• Preparingreasonsforyoursuggestedsalaryincrease
Acquiringinformation
• Agreeingonthedatesandtimesofthesalarynegotiationswiththeemployer• Seekingsupportfromtheemployeerepresentative• Acquiringpaystatisticsandpaygradedistributioninformationfromthemanager/companyintranet
o Availableaverageincomeandincomedevelopmentinformationintheinsurancesectoro Averageincome(accordingtotheclassificationoftheConfederationofFinnishIndustries)
inthecompanyo Paygradedistributioninthecompany
Havingsalarynegotiations
• Describingyourcurrentdutiesandresults,andensuringthatyourjobdescriptionisuptodate• Discussingyourqualificationsandperformance,fillingintheassessmentformandstating
consensusordisagreement• Discussingyoursalaryandthepossibleupgradeofpaygrade• Discussingandseekingaconsensusonincreasingyourpayandstatingconsensusordisagreement• Possiblysuspendingsalarynegotiations
Afterthesalarynegotiations
• Implementationofthepossiblesalaryincreaseasagreedinthesalarynegotiations• Implementationofthepossiblegeneralincrease• Goingoverpossiblesupportmeasureswithyourmanagerifoneormoreareasofdevelopment
havebeenidentified,andagreeingonandensuringtheirmonitoring• Beinginformedoftheaverageincreaseineurosandthenumberofincreasesimplementedasa
resultofthesalarynegotiations• Creatingdocumentationforthefollowingsalarynegotiations
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6Havingsalarynegotiations
6.1PersonalsalarynegotiationsPersonalsalarynegotiationsareanimportantpartofdetermininganemployee’ssalaryandensuringitsdevelopmentbecausethenegotiationsofferallemployeesanopportunitytodiscusstheirpaywiththeirmanager.Beforethenegotiations,themanagerandemployeemustbothfamiliarisethemselveswiththeformsandassessmentcriteriausedinthesalarynegotiations.Ifeithertheemployeeorthemanagerwishestosuspendthesalarynegotiations,thepartiesmustagreeonwhenthenegotiationswillbecontinuedandreserveenoughtimeforcontinuingthem.Ifanemployeesuspendssalarynegotiations,thenegotiationsmaynotbecontinuedbeforetheemployeehashadanopportunitytocontacttheemployeerepresentative.Oncethesalarynegotiationsareover,themanagerensuresthattherearetwocopiesofalldocumentsandthattheemployeereceiveshisorhercopy.Thedocumentscanalsobeprovidedelectronically,inwhichcasebothpartieshaveaccesstothem.
6.2ChangesinjobdifficultyThepurposeofsalarynegotiationsistodescribetheemployee’scurrentduties,possibleupcomingchangestotheseduties,andtheresultsachieved.Theemployermustinformallemployeesabouthowtheirjobisscoredandwhatmakesuptheirtotalsalary,includingthedifferentsalaryelementsandincentives.Inthesalarynegotiations,thepartiesensurethattheemployee'sjobdescriptionisuptodateandattachajobdifficultyform,jobdifficultyscoreandpaygradetothejobdescription.Jobdifficultyisreassessedimmediatelyafteranemployee’sjobdescriptionundergoesessentialchanges.Ifthereassessmentresultsinahigherpaygrade,theemployee’ssalaryincreasesbyatleastthedifferencebetweenthenewandoldpaygrades.Theincreasetakeseffectfromthebeginningofthemonthfollowingthereassessment.Salarynegotiations
• Describetheemployee’sdutiesandresultsachieved• Discusstheemployee’squalificationsandperformance• Discusstheemployee’ssalarybasedoncurrentandpossibleupcomingdutiesandresponsibilities• Aimtoachieveconsensusonasalaryincrease• Recordthefactorstheemployeecanusetonegotiateasalaryincreaseinthefollowingsalary
negotiations,ifheorshedoesnotreceiveonenow
6.3AssessmentofqualificationsandperformanceTheassessmentofanemployee’squalificationsandperformanceisanessentialpartofsalarynegotiations.Qualificationsandperformanceareassessedusingtheformprovidedbytheunions(seeAppendix,sectionII),unlesstheemployerandemployeeunionhaveagreedotherwiseatthecompany.Theprocessprovidesacomprehensiveassessmentofeachemployee’squalificationsandperformance.Theassessmentcriteriaaretreatedasequalunlessthecompany’spaypolicydeterminesotherwise.Differentdepartmentsandunitsmaychoosetoweightassessmentcriteriadifferently.
