Pay Strategy for Country- Appointed Staff

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1 Pay Strategy fr Cuntry- Appinted Staff

2 Cntents Overview...3 Audience...3 Respnsibilities...3 Glssary...3 Crprate pay philsphy...3 Plicy...4 Perfrmance-related pay...5 Cmmunicating pay infrmatin t staff...5 Page 2 f 5

3 Overview This sectin prvides infrmatin and advice n pay fr cuntry-appinted staff in British Cuncil ffices. The guidance shuld nt be used fr Enterprises (ENTS) staff, such as teaching and exams staff and UK-appinted staff verseas, wh are subject t different terms and cnditins f service. It cvers: pay plicy and philsphy ttal reward apprach t pay perfrmance-related pay cmmunicating pay infrmatin t staff. Fr infrmatin n pay systems and pay reviews fr cuntry-appinted staff, see Pay Systems fr Cuntry-Appinted Staff and Cnducting Pay Reviews fr Cuntry-Appinted Staff. Audience This sectin applies t cuntry-appinted staff nly. Respnsibilities This guidance shuld be read and fllwed by: Cuntry Directr Human Resurces (HR) managers ther managers wh are respnsible fr managing pay fr cuntry-appinted staff. Glssary The fllwing terms are used thrughut this sectin: Median: The term given t a salary that falls in the middle f a list f salaries that are ranked frm the highest t the lwest. Upper quartile/lwer quartile/inter-quartile range: In a salary survey data, salaries that fall within the tp 25 per cent highest salary grup are said t be in the upper quartile range, while thse in the bttm 25 per cent lwest salary grup are said t be in the lwer quartile range. The middle 50 per cent salary grup is knwn as the inter-quartile range. Pay spread r range: Describes, in percentage terms, the width f a salary scale, between the minimum and maximum salary. Midpint: Used t dente the salary that is half way between the minimum and maximum. Pay differential: Used t describe the difference in salary between tw grades. It is ften expressed in percentage terms by calculating the difference between the midpint salary f the tw grades. Overlap: Describes, in percentage terms, the degree f verlap between the highest salary in a lwer grade and the lwest salary in the next higher grade. Crprate pay philsphy The British Cuncil's crprate pay philsphy is based n: the ability t ffer a cmpetitive package t recruit, retain and mtivate staff with the apprpriate set f skills, knwledge and cmpetence that enable the rganisatin t meet its business bjectives Page 3 f 5

4 t explre basing an element f staff reward n cntributin and perfrmance, rather than slely cmpensating staff fr lyalty r length f service, r simply basing salary n cst f living factrs nly. reward apprach The British Cuncil takes a ttal reward apprach t pay. In additin t the financial reward f base pay, benefits and allwances that are ffered t staff, nn-financial benefits are als an integral part f the verall reward package. These are typically: investment in learning and persnal develpment a gd wrking envirnment an pen management style individual empwerment. The ttal reward apprach reflects the view that staff, as individuals, are mtivated by a variety f factrs and nt just pay. It als seeks t cnvey t staff the British Cuncil's unique emplyment ffer. With this in mind, it is imprtant that adequate attentin and cnsideratin is given t the nnfinancial element f the reward package, fr example, by ensuring: investment in learning and develpment cmplies with the crprate guidelines f three per cent f payrll feedback frm the annual staff survey is acted n and implemented prmptly. Plicy The British Cuncil's crprate pay plicy is gverned by the UK Treasury guidelines which stipulate that the British Cuncil must neither lead nr lag behind the market in terms f pay. This means that the British Cuncil's pay stance must be aimed at the median r middle f the market, unless there are specific recruitment and retentin prblems. In this case, there is flexibility t mve tward the high end r upper quartile pay range f the market t recruit and retain apprpriate staff. Pay plicy is determined by fur factrs: market practice, recruitment and retentin issues, cst f living r inflatin and affrdability r budget. Nne f these factrs, individually, influence pay but rather cllectively help infrm decisins n pay. Hwever, affrdability r budget plays a significant rle. It is nw crprate plicy t de-link frm the Freign and Cmmnwealth Office's (FCO) pay and benefit system. De-linking frm the FCO prvides verseas ffices a number f advantages, ntably the ability t determine, plan, implement and cntrl pay accrding t the specific needs and requirements f the British Cuncil. All ffices that have nt de-linked already shuld be planning t de-link as sn as is practicable. Staff salaries are nrmally paid in lcal currency. Hwever, staff may be paid in hard currency in sme circumstances, such as when the cuntry's ecnmy is severely in crisis and it is market practice t pay salaries in hard currency. If a British Cuncil ffice wishes t pay salary in hard currency, apprval is required frm Head, HR Pay and Emplyment Relatins (HR PER) in HR, Lndn. Page 4 f 5

5 Perfrmance-related pay Perfrmance-related pay is mandatry fr staff in the UK because f Treasury requirements and has becme part f UK pay plicy. Overseas, British Cuncil ffices have mre scpe n whether t link pay t perfrmance. If any British Cuncil ffice is cnsidering intrducing perfrmance-related pay, it must: cnsult extensively with staff t ensure there is buy-in and clear understanding f what perfrmance related pay will entail prvide training n perfrmance management and persnal develpment (PMPD) fr all staff put in place an annual mderatin prcess t ensure perfrmance ratings are applied cnsistently thrughut the ffice. Cmmunicating pay infrmatin t staff It is very imprtant that plicy n pay and hw the pay system wrks is clearly cmmunicated t staff, as they need t understand hw their pay is determined. Clear cmmunicatin n pay plays a big rle in establishing gd emplyee relatins and individual cmmitment and mtivatin. Therefre, all British Cuncil ffices must ensure the terms and cnditins f service dcument includes infrmatin n the pay plicy, pay system, pay scale and benefits. Page 5 f 5

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