Version: V4
Ratified by: FIC
Date ratified: 28 July 2021
Job title of author: Head of HR
Reviewed by Committee or Expert Group FIC
Equality Impact Assessed by: Head of HR
Related procedural documents
Capability Policy (HRPOL29)
Disciplinary Policy (HRPOL14)
Statutory & Mandatory Training Policy (LDPOL3)
Performance & PDR Policy (LDPOL4)
Review date: 28 July 2024
It is the responsibility of users to ensure that you are using the most up to date document template – i.e. obtained via the intranet
In developing/reviewing this policy Provide Community has had regard to the principles of the NHS Constitution.
Version Control Sheet
Version Date
Author Status Comment
V1 February 2014 Bridget Acketts Ratified
V2 September 2016 HR Business Partner
V3 September 2020 HR Business Partner
V4 August 2021 HR Business Partner Addition of fraud wording
Appendices
Appendix 1 - Incremental progression assessment form progression assessment form
Appendix 2 - Template letters
Appendices 1 to 2 – available on the intranet.
Appendix 3 - Guidance notes for completion of the Incremental pay
Appendix 4 - Equality impact assessment
1.0 POLICY STATEMENT
Provide has a duty to provide high quality services to our stakeholders and partners, and strives to be a high performing organisation that continuously improves quality, safety and the patient experience. It is a key part of the organisation’s strategy to achieve its goals through maximising the contribution of each employee.
In support of this aim, and in accordance with AfC, this policy sets out the basis upon which an individual’s performance drives pay progression. It is expected that employees who can demonstrate the required level of performance and conduct, who have met their objectives and are compliant as regards their statutory and mandatory training will progress annually through the pay points in their salary band.
Provide is committed to ensuring that assessment of performance for the purpose of pay progression is objective, consistent and non-discriminatory.
2.0 INTRODUCTION
2.1 This policy and procedure has been locally agreed with the Provide Staff Partnership Forum to support the national amendments to the Agenda for Change Terms and Conditions of Service Handbook in respect of Pay Progression (Annex 23).
2.2 The 2018 Pay progression framework (Annex 23) agreement on the reform of AfC subsequently introduced provisions to move to a new pay system with faster progression to the top of pay bands through fewer pay step points underpinned by mandatory local appraisal policies and procedures.
2.3 These provisions came into effect for new starters or existing employees promoted to a new role on or after 1st April 2019.
2.4 Pay progression under Annex 23 is based on pay steps rather than automatic yearly increase in pay. Transitional pay progression procedures apply to all other staff until 31st March 2021, after which time they will also be subject to the provisions of the 2018 framework agreement.
Information on pay steps under Annex 23 can be found on www.nhsemployers.nhs.uk
2.5 Staff in post before 1st April 2019 will retain their existing pay step date (previously referred to as incremental date) and move automatically through their pay journey during transition. On their pay step date, (if they have not already benefited from deletion of a pay point) it is expected that they will automatically move to the next pay point reflecting their additional complete year of experience. The NHS Electronic Staff Record (ESR) system is able to progress existing staff automatically.
2.6 Staff in post after 1st April 2019.The amended terms and conditions state that pay progression through all incremental pay points in all Agenda for Change pay bands is to be conditional on individuals demonstrating that they meet locally agreed performance requirements such as satisfactory performance, conduct and demonstration of meeting all statutory and mandatory training requirements relevant to their role..
2.7 For staff on Agenda for Change pay & terms and conditions of service in posts banded 8C, 8D and 9, pay progression into the last two points in a band will become annually earned, and only retained where the appropriate local level of performance is reached in a given year.
2.8 Any amendments to the NHS terms and conditions of service handbook will supersede this policy as new pay arrangements are agreed. This policy will be updated to reflect any changes.
2.9 The procedure below sets out how these aims are to be achieved.
3.0 SCOPE
3.1 This procedure applies to all employees of Provide employed on Agenda for Change terms and conditions of employment and/or receiving a salary on the Agenda for Change payscale.
3.2 This policy will not apply to those employed on zero hour contracts, mediccontracts, Workforce Solutions (Bank) contracts or within the Support at Home directorate.
3.3 This policy will not apply to those who are not on incremental scales; for example Health Visiting Students.
4.0 PRINCIPLES
4.1 To ensure the procedure is simple to operate, performance will be assessed using tools and assessments Provide already uses.
