A7.3: Main page
Performance pay 2012/13
The 1st July 2012 pay award is valid for this year (1 July 2012 - 30 June 2013) only. The 2012 pay award reflects the 2011 pay award; the main points are:
- The 2011-2012 pay scales have not been revalorised
- There are increases in scale minima for Pay Bands B - E
- The standard pay points and maxima for Pay Bands A - G remain the same.
- The Band A progression steps have been removed, the maxima remains the same
- There are 3 levels of performance; commensurate, exceptional and unacceptable. Allowances will remain at 2010 levels, the only exception being where an allowance is calculated as a percentage of base salary.
- Performance pay
- Commensurate awards
- Exceptional awards
- The nomination process
- The composition of the Performance Review Panel
- The role of the Performance Review Panel
- Guidance on performance pay and involvement in project work
- Notification of awards
- Unacceptable performance
- Performance related pay
- Capping above standard pay
- Treatment of individuals above maxima
- Treatment of employees whose progression award takes them through standard pay or a cap
- Pensionability of non-consolidated performance payments
- New joiners
- Extended unpaid leave
- Feedback information
Performance pay is a key element of the 1 July 2012 pay award agreed with the Trades Union. There are 3 categories of performance:
All employees who are assessed as commensurate or above will receive performance pay as part of their pay award. All employees will have their performance assessed into the 3 levels above; the majority being commensurate. Exceptional awards are decided on by nominations to a performance review panel. There may be some employees who are assessed as unacceptable if they are in the formal stages of the unsatisfactory performance or attendance procedures or where deferment or withholding of a pay increase has been imposed as a disciplinary penalty.
Employees who are not nominated for an exceptional award but whose performance has met the requirements of the job will be assessed as commensurate.
The individual's performance is consistent with the requirements of the job and pay band. The individual meets the requirements of the job in the main areas of responsibility. Key job objectives are achieved. The individual uses appropriate learning opportunities to acquire knowledge and skills needed to perform the job fully effectively.
The mechanism for determining an exceptional award is through an Institute-run performance review panel, which will receive nominations from line managers/ co-signatories about their employees. Self-nominations will not form part of this process. If a line manager/ co-signatory would like to recognise a team effort, s/he can do so by nominating each team member individually.
Performance is significantly above the requirements of the job and pay band, taking into account levels of experience. Key objectives have frequently been exceeded, or additional objectives have been achieved, in addition to those agreed at the start of the review period. The individual has made a major contribution to the work of their team/organisation or has otherwise enhanced the reputation/status of the establishment. Outputs have exceeded the expectations established for that particular role. The individual actively seeks out additional responsibilities and relevant new work challenges, in the process expanding their job scope and contribution. S/he is proactive in enhancing knowledge and/or skills which are relevant to the requirements of the establishment through appropriate learning opportunities.
3.3 Performance factors
Individual performance will be assessed by reference to a combination of performance definitions (above) and performance factors (below).
- Output - Quality and quantity of the individual's work will be assessed. Note will be taken of key objectives being achieved or exceeded, of particular achievements during the period and of any sustained high quality performance.
- Ideas - Recognition will be given to ideas which have made a clear contribution to increasing the efficiency, quality and work output of the organisation or taking forward corporate objectives.
- Responsibility - Recognition will be given for those taking on responsibilities for work with internal colleagues or external customers and delivering positive outcomes where these may not have been clear at the beginning of their work. The willingness of the individual to regularly take on extra responsibilities when necessary will also be recognised.
- Value - Where the work of the individual brings recognition and reputation benefits to the organisation, team or department, this too will be recognised.
3.4 Other factors
In judging an individual's performance, consideration must be given to their job and pay band. Particular care should be taken to consider staff in the lower bands for whom some of the performance factors listed above may be more difficult to demonstrate owing to the nature of the work. Similar considerations may apply to some part-time jobs.
Nominating an employee for an exceptional award is not part of the APDR process. It will take place following the APDR review and should affirm what was said within this review. However, if no APDR has been completed, then an employee will not be able to receive an enhanced performance award.
