Application
This unit describes the skills and knowledge required to coordinate an organisation’s remuneration and benefits plans. It incorporates all functions associated with remuneration, including packaging, salary benchmarking, market rate reviews, bonuses and the legislative aspects of remuneration and employee benefits.
The unit applies to individuals who are human resource practitioners responsible for overseeing an organisation’s remuneration process.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
1. Update organisation’s remuneration strategy | 1.1 Identify the scope of remuneration and benefits plans in consultation with relevant stakeholders 1.2 Research current practice, recent developments and legislative parameters for remuneration strategy 1.3 Develop and refer remuneration and employee benefits options for consideration by relevant stakeholders 1.4 Assist in presenting options and describing link to organisational strategic objectives 1.5 Record agreed remuneration policies and incentive plans |
2. Coordinate remuneration and employee benefits strategy | 2.1 Determine occupational groups that are industrial agreement based 2.2 Ensure organisation is competitive in its particular occupational group 2.3 Align remuneration and benefits plans with performance management system 2.4 Ensure remuneration and employee benefits are according to legal requirements and organisational policies and procedures 2.5 Ensure incentive arrangements, if relevant, comply with the organisation’s remuneration strategy |
3. Review and update remuneration strategy | 3.1 Consult managers and employees about the effectiveness of the remuneration strategy 3.2 Amend strategy and plans as necessary to meet organisational policies and legal requirements |
Evidence of Performance
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
develop a remuneration strategy for at least two different occupational groups.
In the course of the above, the candidate must:
manage remuneration and benefits according to all legislative and ethical requirements and operational policies
apply awards and agreements to remuneration processes
apply requirements of the Australian Taxation Office in relation to income tax, superannuation reporting, fringe benefits tax (FBT) and bonus payments.
Evidence of Knowledge
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
remuneration principles or models and approaches
ethical practices relating to remuneration and benefits strategies
common remuneration or employee benefits
ways to position an organisation to be an ‘employer of choice’
relevant industrial agreements
organisational policies and procedures affecting remuneration strategies
relevant legislation, regulations and standards that may affect remuneration strategies
relevant business ethical requirements
requirements of the Australian Taxation Office in relation to:
income tax
superannuation reporting
FBT and bonus payments.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
workplace documentation and resources relevant to performance evidence
relevant organisational policies and procedures
relevant legislation, regulations and codes of practice.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Reading | Evaluates and integrates facts and ideas to construct meaning from a range of text types |
Writing | Develops complex material for specific audiences using clear language and appropriate structure to convey explicit information, requirements and recommendations |
Oral Communication | Draws on a repertoire of open questioning and active listening skills when consulting others Uses appropriate terminology and non-verbal features to present information or clarify understanding |
Numeracy | Analyses numerical information to determine employee remuneration and benefits according to a clear set of parameters |
Initiative and enterprise | Adheres to relevant organisational policies, procedures and legislative requirements |
Teamwork | Uses effective presentation and collaboration skills to show options, negotiate agreement and gain feedback on policies |
Self-management | Accepts responsibility for planning and sequencing complex tasks and workload, negotiating key aspects with others, taking into account capabilities, efficiencies and effectiveness Applies systematic and analytical processes to determine appropriate models of remuneration and benefits for particular occupational groups and individuals |
Sectors
Technical Skills – Human Resources