Senior Personnel and Special Projects Secretariat
Privy Council Office
April 2005
The purpose of this document is to provide an overview of the Performance Management Program as it applies to deputy ministers, associate deputy ministers, and individuals paid in the GX salary range.
This guide and all related documentation are available on the Privy Council Office Web site at: www.pco-bcp.gc.ca/performance-rendement.
The objectives of the Performance Management Program are:
In February 1998, the government accepted the recommendations contained in the First Report of the Advisory Committee on Senior Level Retention and Compensation. As a result, a new compensation plan for deputy ministers, associate deputy ministers, and other Governor in Council appointees was introduced.
Cash compensation for senior personnel has two components - base salary and performance pay. Performance pay has two elements - a variable amount (at-risk pay) which must be re-earned each year and a bonus for performance that surpasses expectations. As in the private sector, it would be expected that most senior personnel would receive at-risk pay.
An effective performance management program is integral to the success of this compensation plan.
Eligibility
To be eligible for performance pay, incumbents appointed by the Governor in Council must normally hold their positions for at least six (6) consecutive months in the performance cycle. This period allows the incumbent sufficient time to achieve measurable results. If the period covered by the performance evaluation is less than 12 months (full performance cycle), performance pay, if approved, is prorated.
If an individual is appointed as a deputy minister (or associate deputy minister or paid within the GX salary range) from an assistant deputy minister position during the performance cycle, the individual will be included in the Performance Management Program for Deputy Ministers for the complete cycle.
Performance Agreement
The performance agreement is a mutual understanding between the deputy minister and the Clerk of the Privy Council (or the associate deputy minister/GX and the deputy minister) as to what is expected for the performance cycle. This performance agreement is comprised of commitments and their related performance measures in the following three categories:
- commitments based on the business plans of the department;
- a commitment that reflects a priority area of focus related to the policy or program agenda of the government as identified by the Clerk of the Privy Council.
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Changes to Performance Agreements
Changes may be made to the performance agreement during the performance cycle, in consultation with the Clerk (or with the deputy minister in the case of associate deputy ministers/persons paid in the GX salary range).
Performance Evaluation
At the end of the performance cycle, each deputy minister completes a self-evaluation assessing achievements against the agreed upon commitments. Deputy ministers also complete an evaluation of their associate deputy minister(s) as well as those paid in the GX salary range, where applicable.
Additional information is sought by the Privy Council Office to supplement the self-evaluations including:
Evaluation Results
Overall performance is evaluated with the following possible results:
Did not achieve the performance expectations or unable to assess the performance during the cycle (leave, training, special assignment).
Has achieved the performance expectations.
Has surpassed performance expectations.
The amount of performance pay is determined by the degree to which the commitments were achieved, the relative contribution of the individual and the manner in which these results were achieved.
Performance Pay
The Performance Management Program provides the opportunity to earn the following compensation:
Movement through the salary range, up to the maximum of the range, is earned through the successful achievement of commitments. Normal progression for successful performance is 5% per year. Higher or lower percentages may be approved based on the degree of performance against expectations. No in-range salary increase is awarded for performance that does not achieve expectations.
This lump sum payment is equivalent to a percentage of base salary and must be re-earned each year, based on the successful achievement of commitments. This payment does not increase an individual’s base salary but is included in average salary for pension calculations. At-risk pay can be earned regardless of an individual’s position in the salary range, however, no at-risk pay is awarded for performance that does not achieve expectations.
This lump sum payment is in addition to at-risk pay and is based on the individual’s demonstrated performance that has surpassed expectations. Like at-risk pay, this payment does not increase an individual’s base salary but is included in average salary for pension calculations. Bonuses can be earned regardless of an individual’s position in the salary range.
Eligibility for an economic increase, as recommended annually by the Advisory Committee on Senior Level Retention and Compensation, is normally dependent upon the successful achievement of commitments. An economic increase is also awarded in cases where performance is unable to be assessed for reasons such as leave, training, etc. Therefore, no economic increase is awarded for performance that does not achieve expectations.
In implementing in-range salary increases, at-risk pay and bonuses, the salary used as the base for calculations is that in effect on the last day of the performance cycle, that is, March 31st. Economic increases are based on the salary following application of any in-range salary increase.
