PUBLIC SECTOR
Updated guidance issued on reward reform in civil service
The civil service has updated its guidance setting out some of the practical steps departments can take to reform their reward structures. The document also outlines the seven principles agreed by civil service organisations.
The reward principles are designed to:
motivate staff so they perform to their best of their abilities
improve the service we provide by engaging, recruiting and retaining the right staff
allow us to achieve consistency across the civil service as a whole.
The document sates: “We want to help staff have a high quality of life through working in a forward-thinking, fair and flexible environment that rewards good performance. We have developed a set of reward principles which guide departments in the development of their own, individually-tailored strategies for reward.”
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DOCUMENT EXTRACT
Purpose
Delivering high quality public services requires a productive and engaged workforce with the necessary skills to meet operational needs. Reward is one of the key tools that employers have to attract, retain and engage the optimal workforce to deliver high performance services to their customers.
This framework is a key element of wider work to improve the operation of the delegated pay and conditions arrangements. It sets out the key principles within which employers can develop relevant, effective and affordable reward systems, which will enable us to:
improve service delivery through engagement, recruitment and retention of the right staff
drive an engaged and productive workforce
achieve an appropriate degree of consistency across the civil service as a whole.
This framework is consistent with the thrust of the pay and reward principles agreed by trades unions, employers and government representatives in the Public Services Forum (attached at Annex A).
It is recognised that delivering these principles will be challenging and in practice some of them may occasionally conflict but it is vital to have a framework within which optimal reward strategies and practices can be developed and operated by employing departments and agencies.
Section 1: Reward principles
1. Meet business need and be affordable
Business, operational and workforce needs are the drivers for a reward strategy.
Business cases outline benefits, risks and costs and justify investment.
Reward arrangements must be sustainable.
2. Reflect nature of work
Recognise and reflect workforce groups identified by function and skills utilised (e.g. operational, corporate or policy delivery service).
Organisations employing similar workforce groups in similar markets are encouraged to consider similar reward arrangements.
3. Recognise performance
Reward reflects the continuing value and the sustained contribution of an employee and their performance in a given period.
Value and performance rewarded reflect how jobholders contribute to their organisation, impact delivery and meet Professional Skills for Government (PSG) requirements.
4. Manage total reward
Reward includes all aspects of the “employee deal”; tangible and intangible elements of what is offered.
Total reward is tailored and promoted to attract, engage and retain the right talent as well as providing personal choice and flexibility.
Employers/employees need to develop a full understanding and appreciation of the value of the total reward package.
5. Manage all cash
Total cash comprises base pay and variable pay.
Base pay reflects job challenge and individuals competence in the job.
Variable pay reflects performance delivered against agreed objectives.
6. Face the market
Reward levels, generally and for specific skills, aligned with agreed market positioning to attract, motivate and retain the right talent.
Reward competitiveness covers each element of total reward (e.g. base pay, pensions, leave) and the overall deal.
7. Support equal pay
Eliminate direct and indirect reward discrimination and reduce any unjustified gender pay gaps.
Operate reward systems that are perceived by staff to be reasonable and transparent.
Reward systems and structures evaluated and kept up to date to ensure that they continue to meet the requirements of legislation.
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Want to know more?
You can download the reward principles document in PDF format from: www.civilservice.gov.uk/about/resources/pay/reward.aspx.
The civil service helps the government of the day to develop and deliver its policies as effectively as possible. It incorporates three types of organisation: departments; agencies; and non-departmental government bodies (NDPBs). The civil service works in a wide range of areas that touch on everyone’s day-to-day lives, such as education, health and policing. It employs 497,000 civil servants, almost three-quarters of whom work outside London and the South-East. To find out more visit www.civilservice.gov.uk.