Town Clerk’s Department

Corporate Human Resources

Pay & Grading, Contribution Pay & Reward Management

Libby Grant, Head of Strategic HR Services

5th March 2008

Scope of the Projects

Job Evaluation Project New grade structure/progression Changes in incremental dates Ending lifetime protection New protection arrangements Review of allowances Awards and discounts Market Forces Supplements Behaviours Framework

Organisational Need for Change

Modernisation not Harmonisation No clear differentiation between grades Grade drift and ‘JE Culture’ No reward for contribution Vulnerable under equal pay legislation Protections consuming resources but

not necessarily contributing to outcomes

Finance

No reduction in the pay budget Monies redistributed from lifetime

protections into pay budget Small amount from reserves injected Must ‘wash its face’ in the medium term Increments for the first time for lowest

paid No automatic increments for highest paid

Job Evaluation

New scheme 70+ Benchmark jobs Approx 500+ further sample

evaluations Comparability/matching exercise Point scores determine new grade Review and appeals process

Grades

Down from 19 Grades to 10 from October 2007

Separate arrangements for senior managers (approx top 20)

Retention of existing incremental ‘spine’ Narrower grades with less overlap Structure designed to make transfer to

new structure as painless as possible for the greatest number

  )

  ) 4 Increments

  )

  )

  2 Contribution

  Increments

  Possible Bonus

 

New Grade Structure

Assessing Contribution

4 Levels1. Outstanding (consistently exceeds

aims)2. Excellent (achieves all aims and

exceeds some)3. Standard (achieves acceptable

contribution to all aims but has scope to achieve more)

4. Below Standard (must achieve higher level of contribution)

Approach to pay progression (1)

Staff on lower grades 1-5 (Grades A-C) No requirement to achieve higher levels of

contribution to progress. Annual increment dependent on achieving at least ‘Standard’ level of contribution. Similar to current position but now increments for lowest paid.

Bonus of up to 3% available for ‘Outstanding’ contribution

Approach to pay progression (2)

Middle managers and professional staff D-J (6-14)

Conventional incremental progression through first 4 increments of grade (subject to ‘Standard’ contribution)

Access to next 2 increments dependent upon better than ‘Standard’ contribution

Non-consolidated bonus to reward highest levels of contribution for staff at top of grades

Approach to pay progression (3)

Top 20 Managers (15-19) Annual pay increase entirely dependent

upon contribution - not cost of living Individual pay ranges defined by job

evaluation, with market taken into account, if appropriate

Possibility of non-consolidated bonus to reward high levels of contribution

Contribution Pay

Based on principle that to achieve incremental progression, staff must achieve a minimum of ‘Standard’

Once point 4 achieved, progression to final 2 consolidated increments based on achieving ‘Excellent’ or better

Once on Point 6, opportunity to earn one-off non-consolidated bonus of up to 3% for ‘Excellent’ or up to 6% for ‘Outstanding’

Bonuses need to be re-earned each year Separate scheme for Grades A - C

New scheme of protection 3 years (or sooner if substantive salary

catches up) Protection of total salary in cash terms

(no increments or annual salary reviews) Ending existing lifetime protections Current lifetime protections and any

arising from current JE review to end on 30/9/2010

Potential for extended protection in small number of severe cases subject to legal developments

Allowances additional to pay

Need to rationalise/simplify Joint Management-Union Working Party 3 Categories - Retain - Replace with expenses payments - Subsume in JE rates

Other changes

Employee awards scheme Enhanced staff discount scheme Changes in incremental review dates Independent external review of Market

Forces Supplements Introduction of Behaviours Framework

to support changes

Consultation Leaflet Intranet FAQ’s Road shows Trade Unions Individual Consultation New Contracts

Performance Development Framework – Why Do it?