4.2 Performance Review must be a continuous process that happens all year round to help ensure that employees are clear about their work objectives and the performance standards expected. Provides’ Performance & Developmental Review (PDR) Policy (LDPOL4) sets out the procedures for performance evaluation (reviewing achievements to determine a performance rating) and performance planning (objective setting, development planning, coaching and feedback) throughout the year. It is imperative this policy is followed.
4.3 There should be no surprises. Issues relating to an individual’s work or behaviour that arise should be addressed at the time they occur. An employee should be aware that issues with their work or behaviour may
result in their performance being assessed as unsatisfactory for the purposes of incremental progression. Issues relating to performance will be addressed through Provides’ Capability Policy (HRPOL 29) and issues with behaviour through Provides’ Disciplinary Policy (HRPOL14)
4.4 Ordinarily, pay progression should not be withheld on performance grounds unless there has been a prior documented discussion between the individual and the person undertaking their review. This discussion must be clear as to why there has been a failure to meet the required level of performance and on what basis (in line with the factors set out in the form in Appendix 1).
4.5 If there is an outstanding performance issue at the time of the review the employee will not be awarded their increment and will not be re-assessed until the following year. This prior discussion would need to identify areas for improvement and any reasonable developmental support the individual may need to operate at the required level of performance.
4.6 Where factors beyond an employee’s control, such as operational issues or cancellation of training, have prevented compliance and achievement of standards as set out in Section 6, these should not prevent the employee progressing to the next pay step. Managers need to take account of all such factors and employees must bring these issues to the attention of their manager at the earliest opportunity and not at the pay step review meeting so that these can be addressed and remedied.
5. KEY RESPONSIBILITIES
5.1 Chief Officers
Chief Officers are responsible for:
• Actively supporting this policy by ensuring that arrangements are in place for timely and well-managed reviews to be conducted and that all staff eligible for incremental progression within their Business Units/Services receive an annual review.
• Acting as reviewers for appeals where the original decision has been made by an Assistant Director or Head of Service, as required.
5.2 Assistant Directors / Heads of Service / Deputy Directors / Managers
Assistant Directors, Heads of Service and line managers are responsible for:
• Ensuring that all staff they manage have an annual Performance and Development Review and that this is undertaken in a timely manner.
• Ensuring all staff they manage have regular supervision/1:1 meetings and a record is kept of discussions. This record should be signed by both the employee and the manager.
• Reviewing the individual’s performance and progress against specific, measurable, achievable, realistic and time-bound (SMART) objectives and providing feedback at regular intervals throughout the year through one to one meetings and formally reviewing objectives after 6 months using the PDR documentation.
• Ensuring staff are equipped with the necessary knowledge and skills to fulfil their role and meet agreed objectives.
• Reviewing evidence from these processes together with any evidence from HR Disciplinary or Capability processes and determining whether the employees’ performance is satisfactory, in line with this procedure. This should be done at least six weeks prior to the employee’s pay step date.
• Completing the pay progression review meeting and documenting this on the ESR Manager self service.
• Ensuring employees are released and supported to undertake mandatory training as determined by their role.
• Where progression is not supported the manager is responsible for informing the employee of this decision, ideally at a face to face meeting.
• Sending a letter to the employee confirming the outcome.
5.3 Employees
Employees are responsible for:
• Participating in the PDR process in a timely manner, both as
• Reviewees during their own individual review, and as reviewers for those with line management responsibility.Preparing for the PDR meeting and for the collection of any evidence required, including being up to date and fully compliant with mandatory training and CPD and to demonstrate how they have met agreed objectives or any agreed competencies for their role.
• Attending pay progression review meetings as required by their manager.
5.4 Human Resources
The Human Resources Department is responsible for:
• Administering the process
• Running reports showing those who are eligible for incremental increase and sending them to the relevant manager three months ahead of the incremental date.
• Providing advice
• Supporting any appeal Providing advice on how to manage incremental pay progression for those who are acting up into more senior roles, on secondment or in cases where there has been an employment break.
6.0 ASSESSING SATISFACTORY PERFORMANCE
Incremental/pay step progression may occur at any time during the year assessment may be different to the Performance Development Review (PDR) date. Provide’s PDR process
requires two formal meetings to take place each year and employees will have their performance formally assessed twice a year – one to establish the performance objectives for the year and the next to review progress made.
