Reward and

Recognition of
Professional Staff:
A FRAMEWORK
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The Professional Staff Reward, Recognition and Retention
(RRR) Framework has been developed by the University
of Melbourne with the aim of providing an overarching plan
that supports the Growing Esteem implementation and, in
particular, the Universitys vision to:
strive to develop exemplary employment practices
for attracting, retaining and assisting the professional
development of a talented and diverse staff and
support the educational goals of an inclusive, multi-
cultural and humanitarian university.
1
The Framework details key principles to guide the
future development and implementation of reward and
recognition initiatives in departments across the University.
1 The University of Melbourne Growing Esteem: University Plan
2007 2007
By providing a broad framework for staff reward and
recognition, the University recognises that a commitment
to these principles is fundamental to retaining quality staff,
supporting Growing Esteem and making Melbourne a
Great Place to Work.
The RRR Framework for professional staff encompasses
a transparent and consistent university-wide policy
framework which will enhance its ability to attract, retain
and motivate quality staff to achieve organisational goals.
It will endeavour to achieve this through the development
of a high performance culture focused on continuous
improvement. Integral to this is the recognition and reward
of contributions and innovations of individual professional
staff and teams of professional staff.
Introduction
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Context
The RRR Framework supports and draws from the following policies, programs and plans:
Y Growing Esteem Strategic Plan
Y Making Melbourne a Great Place to Work Strategic Framework
Y Staff Equity and Diversity Framework
Y Career Development Program
Y Performance Development Framework
Y Higher Education Workplace Relations Requirements (HEWRRs)
This framework specifically focuses on the reward and recognition aspects of retention.
A culture of reward and recognition is just one of a range of factors impacting on why staff
choose to remain with an employer. Critical to any broader retention strategy are organisational
development and equity initiatives
2
.
Eligibility
The Reward, Recognition and Retention Framework provides an overarching strategy for profes-
sional staff individual and team rewards across the University. Specific reward policies flowing
from the RRR Framework will specify if eligibility provisions exist. Note: Close examination
of visa conditions should occur prior to contemplating monetary rewards for overseas locally
engaged employees.
Implementation
Recognition in the form of positive feedback and celebration of achievement should be a matter
of daily management and good business practice. Importantly, all managers are responsible at
the local level for contributing to a culture that rewards and recognises staff achievements.
Managers of work units will:
Y Implement reward programs in a manner that is consistent with the principles of the Reward,
Recognition and Retention Framework
Y Consult with Human Resources on the development and implementation of reward initiatives
Y Strive to develop a culture of continuous and sincere reward and recognition of staff
achievements
Human Resources will:
Y Provide guidelines regarding rewarding and recognising staff
Y Work in partnership with departments in developing reward strategies
Y Oversee the use of reward programs
Y Review and update reward programs in line with best practice and organisational suitability
Y Process applicable monetary rewards
2 Organisational Development initiatives such as the development of career pathways, mentor programs,
staff exchanges and leadership development programs are noted as important factors to consider in broader
retention strategy development. The opportunity to learn, grow and advance careers are often rated higher in
significance than other reward strategies.
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Background
A reward is defined as that which is given
following the occurrence of certain behaviour,
with the intention of acknowledging the
positive nature of that behaviour, and often
with the additional intent of encouraging it
to happen again. Rewards can be intrinsic
or extrinsic in nature. Intrinsic rewards are
internal to the individual, such as contributing
to a common good, mentorship or giving
back. Extrinsic rewards are rewards external
to the individual, such as payments and
promotions (tangible) or praise and public
recognition (intangible). The University of
Melbourne aims to find a balance between
providing adequate extrinsic rewards and
valuing the intrinsic needs of employees.
A wide body of research indicates that
organisations which fail to reward and
recognise staff fairly and competitively in
comparison to their competitors run the risk
of losing staff to more lucrative opportunities.
However, the key overriding message
stemming from this research is that money
alone will not be enough to retain quality
staff, as for many, it is not the major motivator
to perform well in their jobs. Intrinsic, non-
monetary forms of reward such as challenging
and meaningful work; professional growth;
empowerment; working relationships; work/
life balance and flexibility are often cited as key
work motivators. The University will therefore
ensure a broad range of strategies are
available to cater for different preferences and
values in relation to reward and recognition.
