HRPOL47

HRPOL47

Pay Progression (Annex 23) Policy and Procedure

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Version:

V1

Ratified by:

Finance and Risk Committee

Date ratified:

01/07/2019

Job Title of author:

HR Business Partners

Reviewed by Committee or Expert Group

Finance and Risk Committee

Equality Impact Assessed by:

Head of HR

Related procedural documents

Capability Policy (HRPOL29) Disciplinary Policy (HRPOL14) Statutory & Mandatory Training Policy (LDPOL3) Performance & PDR Policy (LDPOL4) Incremental Pay Progression (HRPOL40) Single Equality Scheme (HRPOL25)

Review date:

July 2022

It is the responsibility of users to ensure that you are using the most up to date document template – i.e. obtained via the intranet.

In developing/reviewing this policy Provide Community has had regard to the principles of the NHS Constitution.

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Version Control Sheet Version V1

Date 4.7.19

Author Status Comment HR Business Approved by Partner SPF 4.6.19

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Contents 1.

Policy Statement ............................................................................................. 5

2.

Introduction .................................................................................................... 5

3.

Scope ............................................................................................................. 5

4.

Principles ........................................................................................................ 5

5.

Key Responsibilities........................................................................................ 6

6.

Pay Progression Criteria ................................................................................. 7

7.

Pay Submission Process ................................................................................ 8

8.

Employees in Agenda for Change in Band 8c, 8d and 9 posts ....................... 9

9.

The Appeal Process ....................................................................................... 9

10.

Monitoring ................................................................................................. 10

EQUALITY IMPACT ASSESSMENT TEMPLATE: Stage 1: ‘Screening’ .............. 11 EQUALITY IMPACT ASSESSMENT TEMPLATE: Stage 2: ................................. 13

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1. Policy Statement Provide is committed to ensuring that assessment of an employee’s performance for the purpose of pay progression is objective, consistent and non-discriminatory.

2. Introduction This policy and procedure has been locally agreed with the Provide Staff Partnership Forum to support the national amendments to the Agenda for Change Terms and Conditions of Service Handbook in respect of Pay Progression (Annex 23).

Annex 23 sets out how pay progression is applied to all new starters on and after 1st April 2019 and all staff who are promoted to a higher band on or after 1st April 2019.

Pay progression under Annex 23 is based on pay steps rather than yearly increases in pay. Information on pay steps under Annex 23 can be found on www.nhsemployers.nhs.uk For all other staff who were in post before 1st April 2019, current organisational incremental pay progression procedures (see HRPOL40) will continue to apply until 31st March 2021 after which time they too will be subject to the provisions of this procedure.

The terms and conditions state that progression through pay points in all Agenda for Change pay bands is to be conditional on individuals demonstrating that they meet locally agreed performance requirements.

The procedure below sets out how these aims are to be achieved.

3. Scope This procedure applies to all new starters on and after 1st April 2019 and employees that are promoted to a higher band on and after 1st April 2019. This applies to those employed on Agenda for Change terms and conditions of employment and/or receiving a salary on the Agenda for Change payscale.

This policy will not apply to those employed on medical contracts, Workforce Solutions (Bank) contracts, zero hour contracts or within the Support at Home directorate.

4. Principles To ensure the procedure is simple to operate, performance will be assessed using tools used nationally within the Electronic Staff Record Manager self-service system.

Performance Review must be a continuous process that happens all year round to help ensure that employees are clear about their work objectives and the performance standards expected. Provides’ Performance & Developmental Review (PDR) Policy (LDPOL4) sets out the procedures for performance evaluation (reviewing achievements to determine a performance rating) and performance planning (objective Page 5 of 14

setting, development planning, coaching and feedback) throughout the year. It is imperative this policy is followed.

There should be no surprises. Issues relating to an individual’s work or behaviour that arise should be addressed at the time they occur. An employee should be aware that issues with their work or behaviour may result in their performance being assessed as unsatisfactory for the purposes of pay progression. Issues relating to performance will be addressed through Provides’ Capability Policy (HRPOL 29) and issues with behaviour/conduct through Provides’ Disciplinary Policy (HRPOL14).

Where factors beyond an employee’s control, such as operational issues or cancellation of training, have prevented compliance and achievement of standards as set out in Section 6, these should not prevent the employee progressing to the next pay step. Managers need to take account of all such factors and employees must bring these issues to the attention of their manager at the earliest opportunity and not at the pay step review meeting so that these can be addressed and remedied.

