Performance management program for executives

Abstract

This paper describe and analyze, from the perspectives of the Treasury Board Secretariat of Canada, that manages human resources in the federal Government, and the Public Executives Association - APEX, that represents public executives in Canadian Government, the recent initiatives in Canada Public Service oriented to improve managerial performance, starting from the history of performance based pay for executives, the origins of the Canadian Human Resources Reform Plan, its original objectives and how it works, with focus on the last 6 years.

There are 29 departments led by deputy ministers who are career civil servants and there are 3,600 directors, directors general, and assistant deputy ministers who report to the deputy ministers. As part of Human Resources Reform Plan, the "Performance Management Program in the Canadian Federal Public Service" was introduced to strength public service leadership capacity as priority for the Canadian government, specially by a performance management program for deputy ministers and executives, the most senior leaders in the Canadian public service.

This performance management program has as main objectives to encourage excellent performance by recognizing and rewarding the achievement of results that are linked to business plans and government objectives and the demonstration of leadership competencies, values and ethics; and to provide a framework within which a consistent and equitable approach to performance assessment can be applied. At the end of the performance review cycle, deputy ministers and executives undertake a self-evaluation assessing achievements and performance feedback is obtained from a variety of sources. Salary increases and lump sum payment of at risk pay are based on the performance review.

Those innovatives experiences have to be considered in a framework where important factors such as the political agenda and public opinion influence performance, and are usually outside the control of the individual in the public service.

The ability of the Public Services new human resources management regime to respond to both internal and external forces will determine its success or failure of performance management programs and performance related pay systems in Canada. They will have succeeded if people are attracted to join or remain with the Public Service, given all of the other options available to them.

This paper also describes the present performance based pay program for executives, and how performance based pay fits in total compensation package, the objectives and goals of the Government in supporting this program, and explain the creation of a private sector lead compensation advisory committee. From APEX perspective, describes the consultation process within the executive community and its outcomes. According to the results of the 2001 Symposium survey of APEX, public servants continue to be committed to their work. However, employees at all levels in Canada are increasingly impatient with the lack of progress towards substantive reform of how the Public Service operates.

Over the years, APEX has made numerous recommendations to the central agencies of government on executive compensation. APEX has since advocated humane and fair treatment of outgoing public servants, a stop to across-the-board budget cuts. It has recommended a review of developmental programs and career management principles as they affect executives. It has become the executive communities mouthpiece before the Strong Committee on compensation. It sits on COSO's (Committee of Senior Officials) sub-committee on pride and recognition. APEX has long argued for a distinct human resources management regime for executives and continues to make presentations to Central Agencies, TBSAC and to DMs on selection and promotion issues, pay and benefits, work environment and health, general management of the cadre and legal recourse issues.

APEX and the Treasury Board Secretariat of Canada are working together and sharing and receiving information from the association and Government standpoint. Public Executives endorse the recognition of excellence and professionalism through provision of performance-based pay - both for individuals and teams - as part of their total compensation package. Executives are of the opinion that assessments within a performance management program should give as much weight to values-based behaviors as to the results achieved. Performance-based pay should also form part of the compensation package for a greater portion of public servants, and TBS discuss how can the Program and processes be improved related to its objectives.