The University of Melbourne provides a range
of benefits and mechanisms to encourage
and support the attraction and retention of
staff. However, while the University has
notable structures in place, current changes
in Australias workforce will place increasing
demands on the University to attract and
retain quality staff. The priorities in the RRR
Framework aim to support the University in
meeting these challenges and remaining an
employer of choice.
To ensure a coordinated and meaningful
approach to rewarding and recognising staff
achievements, the University of Melbourne
will focus on a total reward package,
encompassing core remuneration strategies;
broader non-monetary strategies; employee
benefits; and an organisational commitment
to measuring the success and continually
improving reward strategies. This is
summarised below:

The Reward, Recognition and Retention
Framework will ensure:
Y a broad range of reward and recognition
strategies are available that can be utilised
by managers to reward, recognise and
retain high performing staff;
Y strategies place significant emphasis
on non-monetary forms of reward and
recognition;
Y strategies are continually reviewed and
updated to ensure they are relevant,
meaningful and effective;
Y strategies reinforce organisational values
and recognise achievements that contribute
to the overall objectives of the University.
REWARD AND
RECOGNITION OF
PROFESSIONAL
STAFF
MONETARY INCENTIVES
Ensure the University remains
competitive while protecting
the integrity of the classication
systems.
NON-MONETARY INCENTIVES
Ensure a range of non-monetary
incentives exist to reward staff.
Raise awareness of these
incentives.
BENEFITS
Ensure a range of benets are
available to all staff employed at
the University.
ORGANISATIONAL
KNOWLEDGE
Ensure the University has the
relevant information to inform
RRR strategy development.
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1
ATTRACT, MOTIVATE, REWARD AND RETAIN HIGH PERFORMING STAFF
2
ENSURE THAT THE UNIVERSITYS REMUNERATION STRUCTURE REMAINS
COMPETITIVE IN ORDER TO RECRUIT, RETAIN AND MOTIVATE QUALITY
STAFF
3
PROMOTE A CLOSE LINK BETWEEN PERFORMANCE AND REMUNERATION
4
REWARD SIGNIFICANT OUTSTANDING PERFORMANCE THAT ADVANCES
THE UNIVERSITYS GOALS AND VALUES AND ARE TIED TO SPECIFIC
ACCOMPLISHMENT
5
PROVIDE TIMELY RECOGNITION FOR INDIVIDUAL AND TEAM
ACHIEVEMENT
6
PROVIDE REWARDS THAT ARE VALUED AND MEANINGFUL TO STAFF
7
BE FAIRLY AND CONSISTENTLY DEVELOPED AND APPLIED
8
BE FINANCIALLY SUSTAINABLE TO THE WORK UNIT
9
BE SIMPLE TO UNDERSTAND AND OPERATE
10
BE CLEARLY COMMUNICATED TO STAFF
Statement of Principles
The University of Melbournes RRR Framework for professional staff is
underpinned by the following principles which will guide decision-making relating
to reward and recognition practices in a university context. These principles are to:
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Reward and Recognition
of Professional Staff:
A FRAMEWORK
PRINCIPLE 1
Attract, motivate, reward and retain high performing staff
The University recognises that high performing staff are fundamental to achieving organisational
goals (as expressed in Growing Esteem) and making Melbourne a Great Place to Work.
There is a challenge for all organisations to attract and retain quality staff in such a competitive
and labour-short market. The University of Melbourne aims to distinguish itself within the higher
education sector with employment practices that recognise high performing professional staff with
modern, innovative and meaningful reward and recognition practices.
PRINCIPLE 2
Ensure that the Universitys remuneration structure remains competitive
in order to recruit, retain and motivate quality staff
Higher Education institutions in Australia are recognising the difficulty to compete with external
salaries and conditions to attract and retain quality staff. Universities must find a balance between
offering flexibility in monetary reward policies whilst protecting the integrity of classification
structures.
The University of Melbourne has a consistent approach to establishing the value of positions, via
a job classification system and associated salary grades. Building on this, the University has a
number of supplementary monetary incentive strategies which may be used to cover demands in
attracting, rewarding and retaining staff. Monetary rewards may encompass the following:
Y Incremental advancement
Y Linked Advancement
Y Accelerated Increment
Y Professional Recognition Loadings
Y Performance Bonus Scheme
Note that each scheme will have its own eligibility requirements, which should be considered in
determining the most appropriate approach.
