MPA staff posts – pay review

Report: 5
Date: 21 July 2003
By: Clerk

Summary

In 2000 the MPA pay and grading structure was evaluated by the Hay Group based upon the roles that it was anticipated would need to be performed. For this reason it was agreed that Hay would re-evaluate the MPA roles after three years to establish what roles were actually being performed and whether there was any ‘pay drift’. The Hay evaluation is based upon the assumption that there is a 'fully acceptable performance'.

The results of that work have now been received. The Senior Management Team (Catherine Crawford, Peter Martin and David Riddle) agreed that as a general objective, the MPA should aim to pay existing staff within 10% of the upper quartile of the public sector. Where staff were more than 10% below the upper quartile figure, those individuals would be brought up to 90% of the upper quartile. This proposal was discussed and agreed with the Chair of the Authority and the Chair of the Human Resources Committee. It does not include the Clerk or the Treasurer, whose pay is determined by the Remuneration Sub-Committee.

A. Recommendation

That the Committee note the procedure outlined below.

B. Supporting information

1. In 2000 the MPA pay and grading structure was evaluated by the Hay Group based upon the roles that it was anticipated would need to be performed. The MPA’s Human Resources Committee and the Co-ordination and Urgency Committee agreed the MPA staff pay strategy should be based upon the following principles:

• The MPA is a small organisation;
• The MPA would need a small number of high quality staff. The consultants recommended a relatively aggressive pay position in the upper quartile of the public sector (London) market;
• Posts, particularly senior posts, will be required to work in flexible ways, because priorities will change;
• Staff will not be constrained by tight job descriptions as this will not help to achieve the MPA’s objectives;
• Staff should have the maximum opportunity to ‘contribute’ at any level and grow into bigger roles where they can; and
• The maintenance of an over elaborate grading structure would be time consuming and is not encouraged. On the other hand, there is some need to establish a loose sense of where jobs belong in the structure, for the benefit in particular of members, staff of the Metropolitan Police Service, and indeed individuals.

2. The Hay evaluation scheme is based on the description of the role compared with a standard set of descriptors, i.e. a set of statements that describe the aspects of a job. The most appropriate descriptors, in each category, for that job are selected from the set.

The Hay evaluation then allows for:

• Ranked jobs
• Clarification of job relativity
• job –based pay ranges
• rational ‘grading’ structures and
• comparability with external practice.

This latter point is very important, as salaries must be seen in the context of the overall remuneration package.

3. Within the MPA the following process was adopted:

• The size of each role was evaluated and has now been reassessed as individuals take on new, changed or simply different responsibilities.
• The job weight assessment is then linked to the Hay pay surveys, which are underpinned by job evaluation, to access current pay market information.
• The pay banding for each job is then established by reference to external data.

4. Over a two-day period, each role was evaluated by a team of Hay consultants and trained MPA staff.. None of the MPA staff was directly involved in the evaluation of their own roles or those of their respective teams.

5. The results of that work were considered by the Senior Management Team. It was agreed that as a general objective, the MPA should aim to pay existing staff within 10% of the upper quartile of the public sector. Where staff were more than 10% below the upper quartile figure, those individuals would be brought up to 90% of the upper quartile. This involves increasing the salaries of 25 staff. In implementing the increases, the Senior Management Team decided that any salary increase would be staged. This proposal was discussed and agreed with the Chair of the Authority and the Chair of the Human Resources Committee. It does not include the Clerk or the Treasurer, whose pay is determined by the Remuneration Sub-Committee.

6. The Hay exercise is specifically about the evaluation of posts. It is not concerned with the individuals who occupy those posts and the outcome of this exercise does not take into account, or seek to reward, performance. There is a separate negotiation underway in respect of the pay settlement for all staff for this year.

C. Financial implications

The cost of increasing the salaries of 25 staff to within 10% of the upper quartile is £75k and will be met from the pay budget for 2003/4.

D. Equality and diversity implications

The Hay evaluation methodology is value free. The results of the evaluation, by ethnic origin and gender, are outlined at Appendix 1.

E. Background papers

None

F. Contact details

Report author: Alan Johnson, HR, MPA.

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1

7 staff (out of 25) are from a visible ethnic minority (28%)

9 staff (out of 25) are women (36%)

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