In around May each year, line managers and co-signatories will be invited by HR to make nominations for exceptional awards. A copy of the nomination form can be found at appendix A7:3i and all relevant parts of the form must be completed. It is important that line managers and co-signatories refer specifically to the definition of exceptional and the performance factors in the nomination form. Line managers and co-signatories are also strongly encouraged to indicate to their employees whether or not they have been nominated for an exceptional award.
BBSRC operates a system of fully open reporting. The job holder will be entitled to see all sections of the completed nomination form. It is the responsibility of the HR Manager to copy the nomination form to the employee, after it has been fully completed by the line manager and the co-signatory.
In around June each year, the completed forms will go forward to a Performance Review Panel for evaluation and decision. It should be noted that a nomination for an award is not a guarantee that an award will be granted.
- The performance review panel must be representative of the management structure of the establishment and be representative of the organisation in terms of diversity. The membership should be such that the group is able to consider nominations from all groups of employees
- The Director will not normally sit on the Performance Review Panel as s/he may be needed to act as an independent assessor if a grievance is raised
- All panel members should liaise with their local HR Manager to ensure that they have current knowledge to avoid unfair discrimination occurring
- At each establishment, INCCs are to be advised of the proposed membership of the panel and are invited to comment
- The Chair and panel members will be provided with a copy of the performance award form for each nominee and a copy of their most recent APDR. The Chair will control the cost of issuing exceptional awards. The cost must be the equivalent to that whereby 20% of employees in Bands A to E receive exceptional awards
The role of the Performance Review Panel is to consider which nominations to approve. If insufficient information is provided to the panel, further information should be sought.
The review panel should consider whether nominees have already been rewarded for work highlighted in their nomination. If an employee has already been rewarded for a specific piece of work (for example through a special bonus award) the panel should take this into account. The HR department will need to provide a summary of in-year performance-related remuneration to the Panel.
It is essential that the assessment of nominations is a paper exercise. Advocacy by members of the panel should be discouraged.
If an employee has worked on a long term project during or throughout the appraisal year, this should be included in their PPDR objectives and they should be rewarded, if applicable, through the performance element of the pay award.
If an employee has worked on a short term project or played a role for a short period in a long term project which did not from part of their initial objectives, they should be rewarded, if applicable, through the special bonus scheme.
Where a number of employees have been involved in the same project, care should be taken to ensure consistency of treatment.
For the purposes of consistency, a short term project/involvement is defined as lasting 3 months or less.
If you are to receive an award you will be notified in writing as soon as possible, (normally within 2 weeks of the decision being made). If you are nominated but do not receive an award you will be given the reason(s) in writing by the Panel Chair or his/her representative, also within 2 weeks of the decision.
9. Unacceptable performance
Unacceptable performance may be defined as a situation where an individual fails to meet key objectives, but where it is considered (a) that they had access to the necessary training and resources (including their own time) and also (b) that it would have been a reasonable expectation on the part of management for the individual to have achieved the objectives in question within the timeframe specified.
- Scenario 1 - Staff whose performance or attendance is unsatisfactory, but who are subject only to informal action receive no performance pay increase - though revalorisation will be applied. Ongoing performance will be monitored.
From the date on which performance/attendance/conduct returns to the fully acceptable level during the relevant pay settlement year, the performance pay increase will be applied and may, at management discretion, be backdated to the start of the pay settlement year (rather than the date of return).
- Scenario 2 - Staff who are in the formal stages of the unsatisfactory performance or attendance procedures or whose conduct is subject to formal disciplinary procedures will receive no pay increase (subject to not falling below the minimum of the pay band). Ongoing performance will be monitored.
From the date on which performance/attendance/conduct returns to the fully acceptable level during the relevant pay settlement year, pay will revalorised, effective from the date of return. There will be no entitlement to a performance pay increase.
The table below indicates how performance relates to the 1 July 2012 pay award:
- Commensurate performers will receive two steps or 2% on the RC pay scales
- Exceptional performers will receive three steps or 3% on the RC pay scales
|Level of Performance||Position in pay scales|
|Between min and standard pay (SP)||Between SP (100%) and 105% cap||Between 105% cap and 115% cap||Above max and salary|
Please see paragraph 10 above for a description of what happens if performance is unacceptable.