5. Key Responsibilities Executive Directors Executive Directors are responsible for: •

•

actively supporting this policy by ensuring that arrangements are in place for timely and well-managed reviews to be conducted and that all staff eligible for pay progression within their Business Units/Services receive an annual review. acting as reviewers for appeals where the original decision has been made by an Assistant Director or Head of Service, as required.

Assistant Directors / Heads of Service / Deputy Directors / Managers Assistant Directors, Heads of Service and line managers are responsible for: • • •

ensuring that all staff they manage have an annual Performance and Development Review and that this is undertaken in a timely manner. ensuring all staff they manage have regular supervision/1:1 meetings and a record is kept of discussions. This record should be signed by both the employee and the manager. reviewing the individual’s performance and progress against specific, measurable, achievable, realistic and time-bound (SMART) objectives and providing feedback at regular intervals throughout the year through one to one meetings and formally reviewing objectives after 6 months using the PDR documentation. o o

ensuring staff are equipped with the necessary knowledge and skills to fulfil their role and meet agreed objectives. reviewing evidence from these processes together with any evidence from HR Disciplinary or Capability processes and determining whether the employees’ performance is satisfactory, in line with this procedure. This should be done at least six weeks prior to the employee’s pay step date.

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o o o o

Completing the pay progression review meeting and documenting this on the ESR Manager self service. ensuring employees are released and supported to undertake mandatory training as determined by their role.

Where pay progression is not supported the manager is responsible for informing the employee of this decision at a face to face meeting.

Sending a letter to the employee confirming the outcome.

Employees Employees are responsible for: o o

o

participating in the PDR process in a timely manner, both as Reviewees during their own individual review, and as reviewers for those with line management responsibility. preparing for the PDR meeting and for the collection of any evidence required, including being up to date and fully compliant with mandatory training and CPD and to demonstrate how they have met agreed objectives or any agreed competencies for their role.

Attending pay progression review meetings as required by their manager.

Human Resources The Human Resources Department is responsible for, o administering the process o reviewing reports to ensure that pay progression reviews are being conducted o providing advice o supporting any appeal process o Providing advice on how to manage pay progression eg for those who are acting up into more senior roles, on secondment or in cases where there has been an employment break.

6. Pay Progression Criteria ASSESSING SATISFACTORY PERFORMANCE Satisfactory performance is to be assessed by considering evidence relating to an employees’ performance in the 12 months preceding their pay step date.

If there is any doubt regarding the evidence or assessment managers should seek advice from HR. The criteria are:

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Standards

Measure of satisfactory performance

Annual PDR has been completed

An overall average score rating of 3 or above would indicate satisfactory performance.

An overall average score rating of 3 or above would indicate satisfactory performance.

The employee has not been subject to a formal Capability Process in the preceding 12 months. The informal stage does not count.

The employee has not received any formal Disciplinary sanctions in the 12 months prior to the pay progression date. Verbal warnings are not considered formal sanctions.

100% compliant in the 12 months prior to the pay progression date 100% completion of employees’ PDRs

Annual PDR CLIMB Score Capability Process

Framework

Disciplinary Sanctions

Mandatory Training MANAGERS ONLY: completion of team’s PDRs

100%

The standard regarding Capability is that an employee has not been placed in the formal stage of the process in the preceding 12 months. It does not include informal stages and does not relate to ill health capability.

The standard regarding disciplinary is that an employee has not being issued a formal sanction that remains live or in the last 12 months. It does not include verbal warnings, investigations and suspensions.

If a formal disciplinary sanction is in place at the time of the pay step date and is subsequently repealed, as a result of a successful appeal, the pay step will be backdated to the pay step date if all other standards have been met.

If a staff member is absent from work for reasons such as sickness, compassionate leave, jury service when a pay step is due, the principle of equal and fair treatment should be followed so that no detriment is suffered.

In the case of long-term planned absence such as maternity, adoption and shared parental leave, the pay step review may be conducted early if this is reasonable and practical, allowing a pay step to be applied on their pay step date in their absence. If the pay step review cannot be conducted, the pay step point should be automatically applied in the individual’s absence.

7. Pay Submission Process Line managers will receive ESR notifications before an employee’s next pay step date and will be required to organise a meeting to review with the employee whether the requirements as set out above have been met. This meeting will use the most recent PDR outcome. There is no entitlement to be accompanied to this meeting by either a work colleague or a union representative.

Managers will conduct the meeting with the employee and complete the relevant template via the Manager self-service on ESR to submit the return.

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Managers must ensure that pay review meeting and submission on ESR is made in a timely way to ensure that the pay step point can be implemented on time. Managers should be aware of the pay cut off date of the 6th of the month.

