Archived decisions

Hampshire County Council

Cabinet Item 7

26 January 2004

Update on Pay and Benefits Project

Report of the County Personnel and Training Officer

Contact: Pauline Lucas, (01962) 847700; [email protected]

    1. Summary

1.1 The following decision is sought:

    1. That Cabinet note the achievements so far in the pay and benefits project and the current work underway.

2. Reason

The pay and benefits project will impact most directly on the delivery of Aim 6 - developing councillors and staff. The focus here is to put in place reward packages that promote innovation and good practice.

3. Other options considered and rejected:

None.

4. Conflicts of Interest declared by the decision maker or other Executive member consulted:

None.

5. Dispensation granted by the Standards Committee:

Not applicable.

6. Reason(s) for the matter being dealt with if urgent:

Not applicable.

Approved by: Date:

Councillor TK Thornber CBE

    1. Introduction

The job evaluation review stage of the Pay and Benefits project was initiated in August 2001 when departments were asked to identify benchmark jobs. Two years later, near the end of the job evaluation stage, it is an appropriate time to report on what has been achieved and to consider the next steps ahead.

    2. Underlying principles for the pay and benefits project

The County Council introduced a new set of local conditions of service in 2000, known as EHCC. The document identified the Council's planned approach to the development of a new pay and benefits strategy. The underlying principles of this approach were defined as :

    · equity and equality of opportunity

    · fairness and consistency

    · simplification of grading arrangements

    · recognition of personal and job development

    · ability to reflect market factors and personal contribution

    · need to effectively manage costs

These principles are an integral part of the EHCC conditions introduced by collective agreement.

    3. Achievements in the pay and benefits project

The project so far has focussed on the first phase - the evaluation of all jobs in the Council covered by the EHCC agreement, using Hay as the job evaluation tool. The main achievements in the project so far are outlined below:

    · The project team has trained 100 + management, personnel and training, and trade union representatives in job analysis and the completion of role profiles.

    · Thirty management, personnel and training, and trade union representatives have been trained in Hay job evaluation. Previously this expertise had rested with only one individual.

    · Initiated the use of a consistent format for job information in the form of a role profile.

    · From early 2002, the project team has coordinated the collation and central collection of up-to-date job information for 1,900 jobs (covering c. 20,000 employees) in Hampshire County Council. As a result of the project timescales, departments were given the choice of submitting job information in the format of either a role profile or a job description/person specification.

    · Evaluation panels (consisting of a management, trade union and personnel and training representative) have evaluated and quality checked over 1,900 jobs in less than 18 months.

    · For the first time, the council has a picture of how all jobs in Hampshire County Council relate to each other in terms of job size, using the same tool to evaluate all jobs across the Council.

    · The trade unions have been fully involved in the project to date. During this time, the project team has met with the unions on a regular basis and a good working relationship has been developed.

    4. Future work

4.1 Pay strategy development

The Pay Strategy Group is considering the reward goals of the Council in order to set the foundation on which to build and implement the new pay and benefits approach.

4.2 Pay modelling (nine months to complete)

There will be a significant amount of work to import all the relevant information from SAP and other sources into the pay modeller package for pay modelling.

There will be a need to use external consultant support for allowance modelling and more complex pay modelling, including progression and cost projections.

The pay modelling phase will require consultation with both departments and trade unions as various options are developed.

Training in the pay modelling package will take place in February. Work has commenced on the collection and collation of data required for pay modelling.

4.3 Clean pay

Work is needed to develop an approach to clean pay, i.e. how and what allowances may be consolidated into base pay. There are around 200 different allowance types currently used by Hampshire County Council.

An interdepartmental working group will be developing recommendations in this area over a 12 week period from January 2004.

4.4 Flexible benefits

To date, there has been very little work on flexible benefits in the Council and there is a need for this work to integrate with the total reward approach.

As in 3.3, an interdepartmental working group will be developing an approach suitable for the Council and integrated with the reward strategy over a 12 week period from January 2004. Subsequently, the development of a flexible benefits will take nine months.

4.5 Equal pay

Work will be required with the trade unions and others in a small working group to plan an approach to auditing the new pay structure. An agreed approach is currently being developed in consultation with the trade unions.

4.6 Assimilation arrangements

In consultation with the trade unions, an agreed process and timescale for moving employees into the new structure will be developed.

4.7 Protection arrangements

In consultation with the trade unions, an agreed process and timescales for protecting employees overpaid in the new structure will be developed.

4.8 Develop process for explaining grade allocation to staff

A commitment has been made to develop a communication tool to help staff understand where they have been placed in the new structure and to inform them in any appeals consideration.

4.9 Competency framework

Work is underway to develop a competency framework covering behaviour i.e. `how' the job should be done and not just what is done (core and leadership) and generic, professional and technical skills. This will take five months

4.10 Performance Development Review (PDR) process

The current appraisal tool is inappropriate given the need to assess `how' the job is done. A new tool is currently being designed to ensure integrity.

4.11 Role profiles

Work is underway to improve the role profile template to make it suitable for use in recruitment and PDR purposes.

As part of the pay and benefits project, role profiles exist for the majority of roles, but not all.

These role profiles were specifically written to facilitate job evaluation and they do not contain consistent information on performance standards. Further work will be required to develop these profiles to a standard quality and level of information. This work will take at least 12 months and may well require additional resource.

4.12 PDR training

There is a need for a significant culture change which will enable managers and staff to agree and assess behaviours (current assessment is on the achievement of objectives only). Managers will need to be given the skills to assess their staff against the standards set in the role profiles and staff will need to understand the process. The proposed programme of training will take place over the next 33 months.

4.13 SAP specification

A detailed specification will be needed in order that SAP delivers against the new pay and performance strategies. SAP will take six months to configure and test in terms of the basic pay structure.

5. Communication activities

5.1 Working with the trade unions

Broad agreement is required from the trade unions to achieve a positive staff ballot in favour of implementation of any new pay approach. The project team will need to develop further an agreed approach to working with the trade unions based on a collective agreement. It should be noted that the trade unions have already indicated that they fundamentally disagree with a pay approach based entirely on a progression and/or contribution model. The project team is continuing to meet with the trade unions on a monthly basis and fully involve them in the pay and benefits project.

5.2 Communication approach

Work is required to develop further and implement a communication approach for staff and other stake-holders. This is a key piece of work to ensure that understanding and ownership of the project are developed throughout Hampshire County Council.

6. Current project plan

The challenges on the job rank order from departments will be considered by panels by the end of January 2004. Departments will receive feedback in early February and the Corporate Management Team will be asked to sign off the job rank order for Hampshire County Council thereafter .

Two working groups looking at flexible benefits and the use of allowances respectively have been set up and will make their recommendations in March 2004.

7. Resources

The Leader will be considering resourcing implications as Chairman of the EHCC Committee when work on the Pay and Benefits Project is formally reported in March 2004.

8. Recommendations

Cabinet are asked to note progress to date and the further work required and in hand to complete the project.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

    2. Documents which disclose exempt or confidential information as defined in the Act.

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