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Themanagerandemployeepresentandjustifytheirownviewsoftheemployee’sprofessionalskills,competenceandexperience;cooperationandinteraction;qualityofwork;andthedevelopmentandmaintenanceofpersonalperformanceandambition.Theassessmentseeksaconsensusonwhetherthefactorsareareasofdevelopmentorwhethertheemployee'squalificationsandperformancemeetorexceedthejob'srequirements.Duringthenegotiations,themanagerusesconcreteexamplestodiscusstheareasinwhichtheemployeehasperformedwellandtheareasinwhichtheemployeecouldimproveeitherinqualificationsorperformance.ManagerscanusethetableprovidedinSection3toshareconcreteexamples.Thejustificationsmustbegroundedinthecompany’spaypolicy:howisthepaypolicyreflectedinthisemployee’sworkandhowshouldtheemployeeberewarded?Itisessentialthatemployeesknowhowtheycanaffecttheirsalary.Themanagerfillsintheassessmentformduringthenegotiations.Themanageralsowritesdownwhetherthepartiesreachedaconsensusintheassessmentofqualificationsandperformanceandprovidesreasonsforpossibledisagreement.Themanagerrecordstheidentifieddevelopmentmeasuresonthesummaryform,buttheemployeemustalsoensurethattheyarewrittendown.Themanageralsomustbereadytoofferconcreteexamplesofwhytheemployeeshouldorshouldnotreceiveasalaryincrease.
6.4SummaryofthesalarynegotiationsThemanagerandemployeedrawupawrittensummaryoftheirsalarynegotiations.Thesummarymustincludetheemployee'sjobdescription(ifithaschangedsincethelastnegotiations)aswellastheassessmentformforqualificationsandperformance.Thejobdescriptionform(Appendix,sectionI)mustdescribethemainchangestotheemployee’sduties,possibleupcomingchangestotheseduties,andthedevelopmentmeasuresidentified.Thesalaryincreaseform(Appendix,sectionIII)muststatewhetherthemanagerandemployeeagreeonthesizeofthesalaryincrease.Ifthepartiescannotreachanagreement,theymustprovidereasonsfortheirdifferingviews.Theemployermustarchivethedocumentsforatleasttenyearseitherasahardcopyorelectronically.Theemployeehastherighttoreceivethesalarynegotiationsdocumentsfromtheemployeronrequest.
6.5SalaryincreaseSalarynegotiationsaimtoachieveaconsensusaboutwhethertheemployeeshouldreceiveasalaryincrease.Attheendofthenegotiations,themanagerdecidesontheincrease.Ifnecessary,thesizeoftheincreasecanbestatedinabrieffollow-upmeetingafterallsalarynegotiationshavebeenhad.Theemployee’spossiblegeneralincrease,possiblenegotiations-basedsalaryincreaseandrevisedfixedtotalsalarymustallbestatedonthesummaryform.Theemployee’sfixedtotalsalarycannotdecreaseasaresultofthesalarynegotiations.
Themanagerandemployeepresentandjustifytheirownviewsoftheemployee’sprofessionalskills,competenceandexperience;cooperationandinteraction;qualityofwork;andthedevelopmentandmaintenanceofpersonalperformanceandambition.
Theemployee’sfixedtotalsalarycannotdecreaseasaresultofsalarynegotiations.
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7Protectionoftheindividual
7.1RighttoreceivetrainingandstatisticalinformationBeforethesalarynegotiations,employeesandmanagersmustbefamiliarwithandtrainedtousethejobdifficultyscale,theassessmentofqualificationsandperformance,theprinciplesofpaypolicy,andthesalarynegotiationsprocedure.Itisespeciallyimportanttoensurethatthoseusingtheassessmentformforqualificationsandperformancearefamiliarwiththecriteriaandtheircompany-ordepartment-specificinterpretations.Managersandemployeesmustalsobefamiliarwiththecontentsofthecollectiveagreement,anycompany-specificagreementsandthesalarynegotiationsprocedure.Moreover,bothpartiesmustgainaccesstothefollowingstatisticalinformationwellbeforethenegotiations:theinsurancesector'saverageincomeandincomedevelopment,thecompany’saverageincomeaccordingtotheclassificationoftheConfederationofFinnishIndustriesEK,andthecompany’spaygroupdistribution.
