Policy purpose and scope
This policy outlines our approach to reward and recognition, providing a transparent view of our remuneration approach.
We are committed to recognising and rewarding employees in proportion to the contribution they make to the business, to incentivise employee engagement and effectiveness and attract and retain a skilled workforce. This information is also approved by TPR Board and Remuneration Committee.
TPR's job evaluation and reward approach was revised through a major organisational project between 2017 and 2019, followed by a subsequent more tailored review in 2020. This policy reflects the new approach implemented in February 2021.
Detailed guidance on each section of this policy can be found on the intranet. This policy applies to all employees (permanent and fixed term) and is non contractual.
Our approach to total reward
The reward arrangements have been designed to enable us to be a high-performing organisation and to meet our strategic objectives. The basis for this is a system that enables the organisation to:
- pay all staff competitively for the role that they are appointed to carry out against a clear comparator market
- offer pay progression related specifically to performance
- reward performance over and above the requirements of the role with non-consolidated bonuses
- provide an attractive benefits package
As an organisation we provide more than just competitive salaries to attract and retain high calibre staff. Our approach to total reward comprises:
- cash benefits including:
- market-related salaries
- annual performance-related pay review
- potential market premium supplements
- non-consolidated annual bonuses for those performing over and above the requirements for the role
- civil service pension arrangements
- lifestyle benefits including:
- annual leave entitlement
- excellent sickness absence support
- flexible working arrangements
- flexitime
- salary sacrifice schemes where eligible, such as the ride to work scheme
- discounted travel scheme
- career and personal development including:
- formal and informal training and development opportunities that enable individuals to develop role related competencies
- support for professional qualifications as appropriate
Reward principles
Our reward approach is underpinned by a set of reward principles. Everything related to our reward approach is aligned to these principles and they are used a reference for anything we do relating to reward or any changes or developments moving forward.
Equitable
- Our approach to reward ensures employees are fairly and equitably compensated for their contributions
Simple and transparent
- We aim to keep our approach to reward as simple as possible and based on clear logic
- We will be open and transparent in communicating to employees on reward and the basis that it is determined
- We are open and transparent about the rationale for and substance of our reward approach
Consistent
- We will ensure that all reward and job evaluation decisions are supported by effective training and governance
- We empower our managers to make consistent reward decisions in line with our reward principles and policies
- We provide training and guidance for those involved in determining reward and job evaluation
Provides market competitive pay and Total Reward
- We aim to provide a competitive total reward package that attracts, motivates and retains required talent while acknowledging the nature of TPR as a public sector organisation
- We will ensure flexibility to enable us to pay appropriately for critical skills and experience, whilst working within the determined reward framework
- Whilst base pay is a significant component of our employment proposition, our offer is further supplemented with additional reward elements such as pension, annual leave, flexitime and learning and development opportunities
Supports performance
- We will offer additional reward where performance goes beyond expectations and is accompanied by behaviours in line with TPR's values
- Performance may also be recognised through development and promotion opportunities
Provides value for money
- We will regularly review our approach to reward to ensure affordability
- As a public body, we will ensure we demonstrate best use of public money
Job evaluation
Job evaluation is a systematic way of determining the relative size and weight of different roles.
We use the Hay job evaluation method to ensure roles are weighted consistently. We then map roles to our reward and grade structure, to ensure a fair and equal pay system, and to ensure consistency of salaries against other internal roles.
Trained internal evaluators interview the line manager of the role, focusing on the required know-how, problem-solving and accountabilities of that role.
Our approach to job evaluation gives us greater role clarity and makes it easier to identify key transferable skills across job roles at TPR. We carry out a job evaluation each time a new role is identified or when an existing role has changed substantially.
Grades and performance-related pay
All roles are job evaluated and allocated to the appropriate grade within our grading structure (see appendix). Our grade ranges are benchmarked against salaries in the South East and London, public and private sector using the Hay pay database. This database is updated twice a year and holds pay data for over 400 organisations.
Further pay groups have been established using an additional set of market pay data from Willis Towers Watson (WTW). These groups have been formulated where the WTW data showed significant variances to the Hay pay database. The groups ensure that all roles across TPR are paid in line with the different markets and specific skills required across TPR. Our base grade structure is below.
| Grade | Role |
|---|---|
| 1 | CEO |
| 2 | Executive Director |
| 3 | Director |
| 4 | Head of |
| 5 | Business lead |
| 6 | Principal |
| 7 | Lead Specialist |
| 8 | Specialist |
| 9 | Lead Associate |
| 10 | Associate |
| 11 | Officer |
| 12 | Lead Administrator |
| 13 | Administrator |
| 14 | Assistant |
| 15 | Coordinator |
The additional pay groups fall between grades 4 and 9. The pay groups are outlined below.
