City of Westminster
Item No.
REPORT FOR SUBMISSION TO CABINET MEMBER
Decision-maker
Date
Cabinet Member For
5/12/02
Finance and Support
Services
FOR GENERAL RELEASE
CMfFSS/29/
2002
Title of Report
Recruitment & Retention
– new staff benefits
Report of
Director of Policy &
Communications
Wards Involved
All
Policy Context
Achievement of Civic Renewal Programme
Financial Summary
The cost of the proposals can be met from either
existing budgets or from the contingency
allocation of £1.1m previously approved
1.
Summary
1.1
Following the approval of the ‘Recruitment and Retention Action Plan’
by the Cabinet Member for Finance and Support Services (25 July
2002), this report updates progress on the corporate recruitment and
retention project and seeks approval for the implementation of 5 new
staff benefits which can be financed from resources already made
available.
2.
Recommendation
2.1
That the proposals detailed in Section 4 be approved.
3.
Background Information
3.1
The “Recruitment & Retention Action Plan” report considered the
impact on current and future service delivery of the severe problems of
recruitment and retention within the City Council. It also set out further
action to continue to address those issues, and approved an allocation
of £1.1m to be made from the earmarked contingency provision for
2002/03.
3.2
Corporately, we are currently designing, developing and costing a
radical new remuneration infrastructure which will address recruitment
and retention problems in the long-term. It will integrate our
approaches to grading, pay, benefits and competencies. It will be
underpinned by fundamental changes to the way in which people are
managed and motivated.
We intend to report this new approach and its financial implications in
2003 with a target date to complete implementation in 2004.
3.3
However, in order to respond to current recruitment and retention
pressures, we have also been working on a range of new staff benefits
that can be implemented immediately. These have been chosen
because they respond to specific issues previously raised by staff, will
make an immediate and positive impact on morale and motivation and
do not compromise the longer-term infrastructure.
Details of each of the 5 new staff benefits are set out below.
4.
New staff benefits
4.1
Staffcard
As part of the re-negotiation of the Rescard contract, Metropolis (the
scheme operator) has agreed to provide a new Staffcard whereby all
staff are automatically issued with a card which allows them to access
a range of benefits both within Westminster and nation-wide. A list of
benefits is set out at Appendix 1. These benefits would be a significant
improvement compared to those offered by the existing staff card.
Metropolis has agreed to further develop the scheme in line with staff
requests. Management information relating to the scale and value of
take-up will also be provided for inclusion in recruitment campaigns.
Subject to Cabinet Member for Customer Services approval, the new
Rescard/Staffcard will be available from December 2002. The total cost
(including the Staffcard element which is approximately £28,000pa) will
be met from the Rescard budget.
4.2
Staff incentive scheme
This new scheme will introduce 8 departmental “Employee of the
Quarter” awards of £1,000 and a single corporate “Employee of the
Year” award of £10,000. Awards will focus on recognising where staff
have gone significantly beyond what is normally expected of them in
their job. This achievement will be related to the Civic Renewal
programme and Core Values which underpin all Council activities.
Quarterly awards will start in March 2003 (for the period December
2002 – February 2003) with the first annual award in December 2003.
The total cost of the scheme will be £42,000 per annum.
Further details of the scheme are set out at Appendix 2.
4.3
Sabbatical leave
This will enable staff to take a period of sabbatical leave. Staff with
more than 5 years Westminster City Council (WCC) service may take
up to 1 month unpaid leave with the option of “adding on” up to month’s
annual leave at the same time. Staff with more than 7 years
Westminster service may take up to 3 months leave, 1 of which will be
paid (though actual payment will be deferred until 6 months after they
return from the sabbatical). The new scheme will start in April 2003.
The estimated cost of the scheme during the first year is £10,933 per
annum, funded from existing departmental salary budgets.
Further details of the scheme and cost estimates are set out in
Appendix 3.
4.4
Canteen/break-out area
This will provide an enhanced catering and dining facility for staff and
visitors on the 1st floor at City Hall. Provision for dining will be increased
from 24 to approximately 100 covers. A break-out area with café
facilities will also be created on the 1st floor. The target date for
implementation is April 2003.
In recognition of the likely increase in turnover, the catering contractor
will meet expenditure in respect of refurbishing kitchen and servery
areas. Capital costs for the Council are expected to be in the region of
£300,000 and provision has now been made for this within the 2002/03
capital programme.
4.5
Childcare
Building on the Council’s existing contract with Buffer Bear for the
provision of nursery places, this will enable staff to access vacant
childcare places at any of the 18 Buffer Bear nurseries within London
and the south-east. Whilst fees will vary between age groups and
different nurseries, they will be competitive within their local markets
due to the tax-free status of the scheme. Since the Inland Revenue
confirmation of tax-free status is not likely to be received until January
2003, implementation will be deferred until it is received. There will be
no cost to the Council other than a small amount of officer time to
administer the scheme (funded from within existing HR Service
budgets).
Further details are set out at Appendix 4.
5.
Financial implications
5.1
The “Recruitment & Retention Action Plan” report to the Cabinet
Member for Finance (25 July 2002) approved £1.1m be set aside from
contingency for various departmental and corporate initiatives in
2002/03 as detailed in the table below.
Initiative
Original allocation of
expenditure from 2002/03
contingency
£
Departmental initiatives
Social Care Workers
Teachers
550,000
190,000
Note: expenditure rising to £400,000 in
2003/04 and £445,000 in 2004/05
Corporate initiatives
HR Consultancy (one year only)
Staff Card and other staff benefits
Balance
200,000
150,000
10,000
TOTAL
1,100,000
5.2
In addition, it was noted that the estimated capital cost of the coffee
lounge and networking space (£300,000) would be considered at the
next review of the capital programme. Provision has now been made in
the 2002/03 capital programme.
5.3
The table below incorporates the detail of the 5 new staff benefits set
out in this report and details the revised allocation of the contingency
provision in both 2002/03 and 2003/04.
Initiative
Departmental initiatives
Social Care Workers
Teachers
Revised allocation
of
expenditure from
2002/03
contingency
£
Allocation of
expenditure from
contingency
provision
2003/04
£
550,000
190,000
550,000
400,000
200,000
0
8,000
0
0
0
152,000
0
0
42,000
0
0
0
108,000
1,100,000
1,100,000
Note: expenditure rising to £400,000 in
2003/04 and £445,000 in 2004/05
Corporate initiatives
HR Consultancy
Staff Card
Staff Incentive Scheme
Sabbatical Leave
Canteen/break-out area
Childcare
Balance
TOTAL
6. Staffing implications and consultation
6.1
The new benefits will impact positively on the morale and motivation of
all staff.
6.2
Unions have been consulted on the new benefits and are pleased with
the approach being taken.
7. Performance Plan Implications
7.1
The recommendations will support the achievement of departmental
plans.
8.
Outstanding Issues
8.1
Approval of the new Rescard/Staffcard contract is subject to Cabinet
Member for Customer Services approval.
8.2
Confirmation of tax-free status for the childcare proposal is not
expected to be received until January 2003.
9.
Conclusion
9.1
The 5 new staff benefits have been devised as part of the Council’s
overall response to current recruitment and retention pressures. The
benefits can be readily implemented, without compromising the longerterm infrastructure. An increase in staff morale, motivation and
commitment to the organisation is expected to result.
IF YOU HAVE ANY QUERIES ABOUT THIS REPORT OR WISH TO
INSPECT ANY OF THE BACKGROUND PAPERS, PLEASE
CONTACT JULIAN SIVILL ON 020 7641 2433; EMAIL ADDRESS
jsivill@westminster.gov.uk; FAX NUMBER 020 7641 3053
BACKGROUND PAPERS
The documents used or referred to in compiling the report were: 
Recruitment and Retention Action Plan report to Cabinet Member
for Finance and Support Services (25 July 2002)
…………………………………………………………………………………………
J:\D_Cex Personnel\WP\HR Strategy and Action Plan\Content areas\Recruitment and Retention\Report to Cabinet
01b.doc
03/03/16
For completion by Cabinet Member
Declaration of Interest

I have no interest to declare in respect of this report
Signed ……………………………. Date ………………………………
NAME:

I have to declare an interest
State nature of interest ……..……………………………………………
………………………………………………………………………………..
Signed ……………………………. Date …………………………………
NAME:
(N.B: If you have an interest you should seek advice as to whether it is
appropriate to make a decision in relation to this matter.)
For the reasons set out above, I agree the recommendation(s) in the report
entitled ‘Recruitment & Retention – new staff benefits’ and reject any
alternative options which are referred to but not recommended.
Signed ………………………………………………
Cabinet Member for Finance and Support Services
Date …………………………………………………
If you have any additional comment which you would want actioned in
connection with your decision you should discuss this with the report author
and then set out your comment below before the report and this pro-forma is
returned to the Secretariat for processing.
Additional comment: …………………………………………………………………
………………………………………………………………………………………….
………………………………………………………………………………………….
NOTE: If you do not wish to approve the recommendations, or wish to make
an alternative decision, it is important that you consult the report author, the
Director of Legal and Administrative Services, the Chief Financial Officer and,
if there are staffing implications, the Head of Personnel (or their
representatives) so that (1) you can be made aware of any further relevant
considerations that you should take into account before making the decision
and (2) your reasons for the decision can be properly identified and recorded,
as required by law.
Note to Cabinet Member: Your decision will now be published and
copied to the Members of the relevant Overview & Scrutiny Committee.
If the decision falls within the criteria for call-in, it will not be
implemented until five working days have elapsed from publication to
allow the Overview and Scrutiny Committee to decide whether it wishes
to call the matter in.
APPENDIX 1
METROPOLIS RESCARD AND STAFFCARD BENEFITS:
Immediately on issue of the new Staff Cards and Residents Cards, the following benefits will
be available, above and beyond those currently afforded by the scheme. [NB: Discounts are
ALWAYS at a rate of 20%+]
Over 100 restaurants in central London including major brands such as:
 Slug and Lettuce
 Bar Med
 Deep Pan Pizza
 Pizza Piazza
 Henry's Café Bar
 Break for the Border
 Le Piaf
 Strada
 Hogshead
 Ed's Easy Diner
 Smollenskys etc.
Over 20 top London attractions including:
 London Zoo
 London Dungeon
 London Aquarium
 Kew Gardens
 Cutty Sark
 Tower Bridge Experience
 St Paul's Cathedral
 Cabinet War Rooms
Metropolis, on behalf of other corporate participants are currently negotiating to extend the
discounts to the other UK outlets of the restaurants listed above, plus the following [NB we will
have access to ALL benefits negotiated for any other Corporate clients]:











20% discount at national attractions and museums such as Woburn Safari Park, Leeds
Castle, Tales of Robin Hood, Harewood House, York Dungeon etc
Discounts at cinemas e.g. UCI / Warner Bros.
Discounts at leisure / fitness centres e.g. David Lloyd / Holmes Place
Discounts on Air Travel, tours and hotels
Discounts for special tours in and around the UK e.g. Original City Tours (open top bus
tours in heritage cities) / Walking Tours (for specific destinations such as London &
Edinburgh)
Discounts at specialist leisure activities e.g. Ten Pin Bowling / Golf
Discounts for subscription Magazines e.g. Homes & Gardens / Cosmopolitan
Discounts on branded products e.g. wine
Discounts for Car Washes e.g. BP / Shell
Discounts on motoring accessories e.g. Halfords
Discounts on car rental e.g. Avis / Hertz
APPENDIX 2
Staff Incentive Scheme
1. Scheme objectives and eligibility
The purpose of the Staff Incentive Scheme is to recognise and reward WCC employees who
have exceeded the expectations of their job. It recognises any work which demonstrates
achievement worthy of special recognition. The achievement should be related to one or more
of the Civic Renewal programme objectives or Core Values which underpin all the Council’s
activities.
For the purpose of the Scheme, we will group departments into 8 departmental groups with
approximately equal numbers in each. Each departmental group will award an “Employee of
the Quarter” with a £1,000 prize. The quarterly winners will be short-listed for an annual
“Corporate Employee of the Year Award” of £10,000 each December. Awards will be paid
through the payroll and will be liable for tax and NI deductions but not pension deductions.
The Scheme will be publicised throughout the Council through the use of posters, the e-mail
facility and the Councils’ intranet.
2. Quarterly awards
Nomination Process






First awards announced in March 2003
Both WCC staff and those working in partnership with WCC (eg contractors) are able to
nominate a Council employee
Nominations should be made when the main impact of achievement has been realised
Nomination forms supplied and downloaded from the corporate intranet (specific
guidance notes for the nomination process will also be available
Nominations will need to be verified by someone who can confirm that the achievement is
above and beyond the normal duties of the nominees’ job (this will usually be the relevant
manager)
The award periods will be:
 December – February for the March award announced 1 March
 March – May for the June award announced 1 June
 June – August for the September award announced 1 September
 September – November for the December award announced 1 December
Evaluation Process
Panel Composition
 Chief Officer(s) of each departmental group to annually nominate a Chairman for their
departmental panel. Up to Chief Officer(s) to decide exactly how their panel operates
although a recommended procedure is detailed below:
 Panel chairman to remain constant throughout the year
 Deputy chairman should be designated in the event of absence of chairman
 Panel chairman to recruit pool of volunteers to sit on panel (recruitment of volunteers
marketed as incentive for career development, good for CV and in helping raise
profile of excellence within Council)
 Pool of volunteers to rotate as needed but no less than 5 in attendance for each
quarterly meeting
 Volunteer pool to remain constant throughout the year
 Volunteer pool to change on annual basis
Assessment mechanism
 Evaluation of nominations to take place by panel members on an individual basis as soon
as they are in receipt of nomination form
 Panel to meet to discuss nominations between 26th and last working day of the final
month of the quarter and to determine quarterly winner
 Nominations to be assessed in terms of panel’s perception of excellence – panel should
look at both the contribution made towards achievement of Core Value and impact it has
had for Council (separate guidance for panel members to be issued)
 At November’s meeting, panel to:
- determine December quarterly award winner and
- shortlist one of the 4 quarterly award winners to go forward for consideration for the
annual Corporate Employee of the Year award
Administration and communication



Once winner of the quarterly award has been decided, panel chairman to notify
 Chief Officer(s) immediately
 Payroll by relevant payroll deadline
 HR Services (to arrange publicity)
Chief Officer to present winner with certificate of achievement at award winners’ work
location on 1st working day of the month (photos to be taken for publicity purposes)
Quarterly award winners to be publicised via intranet, plasma screen displayed in City
Hall foyer and posters in communal areas etc
3. Annual Awards







First annual award to be announced December 2003
1 nomination for annual award to be put forward by each departmental panel
Corporate panel to be chaired by a Councillor (selected by the Leader); 3 chairmen of
departmental panels (volunteers/selected by CEX), and 2 senior managers
(volunteers/selected by CEX)
Corporate panel to meet by 4th December to consider the 8 nominations and to determine
overall winner
Once winner of the annual award has been decided, panel chairman to notify Chief
Executive/Head of Personnel who will:
 Notify Payroll by relevant payroll deadline
 Arrange publicity
Lord Mayor to present winner with certificate of achievement at the annual Long Service
Awards ceremony (mid- December) – 7 short-listed finalists to also be invited to the
ceremony and be presented with certificates of recognition
Annual award winner to be publicised via Westminster Reporter, intranet, plasma screen
displayed in City Hall foyer and posters in communal areas etc
APPENDIX 3
SABBATICAL LEAVE
1. Scheme Objectives and Eligibility



