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Procedure for the Payment of Market Supplements
Introduction
- The University requires mechanisms to deal with difficult recruitment conditions where problems involving the recruitment and retention of staff is impacting on the delivery of the curriculum or service.
- There are a number of ways that recruitment problems can be dealt with:
- Clear recruitment strategy, including advertising campaign
- Alternative recruitment methods, i.e. journals, web campaign, agencies
- Flexible contractual terms i.e. job share, part time working, home working
- However, where these have failed and initial evidence points to salary levels as a possible cause, a market supplement may be appropriate.
- This policy applies to all staff, including Senior Management Team appointments
Market Supplements
- A market supplement is a percentage of salary paid on top of the base salary which brings the total salary in line with the external market for that particular job. The amount of supplement paid is decided through the use of systematic analysis of pay data on the particular job in question. This is done through the use of published or commissioned pay surveys, carried out by an external consultant or the Human Resource Department.
Criteria for payment of a market supplement
- Payment of a supplement must be based on demonstrable evidence of a recruitment or retention problem. The anticipation of a problem or the potential resignation of a key individual is insufficient.
- Evidence that would need to be available will include:
- Recruitment: - At least 2 attempts to recruit to a post, without success, followed by;
- Use of alternative recruitment methods
- Consideration of flexible employment options, if not already available
- Consideration of options to develop the skills required in-house Retention: -
- Failure to keep employees in post for longer than 12 months, over a three year period
- Exit data indicating uncompetitive salary available in comparison to the local market
- Once all of the above can be evidenced, the Director of Human Resource will begin an analysis of the salaries attached to the post and determine if a market rate is applicable
Market Supplement data
- The precise data source for the salary survey will be determined by the
Director of Human Resource together with any consultant charged with conducting
the survey. Acceptable sources include:
- Government statistics
- Pay research bodies
- HR networks
- Recruitment agencies adverts
- Professional bodies
- Industry sponsored surveys
- Specialist consultants
- Local/national job adverts
- One source may be sufficient, dependant upon the post in question. The
choice of these sources will depend on the following:
- The match of the post in question to the salary data
- Transparency in the collection of the salary data
- Data validation
- Data differentiated according to variable e.g. location, job size, sector
- When the data was collected - is it up to date
- Breakdown of salaries i.e. bonuses, regional allowances
- Details of all sources used and the analysis of the data will be recorded
on the Market Supplement
Investigation form. The Director of Human Resource will oversee any analysis
of a market supplement by recording the following:
- The rationale for investigating the use of a market supplement. This would include all attempts to recruit/retain staff as detailed above
- All data sources used in the assessment of the market data
- The details of which posts the supplement would apply to. This should cover all posts where identical skill set or specialist knowledge are required and will include posts currently occupied as well as vacancies and new posts.
- The outcome of the review and recommendations on the payment of a market supplement.
- A copy of the outcome and recommendation will be copied to the relevant trade union for information and must be treated as 'Confidential'
Payment of Market Supplements
- The payment of a market supplement is recommended to the Vice-Chancellor,
using Appendix 1 attached. Any supplement paid is subject to an annual review
by the Director of Human Resource. The outcome of that review could be one of
the following:
- The supplement is continued at the same %
- The supplement % is increased if more than 1% increase change in market data is identified
- The supplement % is reduced if more than 1% decrease in market data is identified.
- Once the supplement has been authorised by the Vice-Chancellor, the supplement
is paid to all posts covered using the following criteria:
- The entitlement will be paid with immediate effect and expressed as an annual cash amount
- The employee will continue to progress incrementally up their evaluated job grade and receive any inflationary pay awards.
- The supplement will be detailed separately on the employees pay slip and expressed as an additional payment.
- The supplement will be pensionable and will be reviewed annually.
- If the outcome of an annual review is that the supplement is to be reduced or removed, the employee(s) concerned will be given 3 months notice in writing of this before it was applied. All changes to supplements, whether increased, reduced or removed will be done through recommendation by the Director of Human Resources and authorisation by the Vice-Chancellor.
- All employees entitled to a market supplement will be provided with a written statement of their entitlement and the criteria upon which the supplement is paid.
- If an employee moves to another role within the University that does not attract a market supplement, the supplement will cease immediately.
- Where a market supplement has been reduced or removed, there is no right of appeal.
- All market supplement payments will be reviewed regularly by the Director of Human Resource with a view to ensuring no bias is being applied, particularly in the area of gender. An annual report summarising market supplements payments will be sent for information to the Equality and Diversity Steering Group and the Joint Consultative Negotiating Committee.