Agenda item

The Committee received a report, including an independent review of pay by Korn Ferry Hay Group, about the requirement under the Localism Act 2011 for local authorities to agree and publish a pay policy statement annually before the start of the financial year to which the statement relates. Any amendments made must also be approved by full Council.

Members were informed that –

1. A new management structure was being proposed to meet the requirement agreed by full Council in February 2017 to reduce costs by £600k in 2017/18 and by a further £1m in 2018/19;
2. An independent review of pay by Korn Ferry Hay Group had been commissioned in order to ensure that jobs at the top 3 levels of the organisation were sufficiently competitive to recruit and retain effective leaders and managers;
3. The evidence/advice from Korn Ferry Hay Group suggested that amendments to the Council’s Pay Policy Statement were needed and some policy questions needed to be determined.

The Committee was asked to determine a number of pay policy questions identified in the Korn Ferry Hay Group review as follows:

1.      The level at which pay was set in relation to the market;

2.      Whether to use pay ranges or spot salaries;

3.      If pay ranges were used, how individuals would be placed and progressed within the range;

4.      In relation to job size, whether to use narrow or broader ranges;

5.      Whether to introduce a level of variable pay as part of the overall salary package and if so at what level eg, 5%. 10% or 20%.

Some Members felt that it was not appropriate to decide on this without a formal recommendation or further options being explored.

In particular, a member made the following comments:

1. The new management structure and associated job descriptions and pay recommendations had been proposed by the former Chief Executive so it appeared unclear how the structure would operate with the Chief Executive post now removed from the structure. The Interim Service Director HR commented that there had been further developments since the Chief Executive’s departure so that, now, the proposals were different from that originally proposed;

2. At a time of budget and staff reductions it was inappropriate to be considering such high pay increases for senior staff;

3. Performance Management of senior staff was not functioning effectively and until this was adequately addressed increasing pay incentives for senior staff was not appropriate;

4. Allowing the HR Committee to consider whether the pay ascribed to a post was inadequate and potentially increasing it by 20%, as originally recommended by the external consultants, could lead to a delay in filling important posts.

Councillor Jo Sergeant left the meeting at this point of the proceedings (11.44 am)

After further discussion and giving full and lengthy consideration to the options available the Chair moved an amendment to the Pay Policy, which was duly seconded by Councillor Wellington, to allow the Selection Committee to appoint up to 10% above than the proposed minimum of each pay range but to require the approval of the Human Resources Committee to appoint at more than 10% above the proposed minima.

On being put to the vote there were four in favour and two against. The motion was carried.

Resolved:

1. That having considered the Pay Policy options identified in the Korn Ferry Group review, the Pay Policy Statement be amended as above;

2. That the amended Pay Policy Statement be recommended for approval to Full Council.

The Committee then adjourned for a short break (12.02 pm)