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Pay and reward strategies in local government

Pay and reward strategies in local government. Mark Bramah, Assistant Chief Executive. Economic outlook and spending cuts. U.K. economy shrank by 0.7% in the second quarter and grew by 1% in the third quarter – but still deep in recession.

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Pay and reward strategies in local government

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  1. Pay and reward strategies in local government Mark Bramah, Assistant Chief Executive www.apse.org.uk

  2. Economic outlook and spending cuts • U.K. economy shrank by 0.7% in the second quarter and grew by 1% in the third quarter – but still deep in recession. • Institute of Fiscal Studies say only 6% of planned cuts in public spending have been achieved with 94% still to come. • LGA estimate that local government headcount has reduced by 215,000 with a reduction in pay bill of £1.4bn • Audit Commission found that local authority funding has reduced by £3.5bn since 2010/11 • Much more to come......... • Is there any good news – inflation and unemployment falling ???? www.apse.org.uk

  3. Pay reform in the public sector in the crisis • 2 year pay freeze with £250 for those earning less than £21k (full time pro rata) but not extended to local government where incidence of low pay is high. • Claims that public sector pay has outpaced private sector pay is contradicted by the earnings data. • Pay policy part of the drive to ‘level down’ the perceived privileged position of public sector employment. • Attempts to scrap national pay bargaining and introduce regional pay as part of a drive to make wage setting more “market facing”. www.apse.org.uk

  4. Chancellors Autumn Statement • Those working in the public services, who have seen their basic pay frozen, will now see it rise by an average of 1%. • Commitment to implement reviews on market facing pay reports but… commitment to retain national bargaining in NHS and police • Local government and regional pay? www.apse.org.uk

  5. Local authority short-term responses to funding crisis • Redundancies. • Imposed pay freeze/cuts • Reductions in terms and conditions. • Unpaid leave. • Redeployment/training. • Commissioning/outsourcing. • Service redesign/ transformation. www.apse.org.uk

  6. Impact on the workforce • Morale and motivation. • Health and wellbeing. • Performance management. • Capacity and skills. • Redeployment/retraining. • Outsourcing jobs. • Role of the trade unions/facility time. www.apse.org.uk

  7. Consequences and issues • Equality impact/equal pay. • Living wage. • Performance Related Pay/competence based pay/contribution related pay. • Impact on service delivery. • Local economies. • Youth unemployment and training. • Workforce planning. • Staff engagement. www.apse.org.uk

  8. Most job losses have been full-time (England and Wales 2012) www.apse.org.uk

  9. What is happening to services - Refuse Collection www.apse.org.uk

  10. ‘Enabling’ or ‘Ensuring’

  11. Pay and rewards – The Green book terms and conditions 2005 www.apse.org.uk

  12. Pay and rewards strategies – an integrated approach www.apse.org.uk Source: LGA Resource Guide for local government

  13. Elements of a strategy • Reward philosophy and priorities. • Pay design. • Pay structures. • Pay rates. • Other pay elements. • Other benefits www.apse.org.uk

  14. Questions to ask • Have you got a workforce plan in place? • Do you have a robust performance management system? • Hutton review on fair pay - How do you deal with top pay and low pay in the authority? • Do you analyse the market in terms of pay rates? • Have you got a robust job evaluation mechanism in place? • Do you carry out regular equality impact checks on pay structures and systems? • What is your approach to retaining key staff? www.apse.org.uk

  15. Comparative approaches – Manchester City Council • Focus on transforming the workforce through efficiency and the development of a workforce with flexible and generic skills. • Joint working with the trade unions – The Manchester Agreement. • Service integration and multi-skilling. • Support for in-house services. • Manchester skills pledge. • Manchester living wage www.apse.org.uk

  16. Comparative approaches 2 – West Lindsey District Council • More efficiency and productivity • More co-production self help and relationships of trust with communities, partners and local businesses • Pluralistic leadership of purpose • Bringing out the best in our people positively nurturing their potential • Great commercialism, income and trading www.apse.org.uk

  17. Living Wage business case • New rates £8.55 in London & £7.45 elaewhere. • Easier recruitment and retention, reducing recruitment costs • Higher quality staff • Better attendance • Better productivity, motivation and loyalty. • Better quality of service www.apse.org.uk

  18. The iron law of unintended consequences ??? – Equal Pay • 170 former Birmingham city council employees – including women who worked as cooks, cleaners and care assistants won a landmark ruling on Equal pay in the Supreme Court. • Costs could be up to £10m and opens up potentially a further 1000 claims. www.apse.org.uk

  19. www.apse.org.uk

  20. Contact details Mark Bramah, Assistant Chief Executive Email: mbramah@apse.org.uk Association for Public Service Excellence 2nd floor Washbrook House, Lancastrian Office Centre, Talbot Road, Old Trafford, Manchester M32 0FP. telephone: 0161 772 1810 fax: 0161 772 1811 web:www.apse.org.uk www.apse.org.uk

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