Section A7: Pay and allowances:

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:

  1. Performance pay
  2. Commensurate awards
  3. Exceptional awards
  4. The nomination process
  5. The composition of the Performance Review Panel
  6. The role of the Performance Review Panel
  7. Guidance on performance pay and involvement in project work
  8. Notification of awards
  9. Unacceptable performance
  10. Performance related pay
  11. Capping above standard pay
  12. Treatment of individuals above maxima
  13. Treatment of employees whose progression award takes them through standard pay or a cap
  14. Pensionability of non-consolidated performance payments
  15. New joiners
  16. Promotion
  17. Extended unpaid leave
  18. Feedback information

1. Performance pay

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.

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2. Commensurate awards

2.1 Determination

Employees who are not nominated for an exceptional award but whose performance has met the requirements of the job will be assessed as commensurate.

2.2 Definition

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.

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3. Exceptional awards

3.1 Determination

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.

3.2 Definition

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).

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.

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4. The nomination process

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.

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5. The composition of the performance review panel

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6. The roles of the performance review panel

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.

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7. Guidance on performance pay and involvement in project work

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.

8. Notification of awards

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.

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9. Unacceptable performance

9.1 Determination

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.

9.2 Definition

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10. Performance related pay

The table below indicates how performance relates to the 1 July 2012 pay award:

Performance related pay

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
Con. Non-con. Con. Non-con. Con. Non-con. Con. Non-con.
Commensurate 2 Steps - 1% 1% 2% 2%
Exceptional 3 Steps - 2% 1% 2% 1% 3%

Please see paragraph 10  above for a description of what happens if performance is unacceptable.

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11. Capping above standard pay

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:

11.1 Application to “commensurate” performers on or above SP

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).

11.2 Application to “exceptional” performers on or above SP

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).

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12. Treatment of individuals above maxima

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.

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13. Treatment of employees whose progression award takes them through standard pay or a cap

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14. Pensionability of non-consolidated performance payments

Non-consolidated performance payments are not pensionable and therefore will not be taken into account when calculating overtime or other similar payments.

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15. New joiners

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.

16. Promotion

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.

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17. Extended unpaid leave

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:

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18. Feedback information

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.

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Last updated 11/02/2014
Amendment 170 - February 2014