The Sabbatical Leave Scheme rewards long service at Westminster City Council whilst,
at the same time, helps employees achieve a balance between their work and outside
interests.
The Scheme will be implemented with effect from April 2003.
Entitlements to the Scheme will be dependant on length of service, detailed as follows:
1) Staff with 5 or more years’ WCC service may be entitled to one month’s unpaid leave
and up to one month’s annual leave in addition. The leave must be taken in the
employee’s 6th or 7th year or it will be lost.
2) Staff with 7 or more year’s WCC service may be entitled to up to 3 months sabbatical
leave (the first month will be paid, but payment will be made 6 months after returning
to work). The leave must be taken in the employee’s 8th or 9th year otherwise it will be
lost.


The Council will recognise previous WCC service prior to 1st April 2003 on a ratio of 1
year to 5. Thus, every 5 years worked prior to 1st April 03 will only be counted as 1 year
for the purpose of the Scheme.
Requests for the Scheme will be dependent on managerial discretion and are subject to:
-


Satisfactory performance
No current disciplinary record
The needs of the service
Sabbatical Leave Request Forms are to be supplied on corporate intranet. Specific
guidance to be published.
NB: Core Personnel currently looking into issue of whether salary increases, leave
entitlements, sick pay, maternity leave and pay, pension contributions, and long service
entitlements will be suspended during periods of unpaid sabbatical leave.
2. Anticipated cost
Costs of administering the scheme during the first year (based on those who have accrued
sufficient service to be entitled to apply) are demonstrated in the table below:
Table 1: Sabbatical for 1 month (unpaid) after 5 years service at 31/3/03
Eligibility Criteria
Total number of
employees
eligible
Total saving on one
months’ unpaid
salary
Total cost of providing
temporary cover for
one month
Total cost of Scheme
for 2003/4
All employees
with more than 25
years service prior
to 31/3/03
66
£171,294
£171,294
NIL
Table 2: Sabbatical for 3 months (one of which is paid) after 7 years service at 31/3/03
Eligibility Criteria
Total number of
employees
eligible
Total saving on two
month’s unpaid
salary
Total cost of
temporary cover for 3
months
Total cost of Scheme
for 2003/4
All employees with
more than 35
years service prior
to 31/3/03
3
£21,864
£32,797
£10,933
APPENDIX 4
CHILDCARE
Summary of Affordable Childcare Scheme for Westminster staff using
Buffer Bear Nurseries
How it works:
Westminster has an agreement with Buffer Bear nurseries to take part in a
“Employer Partners Scheme”. WCC employees can receive a nursery place
for their children as part of their gross salary, in Buffer Bear nurseries in
Westminster (in the first instance, with later expansion to whole BB network).
Benefits for employees:




Savings on cost of nursery fees as provision of nursery place is exempt
from taxation
Nursery fees for Employer Partner scheme at favourable rates compared
to market
Employer partner scheme has priority places
As registered childcare provider employees can receive help with costs
through Working Families Tax Credit and Nursery Education grant
Benefits for WCC:



As WCC already provides premises for Buffer Bear in lieu of the usual
capital contributions required for the Employer Partner Scheme there are
no additional costs for the council to provide this facility for employees
Nursery provision quality is monitored under the conditions of the existing
WCC contract with Buffer Bear to promote high standards
Small savings on employers NI contributions for employees’ salaries
Current status of plans (December 2002) :
Agreement has been reached between Buffer Bear and WCC on the
arrangements, but the Inland Revenue are yet to grant approval. We believe
we have a strong case and a letter is being drafted to the IR. Timescales for
the IR approval are unknown, but we hope to have this by January 2003 to
get the scheme up and running.
Issues to resolve:


Inland Revenue Approval to gain tax exemption needs to be gained
Buffer Bear nursery capacity dependent on successful staffing to increase
number of places available – WCC can provide some assistance with this
once IR clearance obtained