Archived [2020-04-01] - Directive on the Performance Management Program (PMP) for Executives

Performance agreements are to demonstrate alignment with:

• Priorities of the government,
• Priorities of the Clerk of the Privy Council as Head of the public service,
• The department's Report on Plans and Priorities, and
• The performance agreement of the immediate manager, such that each executive's performance agreement is an operationalization of the immediate manager's agreement.

To be considered valid for the purpose of performance awards, performance agreements are to include the following:

• The period covered by the agreement,
• Ongoing Commitments,
• Key Commitments (except for situations noted in various sections of this appendix),
• Performance measures of successful achievement of the commitments,
• A written assessment of actual results achieved during the fiscal year and the level of Key Leadership Competency demonstrated, and
• The signatures of the executive and the immediate manager when the commitments are approved.

2.1 Ongoing Commitments

• Ongoing Commitments are the principal results that the executive is expected to accomplish so that the department can achieve its business mandate.
• Ongoing Commitments are part of the continuing responsibilities of the position that do not normally change from year to year. They reflect a balanced representation of core accountabilities such as: financial management (budget), human resources management, business planning, policy development and operational program delivery and, self-development (including Key Leadership Competencies, values and ethics).
• A minimum of four (4) and a maximum of seven (7) Ongoing Commitments are established.

2.2 Key Commitments

• Key Commitments are areas of focus over and above Ongoing Commitments for the fiscal year. They can reflect change initiatives linked to business plans, corporate departmental priorities and/or priorities identified by the Clerk of the Privy Council as Head of the public service. They are intended to be challenging but achievable with effort.
• Normally Key Commitments change from year to year.
• At least one (1) Key Commitment and a maximum of three (3) Key Commitments are established.

2.3 Performance Measures

• Performance measures describe how an observer would know that the results are achieved within the fiscal year and define standards for the expected level of achievement of these results.
• The choice of a performance measure implies that quantifiable data/information indicating performance achievement is available and that efforts are made to obtain the information defined in the specific measure.
• If feasible, performance measures can also describe what characterizes levels of performance that are above expectations.
• Performance measures are established at the start of the fiscal year when commitments are established and can be adjusted during the fiscal year. There are one (1) to three (3) performance measures per Ongoing and Key Commitment.
• Departments are responsible for ensuring that performance measures are reviewed periodically to ensure they are measuring the right results.

2.4 Development

Performance agreements are used to identify individual development priorities for executives, including the development of Key Leadership Competencies.

2.5  Mid-year review of performance agreements

• Performance agreements are reviewed at least once a year.
• Revisions can be made throughout the fiscal year to the performance agreement, dictated by such factors as changed priorities or assignments or changes in immediate manager. Each new revision is signed and dated by the executive and immediate manager.
• An executive can have a number of performance agreements in any particular fiscal year.

Departments can develop customized templates for performance agreements, provided the templates contain, as a minimum:

• Identification data: name of executive and immediate manager, dates covered by the performance agreements, dates of reviews of the performance agreement,
• Ongoing Commitments, performance measures and results achieved,
• Key Commitments, performance measures and results achieved,
• Narrative assessment and rating summary,
• Signatures of the executive and immediate manager, and
• The following privacy statement:

"Personal information will be protected under the provisions of the Privacy Act and will be stored in Standard Bank, Performance Reviews and Employee Appraisals PSE 912. This document can be used by the Public Service Human Resources Agency of Canada for audit or program evaluation purposes".

Management of performance includes, as a minimum:

• Agreement between the executive and immediate manager of:
  • the expectations for the results that are to be achieved,
  • how they are to be achieved (Key Leadership Competencies), as well as
  • the performance measures that will be used to assess the performance of the executive.
• Communication of expectations and priorities related to business planning and Key Leadership Competencies,
• Regular feedback to executives concerning their performance and learning and development opportunities to help executives improve their performance,
• Support for individual development in Key Leadership Competencies,
• Support for horizontal initiatives within and between departments in the core public administration, as well as other jurisdictions and levels of government through recognition of such teamwork in the performance agreements of executives, and
• Communication of performance assessment standards including clear information on what makes some commitments challenging, important or critical to the organization's mission.

2.1 Assessment of performance includes, as a minimum:

• An assessment of the executive's performance against the Ongoing and Key commitments, and including an assessment of how the results were achieved, based on the Key Leadership Competencies and values and ethics,
• At mid-year and end of year, one-on-one discussions between executive and immediate manager, that include constructive feedback and identification of, and support for development and learning needs,
• Where performance is judged to be below expectations, timely notification to the executive that change is expected, along with identification of steps to be taken.

