Market Loading Policy

Intent

This policy provides a framework for the fair and transparent allocation of market loadings where necessary to attract and retain staff with the capabilities and skills needed to realise the strategic priorities of James Cook University (JCU; the University).

Scope

This policy applies to all prospective, continuing and fixed-term Staff Members covered by the JCU Enterprise Agreement.

Definitions

For a comprehensive list of definitions, refer to the Human Resources Policy Glossary.

Market loading – refers to an additional amount of compensation paid to a prospective staff member to attract, and an existing staff member to retain, in a competitive job market. This extra payment is often used to address market conditions where there is high demand for certain skills or roles, or where salaries are generally higher than the University’s pay structure.

Policy

1. A market loading may be paid to a Staff Member in addition to their normal salary as determined by the Enterprise Agreement, for the position that they occupy.

2. A market loading may be applied to a prospective or existing Staff Member or a particular role. Where market loading is applied to a role, all Staff Members occupying that role will receive the market loading.

3. For prospective Staff Members, the requirement to provide a market loading may:

• Be determined prior to recruitment commencing for a vacant position; or
• Be negotiated in the course of an offer of employment.

4. For existing Staff Members, a market loading may be awarded on the basis of the following criteria being met:

• The difficulty in retaining a suitable Staff Member in the position and recruitment costs are considered high, and the assessed likelihood of attracting suitable replacement staff is deemed by University Management as very low.
• There is an organisational need for the contribution, knowledge and expertise expected to be made, or being made, by the Staff Member in the role for a specific period of time and/or specified project; or
• Where the impact of not applying a market loading will adversely impact on the University’s ability to achieve its key strategic objectives.

5. Where a market loading is proposed to be applied to a Staff Member, careful consideration must be given to any impact on gender equity, specifically with respect to gender pay gap, of each proposed market loading request. Mitigation strategies must be documented in the market loading allowance application/request.

6. Market loading value

6.1 The maximum market loading allowable is up to 20% of the base salary for that position.

6.2 The market loading value may be expressed as a percentage of the salary or a flat rate.

6.3 Where a market loading of greater than 20% of the base salary is requested, approval will be at the discretion of the Director, Human Resources.

7. Duration of market loading

7.1 The period that a market loading is to be applied to a Staff Member or position will be specified in writing and may be applied for any period of time, subject to regular review.

7.2 Market loadings should be reviewed as part of the Performance and Development Planning (PDP) process. Where it is determined during the PDP process that the market loading is no longer required, the Staff Member will be provided four weeks’ notice of the cessation of the market loading.

7.3 The relevant Head of Work Unit is required to review market loadings prior to:

• Setting staffing budgets for the coming financial year; and
• Undertaking the PDP process with Staff Members currently receiving market loading to determine the continuation of the market loading; and
• A vacancy being advertised where a market loading has previously been applied or may be required.

7.4 Professional and Technical position market loading duration:

• Staff members who receive market loading and have their position reclassified to a higher level, will have the market loading absorbed into the new level of pay.  In the event the higher classification results in a reduction in total remuneration received it is at the discretion of the Head of Work Unit to submit a new application for market loading.
• Staff Members who transfer from a position with market loading to another position either through a permanent appointment or secondment, within the University do not retain the market loading in the new role. If market loading is required to be applied to the new role, a new application must be made.

7.5 Academic position market loading duration:

• Should the incumbent be promoted through the Academic Promotions process, the market loading will not automatically be applied to the new level. If market loading is required after the awarding of promotion, a new application must be submitted.

7.6 If a Staff Member receiving market loading undergoes an Unsatisfactory Performance process, the Head of Work Unit may review and potentially remove the market loading.

8. Funding for market loading

8.1 Market loading is considered part of the employing work unit’s salary/wage expenses and must be managed within the operating budget of that work unit.

8.2 Annual salary funding allocation will be based on the position level excluding any approved market allocation. The head of the employing work unit is responsible for ensuring adequate funding is available for market loading within their annual budget.

9. Delegation

9.1 Requests for a market loading must be appropriately justified and submitted by the Head of Work Unit to the relevant Deputy Vice Chancellor for endorsement, and to the Director, Human Resources for approval.

• For prospective staff members, this process is to be administered via the e-recruitment system.
• For existing staff members the request is to be submitted via email.

9.2 Where a request for a market loading is not approved by the Director, Human Resources, the decision is final and no appeal will be considered.

Related policy instruments

Nil

Schedules/Appendices

Nil

Related documents and legislation

JCU Enterprise Agreement

Administration

NOTE: Printed copies of this policy are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Revision History