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______________________________________