Incremental Pay Progression Policy - southernhealth.nhs.uk

1 1 Incremental Pay Progression Policy Senior HR Manager Best Practice Development Version 2 February 2015 SH HR 67 Incremental Pay Progression Policy Version: 2 Summary: This document provides managers and staff with guidance on the locally determined system for Incremental pay Progression in respect of staff covered by NHS Terms and Conditions (Agenda for Change). Keywords (minimum of 5): (To assist Policy search engine) Appraisal, objectives, business priorities, pay Progression , performance, development. Target Audience: All Southern Health NHS Foundation staff covered by NHS terms and Conditions (Agenda for Change) and managers of this staff group. Next review Date: April 2019 Approved and Ratified by: Staffside Policy Scrutiny Group Joint Consultative and Negotiating Committee Date of meeting: 22 December 2014 20 January 2015 Date issued: February 2015 Author: Senior HR Manager Best Practice Development Sponsor: Associate Director for Workforce Delivery 2 Incremental Pay Progression Policy Senior HR Manager Best Practice Development Version 2 February 2015 Version Control Change Record Date Author Version Page Reason for Change Mar 2014 HR Manager Corporate Projects 1 All New Policy Dec 2014 Senior HR Manager Best Practice Development 2 Throughout Minor amendments throughout with a specific focus on:- - managers providing constructive support and feedback -clarifying and expanding on performance measurements (Section 8) -aligning with the new timelines for the appraisal cycle.

2 Sept 2015 2 11, 12 Update to appendix 1 and addition of appendix 1a 2/2/18 review date extended from February to October 2018 24/10/18 review date extended to April 2019 Reviewers/contributors Name Position Version Reviewed & Date Louise Jones HR Manager Corporate Projects V1, March 2014 Ricky Somal Trust Equality & Diversity Lead V1, March 2014 HR team Transactional, workforce planning and operational HR team leads V1, March 2014 Kerry Salmon Senior HR Business Partner V1, March 2014 Rita Hawkshaw HR Manager Best Practice V1, March 2014 T&C Sub group Staff Side, Corporate and Divisional representatives. V1, March 2014 Staffside Policy Scrutiny Group V2, December 2014 3 Incremental Pay Progression Policy Senior HR Manager Best Practice Development Version 2 February 2015 CONTENTS Page 1 Introduction 4 2 Scope 4 3 Definitions 5 4 Duties/ responsibilities 5 5 Pay Progression 6 6 Annually Earned Increments Pay Bands 8C, 8D & 9 6 7 Expectations around Standards of Performance 7 8 General Pay Progression performance measurements 7 9 Pay Bands 8C, 8D & 9 - performance measurements for annually earned increments 7 10 Extenuating Circumstances 8 11 Outline process for deferral of Incremental Progression 8 12 Reviews 9 13 Training requirements 9 14 Monitoring compliance 9 15 Policy review 10 16 Associated documents 10 17 Supporting references 10 Appendices.

3 A1 Template letter 1 deferral of general Incremental Progression 11 A1a Template letter 1a - deferral of general Incremental Progression for reasons of sickness absence 12 A2 Template letter 2 deferral of annually earned Incremental Progression (pay band 8C, 8D and 9) 14 A3 Equality Impact Assessment (EqIA) 15 4 Incremental Pay Progression Policy Senior HR Manager Best Practice Development Version 2 February 2015 Incremental Pay Progression Policy 1. Introduction NHS Terms and Conditions (Agenda for Change) were amended on 31 March 2013 as part of ongoing national revision and development, recognising the unprecedented challenges faced by the NHS. They recognise the benefits of maintaining a national handbook of terms and conditions that are modern and responsive to the needs of both local employers and their staff. The new system makes clear that Incremental pay Progression is conditional upon meeting locally determined performance standards.

4 The amendments that came into effect in April 2013 introduce pay flexibilities that enable the NHS to remain sustainable for the future, fit for purpose, fair to staff, maximise job security and are supportive of quality patient care. Of specific relevance to this Policy are the following changes: Progression through all Incremental pay points in all pay bands to be conditional on individuals demonstrating that they meet locally agreed performance requirements in line with Annex W (England) of the handbook for staff in bands 8C, 8D and 9, pay Progression into the last two points in a band will become annually earned, and only retained where the appropriate local level of performance is reached in a given year This Policy outlines the local determined arrangements, in line with Annex W (England) of the NHS terms and Conditions (Agenda for Change) Handbook. Implementation of these changes is with the express aim to enhance the performance of staff through the appraisal process and in turn benefit the productivity of the workforce and wider Trust.