April - June
Full Performance Development Review
October / November
6 Monthly Progress Performance Development Review
Although a minimum of two meetings are required, in practice performance should be viewed as a continuous process. Therefore dialogue should not be limited to the formal meetings, but encouraged through the scheduling of regular one-to-ones/supervision meetings.
6.1 Satisfactory performance is to be assessed by considering evidence relating to an employees’ performance in the 12 months preceding their incremental date.
If there is any doubt regarding the evidence or assessment managers should seek advice from HR.
The manager should consider evidence in accordance with the table below:
Standards
Annual PDR Overall Performance
Score
Annual PDR CLIMB Framework
Score
6 Month PDR Review*
Capability Process
Disciplinary Sanctions
Mandatory Training
MANAGERS ONLY: 100% completion of team’s PDRs
Measure of satisfactory performance
An overall average score rating of 3 or above would indicate satisfactory performance.
An overall average score rating of 3 or above would indicate satisfactory performance.
An overall average score rating of 3 or above would indicate satisfactory performance.
The employee has not been subject to a formal Capability Process, in preceding 12 months prior to the incremental date. It does not include informal stages and does not relate to ill health capability.
The employee has not received any Formal Disciplinary sanctions in the 12 months prior to the incremental date.Verbal warnings, investigations and suspensions are not considered formal sanctions.
If a formal disciplinary sanction is in place at the time of the pay step date and is subsequently repealed, as a result of a successful appeal, the pay step will be backdated to the pay step date if all other standards have been met.
100% compliant in the 12 months prior to the incremental date
100% completion of employees’ PDRs
7. PAY PROGRESSION CRITERIA
Pay progression that falls within a prolonged period of agreed or recognised leave.
7.1 If a staff member is absent from work for reasons such as sickness, compassionate leave, jury service when a pay step is due, the principle of equal and fair treatment should be followed so that no detriment is suffered.
7.2 In the case of long-term planned absence such as maternity, adoption and shared parental leave, the pay step review may be conducted early if this is reasonable and practical, allowing a pay step to be applied on their pay step date in their absence. If the pay step review cannot be conducted, the pay step point should be automatically applied in the individual’s absence.
7.3 In line with the Career Break, the pay step date of any employee on a career break is frozen until their return to work. If the pay step date is imminent on their return then they will progress as normal to the next pay step point within their pay band to ensure they are not penalised. However, it is recommended that a review takes place to ascertain that their statutory and mandatory training is up-to-date and recorded as compliant. If the pay step date is 3 months or more in advance of their return the normal process would apply.
7.4 Employees on external secondment will undertake the pay progression procedure of the employing organisation.
Further guidance is available from the HR team
8.0 PAY SUBMISSION PROCESS
8.1 Line managers will receive ESR notifications before an employee’s next pay step date and will be required to organise a meeting to review with the employee whether the requirements as set out above have been met. This meeting will use the most recent PDR outcome. There is no entitlement to be accompanied to this meeting by either a work colleague or a union representative.
8.2 Managers will conduct the meeting with the employee and complete the relevant template via the Manager self-service on ESR to submit the return.
8.3 Managers must ensure that pay review meeting and submission on ESR is made in a timely way to ensure that the pay step point can be implemented on time. Managers should be aware of the pay cut off date of the 6th of the month.
8.4 Managers will be required to select one of three options within ESR:
1. Yes
2. No
3. Yes – following initial deferral
8.5 Where an employee meets all the pay progression standards the manager will complete the meeting summary template on ESR and select ‘Yes’.
8.6 Where an employee does not meet all the pay progression standards but there is an identifiable action that will remedy this, the pay progression can be deferred. The manager will complete the meeting summary template on ESR and select ‘Yes following deferral’.
For example, if an employee is not compliant with one aspect of their mandatory training due to being unable to attend the training as a result of service demands, the payprogression can be deferred until the employee has undertakenthetraining within an agreed time period.
The line manager should discuss and agree a plan with the employee for any remedial action needed to ensure that the required standards for pay progression are met, including a timescale, and how support will be given. The employee must take all reasonable steps to meet the requirements and the line manager must provide the necessary support.
8.7 Where an employee does not meet the pay progression standards the manager will complete the meeting summary on ESR and select ‘No’.