The following table illustrates the maximum performance awards available according to performance and the individual’s level:
Evaluation Results | Definitions | At-Risk Pay | Bonus |
In-Range Salary Increase |
Economic Increase |
No Performance Pay | Unable to Assess | ![]() |
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Did Not Achieve Performance Expectations | ![]() |
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At-Risk Pay | Achieved Performance Expectations | ![]() Up to 10%
![]() Up to 17% |
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Bonus | Surpassed Performance Expectations | ![]()
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![]() Up to an additional 5%
![]() Up to an additional 8% |
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Approval
Compensation for deputy ministers and associate deputy ministers is approved by the Governor in Council. Copies of the Order in Council authorizing payment are provided to the individuals concerned for forwarding to their compensation office for implementation.
Communications
To ensure transparency and understanding of the program objectives and results, as well as alignment in the organization, individuals are encouraged to share their performance commitments with their organization.
Timelines
February
January - March
April
May
June
Management Results
Generic Commitments
These commitments reflect the core organizational and management accountabilities as described in the Treasury Board Secretariat’s Management Accountability Framework.
Policy and Programs
Organizational research and analytic capacity is developed and sustained to
assure high quality policy options, program design and advice to ministers.
People
The organization has the people, work environment and focus on building
capacity and leadership to assure its success and a confident future for the
Public Service of Canada.
Citizen Focussed Service
Services are citizen-centred, policies and programs are developed from the
"outside in" and partnerships are encouraged and effectively managed.
Risk Management
The executive team clearly defines the corporate context and practices for
managing organizational and strategic risks pro-actively.
Stewardship
The organizational control regime (assets, money, people, services, etc.) is
integrated and effective, and its underlying principles are clear to all staff.
Accountability
Accountabilities for results are clearly assigned and consistent with
resources, and delegations are appropriate to capabilities.
Public Service Values
Through their actions, organizational leaders continually reinforce the
importance of public service values and ethics in the delivery of results to
Canadians (e.g. democratic, professional, ethical and people values).
Governance and Strategic Direction
The essential conditions - internal coherence, corporate discipline and
alignment to outcomes - are in place for providing effective strategic
direction, support to the minister and Parliament, and the delivery of results.
Learning, Innovation and Change Management
The organization manages through continuous innovation and transformation,
promotes organizational learning, values corporate knowledge, and learns from
its performance.
Personal Results
Generic Commitments
These commitments reflect the expected demonstration of the key leadership competencies required to successfully carry out the responsibilities of the position as defined in the leadership competency profile for deputy ministers (DMs). The profile can also be found at the following Web site: http://www.hrma-agrh.gc.ca/leadership/klc-ccl/intro_e.asp.
VALUES AND ETHICS – Serving through Integrity and Respect
Public Service (PS) leaders serve Canadians, ensuring integrity in personal and organizational practices, and respect people and PS principles, including democratic, professional, ethical, and people values. They build respectful, bilingual, diverse and inclusive workplaces where decisions and transactions are transparent and fair. They hold themselves, their employees, and their organizations accountable for their actions.
An effective leader:
STRATEGIC THINKING – Innovating through Analysis and Ideas
PS leaders advise and plan based on analysis of issues and trends, and how these link to the responsibilities, capabilities, and potential of their organization. They scan an ever-changing, complex environment in anticipation of emerging crises and opportunities. They develop well-informed advice and strategies that are sensitive to the various needs of multiple stakeholders and partners, reflect the strategic direction of the PS, and position the organization for success.
ANALYSIS
An effective leader:
IDEAS
An effective leader:
ENGAGEMENT – Mobilizing People, Organizations, Partners
PS leaders engage people, organizations, and partners in developing goals, executing plans, and delivering results. They lay the groundwork by building coalitions with key players. They mobilize teams, building momentum to get things done by communicating clearly and consistently, investing time and energy to engage the whole organization. They use their negotiation skills and adaptability to encourage recognition of joint concerns, collaboration, and to influence the success of outcomes. They follow and lead across boundaries to engage broad-based stakeholders, partners, and constituencies in a shared agenda and strategy.
An effective leader:
MANAGEMENT EXCELLENCE – Delivering through Action Management, People Management, Financial Management
PS leaders deliver results by maximizing organizational effectiveness and sustainability. They ensure that people have the support and tools they need and that the workforce as a whole has the capacity and diversity to meet current and longer-term organizational objectives. They align people, work, and systems with the business strategy to harmonize how they work and what they do. They implement rigorous and comprehensive human and financial resources accountability systems consistent with the Management Accountability Framework (MAF). They ensure that the integrity and management of information and knowledge are a responsibility at all levels and a key factor in the design and execution of all policies and programs.
ACTION MANAGEMENT: Design and Execution
An effective leader:
PEOPLE MANAGEMENT: Individuals and Workforce
An effective leader:
FINANCIAL MANAGEMENT: Budgets and Assets
An effective leader: