Pay and Reward
Systems
Bridget A. Clark
HR Service Centre Manager
27 March 2013
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Introduction to Worcestershire
County Council
• Employs 18,000 people
Chief Executive
Children’s
Services
Directorate
Adult and
Community
Services
Directorate
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Business,
Economy and
Community
Directorate
Resources
Directorate
Human Resources
• HR Service Centre employs 85 staff
• Delivering the following services:
• Payroll services
• Administration of the Pension Fund
• Administration of disclosure and barring service
(safeguarding of children and vulnerable adults)
• Processing of employment contracts (new starters,
extra hours, and cessations)
• Pay, Grading and Rewards
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Pay Systems
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Grading Process
• Assessment process of the position (post/job)
• Nationally prescribed grades for example
Teachers and Social Workers.
• Locally determined
• Needs to be fair
• Non discriminatory
• Consistently applied to all positions
• A number of schemes available, known as
‘points rating’ schemes
•
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Our Grading Scheme
• Assesses the post against 11, set, factors:
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Supervision and management of staff
Creativity and Innovation
Contacts and relationships
Decisions - Discretion
Decisions – Consequences
Resources
Work Demand
Physical Demand
Working Conditions
Work Risk
Knowledge and Skills
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Factors to Levels
• Each factor has a number of levels
• Reflection of the relative importance of the role
• Level 1 being the lowest and Level 7 the highest
• Analyst assesses the level for each factor from the
description of the job and skills & abilities required
• Measuring job role not employee’s performance
• Queries and clarification to manager
• Each level has a pre-determined ‘weighted’ score
– reflection of relative importance of position, as
shown:
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Levels are recorded & scores
allocated & totalled
Total
K&S Score
SMP
CRE
C&R
DIS
CON
RES
WDM
PDM
WCD
WCX
LEVEL:
2.1
4
4
2
2
2
3
1
1
2
5
SCORE
28
64
74
36
24
20
24
6
6
16
176
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474
Points to Pay
Total Sore
Up to 289
290-339
340-379
380-419
420-459
460-496
497-534
535-546
547-587
588-631
632-675
676-709
710-743
744-776
777+
Pay Grade
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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Job Types/Rank Order
Cleaner
Typist
Administrator
Finance Assistant
Admin. Supervisor
Archaeologist
Trainee Social Worker
Business Analyst
Accountant
Senior Social Worker
Team Manager
Safeguarding Manager
Highways Maintenance Manager
Chief Auditor
Service Manager
Salary Scale and Incremental
Progression
Scale 1
Scale 15
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Spinal Column
Point
1
2
3
4
5
6
7
8
£ Salary
↓
↓
58
59
60
61
Scale 2
Other Models: Performance Related Pay
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Other Models: Cafeteria Approach
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How is Pay Determined
• Central Government - National Minimum Wage
• Updated annually
• Applies to all employers (private AND public sector)
• Central Government – Professional Groups
Teachers
Firefighters
Police
Nurses
• Local Government – National Pay Bargaining
• Local Government Employers & Trade Unions
• Reviewed annually (Pay Award)
• No pay award to Local Government employees for
the last 3 years
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Discrimination
• Legislation: Equality Act
• Equal Pay
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Reward Strategies
Break?
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Reward Strategies
• Spending Public Purse: limits reward opportunities
• We offer a range of reward benefits:
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Local Government Pension Scheme
• All employees (over 16 and under 75 years)
• Separate from Central Government State Pension
– payable at 65. Currently £171.45 single person
• Administered locally for participating employers
through 99 regional pension funds
• Managed by the Council (not Central Government)
• £ - invested in stock markets
• Pension benefits subject to CPI/index linked
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LGPS: Benefits and Costs
• Benefits
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Final salary scheme – keeps pace with pay rises
Tax relief on contributions
Option to pay additional contributions
Early release of benefits if you become ill/redundant
Salary x 3 death in service payment
Flexible retirement : 55 +
• Costs
• Employee: 5.5% - 7.5% (based on salary)
• Employer: approx 19% (evaluated every 3 years)
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Pension Calculations
• Based on 1/60th of final pay with option to convert
(commute) pension into tax free cash
• Member retires at age 65, with 20 years service &
final salary of £15,000
• Pension calculation: 20 x 1/60 x 15,000 = £5000
• If they decide to convert £500 for a one off cash
payment, annual pension reduces to £4,500 pa
• Tax free (one off) payment calculation: £500 x 12
= £6,000
• Occupational Pension additional to State Pension
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Thank You for Listening
I am happy to receive questions
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