Making Public Sector Compensation Equitable, Simple and Transparent
The Government of Jamaica (GOJ) has a complex compensation system. Currently there are 325 salary scales and approximately 185 allowances across all groups in the public sector. Additionally, the GOJ uses several tools and methodologies to evaluate and price jobs in the public sector. This has led to inconsistencies in salary packages across the public sector. The result is a compensation system that is difficult to explain, cumbersome to manage and does not easily afford employees a clear view of their total compensation.
Recognising this challenge, the GOJ, through the Transformation Implementation Unit (TIU), has embarked on a comprehensive compensation review project. The objectives of the project are to address current and emerging issues relating to the structure of compensation and to create an equitable, defensible pay and job evaluation structure to standardise compensation across the public sector. The project is being supported by international consulting firm Ernst and Young.
To date the project team has achieved key milestones in the quest for a compensation system that is simple, consistent, rewards high performance, and sustainable. These include:
• A Draft Compensation Philosophy and Principles
• Job Evaluation Tool
• Common (Single Spine) Structure for Compensation
• Categorised allowances and identified options for rationalisation.
• A draft proposal for a new pay-for-performance system
Compensation should be:
What will be different and what are the benefits?
It is anticipated that public sector employees will emerge from the compensation review project with a better understanding of the value of their overall compensation package. Even more, this new pay structure will serve as motivation to increased performance and productivity.
For the GOJ, the benefits of the review will be far reaching as it will have a more consistent, data driven and managed approach to compensation. The government will now have the mechanisms to balance improving compensation whilst managing the overall wage bill.
The new compensation structure is targeted for implementation in Fiscal Year 2022/23.