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2012 SALARY REVIEW Q&A

Applies to: All CSC Employees

For more information contact: Your Manager

INDEX
1. 2. 3. 4. OVERVIEW GENERAL CONTACTS FOR MORE INFORMATION CHANGE HISTORY

1. Overview
Please note: This document is intended to be a general guide for employees; there may be individual exceptions to what has been stated below. Will CSC be granting TEC increases this year? Yes, CSC has allocated budget for increases to TEC this year. CSC Australia's remuneration philosophy is to ensure that all employees are paid equitably in line with market trends. Our corporate policy is to pay 'Market Median' within the Australian ICT industry for satisfactory performers. An individual's remuneration however may vary according to experience, specific skills, internal relativities and performance. CSC Australia has conducted this years annual Salary Review Process with an aim to sustain our competitive advantage and reward high performers. What is the Salary Review decision based on? During the Salary Review process your manager will have provided input to a designated Salary Review Manager. When determining a pay recommendation several factors would have been taken into consideration: Budgetary guidelines Performance and Individual Contribution Internal Relativities External IT Market movements

Page 1 of 6 CSC Australia Pty Ltd Printed copies of this document are for reference only.

2012 SALARY REVIEW Q&A


More detail on the 4 factors considered as part of the Salary Review Budgetary Guidelines A key driver in any remuneration review process is budget. Like many organisations CSC also manages within budgetary guidelines. The FY13 TEC budget was determined after considering movements in the IT market, financial affordability and competitor analysis. Performance and Individual Contribution Individual performance contributions were largely determined as a result of the Global Performance Review (GPARS) and Performance Centre Review (PC) conducted in March / April this year. CSC's remuneration policy supports pay for performance philosophy and has been aligned to reward a high performance culture. Internal Relativities An important factor managers were required to consider during the Salary Review process, was the alignment of the TEC within a team and Business Unit. The TEC should be aligned according to experience, skill set and future potential to ensure internal relativities. External IT Market CSC tracks external market movements via industry salary surveys; these include the Aon Hewitt AIIA, IT Specialists and ACICG surveys. CSC participates in these surveys along with other IT organisations and non-IT organisations which have a large IT operation (e.g. banks, insurance companies, etc). All of our major competitors participate in the Salary Surveys. When will we receive notification of our Salary Review? Salary Review letters will be dispatched from Human Resources to the designated Salary Review Managers from 25 June. These managers will then forward the relevant letters onto their management teams, who will be responsible for ensuring letters are distributed to employees before pay day of 12 July 2012. When will TEC increases be processed? Salary Review increases will be paid to employees on the pay run of 12 July 2012.

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2012 SALARY REVIEW Q&A


If I am eligible to receive a salary review increase, when will this be effective from? TEC review increases are effective from 23 June 2012. Back pay will be included in your pay received on the 12 July 2012. Who is Included in the Salary Review Process? All permanent full-time and part-time employees on the Australian payroll. As a general rule only employees who were hired before 1 April 2012 should be reviewed. Please note that you will receive a letter confirming your TEC (as at 23 June 2012) regardless of whether or not you were eligible to receive a TEC review increase. What does a 0% merit increase signify? / Does a 0% increase mean that my performance is poor? When making Salary Review recommendations, managers were required to consider several factors: individual performance, external market movements and internal relativities, within budgetary constraints (as described above). If for example an individual is performing at a competent level, their TEC is in-line with internal relativities and they have a TEC equal to or greater than the Market Median it may result in a 0% increase being given. In some instance however, a 0% increase will reflect an employee's poor performance levels. For an indication of performance levels an employee should refer to their GPARS rating and discuss this with their manager. What can I do if I have concerns or queries about my salary increase? In the first instance you should discuss any concerns you have with your immediate manager. If you still have any concerns/issues please consult with your Business Unit HR Representative.

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2012 SALARY REVIEW Q&A


What happens to suspended employees i.e. people on parental leave, leave without pay etc? Employees who are suspended will still be considered during the review process. Individual circumstances such as length of leave without pay, performance, and market relativities will be considered in making pay decisions. Letters will be produced for suspended employees and posted to their home address. Any increases awarded will be processed in payroll at the time the employee returns to work. Will all increases awarded result in an increase in TEC? Managers may also choose to reward staff via a lump sum payment rather than a TEC increase. Generally this may be applied when an individual is well placed relative to the market however the manager still wishes to recognise high performance. These payments will be processed via payroll (and are subject to taxation) on 12 July 2012. Please note that you will receive a letter confirming your TEC (as at 23 June 2012) regardless of whether or not you were eligible to receive a TEC review increase. How will I receive notification if my Manager is not located at the same location as me? All employees will receive written confirmation of the outcome of their Salary Review. Your manager will be able to advise on the logistics specific to your situation.

2. General
What does TEC mean? CSC Australia operates on a Total Employment Compensation (TEC) philosophy. This means that we view an employee's remuneration on a "total package" basis (the employee then has some choice as to how the TEC is broken out e.g, novated vehicle lease, personal superannuation contribution, etc.)

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2012 SALARY REVIEW Q&A


What does SGC mean? Superannuation Guarantee Contribution (SGC). The SGC legislation requires all employers make minimum contributions to superannuation on behalf of all its employees. The minimum current SGC obligation is 9%. SGC is a component of TEC. What is SalMan? SalMan is a CSC web-enabled salary review intranet application, which facilitates the TEC Review process.

3. Contacts for more information


As TEC Review involves many stakeholders you may find the following useful to help you direct your question to the most appropriate person/group. Pay & Incentive Decisions Manager (first point of contact); or Business Unit HR. TEC Records HR Connect (email hr_connect@csc.com. Phone 02 9034 3404, option 4). Superannuation HR Connect (email hr_connect@csc.com. Phone 02 9034 3404, option 4); or CSC Superannuation Helpdesk (Mercer): 1800 682 525. Salary Payments Payroll (email aust payroll@csc.com.au) Phone 02 9034 3404, option 4.

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2012 SALARY REVIEW Q&A

4. Change History
Version 6 5 4 3 2 1 Date April 2012 July 2011 July 2010 June 2008 June 2007 Apr 2006 Details Updated for 2012 Salary Review Updated for 2011 Salary Review Updated for 2010 Salary Review Updated for 2008 Salary Review Updated for 2007 Salary Review Introduced standard formatting, updated to 2006 Salary Review

This policy is an on-line document and as such all updates will be made on-line. As soon as a document is printed it ceases to be a controlled document. To ensure that you are reviewing the latest copy of this policy, please access the online version available on the CSC C3.

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