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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
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
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
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
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