7.2RighttosuspendnegotiationsBoththemanagerandtheemployeehavetherighttosuspendsalarynegotiationsforagoodreason.Suchreasonsincludeacquiringfurtherinformation.Furtherinformationcanbeacquired,forexample,fromtheemployeerepresentative,themanager’smanager,thehumanresourcesdepartment,theoccupationalsafetydelegates,theUnionofInsuranceEmployeesinFinlandVvL,FinanceFinlandorServiceSectorEmployersPalta.Othergoodreasonsforsuspendingsalarynegotiationsincludeoneparty’sinappropriatebehaviouroraheateddebate.Itmayalsobenecessarytosuspendnegotiationsifonepartycomestothenegotiationsunpreparedorifexternalfactorsdisturbthenegotiations.Ifanemployeesuspendssalarynegotiations,thenegotiationscannotbecontinueduntiltheemployeehashadanopportunitytocontacttheirrepresentative.
7.3Exceptionalcircumstances
7.3.1Short-termabsencesIftheemployeeisunabletohavesalarynegotiationsontheagreeddateduetoashort-termabsence,thenegotiationsshouldbehadbeforetheabsenceifthesizeofthenegotiations-basedincreaseisalreadyknownandnootherreasonpreventsthenegotiations.Ifthesalarynegotiationscannotbehadbeforetheabsence,thenegotiationsshouldbehadremotelyviaelectroniccommunicationscommonlyusedatthecompany.Forremotenegotiationstobesuccessful,thepartiesmustensuregenuineinteraction,confidentialityandapersonalatmosphere.Ifthiscannotbeensured,thesalarynegotiationsshouldbehadimmediatelyaftertheemployeereturnstowork.
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7.3.2AbsencesthatspanbetweensalarynegotiationsroundsIftheabsencespansbetweensalarynegotiationroundsandisduetofamilyleave,illness,militaryservice,civilserviceorvoluntarymilitaryservice,theemployeeisguaranteedapayriseequaltoorhigherthantheaverageincreaseinthecompany.Allemployeesalwaysreceivethegeneralincrease.
7.4Thethree-negotiationruleThesalarynegotiationsgrouphandlesallcasesinwhichanemployee'ssalaryincreasehasbeenlowerthanhalftheaverageincreaseinthreeconsecutivesalarynegotiations.Thisallowsthesalarynegotiationsgrouptoexaminehowtheemployeehasdevelopedhisorherqualificationsandperformance,howthemanagerhaspromotedthedevelopmentoftheemployee'squalificationsandperformance,iftheemployeehasbeentreatedfairlyandequallyincomparisontootheremployees,andifthepoorpaydevelopmentcanbeexplainedwithreasonsrelatedtotheworkplaceorworkingconditionsthatcanbeaffected.Theemployermustintroducetothesalarynegotiationsgroupallcasesthatmeettherequirementsofthisthree-negotiationrulewithintwomonthsoftheimplementationofthenegotiations-basedincrease.Employeeshavetherighttorefusethesalarynegotiationsgroupfromhandlingtheircase.Therefusalmustbegiveninwriting.
7.5DisagreementsSalarynegotiationsdisagreementsarehandledinaccordancewiththeorderofnegotiationsdescribedinthesalarynegotiationsprotocol.Ifthemanagerandemployeedisagreeontheassessmentofqualificationsandperformanceand/orthesalaryincrease,thedisagreementsanditsreasonsmustberecordedontheformsusedinthenegotiations.Theorderofnegotiationsappliestotheexecutionofsalarynegotiations,theassessmentsmadeinsalarynegotiations,thesalaryincreasesimplementedbasedonsalarynegotiations,andthedisagreementsconcerninglocalagreements.Theorderofnegotiationsdoesnotapplytopaypolicydisagreements,becauseemployersdeterminetheirpaypolicyindependently.LocalnegotiationsDisagreementsarefirstnegotiatedlocallybetweenanemployerrepresentativeandemployeerepresentativeasdeterminedintheinsurancesector’sagreement.Iftheselocalnegotiationsdonotreachanagreement,theemployerrepresentativeoremployeerepresentativecantakethemattertothesalarynegotiationsgroupincompaniesandgroupsthathaveasalarynegotiationsgroup.Ifthedisagreementcannotbesettledneitherinthenegotiationsbetweentheemployerrepresentativeandtheemployeerepresentativenorinthesalarynegotiationsgroup,thepartiesmustimmediatelydrawupamemorandumofthematter.Attheveryleast,thememorandummustincludethefactualinformationconcerningthedisagreementandthepositionsandreasonsofbothparties.
