Thank you, Mr. Speaker. In pretty much every session since I was elected into the 16th Assembly I have asked questions on
performance bonuses paid to deputy ministers, senior managers, and excluded employees within the GNWT. Every time I ask, I get generally the same response from the Premier that, yes, bonuses
are paid. In fact, around $1.65 million is paid out annually, give or take a couple hundred thousand.
I’ve heard from the Premier and the Minister of Human Resources that bonuses are a necessity. I couldn’t agree more. When bonuses are earned they should absolutely be provided. However, it’s clear that pretty much every deputy minister and every senior manager who is eligible for bonuses receives them on an annual basis. Once a bonus becomes expected, they lose their effectiveness. They stop becoming about increasing results or output and become a part of an employee’s base salary.
I know many of our deputy ministers and senior managers and I know that many of them work really, really hard, often above and beyond normal expectations. These individuals deserve bonuses. Unfortunately it’s also clear that there are no official processes to determine when a bonus should be paid; no mechanism to determine and assess when somebody has taken that extra step.
Last year the federal government developed a rigorous assessment process for their performance pay. With their plan and process in place fewer than 20 percent of the senior executives received bonuses. Under the federal program senior managers are assessed based on performance targets and a 360 degree review which includes input from fellow senior managers, colleagues, Ministers and others.
We must ensure that staff are rewarded for outstanding performance; performance that is above and beyond expectation; for thinking outside of the box; for streamlining government through increased efficiencies and better use of resources, not paid bonuses because we always have and that staff receiving them expect it.
Last year I asked the Premier to review and implement a process similar to the federal government’s to ensure that when bonuses are earned, they will be paid and when they aren’t, they won’t be paid. Processes like this will ensure that we remain competitive with the private sector by providing high-quality performers with financial incentives which encourage their continued commitment to the GNWT as opposed to jumping ship and seeking employment in the private sector. Unfortunately, I never received confirmation that this was done and it appears once again that virtually every eligible deputy minister and senior manager received performance bonuses for the 2007-2008 fiscal year.
At the appropriate time I will be asking the Premier some questions concerning bonuses in the NWT.