PRINCIPLE 3
Promote a close link between performance and remuneration
Effective reward systems provide a link between performance and remuneration strategies, and
provide a means for the University to reward high performing staff.
The University links remuneration and performance at both the organisational and individual
level. At an organisational level, the University may determine through policy and/or enterprise
agreements to provide organisational wide remuneration increases on the achievement of certain
targets. At an individual level, remuneration increases and rewards are directly linked to individual
outcomes evidenced in the performance management process.
University policies relating to monetary rewards will place significant emphasis on linking such a
reward to outcomes evidenced in the Performance Development Framework (PDF).
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PRINCIPLE 4
Reward signicant outstanding performance that advances the
Universitys goals and values and are tied to specic accomplishment
A deliberate and systematically designed Reward, Recognition and Retention Framework is
an important tool to support and reinforce the link between the Universitys vision, values and
objectives (as expressed in Growing Esteem and Divisional plans) on one hand and staff member
performance on the other.
The University aims to encourage and reward outstanding performance and contribution
to organisational success. Reward and recognition strategies will support and reinforce the
Universitys goals, values and vision.
The Universitys Performance Development Framework (PDF) offers opportunities for staff to
achieve personal and professional goals, which are aligned with the strategic and operational
objectives of the University. Performance objectives should be measurable, aligned within the
Department/Division plans and the staff members career development plans. Staff should have
an understanding of how their role contributes to the overall achievement of organisational goals.
Reward strategies should reinforce the Universitys staff values. Staff values outline the qualities
that members of the University community admire and continually strive to exhibit individually and
collectively as an organisation. Expression of these values should be celebrated and rewarded in a
work unit. The Making Melbourne a Great Place to Work Strategic Framework details core staff
values for the University of Melbourne, approved by Council in May 2005. The values are:
Y A commitment to quality and innovation where creativity and excellence in all areas of
endeavor are recognised and rewarded
Y High standards of ethics and integrity where all staff are open, fair, honest and consistent
in their dealings with each other and the broader University community
Y The provision of safe and supportive work environments where individuals are
encouraged and empowered to realise their full potential in an environment free from
physical and emotional harm
Y The enhancement and sharing of organisational knowledge where individuals willingly
promote collaboration and consultation across the university
Y Tolerance and diversity where individual differences are respected and valued
Y A shared sense of social purpose where all staff appreciate the intrinsic value of education
and research
At an organisational level, recognition awards will be directly linked to organisational goals and
values.
PRINCIPLE 5
Provide timely recognition for individual and team achievement
Recognition in the form of positive feedback and celebration of achievement should be a matter
of daily management and good business practice. The timing of reward and recognition is very
important, and should occur as close to the actual activity as possible.
The University encourages reward and recognition of both individual and team accomplishments.
A variety of options are available for locally recognising outstanding performance and
achievements of teams and individuals. These options should form part of everyday activities and
include managers taking initiatives such as:
Y Certificates and/or letters of appreciation,
Y Publicly recognising the positive impact or achievement,
Y Implementation of a staff idea/proposal,
Y Rewards in the form of work related gifts.
These options allow for more immediate recognition than other awards.
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PRINCIPLE 6
Provide rewards that are valued and meaningful to staff
The success of a RRR Framework at the University of Melbourne depends on recognising and
addressing both internal and external demands, celebrating and marketing benefits available to
staff, and ensuring that reward and recognition strategies continually evolve and have relevance
and meaning to professional staff. To achieve this:
Y Reward and recognition strategies should take into consideration the diverse nature of the
workplace. Differences such as age, race, cultural background, religion, time fraction and
general interests should be taken into account when considering reward and recognition
programs. There is no one-size-fits-all approach to reward and recognition. Managers that are
aware of diversity (e.g. generational diversity) and how this applies to the workplace will be
equipped with the right information on how to motivate and retain staff.
Human Resources will play a key role in promoting clarity on the range of rewards available,
and the impact of diversity issues in relation to reward and recognition. Managers will play a
key role in recognising and promoting clarity at the local level.
