Attraction and Retention Payments
1
INTRODUCTION
This policy explains the process through which applications are to be made for Attraction and Retention Payments (ARP). The College is committed to facilitating the appropriate remuneration of its staff and therefore both current and new jobs are subject to Hay job evaluation. There may however be exceptional circumstances, explicitly due to market forces, where the Hay evaluated grade for the job results in an ability to successfully recruit or retain staff in a particular job as demonstrated by tests of the market. In such exceptional circumstances where an inability to recruit or retain at the evaluated rate can be clearly demonstrated, it may be appropriate for the manager of a post(s) to make an application for an ARP as defined in this policy. Support will be available from HR as appropriate. All applications for an ARP will be considered within the context of Equal Pay legislation and the principles of equal pay for work of equal value. The College has worked in collaboration with UCU, Unite and UNISON in the development of this policy.
2
PRINCIPLES AND SCOPE
2.1
The ARP policy is applicable to all staff.
2.2
The purpose of the policy is to ensure a fair, consistent and defensible approach to the determination, justification, and application of an ARP.
2.3
Managers of the specific post(s) must demonstrate a full test of the market and then research and make an informed decision as to whether to make an application for an ARP. There needs to be demonstrable evidence of an inability to recruit or retain staff within the evaluated pay, terms and conditions and a key strategic priority or business need for an application to be successful and this needs to be clearly evidenced by the supporting documentation.
2.4
ARPs may be paid following a successful application having first performed a market assessment of the post(s) and collated sufficient supporting evidence. The individual contribution of the jobholder(s) is distinct from an ARP and as such reference should be made to the contribution related pay policy rather than ARP. Similarly, staff wishing to make an application for a Re-Grading should consult the relevant policy for their staff group.
2.5
Applications lodged for an ARP will be considered on a case by case basis by the Vice Master (Academic, Research and Teaching staff applications) or the College Secretary (Professional and Support staff applications).
2.6
A rationale will be retained by HR for each ARP awarded.
3
DETERMINING JUSTIFICATION AND APPROPRIATENESS OF AN ARP
3.1
Applications for an ARP relate to an actual post or posts and are not jobholder(s) specific. It is therefore necessary for the manager to identify to which posts an ARP would be applicable, within the context of both recruitment and retention difficulties.
3.2
The market must be tested fully at the evaluated pay, terms and conditions first and show a significant difference in market pay through supporting evidence for an ARP application to be successful.
3.3
Consideration will be given to posts rated of equal value when determining the appropriateness of an ARP.
3.4
If an ARP is agreed against a particular post, all jobholders performing the same job will be eligible to receive the same market supplement, to ensure fairness and compliance with Equal Pay legislation.
3.5
ARPs will be considered within the context of equal opportunities in terms of gender, ethnicity and age, etc. Corrective action will be taken where it can be proved that the payment or non-payment of an ARP could be deemed to be discriminatory. Corrective action may include the revision or ending of the payment, or making it applicable to other posts.
3.6
Attraction and Recruitment Considerations – Actions for the Manager
3.6.1
Where it is anticipated that an attraction or recruitment difficulty is likely to be demonstrated, it is advisable for the manager to work through the potential recruitment solutions below to expedite the recruitment process/market test where possible:
•
Ensuring that the job advert is placed in the most appropriate media to maximise the potential of attracting suitable applicants
•
Making the recruitment application process as comprehensive as possible, ensuring that the recruitment application pack fully promotes the job and College
•
Ensuring that the job description document (JDD) duties accurately reflect the job
•
Ensuring that the Person Specification section of the JDD accurately and clearly reflects the skills required
•
Ascertaining the critical skills the applicant should have and why it is important that the College recruits these skills
3.7
Retention Considerations – Actions for the Manager
3.7.1
Prior to an application for an ARP related to retention being made, it is necessary to work through the following as potential retention solutions:
•
Determining the reasons for staff leaving by checking e.g. data collected during exit interviews, staff survey etc
•
Determining whether pay is a determining factor for staff leaving the post(s)
•
Whether retention can be addressed by other options e.g. relevant further training, offering continuing professional development, making staff aware of internal career opportunities and supporting staff in their career aspirations
•
Seeking verification that retention difficulties are not due to potential personal factors relating to work, e.g. a personality clash
•
Ascertaining the College requires critical job-based skills and why it is necessary to retain these
3.8
Supporting Evidence – Actions for the Manager and HR
3.8.1
Having tested the market and determined that pay is intrinsic to the recruitment and retention difficulties being experienced (except for normal career progression), the example data sources below should be used for obtaining objective evidence for the determination of an ARP. A belief is insufficient, actual evidence is required. HR will be able to work through such data sources with the manager making the application to establish whether there is sufficient evidence for the application. Should a conflict arise between information from differing data sources, the sector pay surveys will take precedence.
•
Sector pay surveys published by UCEA, HEFCE, etc.
•
Independent industrial and occupational surveys, e.g. Incomes Data Services, Mercer
•
Management consultants’ databases and pay data, e.g. Hay
•
Salary surveys published by professional bodies, e.g. CIPD
•
Published pay and trend data in journals, e.g. Labour Force Survey, New Earnings Survey, Financial Times, IRS Reviews
•
Pay rates, as published in job advertisements offered by competing employers for the same or directly comparable posts (this can only be used as a single source if no other published data is available).
3.8.2
At the point of application, any data sources provided as evidence will be the most relevant and recent and will normally have been published within the previous 2 years.
4
CALCULATION OF AN ARP – ACTIONS FOR HR
4.1
Having determined suitability and gathered supporting evidence, HR will proceed to ascertain the ARP with the agreement of the Vice Master (Research & Teaching staff) or College Secretary (Professional & Support staff).
