Date Issued: 01/03/2013
Purpose
To provide a mechanism to assist in the recruitment and retention of employees in geographic areas where there are difficulties recruiting and retaining employees.
Application
This policy applies to employees covered under the PS/GE collective agreement in all workplaces of Executive Government.
Policy
Where it can be demonstrated that there is, or will be, difficulty recruiting and retaining employees in a definable location and occupation/level, retention payments may be available.
Definition
Service Requirement Period
An established timeframe up to 12 months in length that has been approved by the Compensation Branch whereby an employee may be eligible to receive retention payments. Typically, the Service Requirement Period will be aligned with the term of employment for term employees, or season of employment for Labour Service employees.
Policy/Guidelines Areas
Eligibility
To be eligible for retention payments:
- The employee must be headquartered in the geographic location and in an occupation/level where there are difficulties recruiting and retaining employees
- The employee must be employed in the geographic location and occupation/level identified above on the last day of the Service Requirement Period or at the end of the approved payment period.
Rationale
Consideration for a retention payment will be made when two or more of the following conditions exist:
- Salary lags local markets
- There are challenges recruiting and retaining employees in the specific geographic location and occupation/level.
- here are anticipated pressures (eg. economic activity) that will impact the ability to recruit and retain employees.
- Other challenges exist that negatively impact recruitment and retention of employees (eg. challenges in affordable housing, increased cost of living, operational changes, etc.)
Amount of Payment
- The compensation Branch will determine the amount of the payment on the basis of the rationale and supporting evidence.
- The amount of the retention payment will be expressed as a percentage of regular earnings earned in the Service Requirement Period. Regular earnings mean regular salary and do not include any other payments; eg. overtime payments, vacation pay, shift differential, weekend differential, special bonuses, or allowances.
- Once payment has been made, there shall be no further recalculations to factor in retroactive wage adjustments.
Frequency of Payment
Retention payments will be made as a lump sum payment at the end of the Service Requirement Period. Compensation Branch may approve payments on a more frequent basis; eg. mid-season, mid-term, quarterly, semi-annually.
Treatment of Payment
Retention payments will be subject to deductions including CPP, EI and income tax and will be considered pensionable earnings under the Public Employees’ Pension Plan (PEPP).
Approval Process
Steps in the Process:
- The Ministry identifies geographic location and occupation/level where there are difficulties recruiting and retaining employees.
- The Deputy Minister, via the Human Resource Service Team (HRST), requests approval for a retention payment from the Compensation Branch (see Appendix A)
- The Compensation Branch undertakes analysis and approves or denies the request (the Compensation Branch will consult with Saskatchewan Government and General Employees’ Union prior to approving a request).
- Contained in each approval (see Appendix B) will be the percentage of regular earnings approved as the retention payment, as well as the specific Service Requirement Period for which the retention payment is granted. The maximum approval period is 12 months, at which time the need to continue the retention payment will be re-evaluated by the Compensation Branch.
- Once a request has been approved, the Ministry is responsible for ensuring eligible employees are advised of their eligibility for retention payments, and the service requirements.
Other
- As a result of changes to the originating reasons, the Ministry may follow the steps in the approval process and request an interim review be undertaken by the Compensation Branch to increase the previously approved amount of the retention payment. Any increases made to the retention payment must be authorized by the Compensation Branch.
- Any extensions or renewals of the Service Requirement Period must be authorized by the Compensation Branch.
- If an approval to extend the Service Requirement Period is not granted by the Compensation Branch, the affected employees will no longer be eligible to receive retention payments.
Authority
- Memorandum of Agreement PS/GE (2009)
Inquiries
For inquiries, please contact the Human Resource Service Centre.