Managers will be required to select one of three options within ESR: • Yes - pay progression approved • Yes following deferral– pay progression is deferred pending an action • No – pay progression declined until the next pay review date Where an employee meets all the pay progression standards the manager will complete the meeting summary template on ESR and select ‘Yes’.

Where an employee does not meet all the pay progression standards but there is an identifiable action that will remedy this, the pay progression can be deferred. The manager will complete the meeting summary template on ESR and select ‘Yes following deferral’. For example, if an employee is not compliant with one aspect of their mandatory training due to being unable to attend the training as a result of service demands, the pay progression can be deferred until the employee has undertaken the training within an agreed time period.

The line manager should discuss and agree a plan with the employee for any remedial action needed to ensure that the required standards for pay progression are met, including a timescale, and how support will be given. The employee must take all reasonable steps to meet the requirements and the line manager must provide the necessary support.

Where an employee does not meet the pay progression standards the manager will complete the meeting summary on ESR and select ‘No’.

8. Employees in Agenda for Change in Band 8c, 8d and 9 posts The principles and standards for pay progression and then re-earnable pay for staff in bands 8c, 8d and9 are the same as for all other staff.

When an employee has passed through their pay step point to reach the top of their pay after 1 month they can re-earn an element of their pay if the pay progression criteria have been met.

In the year after an employee has reached the top of band 8c, 8d or 9, 5% or 10% of basic salary will become re-earnable. Where the pay progression criteria are met the salary is retained. If the criteria are not met salary is reduced by 5% or 10% of basic salary from the pay step date. The employee will be able to restore their salary to the top of the band at the end of the following year by meeting the criteria.

9. The Appeal Process The appeal process consists of one stage with the outcome being final.

The appeal will be conducted as a documentary evidence review and will not take the form of a meeting/Hearing. The reviewer panel will consider the written statement of appeal from the employee together with the evidence for the decision submitted by the manager and determine whether or not the appeal should be upheld.

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An appeal should be lodged by the employee in writing by letter or email within 10 days of receiving confirmation of the pay progression assessment from their manager.

Employees’ who wish to appeal the outcome should write to the Assistant Director /Head of Service responsible for their service (or the Executive Director if the original assessment decision has been made by an Assistant Director /Head of Service). The appeal submission should detail all grounds/rationale for the appeal.

If a decision has been made to withhold pay progression, this will continue to be held pending the outcome of the appeal.

Appeals will be rejected if they are out of time, or if they do not include the full grounds/rationale for appeal.

The appeal will be considered and an outcome given within 21 days of receipt of the appeal request. The appeal will be considered by a senior manager to the manager who made the original assessment decision and a senior member of the HR team.

The manager will usually be an Assistant Director (or Executive Director).

The decision of the review panel should be confirmed in writing by the reviewing manager no later than 5 working days after the review, outlining the decision reached.

The employee should be informed that there is no further right of appeal. A copy of the outcome letter will be retained on the employees’ personal file.

There is no recourse to the grievance procedure and therefore where a grievance is received that is about this process, the individual should be redirected to this appeals process and the grievance will be rejected.

Should an appeal be successful, the pay progression will be reinstated and back dated to the pay progression review date.

10. Monitoring This policy will be reviewed after the first year of operation and then at least every 3 years in line with the Policy for the Management of Procedural Documents and more frequently in line with any legislative changes.

Review will be undertaken by the Head of Human Resources and monitoring will be conducted in respect of decisions taken and number of appeals submitted by equality strands. The need for improvement or clarification may be identified as lessons learnt, through using the process and where appropriate amendments will be made.

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EQUALITY IMPACT ASSESSMENT TEMPLATE: Stage 1: ‘Screening’ Name of project/policy/strategy (hereafter referred to as “initiative”):

Pay Progression Policy and Procedure

Provide a brief summary (bullet points) of the aims of the initiative and main activities: Outlines the policy and procedure for assessing whether an employees’ performance is satisfactory for the purposes of incremental pay progression.

The policy details the criteria which should be used as evidence for an assessment of performance and provides guidance on the level of performance that should be considered as satisfactory.

Project/Policy Manager:

Head of HR

Date: 04/07/19

This stage establishes whether a proposed initiative will have an impact from an equality perspective on any particular group of people or community – i.e. on the grounds of race (incl. religion/faith), gender (incl. sexual orientation), age, disability, or whether it is “equality neutral” (i.e. have no effect either positive or negative). In the case of gender, consider whether men and women are affected differently.

Q1. Who will benefit from this initiative? Is there likely to be a positive impact on specific groups/communities (whether or not they are the intended beneficiaries), and if so, how? Or is it clear at this stage that it will be equality “neutral”? i.e. will have no particular effect on any group.