2.2 There is to be a normal distribution of performance ratings.

2.3 Assessment of executive performance is to be equitable and consistent, with differentiation made between levels of performance.

2.4 A written assessment of performance that takes place within sixty (60) days of the end of the fiscal year.

3.1 The performance level descriptions below are to be used to assess and rate performance of Ongoing and Key Commitments.

• Levels 2 to 4 can be further subdivided, provided that definitions are developed to describe the expected level of performance and that these are communicated to executives at the beginning of the fiscal year.
• Non-numeric titles can be substituted for the numbered levels, provided they are cross-referenced to the four levels for reporting purposes.

This performance level and results achieved are characterized by the following statements:

• Delivered on all commitments and exceeded expectations in the delivery of major commitments,
• Consistently delivers results that provide exceptional value to stakeholders and the department, and
• In delivering commitments, is seen as an organizational role model in demonstrating Key Leadership Competencies.

This performance level and results achieved are characterized by the following statements:

• Delivered on all commitments,
• A strong contributor to stakeholder and organizational successes, and
• In delivering commitments, clearly demonstrated Key Leadership Competencies.

This performance level and results achieved are characterized by the following statements:

• Delivered on the most important commitments but not necessarily on all commitments,
• Performance results indicate a need for development in some areas, and
• In delivering commitments, demonstrated a need to show improvement in the Key Leadership Competencies.

This performance level and results achieved are characterized by one or more of the following statements:

• Delivered on some but did not deliver on one or more of the most important commitments,
  
  Or
  
  
• Performance results fall below expected standards,
  
  Or
  
  
• In delivering commitments, had ongoing difficulty in demonstrating the Key Leadership Competencies.

Departments are responsible for ensuring that an action plan to address performance issues is developed for executives who receive a Level 1 assessment.

Performance is considered unable to be assessed when there has been insufficient opportunity to allow for the achievement of performance commitments. This does not mean that the executive has not established a performance agreement, just that there has been insufficient opportunity for achievement against the commitments.

There are four situations where a Level 0 rating could apply for both Ongoing and Key Commitments:

• New to the core public administration,
• Newly appointed to the group from another occupational group,
• Non-EX executives acting in an executive position for three months or less, or if a departmental policy on performance awards and length of assignment exists, for less time than is specified in the departmental policy,
• Executive absent from the job for a significant period of the fiscal year, e.g. leave without pay or sick leave.

There are four situations where a Level 0 rating applies for Key Commitments only:

• Executives on language training have only one Ongoing Commitment for the duration of the language training – attendance at language training in order to meet the language requirements of the position- and they are considered to have met Ongoing Commitments. Since there are no Key Commitments for the period of training, they receive an Unable to Assess rating for Key Commitments in that period.
• Situations where no Key Commitments were established for the fiscal year, for example, an executive whose job consists of a single project or assignment to accomplish for the fiscal year.
• Situations where the department and the executive have agreed that the assignment is at a lower classification level and/or the expected results do not warrant performance pay.
• Executives who are salary protected in non-executive positions. These executives still require a performance agreement.

• Performance assessment determines executives' access to performance awards. Information on performance assessment can be found in Appendix C of the Directive on the Performance Management Program (PMP) for Executives.
• Performance awards consist of:
  • Salary range revisions,
  • in-range salary movement, and
  • Lump sum performance awards (at-risk pay and bonuses)
• None of the performance awards listed above can be authorized in the absence of a valid performance agreement and an assessment of performance against it.
• In certain circumstances as described in this appendix, employees who have acted in executive positions are eligible for performance awards.
• Performance awards are paid in respect of the previous fiscal year from April 1st to March 31st.
• To be most effective, performance awards are paid within thirty (30) days following authorization of payment by OCHRO.

To be eligible for a performance award, executives must:

• have a valid performance agreement and an assessment of performance against it,
• have worked in a position subject to the Performance Management Program (PMP) for a period of time that the executive's immediate manager has determined is sufficient to establish a valid performance agreement and to evaluate the results achieved against it. A minimum of three (3) months is recommended, and
• be on strength as of April 1st of the fiscal year following the year for which the performance awards are being considered (except in certain circumstances described in the table below).

The table below summarizes the treatment for lump sum performance awards for executives in a variety of circumstances and the budget implications (assuming other requirements of the PMP have been met):

• Access to salary range revisions is based on the achievement of Ongoing Commitments. Instructions on salary revisions are contained in the Directive on Executive Compensation, Appendix B: Salary Elements of Executive Compensation.