Ambitious change agenda Modernisation and continuous

performance improvement required To support the achievement of IiP A stronger and more consistent

approach to business planning and performance management required.

a successful authority, however significant internal variation exists in terms of individual contribution’

Performance Development Framework Makes expectations of staff more explicit at all

levels Provides a structure to help differentiate the

contribution made by staff Aligns behaviours with organisational vision and

business strategy Greater focus on organisational learning, staff

development and performance improvement Underpins contribution-based pay and grading

structure Underpins broader HR tools eg recruitment and

succession planning

Aligning People Management Tools

Recruitment & Selection

Learning & Development

Managing Performance

SuccessionPlanning

PDF

Reward

Talent Management

Design Process External consultancy facilitated the design of the

PDF - content was driven by staff feedback The Town Clerk (Chief Exec), eight Chief Officers

and a number of high performers from around the business were interviewed

Focus groups held with a cross-section of over 80 managers and staff

Findings were fed back to Amicus, GMB, Chief Officers, staff and managers who had attended the focus groups and interviews

The framework and appraisal processes tested with approx 40 managers

Nearly 200 staff and managers contributed to the design of the PDF

Research Findings – Key Themes

Bedrock Behaviours:Organisational SavvyAnalysisProblem SolvingNetworking &

Relationship BuildingProfessionalism

Emerging Behaviours:Managing PerformanceChange OrientationInclusivenessDriveCustomer FocusAccountabilityDeveloping and Recognising OthersBusiness AcumenValuing OthersSelf Improvement

Clusters & Core Behaviours

Framework Structure – Levels & Indicators

Guidance for Use (1) Managers must select six core behaviours for each

position they manage (up to eight for staff with management responsibilities)

Chief Officers have agreed that staff operating at competency level 5 will trial being assessed against all 13 behaviours

Where possible a balance of core behaviours should be drawn from across the Thinking, Building Relationships, Achieving and Self-Managing clusters for all positions (1 core behaviours must be selected from each of these clusters for all roles)

The ‘Leading’ cluster is likely to only be relevant to roles with management / supervisory responsibilities

Guidance for Use (2) All 3 core behaviours in the ‘Leading’ cluster

are mandatory core behaviours for all staff who manage or appraise other staff

The indicators (ticks and crosses) are meant to provide a focus for performance & development discussions

They are a guide - and not a ‘definitive’ or an ‘exhaustive’ list (other evidence, feedback and observation should be used together with the indicators)

The levels are cumulative

Performance Appraisal Process – Context and Aims To align service, team and individual objectives

with business plans and organisational goals Focus and drive performance improvement Hold people to account for meeting expectations Improve organisational consistency in the way

staff are managed and developed Recognise and reward the contribution made by

all staff Provide a fair and structured way to raise

concerns about performance or encourage performance improvements

Performance Management Staff will be rewarded for the total contribution

they make, not just the targets they reach i.e. staff are to be assessed on the basis of both how they go about their work and what they achieve.

The ‘how’ is defined through core behaviours and the ‘what’ is expressed through objectives and performance indicators.

Assessing Core Behaviours A Outstanding: Consistently demonstrating

behaviours beyond that required of the role. B Excellent: Consistently achieving the level

required and often demonstrates behaviour expected at the next level or recognised as a role model.

C Standard: Usually achieving the level required. A small number of adverse examples or performance at the next level might be demonstrated.

D Improvement Required: Sometimes achieving the level required but adverse examples often demonstrated.

Moderating the Process

Initial moderation undertaken at Team and Departmental level – expectation is for broadly normal distribution curve

This will be followed by moderation by corporate centre to ensure equality and consistency across departments – audited and shared with TUs

When moderation process complete (July/August), final confirmations sent to staff of bonus payments to be paid with October salary

No planned right of appeal

Next Steps

Communications strategy ‘ramped-up’ from January

Promotional aids also developed Training programme for all managers will continue

well into April 2008 All HR policies are being reviewed and realigned Longer-term: recruitment, talent management and

career planning processes to be reviewed Decisions about distribution, links to pay and

detailed moderation process to be made as well as recording decisions on HR system

Current Timetable

Appraisals and target setting to use new format from April 2008

April 2008 – March 2009: shadow year for PDF April 2009 – discussions with staff about their

assessment in a ‘safe’ environment i.e no pay impact

April 2009 – PDF goes live and will impact on salary next year

First ‘live’ contribution assessments in April 2010 First application of contribution progression and

payment of bonus – October 2010