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Date: June 2021
Document summary
This policy sets out the options available to address recruitment and retention difficulties through the use of additional payments, where recruitment difficulties cannot be addressed through other means such as job redesign, regrading or targeted advertising.
Enquiries
Recruitment Support Team, 01273 335733 recruitmentsupport@eastsussex.gov.uk
Contents
Recruitment and retention incentives
§ All other options for addressing the recruitment and/or retention difficulties must be exhausted before a business case for a recruitment incentive payment, including a market supplement payment, is submitted.
§ Eligibility is based on evidence being provided to support the business case and subject to an approval process.
§ Payments cannot be discussed with job applicants or staff until the payment has been approved.
§ An employee can receive more than one incentive payment as long as there is a clear business case for why more than one payment is being applied.
1.1. A recruitment and retention incentive is a payment and/or condition of employment that is attached to a post to assist a recruiting manager to secure an appointment to a post that is difficult to fill or to retain existing staff.
1.2. There are two types of payments that can be applied:
1.3. Incentive payment: A payment which is made to an employee on condition that they remain employed with the Council in the role the incentive payment is being applied to for a minimum of 2 years. Repayment is required if the employee leaves before the end of the 2 years.
1.4. Market Supplement: A payment is made to all employees in a certain role or to some employees in the role where certain conditions, such as geographical location or professional specialism apply. The reason for making the payment is to compete with external pay rates for the role or skill set(s). The payment is agreed for a fixed period and no repayment of the market supplement is required if the employees leaves the role.
2.1. The recruiting manager must provide clear and objective evidence of recruitment difficulties for a vacant post or evidence of a risk of retention issues when putting together a business case for a recruitment incentive payment to be made.
2.2. The following evidence should be included in the business case:
· Job grading, and job redesign options have been exhausted.
· Internal and external markets have been sufficiently tested, including considering secondments internally or with partnership organisations. Such evidence might include the response rate to a previous advertisement both in terms of quantity and quality.
· Details of how the role has been advertised, including any rationale for not using advertising partners where this option has not been used.
· Evidence of skills shortages, locally and/or nationally.
· A costed comparison of alternative options to address recruitment and retention difficulties, to demonstrate this option is cost-effective.
· Identify any potential equality issues, consider the effect this payment might have on other members of staff undertaking similar work and identify any mitigations to address issues identified.
2.3. For Market Supplement request, HR&OD will identify the following for the business case:
· The market in which the County Council is competing for staff.
· The salary levels in that market for staff with the skills, experience and qualifications required by the County Council.
· Any non-pay items of the remuneration package that might provide a recruitment/retention incentive will also be measured against the County Council requirements.
3.1. Incentive Payments
3.1.1. When an appointment has been made with prior approval for an incentive payment, up to the value of 20% of salary may be paid in order to secure the appointment.
3.1.2. The amount will be determined with reference to the size and quality of the response to the advertisement and whether there are alternative candidates that could be appointed.
3.1.3. Payment can either be made as a lump sum or in instalments over a period of up to 2 years. The timing of such payments is discretionary, but the maximum number of payments should not exceed 4.
3.1.4. Payments are subject to tax and national insurance deductions and pension scheme contributions.
3.1.5. The payment will normally be calculated on the pro rata salary for part time employees. A rationale for not making the payment pro rata would need to be included in the business case.
3.1.6. Repayment will be required if the candidate should leave within two years of appointment, on the following basis: full repayment in the first year, reducing by one twelfth for each month of service during the second year of appointment. Directors may vary the repayment provisions in exceptional cases, for example, redundancy or being unsuccessful during the supported introduction to employment.
3.1.7. If the post is not permanent, it must be of two years’ duration to qualify for a payment in order to be consistent with the repayment provisions outlined in paragraph 3.1.6.
3.2. Market Supplements
3.2.1. The value of payment will be set based on the external market data, taking into consideration any non-pay items of the remuneration package the Council offers, which external market comparators cannot match.
3.2.2. Payments are made monthly as a separate and identifiable addition to salary.
3.2.3. Payments are subject to tax and national insurance deductions and pension scheme contributions.
3.2.4. The payment is not a permanent addition to salary and is subject to variation. Market supplements are typically agreed for a period of 1 year but can be agreed for a period of up to 3 years.
3.2.5. The value of market supplements will be reviewed prior to the agreed end date. Following a review, it might be appropriate to continue the market supplement for a further period, vary the value of the market supplement or discontinue the market supplement to reflect current market conditions. In the event that a payment is to be reduced or discontinued, it will be done after three months’ notice to the members of staff concerned.
4.1. The appropriate departmental Chief Officer, in consultation with HR&OD and the Chief Executive, will be responsible for making informed decisions based on the research data about appropriate levels of any proposed incentive payment. For schools the Head Teacher, in consultation with HR&OD, the school’s Governing Body and the Assistant Director of Children’s Services will hold this responsibility.
