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SW Acute CEOs Meeting Background Presentation

SW Acute CEOs Meeting Background Presentation. King’s Fund: How is the NHS performing?. Agenda for Change aspirations (March 2003). Pay system which leads to more patients being treated, more quickly and higher quality

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SW Acute CEOs Meeting Background Presentation

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  1. SW Acute CEOs MeetingBackground Presentation

  2. King’s Fund: How is the NHS performing?

  3. Agenda for Change aspirations (March 2003) • Pay system which leads to more patients being treated, more quickly and higher quality • Assist new ways of working – promoting efficiency and effectiveness, meeting needs of patients • Achieving a quality workforce with the right numbers, right skills and diversity, organised in the right way • Improve recruitment, retention and morale • Improve all aspects of equal opportunities and diversity • Meet equal pay for equal value • Implement new pay system within the management, financial and service constraints

  4. Example NHS Foundation Trust • Acute district general hospital • Turnover: £150m • Workforce: 2500 staff (£100m salary bill) • Vacancy rate = 5%; turnover = 8% (excluding doctors) • Sickness absence rate = 3% • Temporary staffing spend = £10m • Savings target (cost reduction): £15m 2011-13 • Savings profile: workforce £9m (60%); non-pay/infrastructure £6m • Average unit employment costs: £40,000 • 5% management costs • 200 consultants

  5. Ready reckoner: impact of 2% pay cut on pay packets

  6. Ready reckoner: the actual impact

  7. Ready reckoner: jobs and savings

  8. Pay compressor options • Pay inflation (uplift) • Increments • Temporary staffing rates • Two-tier workforce • Annual leave • Sickness absence • Unsocial hours allowances • Flex-release • Premium sick pay • Recruitment and retention premia (RRP) • On-call • Supporting PAs • Remuneration for extra clinical work

  9. Labour cost compressors

  10. Sample contrasting savings programmes (over 2 years)

  11. Sample contrasting savings programmes (2011-2013) Assumptions

  12. Possible handling principles • Comprehensive, resourced, undiluted engagement and involvement of staff and their representatives • Widest possible, and reasonable, definition of suitable alternative employment • Investment in training and professional development • Reversal of pay and conditions compression if circumstances allow • Introduction of a new Knowledge, Skills and Performance Framework to promote advancement and withhold increments from under-performance • Bonus scheme for all staff (% unconsolidated pay rise) when trust delivers financial and service objectives, and generates available surplus

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