Y Reward and recognition strategies should be regularly reviewed and updated. Maintaining
reward strategies over time will require:
1. Evaluation processes to measure the effectiveness of strategies and its acceptance by
staff and ensure practices are consistent with the Framework principles;
2. Continued investigation and awareness of trends and standards relating to reward and
recognition, and how these may apply in the university context.
Y Employee engagement will be a priority for the University of Melbourne. Staff feedback is
critical to ensure the continued value of RRR initiatives. Employee engagement measures
employee attitude towards their organisation and its values; their motivation and passion
to contribute, what aspects of work are most important to staff, their commitment to their
organisation and how long they stay because of that commitment.
Employee engagement results will inform University and human resource strategy
development; instil a culture of continuous feedback and improvement; and reinforce the
Universitys commitment to Making Melbourne a Great Place to Work.
PRINCIPLE 7
Be fairly and consistently developed and applied
The University aims to ensure equity, transparency and fairness in all aspects of reward and
recognition policy, in accordance with the principles underpinning the Universitys equal
opportunity policy. Reward and recognition strategies, when delivered appropriately and
consistently, improve both performance and morale at all levels.
Managers will:
Y take into consideration the impact of recognition strategies across work units, for example,
the impacts on staff motivation and the effect on team based work;
Y ensure reward strategies do not disadvantage or unfairly discriminate, but rather reward staff
fairly and consistently; and
Y ensure the nature of the reward is commensurate with the achievement.
Policies and decision making processes in relation to rewards should be transparent, conducted
in good faith and with appropriate levels of confidentiality. Linkages to the PDF (in particular
reference to monetary rewards) and to specific outcomes and achievements will ensure
transparency in decision making.
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PRINCIPLE 8
Be nancially sustainable to the work unit
A powerful reward strategy places significant emphasis on a broad range of strategies, both
monetary and non-monetary.
Any decision pertaining to monetary reward strategies should take into consideration budgetary
and other business constraints. University statutes prevent the use of University funds for
purchases that are extravagant or personal:
Y Extravagant purchases are defined as, spending much more than is necessary or wise;
wasteful. Judgment is required with each purchase to avoid extravagance.
Y Personal purchases are purchases incurred directly by the individual. To ensure the University
complies with regulations, purchases must not be made by the individual, other than when prior
approval has been made by an appropriate delegation.
Managers should exercise caution in providing certain fringe benefits to staff as there are potential
taxation implications for the University and individual staff members.
PRINCIPLE 9
Be simple to understand and operate
As much as possible, reward and recognition processes will be managed at the local level. Reward
and Recognition Programs cover two areas:
Y Formal rewards pre-determined reward and recognition structures detailed in the University
of Melbourne Enterprise Agreements and Human Resource Policy
Y Informal rewards spontaneous, sincere and personal appreciation of the efforts of individuals
and/or teams
Formal reward programs will have specific eligibility and approval processes as detailed in
the relevant policy. Informal reward programs will as much as possible provide simple, local
management and provide recognition at any time for contributions to the goals and objectives of
the organisation or work unit and/or to acknowledge individual or team accomplishments.
PRINCIPLE 10
Be clearly communicated to staff
The University aims to ensure staff are aware of the broad range of RRR strategies available that
can be utilised by managers to reward, recognise and retain high performing staff. This will be
achieved via:
Y A dedicated website: A dedicated Reward and Recognition website will contain guidelines for
managers regarding rewarding and recognising staff.
Y Training and development initiatives: University leadership and organisational development
programs will incorporate reward and recognition principles.
Y Public recognition events: Organisational-wide reward strategies (such as Awards for
Outstanding Service) will be advertised on an annual basis and recipients publicly acknowledged
at a formal recognition forum.
At the local level, managers will:
Y be responsible for developing a culture of continuous and sincere reward and recognition of staff
achievements;
Y reward staff fairly and consistently;
Y play a key role in recognising and promoting diversity of staff and its impact on reward and
recognition at the local level.
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DISCLAIMER
The University has used its best
endeavours to ensure that material
contained in this publication was correct
at the time of printing. The University
gives no warranty and accepts no
responsibility for the accuracy or
completeness of information and the
University reserves the right to make
changes without notice at any time in its
absolute discretion.
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information about individuals, the
University of Melbourne is obliged to
comply with the Information Privacy Act
2000 and the Health Records Act 2001.
For further information refer to:
www.unimelb.edu.au/unisec/
privacypolicy.htm


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