implementation of agenda for change pay flexibilities board presentation
DESCRIPTION
Implementation of Agenda for Change pay flexibilities Board presentation. Challenges we face as a trust. Cost pressures on funding and maximising the value of income received as a trust Greater demand on services Driving a high performing culture and driving the right behaviours - PowerPoint PPT PresentationTRANSCRIPT
Implementation of Agenda for Change pay flexibilities
Board presentation
2
Challenges we face as a trust
• Cost pressures on funding and maximising the value of income received as a trust
• Greater demand on services
• Driving a high performing culture and driving the right behaviours
• Being able to respond to the changing landscape and reward those who consistently deliver
• Retention of mission-critical roles
• Being able to attract and retain high performing leaders and employees
3
Challenges of linking pay progression with performance
Role of appraisal systems• No clear view on what works• Complexity and ambiguity destroy value• A method to align employee’s objectives with those
of the organisation• Supports the progress of high performers and to
improve poorer performers• Fosters trust between an employer and employee• Strong link between organisation values and
behaviours
Reward effectiveness• Correlation between performance and reward
designs • Inputs vs outputs/how vs what• Affordability and alignment
High performing companies• No one-size fits all approach• Reward and performance are customised• Culture plays a significant role
Potential difficulties• No single good practice approach to developing a
pay for performance system• Need to customise approach and measurement
system to unique business requirements and existing HR processes
• Alignment of objectives – having a connection between an employees’ job and organisation objectives
• Effective training
Challenges
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People and HR management frameworkIn defining the people and HR strategies it is important to recognise that it needs to be effectively aligned with the wider business strategy.
Business strategy
People management strategy
Human resource strategy
Role of HRRole of manager
Perform and reward
Human capital measurement
Build and grow talent
Retain and engage
Attract
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The future of public service workforce
Require evidence-based strategy and prioritised workforce interventions focused around:
Future workforce strategy
Productivity
Flexibility
AgilityCollaboration
Efficiency
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Employment proposition – overall package
Talent Management
Financial reward
Non-financial reward
Benefits
Employment experience
Culture, values &
leadership
Learning & development
• Flexible working• Holidays plus bank/public holidays• Buying and selling holidays• Unpaid leave• Season ticket loans• Careers breaks/Sabbaticals• Tax efficient benefits i.e. Health
assessments, cash back cards, private health, dentals insurance
• Childcare vouchers• Sick, maternity, paternity and adoption leave• Professional institute subscriptions• On-site gym at major locations• Reduced gym membership at private venues• Local & national discount schemes• On-site nursery • Flexible benefits scheme for a total reward
package• Well being initiatives
• Reputation as dynamic place to work• Widely recognised world class company to
work for• Clear diversity targets and industry awards
demonstrate their commitment to ensuring the workplace is seen as welcome to all fitting the role profiles
• Relatively flat organisational structures and a simpler decision-making process
• Apprenticeships, graduate scheme• Study leave• Job rotations as part of career
development• Publicises L&D that supports clear
career pathway
• Mentoring & coaching• Managed career moves including a road
map of a career path to give clarity and targets
• Standardised skills and experience level• Job swaps
• Base pay• Pension • Allowances• Generous bonus based on performance• Consistently attractive starting salary based on
experience• Share save schemes• Complexity of high profile
projects including opportunities to work on novel assignments
• Work life balance• Access to different markets (not just the UK)• Overseas travel• Innovative projects – publicised • Resources and investment in high
tech projects• More/greater degree of self empowerment
on decision making Employment proposition
Talent management
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New AfC arrangements
• Amendments to Agenda for Change were introduced in March 2013, which offered an opportunity to review the way in which performance and pay progression are linked. The changes included:
– The abolition of the ‘foundation’ and ‘second’ pay gateways
– Introduction of an explicit requirement that progression through all pay points is conditional upon meeting the required local level of performance
– Pay progression through the top two pay points in pay bands 8C, 8D and 9 to be annually earned
– Alternative local pay arrangements available for those on bands 8C and above
– A new national set of agreed principles and criteria underpinning pay progression within locally developed performance systems
– In pay band 5, the removal of accelerated pay progression linked to preceptorship.