Performance increases at or above standard pay are subject to two caps at 105% of SP and 115% of SP (scale max). Commensurate performers will have the scope to move from 100%-105% of SP; exceptional performers will have the scope to progress to 115% of SP. Moving between these pay ranges is explained in more detail below:
Commensurate performers will receive a consolidated performance pay increases of 1% a year plus a 1% non-consolidated payment, until they reach 105% of SP. At that point, they will pause, in terms of consolidated pay progression, unless their performance increases to exceptional level - when they would receive further consolidated pay progression.
Commensurate performers who reach the 105% cap will however receive a non-consolidated performance payment of 2% each year while their performance remains at commensurate level.
Employees whose performance is at least commensurate will therefore progress to 105% of SP (and have scope to progress further through enhanced performance).
Exceptional performers will receive consolidated performance pay increases of 2% (plus 1% non-consolidated) a year for as long as their performance remains at that level and until they reach 115% of SP. At that point, they will pause in terms of consolidated pay progression.
Exceptional performers who reach the 115% cap will however receive a non-consolidated performance payment of 3% each year while their performance remains at exceptional level.
Whilst in the 105%-115% range, previously exceptional performers will receive a 2% non-consolidated performance payment each year if their performance moves to commensurate level. If their performance level subsequently returns to exceptional level they will receive a 2% consolidated performance payment (capped if necessary at 115%) plus 1% non-consolidated.
Employees whose performance is maintained at an exceptional level for a sufficient period will therefore progress to the scale maximum.
At that point, consolidated pay progression will stop and they will remain on the maximum but continue to receive annual, non-consolidated performance payments (3% for exceptional and 2% for commensurate).
Employees on personal maxima are entitled to performance pay (as detailed above) but this will be paid as a non-consolidated amount. Employees who reach the maxima will not be able to receive further consolidation above this point.
- If pay progression takes an employee through standard pay, they will receive the full pay award in consolidated form
- If pay progression takes an employee through a cap at 105% or the max at 115%, they will receive the balance of the performance payment (above cap) in non-consolidated form
Non-consolidated performance payments are not pensionable and therefore will not be taken into account when calculating overtime or other similar payments.
Subject to meeting the performance criteria, all staff in post on settlement date, including new starters with 6 months service or more, will receive a full progression award. The exception to this rule is where starting salary has been set taking account of scheduled pay increases.
- Staff with 3 months service or more, but less than 6 months will receive progression of one step
- Staff with less than 3 months service will not receive a progression increase
If you are promoted at any point before the 1 July increase, you will receive the full pay award based upon your new band.
If you are promoted on the 1 July, you will receive the full pay award based upon your previous band: that is, the promotion increase is calculated after the standard pay award and any appropriate progression is applied.
Prolonged absence covers instances such as sick absence, maternity leave, sabbaticals and compassionate leave, which extend beyond the normal annual leave entitlement. If you are absent for less than one year, for these or other reasons that we agree to, this will normally be ignored for the purposes of awarding progression increases. If you have any queries, please refer them to your HR Manager. Your performance assessment will be based on the quality of work undertaken when actually at work, with your objectives adjusted to take account of the circumstances. All employees should have a APDR (even if they are absent when APDRs are being completed). Employees who are absent for more than nine months will normally have their pay award determined on the assumption of a commensurate performance. However, in some circumstances, there may be sufficient reason to award an exceptional award or an unacceptable performance assessment based on the period actually worked.
Where an employee has been absent for a period in excess of a year, such as arising from a career break or extended sick absence, starting pay on return to work will be calculated by applying the "stop the clock" principle to salary at the start of the period of absence as follows:
- Where salary was a specific reference point in the pay band (e.g. a step or standard pay) they will be returned to that point as revalorised over time
- Where salary was above standard pay they will be returned to that point as revalorised over time
P&D Group will request performance pay data by equality group on an annual basis for employees on BBSRC terms and conditions so that it can monitor pay equality. INCCs should also consider this information annually.
Last updated 11/02/2014
Amendment 170 - February 2014