Agenda item

            The Human Resources (HR) Advisor introduced a report to the Committee on the outcome of the review of Senior Manager Pay Scale following consultations.  Members of the Committee were also advised by the HR Advisor, that the purpose of the report was to provide an overview of the consultation process, feedback comments received from senior managers and the measures proposed as a result of the consultation process.

 

The Employment Committee was requested to reconsider the response to consultation with senior managers on the proposed Senior Manager Pay Scale and to reach a decision regarding:

 

i)     The implementation of the proposed Senior Manager Pay Scale;

ii)    The recommendation to develop a progression-related pay mechanism for senior managers;

iii)   The recommendation to award pay protection for senior managers;

iv)   The implementation of the proposed senior manager job evaluation appeal process;

v)    The implementation of the proposed guidance on assigning senior manager salaries; and

vi)   The assignment of new job titles for senior management posts.

 

 

 

            Key points highlighted within the report included:

 

·         The Hay methodology for senior management pay structure applied to approximately 35 Peterborough City Council employees;

·         The proposed pay scale;

·         The progression within pay bands;

·         The process for implementation, timescale and appeal process;

·         Pay protection comparative benchmark data;

·         Impact of pay structure on lower pay bands;

·         Responses to consultation;

·         Communications;

·         Performance related pay;

·         Performance management culture, linked to the Performance Development Review (PDR) process; and

·         Changes if agreed, to be implemented as soon as possible for the 35 senior management positions.

 

The Human Resources (HR) Advisor responded to comments and questions raised.  In summary responses included:

 

·         Discussions surrounding the review of Senior Manager Pay Scale had been held in exempt session when it was presented to Employment Committee on 11 October 2013;

·         The not for profit sector reference within the review exercise was included due to the fact that public sectors workers would also be recruited from this area. The rationale had been about maintaining the market competitiveness in terms of recruitment and retention of experienced employees;

·         Pay protection would be necessary for employees negatively affected due to the principles of maintaining motivation, fairness and valuation of the employee;   

·         The pay bands had been arrived at through market data and the Hay evaluation point range for the Director and Head of Service roles and inline with the consultation feedback, the proposed assignations of ‘Chief Executive’, ‘Director 1 – 3’ and ‘Head of Service 1 – 3’ were removed from the pay bands and replaced with a numerical system (i.e. pay band 1 – 7); and

·         Changes within the Director and Heads of Services levels had been reached through evaluation of the new job descriptions following the recent senior manager restructure.

 

            Councillor Sandford felt that the proposed Senior Manager Pay Scale, if agreed, could potentially create pay rises for some posts and that it was unclear how the Committee could be assured that there would be significant savings met following the recent senior management restructure.

 

            Some Members commented that it was important not to confuse the proposed pay structure, which had reflected the new senior management restructure, with the current pay structure.  In addition, Members also commented that there would be significant savings met due to the deletion of some posts, as a result of the recent senior management restructure.

 

            The HR Advisor, advised Members that the Council was utilising a globally international recognised scheme, which had credibility within the public sector and that there had been a need to review the current pay structure due to the significant changing in shape of the organisation and job roles. 

 

            RESOLVED:

 

            The Employment Committee following a vote agreed:

 

i)      The implementation of the proposed Senior Manager Pay Scale – carried (5 for, 1 against);

ii)    The recommendation to develop a progression-related pay mechanism for senior managers – carried (unanimously);

iii)   The recommendation to award pay protection for senior managers – carried (5 for, 1 against);

iv)   The implementation of the proposed senior manager job evaluation appeal process – carried (unanimously);

v)    The implementation of the proposed guidance on assigning senior manager salaries – carried (unanimously); and

vi)   The assignment of new job titles for senior management posts – carried (unanimously).

 

            In line with the consultation feedback, it was also agreed that the pay band format would             include:

 

PAY BAND	POINT RANGE (HAY)	MEDIAN + 10 %	50th PERCENTILE  (MEDIAN)	MEDIAN -10 %
Pay Band 1	1801 - 2140	£187,000	£170,000	£153,000
Pay Band 2	1508 - 1800	£155,240	£141,127	£127,014
Pay Band 3	1261 - 1507	£126,880	£115,345	£103,811
Pay Band 4	1056 - 1260	£104,500	£95,000	£85,500
Pay Band 5	880 - 1055	£90,135	£81,941	£73,747
Pay Band 6	735 - 879	£77,237	£70,215	£63,194
Pay Band 7	614 - 734	£65,137	£59,215	£53,294

 

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            Reasons for the decision:

 

            The changes were to ensure the Council operated within frameworks that were lawful, best practice, transparent and consistent whilst ensuring that pay for senior managers was competitive, that the pay scales allowed flexibility when recruiting and retaining staff and that there had been an equitable and transparent process for determining senior management pay.