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Better Outcomes, Lean Delivery Pay and Reward Systems Bridget A. Clark HR Service Centre Manager 27 March 2013.

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Presentation on theme: "Better Outcomes, Lean Delivery Pay and Reward Systems Bridget A. Clark HR Service Centre Manager 27 March 2013."— Presentation transcript:

1 Better Outcomes, Lean Delivery Pay and Reward Systems Bridget A. Clark HR Service Centre Manager 27 March 2013

2 Better Outcomes, Lean Delivery Introduction to Worcestershire County Council Employs 18,000 people Chief Executive Children’s Services Directorate Adult and Community Services Directorate Business, Economy and Community Directorate Resources Directorate

3 Better Outcomes, Lean Delivery 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

4 Better Outcomes, Lean Delivery Pay Systems

5 Better Outcomes, Lean Delivery 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

6 Better Outcomes, Lean Delivery Our Grading Scheme Assesses the post against 11, set, factors: 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

7 Better Outcomes, Lean Delivery 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:

8 Better Outcomes, Lean Delivery

9 Levels are recorded & scores allocated & totalled SMPCREC&RDISCONRESWDMPDMWCDWCXK&S Total Score LEVEL: SCORE

10 Better Outcomes, Lean Delivery Points to Pay Total SorePay GradeJob Types/Rank Order Up to 2891Cleaner 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

11 Better Outcomes, Lean Delivery Salary Scale and Incremental Progression Spinal Column Point £ Salary Scale Scale ↓↓ Scale

12 Better Outcomes, Lean Delivery Other Models: Performance Related Pay

13 Better Outcomes, Lean Delivery Other Models: Cafeteria Approach

14 Better Outcomes, Lean Delivery How is Pay Determined Central Government - National Minimum Wage Updated annually Applies to all employers (private AND public sector) Central Government – Professional Groups TeachersPolice FirefightersNurses 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

15 Better Outcomes, Lean Delivery Discrimination Legislation: Equality Act Equal Pay

16 Better Outcomes, Lean Delivery Reward Strategies Break?

17 Better Outcomes, Lean Delivery Reward Strategies Spending Public Purse: limits reward opportunities We offer a range of reward benefits:

18 Better Outcomes, Lean Delivery Local Government Pension Scheme All employees (over 16 and under 75 years) Separate from Central Government State Pension – payable at 65. Currently £ 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

19 Better Outcomes, Lean Delivery LGPS: Benefits and Costs Benefits 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)

20 Better Outcomes, Lean Delivery Pension Calculations Based on 1/60 th 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

21 Better Outcomes, Lean Delivery Thank You for Listening I am happy to receive questions


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