Agenda item

Report of Chief Executive Officer (attached)

The Chief Executive introduced the report including the appendix. She reminded the Committee that at its last meeting it had been agreed on the advice of Korn Ferry consultants and officers to implement a new Level 12 to the pay structure in order to address an issue which had arisen over time affecting some middle management grades resulting in the difference between those grades being difficult to differentiate. The work on that matter had also identified an issue of non-conformity with the council’s Pay Policy as market median rate of pay was not being met at all grades as required by the Pay Policy. Further work had therefore been undertaken across the whole range of pay grades in the council’s pay structure to check whether each pay grade was within a reasonable tolerance level of the market median. The appendix to the report indicated those grades which met the requirement and those that did not (allowing for a tolerance of 5% to recognise market fluctuations). It was noted that those where non-conformity was present were also the grades in which the council had been experiencing recruitment difficulties such as engineers, planners and experienced social workers.

Options, as set out in the report, for addressing the issue were explained and it was noted that adopting the recommendations would go some way to assisting with the recruitment issues but other initiatives to fully address recruitment concerns would also need to be continued. Members provided feedback on current initiatives and possible further ideas. It was noted that implementation of the draft market supplement policy, was expected shortly and contained tools which should make contributions to recruiting to the hard to fill roles.

The financial impacts set out in the report were noted along with the fact that some savings in the overall cost might be achieved by reduction in the number of agency workers which might be required if improvements on recruitment to the permanent workforce could be achieved.

Implementation would be from 1st April 2023 after appropriate consultation and communications with staff. Recognised unions had indicated support for the matters recommended in the report.

Resolved:

1.       That the Employment Committee agree the proposal to re-align the current pay structure to address the issues identified by the recent pay benchmarking exercise and to make the proposed changes with effect from 1st April 2023.

2.       To rename the grades through the pay structure, starting with Level 1 and working upwards. This brings us in line with the newly agreed Level 12 pay grade. This change has no impact on salaries.

3.       To confirm the regular, three yearly benchmarking exercise be undertaken in line with the Pay Policy. Salaries will automatically be reviewed and adjusted, in line with the agreed Pay Policy and with the approval of the CEO and Section 151 Officer where they are found to fall below the reasonable tolerance level.

4.       To authorise the CEO to reduce the number of increments in the grade Level 12 in future years to ensure a consistent approach to increments across the pay structure.