1. Agenda Introduction – Nigel Waugh, HR Director HR Staff will then lead on the following items HR Restructure Update – Nigel Waugh SiP Review – Jon Everard, Director HR Systems Transformation Project & PECAPs HR Systems Transformation Project Update – Jon Everard Well-being - Karen Smith, Well-being Consultant, OHW Pensions Reforms 2016 – Steven Cunningham-Sherret, Head of Pensions DBS – Process & Responsibilities – Jon Everard Staff Survey Update – Geoff Lang, Director HR Strategy & Planning HR User Group - Wednesday 2 March 2016

2. Presentation to HR User Group Nigel Waugh Executive Director, HR 2 March 2016 HR Restructure Update

3. Background Significant staff growth - insignificant growth in HR resources Low level of investment in HR Information Systems (HRIS) and a reluctance by customers to use existing HRIS Pressure on the current structures that UCL expects to deliver excellent HR services Concerns expressed by HR staff in Staff Survey

4. Constraints Constraints on staffing costs across UCL place a limitation on growing HR staff resources Constraints on IT costs: we are unlikely to see significant improvements in our HRIS for at least two years

5. Opportunities Financial pressures are not yet acute Customers remain broadly happy with the services we provide New UCL strategy, UCL2034, and a new Professional Services Strategy New work location and ways of working Talented, committed and well-regarded group of HR professionals

6. Challenge We needed to look at the manner in which we provide HR services across UCL to improve the availability and accessibility of HR advice and services and workload in such an environment A unique opportunity to look at the structures through which we deliver HR services to UCL and to reform them, to improve the timeliness, quality and effectiveness of our services and through doing so improve customer satisfaction as well as our own satisfaction with the services we provide

7. Former Structure Had evolved over time in response to –Developments in management theory (e.g. the adoption of the business partner model) –Periodic budget contractions and (rare) expansion –IT systems development –Significant growth in Departmental staff undertaking HR duties No clear unified operating model

8. New operating model HR services re-organised in line with the services we provide according to a logical and coherent framework Recognises that our customer-driven, flexible and responsive HR services are delivered at different levels with the organisation

9. Our Services Corporate HR Services Relate to governance, strategic policy setting, strategy and representation of the university as a whole, rather than its constituent parts. The areas where the University must speak with one voice, to provide corporate governance, broad strategy and policy development, institutional quality control, identity through branding, external representation and compliance and accountability requirements.

10. Our Services Corporate HR Services Relate to governance, strategic policy setting, strategy and representation of the university as a whole, rather than its constituent parts. The areas where the University must speak with one voice, to provide corporate governance, broad strategy and policy development, institutional quality control, identity through branding, external representation and compliance and accountability requirements. Advisory HR Services Directly support a Faculty, Department or Professional Services Division. Comprehensive ‘one stop shop’ would provide the full range of HR services to their local customers. Local HR services would be provided, on the whole, centrally for each School or Professional Services Division. Led by Principal HR Business Partner who is responsible for the delivery of HR Advisory Services across the School or Division.

11. Our Services Corporate HR Services Relate to governance, strategic policy setting, strategy and representation of the university as a whole, rather than its constituent parts. The areas where the University must speak with one voice, to provide corporate governance, broad strategy and policy development, institutional quality control, identity through branding, external representation and compliance and accountability requirements. Advisory HR Services Directly support a Faculty, Department or Professional Services Division. Comprehensive ‘one stop shop’ would provide the full range of HR services to their local customers. Local HR services would be provided centrally for each School or Professional Services Division. Led by Principal HR Business Partner who is responsible for the delivery of HR Advisory services across the School or Division. Shared HR Services Indirectly support all Faculties, Departments and Professional Services Divisions. Ideally delivered by Schools but for economic or consistency reasons are best provided centrally on behalf of all Faculties, Departments and Professional Services Divisions. For example, payroll services, pensions services, occupational health services, contract administration, recruitment advertising and professional development programmes.

13. How will this change improve HR services? Categorising HR services according to the type of service they provide, and the customers those services are provided to, will better improve the focus and understanding of service delivery by both HR staff and customers. It will provide a framework to document the services we provide and develop service catalogues which will outline the responsibilities of the service provider and the customer and the relevant service standards and the inputs required from customers to meet them.

14. How will this change improve HR services? Customer satisfaction with HR services and the quality of their delivery will be measured on a combination of a formal annual consultation and at point of delivery. This feedback will be used to inform future structural, resourcing and development needs. An improved understanding of the services, processes and standards to which we deliver them will improve customer satisfaction as well, as our own satisfaction with the services we provide.

15. When will this change happen? The structural changes took effect from 4 th January 2016. Staffing changes will be rolled out gradually over the course of 2016. Plans to develop service catalogues, service standards and charters in conjunction with customers will also be released shortly.

