Members received an update on progress in the development of a new pay reward scheme. Members noted the five areas of commonality and six areas of difference identified following the meetings of the working group. It was noted that legal advice was awaited in relation to the impact of Delivering Differently.

The Chairman stated that she was not keen on the idea of a points system, which could lead to haggling over points. Councillor Saunders commented that he had used a continuous curve approach many times. In contrast, schemes with ‘cliff edges’ were painful. A continuous curve meant people did not get preoccupied with getting over the next ‘cliff edge’. An iterative formula could be used to work out the levels, based on the total pot available. Councillor Saunders felt this reflected the issue of fairness as if as a team you had done generally well you would by definition share some reward. This drove the idea that you won together.

The Head of HR confirmed that increments were still in place for employees up to grade 6. If an individual received a rating of satisfactory or higher they would move up a scale point each year, in addition to any pay award or reward. The Chairman commented that this led to large numbers of people at the top of their grade, which was not helpful. For above grade 6, spot salaries were in place. Increments had been removed from grade 7 a few years ago. Councillor Dr Evans commented that the system could be perceived as too complicated. It would be important to be able to explain in graphical form so people understood it was not as complicated as they feared. The Chairman agreed that a communications plan was required. Councillor Mrs Jones highlighted that increments were useful at lower grades to attract individuals with the skills but lacking experience, as they knew they could prove themselves and move up the scales.

The Managing Director explained that Grade 5 was between £23,000 and £27,000. Councillor Bicknell highlighted that with five spinal points this meant an approximate 5% jump each year, plus pay award and pay reward. It was noted that incremental increases were managed within service budgets.

The Managing Director explained that since the delivering differently process had begun a tension had arisen as the request to review the Pay Reward scheme had been made at the same time as discussions were underway with staff about transfer to a CIC. This could result in potentially two consultations at the same time, about a revised Pay Reward scheme and TUPE transfer/redundancy. It was confirmed that when staff transferred to Optalis or Achieving for Children, they would retain their terms and conditions in place at the point of transfer. Over time they could be harmonised but this would require a collective decision by the shareholding board.

Councillor Jones left the meeting at 7.55pm.

Councillor Saunders commented that if Members identified issues with the scheme and did not do anything to address them before staff transferred, the benefit of changes would only be to those who remained directly employed by the council. If the changes were not in place when staff transferred, the council would have less ability to get it right for that cohort. It was therefore sensible to get the refinements sorted before the transfer date. Councillor Dr Evans highlighted that the message needed to be got across that Members were acting in the best interests of all staff.

Members agreed the current timetable should be kept to for the review of the Pay Reward scheme. Discussions should take place with the working group and then the issue brought to the next Panel meeting.