URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=1896

Decision Maker: Human Resources Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Members received the report of the Chief Executive which outlined the Council’s approach to Market Supplements and Retention Payments and proposed an update to the Pay Policy accordingly.   The Human Resources (HR) Committee had approved the Market Supplement Policy Statement, as set-out in the Pay Policy, the previous year and the proposed revised Interim Market Supplement wording included an additional section as detailed in paragraphs 6 to 8 of the report. In addition, there was the introduction of an Interim Policy Statement, to be included in the Pay Policy, at paragraphs 9 to 11 of the report, which began to address the issues of retention.    Turnover had risen in the current year, which could result in service delivery difficulties in some areas. The Retention Payment Policy needed to be considered within a wider recruitment and retention strategy, which would be brought forward to the next HR Committee meeting.   The HR department had identified some cases where retention payments were essential now however, longer term, there would need to be other initiatives to support retention. The management of market supplements and retention payments would be tightly controlled and any expenditure would go through the Spending Review Panel before any payments would be made.   The proposed protocol for the application of market supplement payments was outlined in paragraph 3 of the report. Payments would be offered, in the first instance, at a rate of c30% of the difference between the highest Council package value and the highest package in the market for directly comparable roles, rounded down to the nearest £500. Initial market rate analysis indicated the service areas of Planning, Estates/Evaluation, Accountancy and Housing that might have roles eligible for payments c£2-3k, where the criteria was met. Further research was required to determine if there might be a business case for similar value market supplements to be paid to specialist roles in Revenues and Benefits and Digital, where the criteria was met.   The Council had so far identified that there were three categories of roles that were being impacted by both recruitment and retention: Surveyors, Environmental Health Officers and Project and Programme Managers. Although not an exhaustive list, the Council had a pressing need to recruit to and retain the posts identified and there did appear to be local movement in the market of local authorities in advance of Local Government Reorganisation. It was proposed that a double market supplement be added to the roles identified and the market tested urgently where those vacancies were waiting to be filled; some roles had been advertised three times, including the usual market supplement, without success. The maximum payments would be based on the grades that had previously been agreed, but would be twice that amount where the Council was finding it extremely difficult to recruit.   The Council had identified a number of areas where there was a “flight risk.”  In advance of the Policy, special permission was reached to make a retention payment to a surveyor to reduce that risk; this policy was only to be approved by the Senior Leadership Team and would require a MORI to be approved. The criteria for a retention payment was outlined in paragraphs 10 and 11 of the report.   Members were supportive of the proposed amended wording to the Council’s Pay Policy and agreed that the Policy be updated.   RESOLVED: That:   1)   the Council’s Pay Policy be updated with the following wording:    From time to time, it may be necessary to take account of the external pay market to attract and retain employees with the required experience, skills, and capabilities. Where necessary, the Council will ensure the requirement for such is objectively justified by reference to clear and transparent evidence of relevant market comparators, using appropriate data sources. This does not affect the Council’s in-house approach to managing equality of opportunity and does not affect the overarching responsibilities of the Council to manage pay through job evaluation or the internal job ranking linked to pay. Any additional payments linked to work and salaries will need to have a MORI approved if the cost will be more than £500. The only other way that approval can be granted, where time is vital, will be via the Senior Leadership Team (SLT);   2)   the updated element of the Pay Policy October 2025, as detailed in Appendix A, be agreed;   3)   the Interim Policy Statement, as detailed in Appendix A, be included in the Pay Policy; and   4)   the proposed Rother District Council protocol for the application of market supplement payments, as detailed in Appendix A, be agreed.   (The Chair had accepted this item onto the Agenda as an Additional Agenda Item to enable the HR Committee to consider this matter which could not wait until the next scheduled meeting of Committee in April 2026).

Date of Decision: October 22, 2025