Step 1: Create a senior executive role
Determine the band using the Senior Executive Work Level Standards and develop a role description using the Role Description Guideline (Refer 2.2 & 2.4).
Example outcome: Role determined is a senior executive Band 1
Step 2: Evaluate the role description for the role
Evaluate the role description using the agency's methodology (Mercer/CED, Hay or OCR) to determine the work value points and place the role within the band (Refer 2.5).
Example evaluation: Work value points using Mercer/CED evaluation is 680 points
Step 3: Determine the base remuneration point for the role
Calculate the base remuneration point (BRP) using the appropriate base remuneration formula (BRF) in Appendix 1, Table 1 (Mercer/CED, Hay or OCR for the relevant band 1, 2, or 3) and the individual work value points for the role obtained in Step 2 (Refer 3.1).
Example calculation: Mercer/CED BRF for Band 1 is: 176.198 x 680 + 65,247 = $185,062 (the BRP)
Step 4: Determine the maximum discretionary remuneration range for the role
Obtain the maximum discretionary remuneration range for the role by adding the BRP for the role obtained in Step 3 with the appropriate discretionary remuneration range (DRR) for the band in Appendix 1, Table 2 (Refer 3.2).
Example calculation: DRR for Band 1 is up to $21,943: $185,062 (BRP) + $21,943 (DRR) = $207,005 (the maximum discretionary remuneration)
Step 5: Determine the initial remuneration for a senior executive assigned to a role
Determine where within the DRR for a role the individual senior executive should be paid using the Remuneration Decision Matrix in Appendix 3 (Refer 4.1).
Example calculation: Potential remuneration for the Band 1 role is $185,062 (BRP) up to a maximum of $207,005. Remuneration is determined at $185,062 (the bottom of the range) based on the assessment of the individual senior executive’s capability and knowledge & experience.
Step 6: Increase remuneration over time
SOORT Annual Determination
Apply the updated formulas for each senior executive role from 1 July each year (Refer 4.3).
Adjust each senior executive's current remuneration point to incorporate the determined increase from 1 July each year (Refer 4.3).
Performance Management System
Review senior executive's performance in accordance with the requirements of the agency's formal performance management system and approve progression within the discretionary remuneration range (Refer 4.2).