5 To enable staff to be successful in their role and contribute to the delivery of a high quality, efficient, effective and safe service. This Policy is dependent upon the Trust s Appraisal system which is closely aligned to the Trust organisational values, business priorities via development of objectives. The Trust is committed to continued and sustained improvement of appraisal rates and ensuring that improvements in the quality of appraisal are also made. The implementation of this Policy supports this commitment. Incremental pay Progression is one tenet of pay and reward modernisation which is an integral part of the human resource strategies of the NHS in England, Scotland, Wales and Northern Ireland. 2. Scope This Policy applies to all Southern Health NHS Foundation staff covered by NHS terms and Conditions (Agenda for Change), this excludes very senior managers, staff within the remit of the Doctors and Dentists review body and those on local terms and conditions ( TQtwentyone).

6 5 Incremental Pay Progression Policy Senior HR Manager Best Practice Development Version 2 February 2015 Pay Progression for Medical Consultants and Speciality Doctors are determined in line with their contractual arrangements, in particular the requirement to meet the relevant job planning criteria. 3 Definitions Agenda for Change: Nationally agreed NHS terms and conditions of service for NHS organisations, except very senior managers and staff within the remit of the Doctors and Dentists review body NHSPRB: NHS Pay review body covering staff other than very senior managers and staff within the remit of the Doctors and Dentists review body LEaD The Learning Education and Development department of Southern Heath Foundation Trust. 4 Duties / Responsibilities Trust The Trust has overall responsibility to: Ensure an effective appraisal process is in place; Staff are aware of this Policy and adhere to its requirements; and Monitor the impact of pay Progression through Workforce Planning systems, with performance reports to be sent to the Senior Human Resources Management Team, Executive Team, Board and the Executive review Panel.

7 Managers It is a Manager s specific responsibility to: Take an active and constructive role in the appraisal process Ensure that appraisals are conducted between April and June for all eligible team members. Ensure that staff are aware of their objectives, that these are monitored throughout the year and that they understand the pay Progression consequences of non-delivery Staff It is the member of staff s responsibility to: Constructively participate in the appraisal process Ensure that their appraisal is recorded Human Resources and Leadership, Education and Development (LEaD) Team The Director of People and Communications has delegated responsibility from the Board to ensure this Policy is properly implemented and monitored. The Human Resources team and the LEaD team have a responsibility to ensure that this Policy is followed, fairly and consistently. Their duties will involve: ensuring the effective implementation and embedding of this Policy through education and monitoring activity; providing timely information (data), advice and support in the application of this Policy ; and 6 Incremental Pay Progression Policy Senior HR Manager Best Practice Development Version 2 February 2015 ensuring that the Policy is maintained and updated accordingly in line with any organisational, national or legislative changes.

8 Trade Unions Trade Union representatives have an important role to play generally in providing advice, support and working in partnership with managers and the Human Resources team in looking to ensure that the Incremental Pay Progression Policy is implemented. 5. Pay Progression The pay spine for staff covered by the NHSPRB (NHS Pay review body ) is divided into nine pay bands. Within each pay band there are a number of pay points to allow pay Progression in post. From April 2013 Incremental pay Progression for all pay points, within each pay band, will be conditional upon individuals demonstrating that they have the requisite knowledge and skills/competencies for their role and that they have demonstrated the required level of performance and delivery during the review period. Provided the appropriate level of performance and delivery has been achieved during the review period, individuals will progress from pay point to pay point on an annual basis.

9 For pay bands 1 to 7, 8A and 8B this will apply to all the pay points in each pay Band. For pay bands 8C, 8D and 9 this will apply for the first 4 pay points in the band. 6. Annually Earned Increments - pay bands 8C, 8D and 9 Pay Progression beyond the first four pay points in pay bands 8C, 8D and 9 will be dependent upon the achievement of locally determined levels of performance as set out in appraisal objectives. Staff will progress through the last two pay points in these pay bands only when they are assessed as having met the required level of performance. Pay Progression for this level of performance will be non-recurring and reviewed on an annual basis. When an individual who holds an annually-earned pay point has not met the required level of performance and delivery for a given year, they will have one annually earned pay point withdrawn. The last two pay points in pay bands 8C, 8D and 9 (the annually earned points) will not be subject to pay protection.

10 Where Incremental points are withdrawn, this does not preclude normal capability and disciplinary procedures being followed and appropriate action taken, when appropriate. In accordance the Appraisal Policy , appraisal objectives should be aligned with the Business Plans and team objectives. In addition, the objectives set should be SMARTER (Specific, Measurable. Agreed, Realistic, Timed, Evaluated and Reviewed). 7 Incremental Pay Progression Policy Senior HR Manager Best Practice Development Version 2 February 2015 7. Expectations around standards and performance Management of conduct and performance concerns continue to be dealt with under the relevant HR Policies and Procedures. Incremental pay Progression is not a method for dealing with issues of poor performance or misconduct. Managers should follow the relevant HR policies, supported as required by their HR Advisor, where performance or conduct is a matter of concern.