January 2015

WELCOME!

Salary Review help for LeadersAs you know we announced our salary increases at the end of last year - from 26 January you can apply these salary increases on LSS. This session provides some guidance on salary review and how to action this on LSS. Rachael Hollinson, Reward Business Partner will provide some valuable guidance

Shared Parental Leave Since the last overview of this change in November we’re now in a position to share RSA’s approach to this new legislation together with an update on some other legal developments. Darren Dunne, Employee Relations & Policy Consultant will update us

HR News Round UpLisa will be back to run through some key dates with you

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2015 SALARY REVIEW & LEADER SELF SERVICEGUIDANCE FOR LEADERS

JANUARY 2015

RACHAEL HOLLINSON, REWARD BUSINESS PARTNER

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WHAT ARE WE COVERING?

1. The key actions you need to take for this year’s salary review for employees Levels 4 – 6

2. Information to help you think about your team’s salary review and understanding your budget

3. Help in completing Leader Self Service

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BALANCING THE BUDGETEvery year we review salaries based on a number of factors, including:

• Individual performance• Business results• Wider economic trends• Affordability

We work closely with Unite to agree a salary review that reflects the hard work and performance of our people balanced against the overall performance of the business and economic environment. A critical part of our approach is that we want to reward high performance and recognise people who make an important contribution to our business.

Taking all of this into account, a good rating will attract a guideline salary increase of 1.3% in 2015.The matrix we have agreed this year will result in a budget for overall spend at 1.40%.

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SALARY REVIEW

There is a range at each performance level with a guideline salary increase set out as follows for this year:

This matrix has already been communicated and the Unite ballot was in favour of accepting this matrix.

Rating Range Default

Outstanding 2.60% - 3.50% 2.9%

Superior 1.60% - 2.50% 1.9%

Good 1.00% - 1.50% 1.3%

Below Expectations 0% 0%

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WHAT ELSE DO I NEED TO KNOW?

LIVING WAGEAs with previous years, we remain committed to increasing the bottom of our level 6 range in line with the Living Wage. This means that anyone earning below £14,287 will receive an increase in their March pay taking them to this level before any salary increase is applied. Their 2015 salary increase is then paid on top.

OVER THE TOP OF THE SALARY RANGEThis year, we will not be awarding any salary increases, or cash alternative to individuals who sits over the top of the salary range

BELOW EXPECTATIONSWhilst the system defaults to 0 for any individual who has received a BE rating. You may be able to award an increase of up to 1.3%, but this will need to be managed within your current budget.

BUDGET CONTROLThe LSS system will NOT allow you to spend more than your allocated budget. Please ensure that you take this into account when making salary decisions for your people.

Further details and guidelines regarding what you need to know are contained within the Managers Guidelines attached to the email you have been sent. If you have any

queries, please contact your leader coach.

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YOUR TEAM’S SALARY REVIEW

Your team budget is calculated as the amount needed to pay the guide salary increase for their personal performance rating for everyone only.

What you need to doIf you wish to award a salary increase that is higher than the guide %, you will need to reduce the award(s)

for other members of your team to ensure you meet your budget. You are able to increase or decrease the guide

salary % within the range defined for their performance rating.

Sticking to your budgetThe compensation management tool helps you to monitor your budget across your team and/or cost centre

by showing you how much your proposed salary increase compares to the default for each individual and in total across all employees.

The Performance Bonus for employees at Levels 4 – 6 is based on an individual’s Performance Rating and the Company’s Annual Performance (UK Combined Operating Ratio). The Group results will be announced 26 February 2015. Details about the bonus will be communicated on the same day.

USING LEADER SELF SERVICE

GUIDANCE FOR LEADERS

JANUARY 2015

EMPLOYEE / LEADER SELF SERVICE

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ACCESSING PERFORMANCE & SALARY REVIEW SCREEN

HERE’S A SUMMARY OF THE SUPPORT AVAILABLE

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There’s lots of support available...

HR Help pages on People Zone have more information and FAQs

An online simulation launched via ESS

The Salary Review Guidelines – access within Compensation Planning

If in doubt, please contact HR Help on 0845 0700058 for guidance or alternatively email Salary Review/UK/Royalsun

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SUMMARY OF THE KEY DATES

Date Activity

26th January LSS opens for you to make your recommendations

29th January People HR Webex – Salary review focus

9th February LSS closes for all recommendations

9th February Deadline for Cost Centre Leaders to approve all salary recommendations

26th February Group Results announced and Salary and Bonus outcome confirmation.

2nd - 6th March UK salary increase distribution is reviewed and approved by Steve Lewis

Week commencing 9th March

PDF letters will be issued to you. You can communicate to employees once letters are received, but you will not be able to customise the letter.

Evening of 18th March Payslips appear on-line. All employees to have received letters prior to this date if possible.