4.2
The ARP will normally be based on the median salary derived from the data sources as described in 3.8.1; however the most appropriate payment will be made dependant upon circumstances.
4.3
The ARP should not exceed 20% of the maximum automatic point on the grade in respect of basic salary (exclusive of London Allowance and any other allowances).
4.4
The ARP will be pro-rated according to the jobholder(s) FTE.
4.5
Advice will be sought from Finance Department to ensure that funds are available.
5
PAYMENT OF AN ARP – ACTIONS FOR HR
5.1
The outcome of the application will be made known to the manager and to any jobholders in post (where applicable).
5.2
Successful applications will have a defined start and end date. The ARP will be paid as an allowance on a monthly basis, itemised separately from basic pay on the payslip where possible.
5.3
ARPs have no link to cost of living increases. The ARP value is determined at the outset, as defined on the ARP application form.
5.4
The ARP may or may not be pensionable, dependant upon whether or not the jobholder(s) is a member of either USS or SAUL. At the point of application, the additional cost of employers’ pension contributions and other on-costs needs to be considered.
5.5
At the point of payment, the ARP will be subject to normal deductions i.e. income tax and National Insurance contributions.
6
REVIEWING AN ARP – ACTIONS FOR HR IN CONJUNCTION WITH THE MANAGER AND JOBHOLDER(S)
6.1
The ARP will be reviewed on at least an annual basis.
6.2
An ARP will apply to a post(s) on a temporary basis. In circumstances where changes are experienced in the labour market, consideration will be given as to how the ARP will be adjusted or withdrawn.
6.3
The manager will review the ARP in consultation with HR to reach agreement for it to either continue, or be withdrawn, uplifted or decreased in the context of market data. A further test of the market followed by review of the market data sources (examples in 3.8.1) will be used to determine ongoing suitability for ARP. The outcome will be discussed with the jobholder(s) and confirmed in writing.
6.4
Should the review conclude that the ARP be reduced or withdrawn, the jobholder(s) will receive 3 months’ notice of the variation.
6.5
The ARP will be reviewed in the context of equal opportunities, see 3.5.
7
ENDING AN ARP – INFORMATION FOR HR, THE MANAGER AND JOBHOLDER
7.1
Should the jobholder move to an alternative post, which is not eligible for an ARP, the ARP will cease from the date the jobholder commences the new role.
7.2
Should a jobholder leave employment of the College, the ARP will cease with immediate effect.
8
SUMMARY OF ARP: IDENTIFICATION AND APPLICATION PROCESS
8.1
The manager of the post(s) in association with HR tests the market via advertisement at the evaluated pay, terms and conditions and identifies an attraction and recruitment difficulty and/or demonstrates with supporting evidence a retention difficulty.
8.2
The manager works through the considerations (3.6 and/or 3.7) to see whether the attraction/retention difficulty can be resolved without recourse to ARP.
8.3
If salary is identified as being the reason for difficulties experienced, the manager will research an appropriate ARP with HR.
8.4
Consideration is given to jobholders already performing similar work to ascertain appropriateness of ARP.
8.5
Consideration is given to the costing of the ARP, seeking advice from Finance for confirmation that funds are available.
8.6
The ARP is considered in the context of equal opportunities (see 3.5).
8.7
The ARP application form (Appendix I) is completed and signed-off attaching evidence of difficulty to attract/retain and supporting evidence for ARP amount requested.
8.8
The application is then passed to the College Secretary (Professional & Support staff applications) or Vice Master (Research & Teaching staff applications) who will assess the case for the ARP and make a decision whether to approve.
8.9
The application form will then be returned to HR for action.
9
RESPONSIBILITY
All those persons referred to within the scope of this policy are required to be familiar with the terms of this policy. Individual managers are required to keep within the spirit and intent of the policy. Any queries on the application or interpretation of this policy must be discussed with the Human Resources team prior to any action being taken.
The Director of Human Resources has the responsibility for ensuring the maintenance, regular review and updating of this policy. Revisions, amendments or alterations to the policy will be agreed in consultation, where applicable with the recognised Trade Unions and the appropriate College Committee.
Policy Review Policy Applicable to Date Last Reviewed Policy Management Approved by Governors Approved by FNG
Attraction and Retention Payments All Employees August 2009 Human Resources March 2007 October 2009
APPENDIX I – ATTRACTION AND RETENTION PAYMENT APPLICATION FORM • Please complete this form in conjunction with the Attraction and Retention Payments policy. Job Title of post(s) ARP requested for: Post Number(s): Staff Name(s) of Recipient(s) (where applicable):
School or Department: Name of Manager (applicant):
Position:
Outline the market tests and the difficulties experienced in recruiting/retaining at evaluated pay, terms and conditions:
Outline the attraction and recruitment or retention measures taken and why an ARP is required: (refer to policy attraction and retention considerations)
Outline what consideration has been given to staff performing similar jobs:
Signature of manager:
Date:
HR to consider the case and ascertain the appropriate ARP:
Type of ARP: (Attraction and recruitment, or retention)* Evidence of recruitment/retention difficulty confirmed?:
Data sources used for evidence
Period of award (start and end dates proposed): Median market data determined salary for post(s): £ Total ARP award: £ Name:
Cost centre for ARP Signed:
Date:
Director of HR to consider case Comments
Name:
Signed:
Date:
Director of HR passes form to College Secretary (Professional & Support staff) or Vice Master (Research & Teaching staff) College Secretary or Vice Master to consider case and justification Comments
Name:
Signed:
Date:
Decision: Approved/ declined*
If approved, review period agreed: (must be reviewed after 1 year)
Form is passed back whether approved or declined to the member of HR team named above. *Delete as appropriate
