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ITEM EX13

EXECUTIVE – 20 JULY 2004

SENIOR MANAGEMENT GRADING STRUCTURE

Report by Chief Executive

Background

  1. The job evaluation review for all Green Book employees was implemented from 1 June 2003. Subsequently in August 2003 the Executive set up a small working group to advise it on a grading structure for senior posts and to advise the Gradings Sub-Committee of the Democracy & Organisation Committee on any changes to individuals’ gradings that might result. Reviews have been completed for the pay of the jobs which make up the County Council Management Team and the Executive has received reports in respect of those jobs. A further review has now been undertaken covering Heads of Service and a number of other senior jobs in order to provide a consistent approach to the management of pay across the authority and because there was a recognised need for a coherent approach to the pay of senior jobs.

  2. The working group has now concluded its work on this second stage of the review and this report contains its recommendations to the Executive as required. Once the Executive has agreed the proposed grading structure, any resulting changes to the gradings of individuals will be dealt with by the Gradings Sub-Committee.

    3. Process

  3. A job evaluation exercise has been undertaken on 48 senior jobs. This list is made up of the Heads of Service posts and those jobs which report directly to them where these fall into one of the following categories:

    1. Jobs which are already graded on Chief Officer related grades;

    2. Jobs evaluated through the Green Book scheme to Grade 18, i.e. the top of this scheme;

    3. Jobs on Soulbury Grades equivalent to Grade 18 of the Green Book scheme or above which are primarily management jobs rather than schools advisory jobs.

  4. The evaluation exercise was carried out by Hay using their methodology. Assistance and advice was also received from South East Employers (SEE). This review has produced a grading structure for the senior jobs of the Council which is at Annex 1 (download as .doc file). The new grading structure provides a bridge with the Green Book grades and eliminates the gap in the continuity which previously separated the Green Book grades and those of senior officers.

  5. The salaries ascribed to the grading structure have been assessed following advice on market rates for jobs both nationally and regionally from the Hay database and research undertaken by SEE.

    6. Communication and Consultations

  6. All staff involved in this exercise have received briefings from management, Hay and SEE on the methodology and process. Trade Unions have been informed throughout the process and their views and comments have been taken into consideration.

    7. Principles

  7. The working group wish to recommend the following principles for the implementation of the new grading structure:

      1. the implementation date for any increases in pay will be 1 April 2004;

      2. performance related elements will not be considered at this time, but may be considered in future reviews;

      3. protection of pay for those whose grades are reduced by the process will coincide with those for Green Book staff, i.e. three years with effect from 1 April 2004 with protection for payment of outstanding annual increments and annual cost of living awards;

      4. there will be the right to appeal to a panel consisting of a fresh Hay evaluator and the Director of SEE, or her agreed nominee, representing the Council. Members and officers of the Council will not be involved in this appeal process;

      5. annual pay awards will continue to be paid in line with national negotiations. The pay of senior officers will be monitored continuously using relevant survey information to ensure that it continues to reflect the appropriate market rates. A further specific review will be undertaken after three years.

    Effects of the Implementation of the New Grading Structure

  8. The new grading structure will result in the following changes to pay among this group of 48 jobs:

    • 15 or 31% will receive a pay rise of between £1,000 and £15,000.

    • 9 or 19% will experience a reduction in grade after the protection period of between £2,000 and £5,000.

    • 24 or 50% will experience no substantial change to their pay.

  1. The proposed outcome would bring the pay for senior jobs in Oxfordshire County Council in line with the median for similar jobs in the region and the Council can now be confident that relativities among this group of jobs have been verified by a sound evaluation system. This should also allow the Council to resist any possible challenges on equal pay grounds, although this is less likely for this group than for the group covered by the Green Book scheme.

  2. The Green Book job evaluation scheme was phased in over three years so that the full effect for employees was implemented by June 2005. It is proposed to mirror this phasing to ensure parity of treatment of different employee groups by phasing the senior job evaluation pay increases so that they too give the full effect to the employees involved by June 2005. This also has the effect of reducing the cost in 2004-05 and 2005-06.

    3. Financial Implications

  3. If phasing is applied the costs of implementing the new grading structure will be approximately £33,000 in the first year, rising to a total maximum of approximately £131,000 as shown in Annex 2 (download as .doc file). This represents an increase of 3.8% on the pay bill for this group.

  4. This cost will be funded from within existing Directorate budgets.

    5. RECOMMENDATIONS

  5. The Executive is RECOMMENDED to:

          1. approve the new grading structure at Annex 1 (download as .doc file);

          2. agree to the phased costs of implementation of the new grading structure, to be found from within existing Directorate budgets;

          3. endorse the principles set out in paragraph 7 of the report.

RICHARD SHAW
Chief Executive

Background Papers: None

Contact Officer: Sue Corrigan, County Human Resources Manager Tel 01865 810280

July 2004

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