• Progress of an executive's salary within the salary range established for the position, up to the maximum, is affected by the extent to which Ongoing Commitments were achieved as well as how they were achieved (demonstration of Key Leadership Competencies and values and ethics).
• When an executive's performance meets all expectations, normal progression through the salary range would be five (5) per cent per year, so that a salary that begins at the bottom of the range would reach the top of the range within three years. In-range movement that exceeds five per cent per year may be warranted when the executive's performance has surpassed expectations.
• An executive who has received an assessment of Level 0 (Unable to Assess) or Level 1 (Did Not Meet) in relation to Ongoing Commitments is not eligible for in-range movement.
• A performance award for the achievement of Ongoing Commitments may only result in in-range movement and cannot result in either a salary in excess of the salary range maximum or in a lump sum payment.

• In addition to the base salary, executives have the opportunity to earn lump sum performance awards each year. The amount of the lump sum performance award depends on the extent to which key commitments were accomplished.
• An executive who has received in-range movement for the achievement of Ongoing Commitments is also eligible for a lump sum performance award for the achievement of Key Commitments. Executive salaries need not be at the salary range maximum in order for executives to receive lump sum performance awards.
• A prerequisite for access to lump sum performance awards is that at least most expectations for the achievement of Ongoing Commitments have been met (Level 2 and up). No lump sum performance award may be provided when the executive's assessment for Key Commitments was Level 0 or 1 (Unable to Assess or Did Not Meet).
• In determining the amount of lump sum performance awards, the importance and impact of results achieved as well as how the results were achieved (demonstration of Key Leadership Competencies and values and ethics) are taken into consideration.
• Lump sum performance awards, from zero up to the maximum, can be provided when an executive's performance is at least Level 2 (Met Most) in relation to the achievement of both Ongoing and Key Commitments. If deemed appropriate, departments can provide no performance award for any rating level.
• Instructions and amounts for lump sum performance awards as approved by Treasury Board are published by the Public Service Human Resources Management Agency of Canada.
• Lump sum performance awards in the bonus range are provided only to executives who have surpassed expectations for the achievement of Key Commitments.
• The maximum lump sum performance awards established by OCHRO cannot be exceeded.
• Lump sum performance awards are re-earned each year, and do not increase an executive's base salary.

• The PMP is a results-based performance management program. Thus, it is appropriate to base performance ratings and the resulting performance awards on the results achieved as well as how they were achieved.
• Section 11 of this appendix also describes situations where prorating according to time spent on the job is either required or optional.

• In-range increases to base salary are rounded to the nearest one hundred dollars ($100). Amounts ending in fifty dollars ($50) are rounded up.
• Lump sum performance awards for the achievement of Key Commitments are rounded to the nearest dollar ($1).

• The requirements for the administration of salary range revisions can be found in the Directive on Executive Compensation, Appendix B: Salary Elements of Executive Compensation.

9.1 General

• Acting pay should be established in accordance with the Directive on Executive Compensation, Appendix B: Salary Elements of Executive Compensation.
• In order to be eligible for in-range movement and lump sum performance awards, the period of acting must be of sufficient length to have established a valid performance agreement and to evaluate the results achieved. A suggested minimum time period is at least three (3) months.

9.2 In-range movement for the achievement of Ongoing Commitments when receiving acting pay

• If the performance rating for the achievement of Ongoing Commitments is Level 2 or better, the executive is eligible for in-range movement when receiving acting pay.
• If the executive's substantive salary is below its own range maximum, the executive's substantive salary is increased by the percentage awarded and a new acting salary is calculated based on the new substantive salary.
• If the executive's substantive salary is at its own salary range maximum, or if the recalculation of the substantive salary (above) does not result in a revised acting salary, the percentage award for the achievement of Ongoing Commitments should be based on and applied to the acting salary to determine the new acting salary.

9.3 Lump sum performance awards for the achievement of Key Commitments when receiving acting pay

• If the performance rating for the achievement of Key Commitments is Level 2 or better, the executive is eligible for a lump sum performance award in relation to the achievement of Key Commitments while receiving acting pay.
• The lump sum performance award is based on the executive's acting salary, prior to the application of any increase to the substantive base salary resulting from the achievement of Ongoing Commitments.

• Non-executives acting in executive positions are eligible for performance awards when the following conditions have been met:
  • Acting period is at least three (3) months. Departments can establish internal policies requiring a longer minimum acting period that is appropriate to operational requirements.
• When the acting period is less than three (3) months, or less than the minimum acting period established by the department as above, the performance of the non-executive actor is assessed based on the substantive performance pay plan (when applicable).