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How many employees are affected by the new AfC arrangements?
(Add you own local calculations in this section. Include pie charts to illustrate figures)
• Total number of full time equivalent (FTE) employees in the trust is (insert figure)
• Staff groups included are: (insert figure)
• Total number of FTE employees covered by the AfC terms and conditions is (insert figure)
• These figures therefore affect (insert figure) per cent of employees
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Benefits of introducing the new AfC pay arrangements
There are a number of benefits associated with implementing the proposed changes, including the link between pay progression and performance:
• Alignment of employees’ objectives with business objectives
• Increased motivation as employees receive recognition for achieving / exceeding objectives
• Improved retention, especially for top performers, as performance will be recognised
• Cost savings as the trust will avoid overpaying for underperforming employees
• Improved performance management processes
• A number of organisations have implemented the pay flexibility changes with the following benefits realised so far:
– Increase in staff reporting that they receive well-structured appraisals
– Increase in statutory mandatory training compliance
– Increase in staff engagement scores
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Learnings from other trusts
• Keep it simple
• Align the changes to the bigger people issues, eg, wider talent management work
• Use the opportunity to make changes to the wider performance management process and articulate the benefits
• Think out how to use technology to support the process
• Engage early and work in partnership with trade unions and the wider workforce - involve line managers and trade unions in co-designing any new system
• Communicate clearly, simply and openly at every step
• Take a measured approach to implementation i.e. phased approach across different bands of staff, modelling with senior people first then adapting around lessons learnt
• Have clear guidelines, parameters and standards on managing pay progression
• Take bold actions, for example, turn off automatic pay progression to reinforce a change in culture around pay progression
• Ensure that line managers and staff are trained on any new system
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Success factors
• Improved staff engagement
• Enhanced customer care and quality of services
• Improved recruitment, retention and career progression
• Fewer staff being managed on formal disciplinary process / measures
• Cost savings and optimal use of the pay budget
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Points to consider
• Infrastructure in place, eg, values and behaviours clearly identified
• How the changes impact on the trust as a whole
• Align the changes with broader people issues, for example, wider talent management work
• Communications and engagement with wider staff and trade unions
• Sufficient resources to review, design and implement the changes
• How to use technology to support the updated process
• Ability to switch off automatic pay progression
• How long it will take and any logistical issues
• Develop policies, systems and processes including the changes required to the performance management system to deliver an effective appraisal process linking pay progression with performance
• Training for line managers and staff
• Appeals process
Outline project plan
Pilot outcomeProcess for turning off pay progression
agreed
Board meeting to agree to
implementing changes
GENERAL PROJECT
MANAGEMENT
QUALITY GATES
1 2 3 4 5 6 7 8 9 10
Board approval of approach
after results of pilot presented
Performance management system tested
KEY DATES
Monthly staff side meetings
Monthly Board meetings
Regular remuneration committee meetings
Alternate weekly working group meetings
Monthly communications meetings
Change Impact Assessment
COMMUNICATIONS & ENGAGEMENT
Regular updates to the Board
Staff engagement sessions and workshops
DEVELOPMENT OF POLICIES /
SYSTEMS / PROCESSES
Pilot policy to be approved
and other documentation
Revised performance
review process to be presented to
the Board
Ongoing engagement of payroll and HR transactional teams
Refinement of performance review processes –
preparation for pilot including trialling of training
Pilot period
Review of lessons learnt post-pilot
and refinement to performance review
process.
Update & progress emails sent to staff bi-monthly from leadership
Produce comms plan & key messages
Brief managers to cascade right messages
Set up mechanism for staff questions
FAQ docs available
Month
Equality Impact Assessment
Training for staff and line managers on the new
performance management system
Equality Impact Assessment
Training on new performance management
system for line managers and
staff completed
Pay progression successfully turned
off for all bands included in phased
approach
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Next steps
• Obtain buy-in from the Executive Board / consider what else might be needed to obtain buy-in
• Consider how to engage with the wider staff and trade unions
• Set up a working group to co-design and implement the changes
• Consult internally - HR, payroll and communications teams
• Finalise project plan - key dates to be integrated with the trust’s calendar