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Union-levelpaysystemgroupIfamattercannotberesolvedinlocalnegotiations,itcanbeintroducedattheunions’jointpaysystemgroup.Asarule,thisunion-levelgroupdoesnothandledisagreementsoverindividualqualificationandperformanceassessments:suchcasescanonlybeintroducedinthepaysystemgroupifthecompanyinquestiondoesnothaveasalarynegotiationsgroup.Theunion-levelpaysystemgrouphandlesallothersalarynegotiationdisagreements.Theunion-levelpaysystemgroupmustavoidunnecessarydelayinhandlingcases.LabourCourtIftheunion-levelpaysystemgroupcannotreachanagreement,theUnionofInsuranceEmployeesinFinlandVvL,FinanceFinlandorServiceSectorEmployersPaltacanbringthecasetotheLabourCourt.IndividualqualificationandperformanceassessmentsmadebymanagerscannotbeintroducedattheLabourCourt.Formoreinformation,contacttheUnionofInsuranceEmployeesinFinlandVvL,FinanceFinlandortheServiceSectorEmployersPalta.TheUnionofInsuranceEmployeesinFinlandVvLcanalsoprovidethedetailsofyourcompany'semployeerepresentativesandmemberassociation.www.vvl.fiwww.finanssiala.fiwww.palta.fi
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AppendixEmployee’sname:_____________________________________________Manager’sname:_____________________________________________IJobdescriptionandpaygrade� Wehavediscussedandupdatedtheemployee’sjobdescriptionandjobdifficultyscore.(Attachtheemployee’sjobdescriptionform)Mainchangesintheemployee’sdutiesandresponsibilitiesTheemployee’spaygrade� willchange.Thenewpaygradeis___________.� willnotchange.Knownorprospectiveupcomingchangestothedutiesandresponsibilities� Theemployeehasrefusedsalarynegotiations.Boththemanagerandtheemployeehavetherighttosuspendsalarynegotiationsforagoodreason,suchastoacquirefurtherinformation.Ifanemployeesuspendssalarynegotiations,thenegotiationscannotbecontinueduntiltheemployeehashadanopportunitytocontacttheemployeerepresentative.
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IIAssessingqualificationsandperformanceInthesalarynegotiations,themanagerandemployeeassesstheemployee’squalificationsandperformanceinrelationtohisorherjobrequirements. Areaof
developmentMeetsthelevelrequiredbytheposition
Exceedsthelevelrequiredbytheposition
Professionalskills,competenceandexperience- maintaininganddevelopingprofessional
skillsandcompetence- experience- developmentandmotivationtodevelop- developingone’sworkandworking
methods- multipleskills- languageskills- leadership(formanagerialpositionsonly)
Cooperationandinteraction- abilitytocreateanatmosphereof
cooperationinvarioussituationso asamanagero asanemployeeo asacolleagueo inrelationtoclients
- handlingmutualmattersandparticipation- abilitytogiveandreceivefeedback
(especiallyinmanagerialpositions)
Qualityofwork- qualityofworkandfeedbackreceived- leadership(formanagerialpositionsonly)
Personalperformanceandambition- abilitytoworktowardsobjectives
Wehavereachedaconsensusontheassessmentofqualificationsandperformance.� Yes� NoManager'sreasonsEmployee’sreasons
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IIISalaryincreaseIfnecessary,thesizeofthesalaryincreasecanbestatedinabrieffollow-upmeetingafterallsalarynegotiationshavebeenconcluded.� Theemployee’ssalarywillbeincreasedbasedonthesalarynegotiationsby___________eurospermonthstarting___________________.� Theemployee’ssalarywillnotbeincreasedbasedonthesalarynegotiations.Generalincreaseimplementedon_______________is__________euros(_____%).Theemployee’sfixedtotalsalarystarting__________________is_________euros.Wehavereachedaconsensusonthesizeofthesalaryincrease.� Yes� NoManager'sreasonsEmployee’sreasonsWehavenotedthefollowingconcerningdevelopmentmeasuresandtheirfollow-up:Dateandplace___________________________________Manager___________________________________Employee______________________________________