16. How will the restructure affect me? May notice minor disruption to services as some current HR staff transition to new roles. May also notice some new names and faces in HR as recruitment is finalised. As the new structure is embedded over the course of 2016, customers will experience an improvement in service delivery as service catalogues, service standards and charters are developed in conjunction with them.

17. Presentation to HR User Group 2 March 2016 HR Restructure Update

18. Agenda Introduction – Nigel Waugh, HR Director HR Staff will then lead on the following items HR Restructure Update – Nigel Waugh SiP Review – Jon Everard, Director HR Systems Transformation Project & PECAPs HR Systems Transformation Project Update – Jon Everard Well-being - Karen Smith, Well-being Consultant, OHW Pensions Reforms 2016 – Steven Cunningham-Sherret, Head of Pensions DBS – Process & Responsibilities – Jon Everard Staff Survey Update – Geoff Lang, Director HR Strategy & Planning HR User Group - Wednesday 2 March 2016

19. Wellbeing Project Update Presentation to HR User Group Karen Smith Wellbeing Consultant UCL Occupational Health & Wellbeing, HR 2 March 2016

20. What is wellbeing? Its when we feel good, function well and have the tools and skills to continue doing so. An organisation that values wellbeing creates an environment that promotes a state of contentment which allows employees to flourish, engage and achieve full potential. It includes good health promotion, supportive and positive working environments, increasing the opportunity for physical activity, improving mental wellness and education, lifestyle and health education.

21. Why a strategy? Valuing our staff is a key enabler to 2034 through focusing on wellbeing UCL are demonstrating their commitment Shared ownership Sharing the vision Understanding what wellbeing is at UCL Mapping our wellbeing journey Checking that we are on the track

22. Wellbeing activity at UCL? School of Pharmacy – Wellbeing Day UCL Engineering – Wellbeing month Division of Biosciences – Wellbeing event planned for April Faculty of Brain Sciences – Wellbeing programme planned

23. Included within the strategy Health Promotion programme Self-help tools Central online hub of wellbeing information Health and wellbeing champions Mental Health awareness/removing the stigma Information on lifestyle choices/informed decisions Opportunities for physical health – challenges Creating a positive and working environment

24. Timeline April 2016 – Launch wellbeing Hub online May 2016 – Call out for wellbeing champions June/July 2016 – Launch the Strategy to UCL The strategy then needs to be embedded throughout UCL – this is the beginning.

25. A request… What wellbeing initiatives would you like to see at UCL, and how would they help? Please email to karen.a.smith@ucl.ac.ukkaren.a.smith@ucl.ac.uk

27. Agenda Introduction – Nigel Waugh, HR Director HR Staff will then lead on the following items HR Restructure Update – Nigel Waugh SiP Review – Jon Everard, Director HR Systems Transformation Project & PECAPs HR Systems Transformation Project Update – Jon Everard Well-being - Karen Smith, Well-being Consultant, OHW Pensions Reforms 2016 – Steven Cunningham-Sherret, Head of Pensions DBS – Process & Responsibilities – Jon Everard Staff Survey Update – Geoff Lang, Director HR Strategy & Planning HR User Group - Wednesday 2 March 2016

28. Pension Reforms 2016 Steven Cunningham-Sherret Head of Pensions

29. Universities Superannuation Scheme (USS) The salary link is severed for existing Final Salary members (increases will be linked to USS increases) Contribution rate increases to 8% Employees and 18% Employers Retention of Final Salary Additional Voluntary Contributions (increases will be linked to USS increases) Accrual rate changes from 80 th to 75th An hybrid Defined Benefit/Defined Contribution arrangement will be introduced from 1 October 2016 for members earning over £55,000 1% Defined Contribution employer match for Additional Voluntary Contributions introduced from 1 October 2016 Contributions to the Prudential cease from 1 October 2016 Voluntary Salary Cap is introduced from 1 October 2016 Scheme retirement aligned with state retirement age for service accrued from 1 April 2016

30. Superannuation Arrangements for the University of London (SAUL) All members change to a Career Average Revalued Earnings (CARE) arrangement from 1 April 2016 The salary link is severed for existing Final Salary members (increases will be linked to SAUL increases limited to 2.5%) Contribution rate remains at 6% for Employees and increases to 16% for Employers Accrual rate changes from 80 th to 75 th Scheme retirement aligned with state retirement age for service accrued from 1 April 2016

31. Lifetime Allowance (LTA) - HRMC The Lifetime Allowance reduces to £1 million from 6 April 2016 All scheme members earning £75,000 and above have received a communication from Pension Services re. the reduction. Options for Transitional Protection to up to £1.25 million will be available (Individual Protection and Fixed Protection 2016) Individual Protection 2014 (protects up to £1.5 million) is available until 31 March 2017 The HRMC will provide a facility for online protection applications in July 2016 and members will be contacted when it is available Please refer any employee with concerns about their LTA status to HR Pension Services. A charge of 55% on lump sums and 25% of pension applies to the excess of LTA

32. Annual Allowance (Tapering) The Annual Allowance remains at £40,000 for the tax year 2016/2017 Annual Allowance reduced by £1 for every £2 earned between £150,000 and £210,000 (maximum reduction to £10,000) Threshold Income of £110,000 (including all taxable income from all sources) will trigger an Adjusted Income calculation Adjusted income includes Threshold Income plus the growth of the employer element of the annually accrued pension. Excess is charged at the highest rate of tax (45%) Implications for overseas recruitment of high earners Only form of mitigation is the Voluntary Salary Cap (USS only) from 1 October 2010.