11.1 Retirement or death

• The performance rating of executives who retire or die prior to the end of the fiscal year is based on an assessment of achievements against both Ongoing and Key Commitments. A performance award can be given for the achievement of Key Commitments only and is prorated according to time. In the case of death, the award is paid to the executive's named beneficiary or estate.

11.2 Language training

• In addition to the performance agreement for the portion of the year not spent on language training, a performance agreement is required for the portion of the year spent on language training. This performance agreement states that the executive's Ongoing Commitment is to diligently participate in language training to meet the requirements of the position. There are no Key Commitments for the period of the training.
• For diligent participation, executives receive a Level 3 (Met All) rating for Ongoing Commitments.
• There are no Key Commitments established for an executive on language training and therefore the executive is not entitled to a lump sum performance award for time spent on language training. Lump sum performance awards are prorated according to the amount of time on the job.

11.3 Interchange Canada assignments

11.4 Leave without pay (LWOP)

A performance agreement is not required for the portion of the fiscal year during which an executive is on leave without pay.

11.5 Salary maintenance status

11.6 Salary protection status

• Executives in salary protection status need a valid performance agreement, even if they have been reclassified in a non-executive position.
• A salary-protected executive is eligible for in-range movement.
• An executive who is salary protected in a non-executive position is not eligible to receive at-risk lump sum awards for achieving Key Commitments.
• An executive who is salary protected in an EX position is eligible to receive a lump sum performance award for achieving Key Commitments. This award will be calculated as the lower of:
  • a percentage of the salary range maximum applicable to the level of the position occupied,
    
    OR
    
    
  • a percentage of the protected salary.

11.7 Secondment within the core public administration

• A performance agreement for a secondment is required if the executive will be working for a sufficient period of time on secondment to allow for the achievement of Ongoing and Key Commitments.
• Both the home and host departments are responsible for defining the executive's commitments and for evaluating the executive's achievements against them during the executive's period of work for them.
• The secondment agreement is to clearly identify which department (home or host) is responsible for payment of performance awards for the executive and which department will report payment to OCHRO. Reporting requirements for both home and host departments are described in Appendix E: Requirements for PMP Reporting and Monitoring.

11.8 Special projects, special deployments or special assignments

• In situations where an executive is assigned to a special project or assignment, there are normally no Key Commitments, only Ongoing Commitments. A performance agreement is established and the executive's performance is assessed against the commitments.
• Executives assigned to special projects, special deployments or special assignments are not eligible for lump sum performance awards.
• Departments can consider exceptions when the special project or assignment is of such scope and complexity to warrant the development of Key Commitments.

11.9 Surplus status under the Directive on Career Transition for Executives during the notice period (priority status)

• If the executive's immediate manager has determined there will be sufficient time to allow for the achievement of Ongoing and Key Commitments related to the duties of the position, a performance agreement is required.
• Deputy heads can approve performance awards for executives who are declared surplus and leave the core public administration prior to April 1st. Performance awards are prorated according to the amount of time on the job.

11.10 Casual status

• Executives in casual status are not eligible for performance awards.

11.11 Specified period appointments (terms)

• Executives on specified period appointments are treated the same as those in indeterminate positions.

11.12 Promotion or reclassification during the fiscal year

11.13 Part-time work

• Indeterminate part-time executives are eligible for performance awards provided all requirements of the PMP have been met.

This report is submitted annually, by June 30, for all groups and levels covered by the Directive on thePerformance Management Program (PMP) for Executives. An EXCEL spreadsheet in electronic format is the preferred reporting format.

The PMP Report should be sent, under PROTECTED B status, to the senior analyst responsible for the PMP at:

Executive Management Policies
Office of the Chief Human Resources Officer
BMO, 10th Floor, 269 Laurier Avenue West
Ottawa ON
K1A 0R5

The data requirements for the Annual PMP Report are as follows:

The PMP Scorecard consists of the annual and triennial reporting elements listed below. Information on how to complete the scorecards is provided to departments annually. All departments are required to complete annual scorecards by September 30. OCHRO will notify departments that are required to complete the triennial scorecard.

Annual reporting elements consist of:

• Alignment and integration
• Consistent approach in determining ratings
• Clear relationship between performance and performance pay

Triennial reporting elements consist of:

• Effective administration processes
• Stakeholder awareness of the PMP
• Top talent identification and recognition
• Links to human resources applications
• Summary: priorities for improvement