Human Resources

2.0    Procedure

2.1    Business Case Process

Determination of market supplements will be made on a case by case basis. Line managers seeking to make the case for a market supplement are advised to discuss the case with the Executive Dean (as the main budget holder), School Manager or Head of Professional Services at an early stage and contact their HR partner who will provide guidance on the most appropriate process to follow taking into account the need to take timely and robust action. Care should be taken to ensure that the process is in compliance with equal pay legislation and that a robust evidence based approach has been used to assess the suitability of the market supplement.

 2. 1.1    Selection Criteria  

Line managers can select from the following range of criteria to apply the market supplement:

  • To maintain parity with market conditions for key posts;
  • For short/medium appointments of staff with exceptional skill or experience;
  • To secure the recruitment or retention of an individual with a funding grant;
  • To secure the recruitment of an individual at short-notice due to exceptional circumstances as an interim measure, subject to review, in line with the timeframe set out in the College Recruitment and Selection Policy;
  • To retain an individual with specialist skills or knowledge to maintain current activities; or
  • To match a rival offer of employment.

Although it is recognised that there may be other criteria that apply, line managers should consult HR in the first instance to identify which is the most appropriate.

A range of supporting evidence should be used in each case which may include but is not limited to the following:

2.1.2    Recruitment

  • Relevant documentation relating to the recruitment process, e.g. job description, person specification and role and budget approvals etc. and documented evidence to show recruitment attempts for the post(s) in the preceding six months were unsuccessful.
  • External labour market information documenting key market data such as advertisements for similar roles highlighting higher pay rates or specialist data from head-hunters, pay data services or market reports.
  • Confirmation of funding award/grant.
  • Where an individual or group of individuals are employed on the basis of exceptional skill or knowledge to a particular post, group of posts or programme(s), a written agreement will be produced documenting the key deliverables.

2.1.3   Retention

  • Consistent evidence relating to retention issues such as resignation letters, job offer letters, high rates of staff turnover (compared to national rates), and exit interview data, if appropriate, highlighting an association with unsatisfactory pay or benefit levels.
  • Internal quantitative and qualitative data such as student feedback or student retention data.
  • Documented evidence to show that non-pay benefits such as learning and development opportunities have been offered, working hours and flexible working options have been reviewed.
  • An evidence base to show that the College is in need of specific expertise which is in short supply or the loss of a particular individual or group of individuals poses a business risk to the College, making a replacement appointment(s) of similar calibre unlikely.
  • Line managers are advised to consult with HR to determine which evidence can be collected to support the business case.

2.2   Approval and Sign-off

Following a discussion with HR, the line manager should obtain an endorsement of their business case from their Executive Dean, School Manager or Head of Professional Services, as appropriate. If the business case is sound and supported by the evidence, a application should be submitted to the Director of HR for approval and countersigned by the College Secretary/Master. HR will retain a copy of the business case documentation and the final decision made. HR will write to the individuals being considered for a market pay supplement and the appropriate line manager to notify them of the outcome. HR will ensure that where a market supplement has been applied to a post(s), it will be applied to any other identical existing post and post holders in the College where the relevant criteria  or situation applies.

2.3    Pilot Programme

To ensure the policy is meeting the need for the College to maintain flexibility in the application of the policy and competitively recruit and retain key staff, HR will pilot the policy on a 12 months basis, noting:

  • the number of market supplements applied and exceptions to this process,
  • timescales from offer to implementation,
  • barriers and challenges,
  • consistency of application of MPS,
  • quality of the evidence used to justify the supplement, and
  • costs and benefits to operate the policy.

2.4    Monitoring and Review

The application of market supplements will be monitored by the HR department for equal opportunities purposes. Market supplements will also undergo review by the line manager in consultation with the relevant HR partner on an annual basis and no later than 3 months before the supplement is due to end, to ensure that supplements are still appropriate and where necessary, adjustments made to accommodate market variations. A meeting will be held between the line manager and HR to consider:

  • Whether the market supplement has resulted in an increase in staff appointments in hard to recruit areas or a decrease in staff turnover in relation to pay and benefits;
  • The possible impact (business risk) on recruitment/retention levels if the market supplement were reduced or withdrawn;
  • Variations in the labour market; and
  • Relevant data from external sources recruiting/retaining similar staff.

Where the review concludes that the supplement should be:

• Increased – HR will document the rationale for the change and communicate the uplift to the member of staff and line manager via a written notice of variation and applied from the review date.

• Retained because there has been no change in market conditions, existing supplements will remain at the current level until the next review.

• Reduced or withdrawn – HR will document the rationale for the change, undertake discussions with the line manager and member of staff to communicate the change and reduce or withdraw the supplement following a three month written notice of variation. During this period, the supplement will continue to be paid at the existing rate and then either reduced or removed.

Information collected at the monitoring and review stage will be fed into a wider policy review and consultation with stakeholders following the first year of application of the policy and then subsequently into appropriate audit reviews.

2.5    Termination of Market Supplements

Should the member of staff move to an alternative post, which is not eligible for a supplement the supplement will cease from the date the member of staff commences the new role. Where the member of staff is redeployed to another position within the College, which is not eligible for a market supplement, the supplement will end from the date of the redeployment. In the event that the member of staff resigns from their post, the market supplement will cease with immediate effect.

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The HR team is based on the first floor of Egmont House
Postal address: Human Resources, Birkbeck, University of London, Malet Street, London WC1E 7HX