PUBLIC SECTOR
Kent County Council to adopt "private sector style pay"
Kent County Council has begun consultation with staff and unions over proposals to transform its pay and reward practices.
KCC describes the revamp of its reward arrangements as a “bold and unprecedented move for a local authority”. The council is transforming its “Total Contribution Pay” process, whereby staff receive an annual salary rise of between a half and two incremental points, on the basis of their personal contribution.
The changes are designed to reward staff “more fairly and equitably”. Together with the council’s existing total reward package, this will take it much closer to private sector pay, with percentage level increases targeted towards each performance category.
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Local pay for Kent County Council was introduced in 1990 and local pay bargaining in 2004.
“It’s a process of evolution rather than revolution,” explains the council’s reward manager, Colin Miller. He adds: “It’s simply about reforming our pay to make it fit for the 21st century. A lot of our staff say they feel de-motivated by the current system and that it does not reward them for superior performance and that their earnings potential is limited because they are at the top of their pay grade. With the proposed changes, we hope to address this and reward all staff more equitably and fairly, according to their individual contribution.”
The proposals
1. Removal of annual incremental pay points
KCC intends to scrap annual incremental pay points from its pay grades and replace them with annual percentage increases assigned to each appraisal rating.
2. Non-consolidated payments for staff at top of grade
At the same time, the council plans to give staff at the top of their pay grade an opportunity to receive a one-off (non-consolidated) payment that is consistent with colleagues who have the same appraisal rating.
3. Number of appraisal ratings cut
KCC also plans to reduce the number of appraisal rating categories from five to four, to “help managers differentiate between levels of performance”.
Under the reforms, the Total Contribution Pay process will stay and the existing pay grade boundaries will remain, albeit subject to cost-of-living review. As Miller explains: “This isn’t a cost-saving initiative. We’re simply re-distributing the way that we allocate our individual pay progression monies to reward all staff more equitably and fairly.”
Implementation
The council recognises that “changing the process alone is a means to the end and not the end in itself”, so it plans to support managers fully in implementing the reforms. The project kicked off in November 2009 with the formation of a project team and dedicated staff and union consultation sessions.
If all goes well, the council hopes to be in a position to implement the changes in April 2010.
The proposed changes do not apply to school-based staff whose terms and conditions will be developed by the School Support Staff Negotiating Body (SSSNB), a new body set up by the government to develop a statutory framework of terms and conditions which will cover all maintained schools in England.
Total reward at KCC
Kent County Council already operates a “competitive” total reward package consisting of:
a flexible benefits platform – Kent Rewards
total reward statements – Reward Viewer
one-off cash or non-cash payments for excellent performance
the ability to buy and sell annual leave
flexible working opportunities
five days' training.
A final word
“Kent County Council always seeks to take the best from the private sector way of doing things and introduce innovations into local government where appropriate. This reform was needed and reflects our belief that our staff is our greatest asset.” - Roger Gough, Kent County Council Cabinet Member for Corporate Services.
Want to know more?
Kent County Council is “responsible for providing a wide range of services that affect the daily lives of people living, visiting or working in Kent”. These include roads, schools, social services, libraries, adult education centres, trading standards and planning. It’s one of the county's largest employers, with more than 44,000 staff working in a wide range of full and part-time jobs.
For more information on KCC’s employee reward package, visit: www.kent.gov.uk/jobs-and-careers/rewards-and-benefits.