Grades 1 to 15 - Regulatory and Operations
Grades 4 to 9 - Advisory
Grades 4 to 9 - Technology, Data and Digital
Each grade has a pay band with a minimum, mid-point and a maximum pay. Performance related pay enables individuals to move up within the pay band, depending on the position they are currently at within the band.
This will not apply in the top two grades. In those grades, although a similar range was identified to that created for all other staff, most of each is over-ridden by the Civil Service pay cap. This will severely limit or prevent altogether the application of these progression arrangements, as they are applied to their grades.
Individual pay is reviewed annually on 1 April each year for performance in the year ending 31 March as part of our annual pay remit submission to the Treasury. A discretionary pay increase may be applied, which will take into account the outcome of individual performance and development ratings, current position in grade, and affordability within our pay remit.
Our pay bands are reviewed annually on 1 April in line with inflation. A detailed review will also be undertaken in respect of each role that attracts a market premium (see below) annually, to consider any market movement. External restrictions such as public sector pay freeze’s may also impact our ability to apply pay increases or inflation.
Market premia
We recognise that some roles require expertise which is in short supply in current economic conditions, and may therefore typically command higher rates of pay in other organisations than is feasible within our normal pay bands. This in turn may lead to recruitment or retention difficulties.
Therefore in exceptional cases, we may apply a market premia for these roles. In such cases, a percentage increase of 10%, 15% or 20% will be applied to the pay band for the role.
We will follow a clear and consistent procedure for the determination, implementation and review of any market premia. This will ensure:
- we comply with equal pay legislation
- a clear and demonstrable business need exists
- an objective assessment of appropriate evidence has been carried out
- all other approaches and potential consequent affects on other roles within TPR have been fully explored (including non-pay issues) before a market premium is applied
- premia are regularly reviewed to ensure any change in market data is taken into account
Managers may make a case for the application of a market premium to a new or existing role, however new premia will only be approved where a clear business need can be demonstrated, supported by objective market data. These will be identified through advice from our reward partners, Korn Ferry and Willis Towers Watson, and approved by the Executive leadership team as an when a premia is requested.
Market premia will be reviewed annually and any changes will be submitted to the Executive Committee. The premia will be applied, increased, reduced or withdrawn in line with this review to all staff in the relevant roles. Notice will be given of any change in accordance with the terms and conditions.
Acting up
Where an interim role is identified, an individual may be moved into this for a set period of time, either to provide immediate support in the absence of a permanent incumbent or during a period of organisational change.
Consideration should be given to a ring-fenced process to ensure that all suitable applicants are given the opportunity to apply. In some cases a recruitment process may not be required, however the relevant manager must work with HR to business case why the individual selected is suitable to fulfil the role for this period of time.
When an employee acts up in to a role, they assume the full duties of that role for an interim period. They will move into the relevant grade and pay band the role sits within and be placed on a new salary within this pay band (usually the bottom). This will be a fully pensionable interim contract change.
Additional duties
In some instances it may be necessary for an individual to take on some additional responsibilities usually undertaken by another role. This allowance will usually be calculated as up to an additional 30% of their existing salary.
The individual will be expected to continue with their existing role in full for the duration of the allowance. The allowance will be pensionable and will be reviewed on a regular basis to ensure it is still appropriate and in line with business requirements.
Bonus
Our annual discretionary non-consolidated bonus scheme is designed to reward performance over and above the requirements of the role.
Line managers make their assessments of staff performance in April each year, for the year ending 31 March. Where a line manager is satisfied that an individual meets the criteria for a bonus they will assign one of three bonus ratings (see table below).
These ratings will take into account performance in terms of demonstrating TPR values and behaviours, achievement in excess of individual objectives and demonstration of competencies over and above the requirements of the role over the past year.
| Performance rating for bonus | Bonus payable as percentage of salary |
|---|---|
| Exceptional performance | Up to 20% |
| Strong performance | Up to 10% |
| Special award | Up to 5% |
Nominations for Exceptional and Strong performance must be for consistent performance at that level throughout the assessment period. A special award is used to reward an outstanding one-off achievement, or where the individual has exceeded the expectations of their role in one or more objectives for a significant proportion of the performance year.
Bonus nominations are subject to a multi-level moderation process to ensure fairness of application across the organisation.
Additional reward and recognition
In addition to pay, we have the following reward initiatives and benefits that feed in to the total reward package:
- paid overtime
- TPR star nomination
- small thank you
Separate guidance on each of these can be found on the intranet.
Related policies and guidance
- Recruiting to pay bands guidance
- Market premia guidance
- Bonus guidance