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Pay Policy Statement

The Council seeks to balance the need to set pay levels that are adequate to secure and retain high-quality employees dedicated to the service of the public, with a need to ensure that pay is not unnecessarily generous or otherwise excessive. This pay policy statement applies specifically to Chief Officers (a term which includes both statutory Chief Officers and non statutory Chief Officers) but also those officers who report direct to the Head of Paid Service and are part of the Council's Corporate Management Team.

Pay Policy Statement -March 2015

The latest Pay Policies Documents are available to download

Purpose and Scope of the Policy

1.     Section 38 (1) of the Localism Act 2011 requires English and Welsh local authorities to produce a statutory pay policy statement for 2012/13 and for each financial year after that.

2.     In the context of managing scarce public resources, the Council seeks to balance the need to set pay levels that are adequate to secure and retain high-quality employees dedicated to the service of the public, with a need to ensure that pay is not unnecessarily generous or otherwise excessive.  The Council also recognises that individuals have contractual and other rights that cannot be altered unilaterally by the Council.

3.     Over recent years the Council has modernised its pay and reward arrangements through the implementation of single status and by setting the pay of its most senior officers with the benefit of external advice. In addition, the pay of senior officers has been published on the Councils web site.

4.     This pay policy statement applies to those officers whose terms and conditions reflect those determined by the Joint Negotiating Committee for Chief Officers of Local Authorities. For the purposes of this policy the Council's Chief Officers are the:

·           Head of Paid Service

·           Strategic Manager (Services)

·           Strategic Manager (Resources)

5.    The Hutton Report (on public sector pay, published in 2011) outlined that the most appropriate metric for pay dispersion is the multiple of Chief Executive to median earnings.  It suggests that tracking this multiple will ensure public service organisations are accountable for the relationship between the pay of their executives and the wider workforce. Through this pay policy statement, the Council will track this multiple annually and will also publish the following information (please see the Appendix):

·       The level and elements of remuneration for each of the posts identified in paragraph 4 above;

·       Other specific aspects of remuneration associated with these posts.

·       The remuneration of the lowest paid employees;

·       The multiple of Head of Paid Service salary to median

·       The multiple of Head of Paid service salary to the average or mean earnings, which is another metric for pay dispersion.

Specific Policy Aspects

6.     The pay for Chief Officers reflect 'spot' salaries, which are a specific sum, not related to a grade with increasing levels of pay. When setting or revising salaries for these posts:

·         The Council will make comparisons with similar organisations, with an aim to paying at or around the median comparable salary level.

·         The Council will take independent pay advice from South West Regional Services. In addition, where senior roles also include responsibilities for other organisations the Council will confer with those organisations about appropriate remuneration arrangements.

·         The Leader will then make recommendations which will be subject to the approval of Full Council.

·         In formulating his/her recommendations, the Leader will have due regard to balance the need to ensure value for money with the need for the Council to recruit and retain high quality senior officers in the context of national, regional and local labour markets and the particular circumstances or challenges faced at that time. This may include any market supplement.

·         In any event, other than any cost of living increase (that will be made in line with National Joint Council recommendations), any changes to the remuneration packages for these officers will be subject to Full Council approval.

7.     Consistent with the relevant national terms and conditions, Chief Officers are required to devote their whole time service to the work of the Council (which may for this purpose also include other organisations where there is responsibility for such activities) and cannot engage in business or take up other paid employment without the express permission of the Council. In addition, and although these officers are employed for a notional 37 hours per week, they are expected to work such additional hours as may be reasonably required, without additional recompense or time off in lieu.

8.    Any termination payments to Chief Officers on ceasing office will, in the event of redundancy, comply with the Council's policy for managing change.   Any other payments on termination of employment will accord with the arrangements set out in the Council's constitution and scheme of delegation.

9.     Additional payments are made by Central Government to officers carrying out additional duties at elections.  These payments are not within the scope of this policy.

Monitoring

10. Through this policy the pay multiple of the Head of Paid Service will be monitored annually.  Should the multiplier between the annual salary paid to a full time employee (excluding any apprentices) on the lowest spinal column point and the annual salary paid to the Head of Paid Service be greater than 10, this will be reported by the Leader of the Council to Full Council for consideration.

11.  Annual monitoring of this policy will take place towards the end of each financial year. As at 31 March 2015 the pay multiple will be 6.32.

Outcomes

12.  In determining this policy the Council will ensure that the process for setting pay at a senior level is transparent.  This policy will be reviewed annually to track the relationship of Chief Officer pay with the rest of the workforce. Other reviews may take place as determined appropriate from time to time.

Policy/Strategy Consultation

14. This policy has been agreed by Full Council.

Equality Impact Considerations

The principles of equal pay are integral to this policy. The Council ensures equal pay through a transparent job evaluation process for the majority of posts and by having regard to external advice when setting the pay of its most senior officers, as identified in this policy.

Appendix

 

The levels and elements of remuneration for each Chief Officer are

Post Title

 Remuneration

Head of Paid Service

  £83,474

Strategic Manager (Services)

  £63,240

Strategic Manager (Resources)

  £61,200

The full time rate of pay for the lowest paid employee (as at 31 March 2014) is as follows:

Post Title

Remuneration

Cleaner

  £13,200

The multiplier of the remuneration of the Head of Paid Service and other officers based upon taxable earnings

Post Title

 

Annual Median Pay of all employees, if they were employed full time

£20,253

Pay multiple of Head of Paid Service to Median salary

  4.12

Pay multiple of Head of Paid Service to lowest paid employee, if they were employed full time

  6.32

Pay multiple of Head of Paid Service to mean salary if everyone was employed full time

  3.70

The pay multiple this is calculated by comparing the pay of the Head of Paid Service (including the lease car allowance) with the average (or mean) and median basic pay levels.