33. Cessation of Contracted Out Earnings The New State Pension will replace the existing basic and second state pension from 6 April 2016 The new arrangement is set at a higher level for most people although a reduction would apply to people who have been in contracted out employment. This will end Contracting-out and the National Insurance rebate and all scheme members will pay standard rate National Insurance There will be an National Insurance increase of 1.4% employee and 3.4% employers contributions on earnings between £676 & £3583 (£40.71 EES & £98.86 ERS) Further and more detailed information will be provided by HR Pension Services to all employees this month

34. Impact on take home pay March 2016 April 2016 Difference in monthly take home pay Pay NITaxPensionTake home NI #TaxPension *Take home £25,000 133.78215125£1,609.56 154.4215125£1,588.93 -£20.63 £40,000 253.03440250£2,390.31 287.4436.67266.67£2,342.60 -£47.71 £50,000 309.73658.58312.5£2,885.85 354.4646.67333.33£2,832.27 -£53.58 £60,000 325.15966.92375£3,332.94 369.73953.33400£3,276.93 -£56.01 £80,000 355.981583.58500£4,227.10 400.41566.67533.33£4,166.27 -£60.83 £100,000 386.812587.06625£5,121.27 431.072180666.67£5,055.60 -£65.67 £100,000^ 439.232200.25625£5,068.85 444.42180666.67£5,042.27 -£26.58 £150,000 463.93741.92937.5£7,356.69 507.733713.331000£7,278.93 -£77.76 £300,000 695.1588541875£13,575.85 737.738794.172000£13,468.10 -£107.75 * Pension contribution increases from 7.5 to 8% for USS members & deducted on full pay until 30th September 2016 when contributions in excess of £55k go into a DC arrangement. SAUL contribution remains the same. Assumed pension is via salary sacrifice # NI increase of 1.4% on pay between £676 & £3583 pcm

35. Questions

36. Agenda Introduction – Nigel Waugh, HR Director HR Staff will then lead on the following items HR Restructure Update – Nigel Waugh SiP Review – Jon Everard, Director HR Systems Transformation Project & PECAPs HR Systems Transformation Project Update – Jon Everard Well-being - Karen Smith, Well-being Consultant, OHW Pensions Reforms 2016 – Steven Cunningham-Sherret, Head of Pensions DBS – Process & Responsibilities – Jon Everard Staff Survey Update – Geoff Lang, Director HR Strategy & Planning HR User Group - Wednesday 2 March 2016

37. Presentation to HR User Group Geoff Lang Director, HR Strategy & Planning 2 March 2016 Staff Survey Headlines

38. UCL Staff Survey 2015 – Headlines 20152013Variance Overall Response 42%57%15% Engagement Index 72%79%7% UCL 2034 Index56%N/A

39. Most Positive responses As long as I get my work done, I have a choice deciding how I do my work88% I understand how my work contributes to the objectives of my department/division87% I understand how my work contributes to the success of UCL 84% My work gives me a sense of personal accomplishment84%

40. Least Positive responses The grading review process at UCL is applied fairly22% I have a clear understanding of the 2034 strategy and its impact on my department/division29% I believe that UCL gives sufficient priority to Infrastructure and systems (i.e. enabling activity through Estates, ISD, student services, etc.)31%

41. Biggest Increases in Positive responses 20152013% increase My good performance is recognised appropriately47%28%19% I feel my pay is fair in comparison to people working in similar roles in other organisations44%40%4% I believe poor performance is dealt with effectively by my manager where I work48%44%4%

42. Biggest Decreases in Positive responses 20152013% decrease My last appraisal set work objectives for the coming appraisal period and led to me developing my skills to achieve 57%70%-13% them I believe I have the opportunity for personal/career development and growth at UCL54%67%-13% UCL acts in an environmentally sustainable way40%53%-13%

43. Agenda Introduction – Nigel Waugh, HR Director HR Staff will then lead on the following items HR Restructure Update – Nigel Waugh SiP Review – Jon Everard, Director HR Systems Transformation Project & PECAPs HR Systems Transformation Project Update – Jon Everard Well-being - Karen Smith, Well-being Consultant, OHW Pensions Reforms 2016 – Steven Cunningham-Sherret, Head of Pensions DBS – Process & Responsibilities – Jon Everard Staff Survey Update – Geoff Lang, Director HR Strategy & Planning HR User Group Wednesday 2 March