Salary negotiations in the insurance sector · A salary negotiations model that is used well...

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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

Transcript of Salary negotiations in the insurance sector · A salary negotiations model that is used well...

Page 1: Salary negotiations in the insurance sector · A salary negotiations model that is used well enables a fair and motivating compensation system, creates better conditions for companies

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______________________________________