Neutral – The policy requires that assessment of performance is made using a range of criteria. The evidence is outputs from established processes that have been subject to Equality Impact Assessment. Where there is potential for particular groups to be disadvantaged the policy sets out alternative measures that can be used. For example where an employee is on maternity leave the policy requires the manager to conduct the assessment prior to the employee commencing maternity leave and use it the following year if the employee remains off work at the point their increase is due. For those who have been off on long term sickness absence the manger is advised to use evidence from a previous year.

Q2. Is there likely to be an adverse impact on one or more minority/under-represented or community groups as a result of this initiative? If so, who may be affected and why?

Or is it clear at this stage that it will be equality “neutral”?

Neutral

Q3. Is the impact of the initiative – whether positive or negative - significant enough to warrant a more detailed assessment (Stage 2 – see guidance)? If not, will there be monitoring and review to assess the impact over a period time? Briefly (bullet points) Page 11 of 14

give reasons for your answer and any steps you are taking to address particular issues, including any consultation with staff or external groups/agencies.

No Stage 2 assessment is required. The policy sets out a consistent approach to be taken with all staff.

Guidelines: Things to consider Equality impact assessments at Provide take account of relevant equality legislation and include age, (i.e. young and old,); race and ethnicity, gender, disability, religion and faith, and sexual orientation.

The initiative may have a positive, negative or neutral impact, i.e. have no particular effect on the group/community.

Where a negative (i.e. adverse) impact is identified, it may be appropriate to make a more detailed EIA (see Stage 2), or, as important, take early action to redress this – e.g. by abandoning or modifying the initiative. NB: If the initiative contravenes equality legislation, it must be abandoned or modified.

Where an initiative has a positive impact on groups/community relations, the EIA should make this explicit, to enable the outcomes to be monitored over its lifespan.

Where there is a positive impact on particular groups does this mean there could be an adverse impact on others, and if so can this be justified? - e.g. are there other existing or planned initiatives which redress this?

It may not be possible to provide detailed answers to some of these questions at the start of the initiative. The EIA may identify a lack of relevant data, and that data-gathering is a specific action required to inform the initiative as it develops, and also to form part of a continuing evaluation and review process.

It is envisaged that it will be relatively rare for full impact assessments to be carried out at Provide. Usually, where there are particular problems identified in the screening stage, it is envisaged that the approach will be amended at this stage, and/or setting up a monitoring/evaluation system to review a policy’s impact over time.

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EQUALITY IMPACT ASSESSMENT TEMPLATE: Stage 2: (To be used where the ‘screening phase has identified a substantial problem/concern) This stage examines the initiative in more detail in order to obtain further information where required about its potential adverse or positive impact from an equality perspective. It will help inform whether any action needs to be taken and may form part of a continuing assessment framework as the initiative develops.

Q1. What data/information is there on the target beneficiary groups/communities? Are any of these groups under- or over-represented? Do they have access to the same resources? What are your sources of data and are there any gaps?

Q2. Is there a potential for this initiative to have a positive impact, such as tackling discrimination, promoting equality of opportunity and good community relations? If yes, how? Which are the main groups it will have an impact on?

Q3. Will the initiative have an adverse impact on any particular group or community/community relations? If yes, in what way? Will the impact be different for different groups – e.g. men and women?

Q4.

Has there been consultation/is consultation planned with stakeholders/ beneficiaries/ staff who will be affected by the initiative? Summarise (bullet points) any important issues arising from the consultation.

Q5. Given your answers to the previous questions, how will your plans be revised to reduce/eliminate negative impact or enhance positive impact? Are there specific factors which need to be taken into account?

Q6. How will the initiative continue to be monitored and evaluated, including its impact on particular groups/ improving community relations? Where appropriate, identify any additional data that will be required.

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Guidelines: Things to consider An initiative may have a positive impact on some sectors of the community but leave others excluded or feeling they are excluded. Consideration should be given to how this can be tackled or minimised.

It is important to ensure that relevant groups/communities are identified who should be consulted. This may require taking positive action to engage with those groups who are traditionally less likely to respond to consultations, and could form a specific part of the initiative.

The consultation process should form a meaningful part of the initiative as it develops, and help inform any future action.

If the EIA shows an adverse impact, is this because it contravenes any equality legislation? If so, the initiative must be modified or abandoned. There may be another way to meet the objective(s) of the initiative.

Further information: Useful Websites www.equalityhumanrights.com Website for new Equality agency www.employers-forum.co.uk – Employers forum on disability www.efa.org.uk – Employers forum on age © MDA 2007 EQUALITY IMPACT ASSESSMENT TEMPLATE: Stage One: ‘Screening’

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