They then need to put one of the reasons for selecting no.
These are:
9. EMPLOYEES IN AGENDA FOR CHANGE BAND 8C, 8D & 9 POSTS.
9.1 The principles and standards for pay progression and then re-earnable pay for staff in bands 8c, 8d and9 are the same as for all other staff.
9.2 When an employee has passed through their pay step point to reach the top of their pay after 1 month they can re-earn an element of their pay if the pay progression criteria have been met.
9.3 In the year after an employee has reached the top of band 8c, 8d or 9, 5% or 10% of basic salary will become re-earnable. Where the pay progression criteria are met the salary is retained. If the criteria are not met salary is reduced by 5% or 10% of basic salary from the pay step date. The employee will be able to restore their salary to the top of the band at the end of the following year by meeting the criteria.
10. THE APPEAL PROCESS
10.1 The appeal process is a one stage process with the outcome being final. The appeal will be conducted as a documentary evidence review and will not take the form of a meeting/Hearing. The reviewer panel will consider the written statement of appeal from the employee together with the evidence for the decision submitted by themanager and determine whether or not the appeal should be upheld.
10. 2 An appeal should be lodged by the employee in writing within 10 days of receiving confirmation of the pay progression assessment from their manager. Employees’ who wish to appeal the outcome should write to the Assistant Director or Head of Service responsible for their service or the Chief Officer if the original assessment decision has been made by an Assistant Director or Head of Service. The appeal submission should detail all grounds/rationale for the appeal.
10.3 If a decision has been made to withhold an increment, this will continue to be held pending the outcome of the appeal.
10.4 Appeals will be rejected if they are out of time, or if they do not include the full grounds for appeal.
10.5 The appeal will be considered within 21 days of receipt of the appeal request. The appeal will be considered by a manager senior to the manager who made the original assessment decision and a member of the HR team. The manager will usually be an Assistant Director (or Chief Officer).
10.6 The appeal will be conducted as an evidence review and will not take the form of a Hearing. The reviewers will consider the statement of appeal from the employee together with the evidence for the decision submitted by the manager and determine whether or not the appeal should be upheld.
10.7 The decision of the panel should be confirmed in writing by the reviewing manager no later than 5 working days after the review, outlining the decision reached. The employee should be informed that there is no further internal right of appeal. A copy of the outcome letter will be retained on the employees’ personal file.
10.8 There is no recourse to the grievance procedure and therefore where a grievance is received that is about this process, the individual should be redirected to this appeals process and the grievance will be rejected.
10.9 Should an appeal be successful, the pay progression will be reinstated and back dated to the pay progression review date.
11. MONITORING
11.1 This policy will be reviewed after the first year of operation and then at least every 3 years in line with the Policy for the Management of Procedural Documents and more frequently in line with any legislative changes.
11.2 Review will be undertaken by the Head of Human Resources and monitoring will be conducted in respect of decisions taken and number of appeals submitted by equality strands. The need for improvement or clarification may be identified as lessons learnt, through using the process and where appropriate amendments will be made.
Appendix 3
GUIDANCE NOTES FOR COMPLETION OF THE INCREMENTAL PAY PROGRESSION ASSESSMENT FORM
The Incremental Pay Progression Assessment Form should be completed, signed and returned to HR at least one month before the individual’s incremental date. In order to meet the payroll deadline the form should be received by the 6th of the month in which the pay increment is due.
The form may be scanned and emailed – provided HR receive a signed copy there is no requirement for a paper copy to be sent.
Confirm the date of completion of all your PDRs, and all the ratings within ESR using Supervisor Self Service
1. Completing the Evidence Sections of the form
It is only necessary to complete the evidence section of the form if the employee’s performance is assessed as unsatisfactory. However, the manager may wish to use the form to record all assessments for their own benefit or records
The Overall Performance Score from Performance Development Review (PDR)
Part of the PDR requires the manager to evaluate performance against the objectives set as part of the PDR process in the previous year. These objectives are scored by rating each objective/measure and then using the average score as one overall rating. This is a 1 to 4 scale:
1 = Did not meet expectations
2 = Partially met expectations
3 = Met expectations
4 = Exceeded expectations
Values and Behaviours framework score from the PDR
The PDR also requires the individual and manager to assess and score their skills and behaviours against the Values and Behaviours Framework below:
• Care
• Innovation
• Compassion
The rating scale is:
• 4 = All of the time – you unfailingly display this behaviour
• 3 = Most of the time – you display this behaviour a lot / most of the time
• 2 = Some of the time – you display this behaviour some of the time but may be inconsistently
• 1 =Rarely – you rarely display this behaviour
Nine statements relating to the values are included. Employees and their manager are asked to review and rate the consistency that the behaviours are evidenced.