25th March Performance Bonus paid

1st April Any new salary becomes effective, together with the living wage

24th April Pay day and Good Leavers Bonus paid

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ANY QUESTIONS?

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EMPLOYMENT RELATIONS UPDATEDARREN DUNNE, EMPLOYEE RELATIONS &POLICY CONSULTANT

January 2015

WHAT WE’LL COVER TODAY16

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Shared Parental Leave

Holiday Pay & Overtime

SHARED PARENTAL LEAVE - WHAT IS IT?• Legislative change which allows parents to share the 52* weeks statutory leave currently only available to women

• Will apply to children expected to be born on or after 5 th April 2015

• Change is designed to challenge the assumption the mother will always be the parent that stays at home and allows both parents flexibility to take this time off.• Eligible employees entitled to leave to be shared between parents - Maximum of 52* weeks’ leave - Maximum of 37 weeks statutory pay

• Additional paternity leave will be abolished after 6th April 2015 but fathers will still be entitled to the 2 weeks Ordinary Paternity Leave at full pay

• Each parent will have to qualify separately and criteria used will include duration of employment (26 weeks), main caring responsibilities and meeting the notification requirements

*Mothers will still have to take 2 weeks of compulsory maternity leave after the child’s birth

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SHARED PARENTAL LEAVE – HOW DOES IT WORK IN PRACTICE?

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• Notification comes in 2 parts and at least 8 weeks notice must be provided prior to leave being taken

• Mother can either end her maternity leave early prior to parental leave being taken by either parent

• Alternatively, the mother can give notice to end her maternity leave early at a date in the future and thus reduce her maternity entitlement and allowing both parents to take leave at the same time while the mother remains on maternity leave

• RSA will decide what rate we will pay any shared parental pay i.e. Statutory rate or enhanced rate as per maternity leave

• This is a legislatively driven change within the UK which RSA are legally bound to implement in full

SUMMARY OF THE KEY DATES FOR SHARED PARENTAL LEAVE

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Date Activity

January Systems updated & forms produced

January Consultation on new policy with Unite/TMA

w/c 2 February Communications to leaders & employees – policy launched

From 6 February Employees can request Shared Parental Leave

From April Employees can commence Shared Parental Leave

HOLIDAY PAY AND OVERTIME – AN OVERVIEW OF KEY FACTS • Ongoing challenges for calculating UK Holiday Pay under working time regulations and working time directive

• Currently in the UK, overtime & commission, along with other regular taxable payments, that cease during holidays, are not included in the calculation of holiday pay. The current legal challenges are seeking to retrospectively change this approach

• A recent ruling stated that any overtime that the employee is ‘required to work’ (plus other regular payments that cease during holidays like shift allowances and sales commission) should be included in the calculation of employees holiday pay. This could be defined as only compulsory overtime or regular consistent overtime

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CURRENT RSA POSITION

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• RSA are clear that our overtime is overwhelmingly voluntary but the future legal judgements may water down our argument and voluntary overtime may come to be included in way we calculate holiday pay in the future

• The calculation of our historic liability is based around when the incorrect payments have been made in relation to when the holiday was taken. This holiday only covers the first 20 statutory days holiday taken in the year and should be used in reference to the average of the overtime (or regular payments) that were earned for the previous 12 weeks before the holiday was taken

• As it stands it will currently be difficult for employees to make claims for underpayment of holiday beyond the last holiday calendar year and RSA’s overall potential liability although small will lead to a change

ANY QUESTIONS?

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HR NEWS ROUND UP

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What’s New?

Just a Reminder......

• Jim Kendall retires after 5 years as Unite Chair and 28 years with RSA. Sandra Boothman will take over from Jim in this role wef 1/2/2015 and our very best wishes go to both

• Salary Ballot was agreed in December 2014

Dates to Remember LSS Closes for

all Salary Recommendatio

ns Mon 9 February

2015

Your Next People Hr is

Thursday 26 February

2pm

Payroll Cut Off Mon 9 Feb 2015

5pm

• My Performance goes Live on Monday 2 February 2015• LSS closes for salary recommendations Mon 9 February 2015 • Shared Parental Leave Legislation comes into force 5 April 2015• For any general HR queries or requests please contact

hr.services@uk.rsagroup.com.

UK LSS Cut OffTues 17 Feb

5pm

Group Results Announced

26 February 2015

Just a Reminder……some key dates

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We’d love to hear your questions and comments after today’s call

Speak to your Leader Coach, or join the conversation on

using #peoplehr or accessing the People Hr group

If you need to get in touch with anyone specifically please contact:

Your HR Leader Coach. Your Regional Leader Coaches: Ellie Kreft, Lisa

Ferguson & Debbie NesbittDarren Dunne, Employee Relations & Policy

ConsultantAll queries regarding salary review need to be

directed to HR Help or the Salary Review Mailbox

Salary Review /UK/Royalsun

Thank you for joining us; speak to you in February

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