The 6 months review following on from the PDR
Six months after PDR objectives have been set there is a requirement to hold a 6 month review meeting. This meeting enables the individual and manager to take stock of progress to date, exchange views on how the employee is doing, ensure that the personal development needs are being met and provide any necessary additional support. Both parties score progress using the same 1-4 scale used in the full PDR.
An overall score should be calculated by finding the average of the Reviewer’s score and this should be entered in the evidence column of the pay progression assessment form. An overall rating of 3 or above would indicate satisfactory performance.
One to one meeting discussions
If the manager has had reason to bring issues to the attention of the employee during the scheduled one to one discussions this should be noted in the evidence column. Performance may be noted as unsatisfactory if issues are raised frequently (in more than half the one to one meetings) and require the employee to make more than a minor adjustment to work or behaviour.
If performance is marked as unsatisfactory due to one to one meeting discussions there is an expectation that unless there is an immediate improvement the employee will be subject to the Capability Process in the near future.
In order to mark one to one meeting discussions as providing evidence for unsatisfactory performance it is imperative that there is a written record of the discussion which has been signed by the manager and the employee.
Capability Process, both formal and informal
If an employee has beenworking to an action planagreed as part of the Capability Process performance at any time in the 12 months prior to the incremental date performance should be assessed as unsatisfactory. This applies only to the formal stage of the process.
In the evidence column it will be helpful to state the date of the first meeting under the Capability Policy and if the employee has successfully achieved the actions required as part of the process, the date the action plan was signed off as complete, should be recorded.
Disciplinary Sanctions
If the employee has received a Disciplinary Sanction within the 12 months prior to the incremental date, performance should be assessed as unsatisfactory. The date the sanction was applied should be recorded in the evidence column of the form.
It is important to note that being subject to a Disciplinary Investigation that found there was no case to answer, or attending a Disciplinary Hearing at which the allegations were unfound should not result in an assessment of unsatisfactory performance.
If allegations have been raised against the employee and a Disciplinary Investigation is in progress at the time of the assessment it will be reasonable to delay the incremental increase until the Disciplinary process has been concluded.
A staff change form should be completed stating the incremental increase is to be held until further notice. It is the managers’ responsibility to complete the assessment following completion of the Disciplinary process. If no Disciplinary sanction has been applied and the assessment of performance is satisfactory the incremental increase should be backdated to the date it was originally due.
Mandatory Training Compliance
If at any point in the 12 months prior to the incremental date the employee has been out of compliance with their Mandatory Training this should be recorded in the evidence column. There is some room for judgement here as to whether this constitutes unsatisfactory performance. Managers should consider why compliance lapsed. For example, if this is due to long term sickness absence, maternity leave or attendance at a training day was cancelled at the express request of the manager due to service need this would not be unsatisfactory. Mitigation should be given for any identified lapse in the comments column of the form.
2. Frequently Asked Questions
Q., How do we include staff on maternity leave?
A. The assessment should be completed prior to the employee going on maternity leave. This will then be considered in the following year’s assessment should the employee still be off on maternity leave.
Q. How do we deal with those on long term sickness absence?
A. If the employee is on long term absence, they should be managed in accordance with Provide’s managing attendance policy. The assessment should be completed with the information available. Where evidence is missing relating to performance in the preceding 12 months the manager should use data from the previous year.
Q. How do we deal with those with short term intermittent absence?
A. If an employee is having short term intermittent absence, the absence should be managed in accordance with Provide’s Managing Attendance Policy. Frequent short term absence on it’s own is not a reason to score performance as unsatisfactory, BUT their performance may be affected in which case they should be managed through the Capability Process and this will be considered as part of the assessment for pay progression.
Q. How do we deal with those on secondment (external/internal)?
A. It is the responsibility of your current manager to liaise with the manager of your substantive post to complete the assessment. Employees on external secondment will undertake the pay progression procedure of the employing organisation.