Human Resources PRP AWARD POLICY. October 2013
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1 Human Resources PRP AWARD POLICY October 2013 Revised September
2 1. Background The University recognises and values the hard work, commitment and achievements of all staff. Performance Related Payment (PRP) is designed to enable the reward of exceptional contribution and performance. As such it is a valuable tool for management if used effectively and in a consistent manner. This paper defines the policy for the award of PRP. The principles apply across the whole of the University to both CSAS departments and the Faculties. The PRP scheme operates at the discretion of the President and Vice Chancellor, who will determine each year whether the scheme will operate and, if so, the level of funding available. There is no contractual entitlement to participate in the scheme or to receive a payment under the scheme. 2. Eligibility Once it has been determined that the PRP scheme will operate, details of funding available will be issued by the Vice-President, Human Resources to Executive Board members who will disseminate to all teams. The PRP scheme is open to all staff at Level 6 and below and is linked closely to the annual appraisal review. Employees need to have a minimum of six months service and have successfully completed non-academic probation (where applicable) before being eligible for nomination for a PRP. An employee is eligible for a PRP only when an appraisal is completed (or in the case of a line manager if they have not submitted the completed appraisals for their team) and returned by the required date. Employees can self-nominate for a PRP but their line manager has to sign the documentation to confirm if they support the case or not. Where a colleague nominates another colleague for a PRP and they are not the line manager, this will also need to be signed by the line manager of the nominated employee to confirm if they support the case or not. Such proposals will be considered via the relevant process (see Section 5, Process). Employees who are in their notice period will not be eligible for PRP awards unless they are under notice of redundancy or dismissal on grounds of ill health. Employees who are currently under a live disciplinary warning cannot be nominated for a PRP. 2
3 3. Key Principles a) The link with appraisal Appraisal is at the core of a number of HR processes, including recognition and reward. It is the normal expectation that the outcome of the annual appraisal will inform the individual and the line manager about whether an application for a PRP will be appropriate. Therefore a PRP will not be awarded to an employee unless their appraisal is complete or to a line manager if they have not submitted the completed appraisals for their team by the required date. It is a normal expectation that an employee achieves their set objectives as set out in their annual appraisal and this alone is not justification for a PRP award. b) The link with funding Subject to the amounts of funding available, prioritisation of considerations for PRP should normally reflect appraisal ratings, with those who receive the highest rating considered first (exceptional) then those who receive the second highest rating (exceeds expectations) and finally those who receive the middle rating (successful in meeting expectations). Line Managers may choose to propose proportionately higher payments for those with higher appraisal ratings. Employees receiving the rankings of ( requires some improvement in meeting expectations ) and ( requires significant improvement in meeting expectations ) should not normally be nominated for a PRP. Exceptional performance on a project or some other task which takes place outside of the normal parameters of an employee s role and appraisal objectives could also result in consideration for a reward. c) The link with Grade In cash terms, Line Managers may choose to take an individual s grade into consideration when determining the level of PRP being proposed. It is recommended that Line Managers look for an equitable distribution of the percentage of an individuals salary being proposed as PRP relative to their performance rating, regardless of grade. Line Managers should also ensure that staff are given equal consideration for PRP payment, regardless of grade. 3
4 d) Equality and Diversity Line Managers must consider the fairness of PRP proposals ensuring allocations are made on the basis of performance and contribution. Recognising our commitment to equality and diversity, no group, or individual, should suffer a detriment on the basis of equality and diversity where their performance matches or exceeds that of those in other peer groups. e) Team Proposals Where a Line Manager considers that a whole Team s performance merits the proposal of a Team based PRP, this is allowable under the terms of the Scheme. Where Teams are rewarded, the level of reward should normally be the same for each member of the Team. f) Other Principles i) PRP will be paid as a one-off non consolidated, non pensionable payment and will be subject to tax and national insurance deductions. ii) The normal means for rewarding additional hours worked is, where contractually stated, through time off in lieu (TOIL) not PRP. 4. Criteria PRP is normally awarded as a result of Appraisal rating. There may also be exceptional occasions when contribution in respect of a one-off task or project work or a sustained exceptional contribution in role may result in a proposal. Examples of how an employee may meet these are detailed below (these lists are not exhaustive). Exceptional contribution in respect of a one-off task or project work A one off task or project is, by its nature, of finite duration. It is therefore most appropriate to reward exceptional contribution in such a task through a one-off payment. Evidence of exceptional contribution may include but is not limited to: Completing the task/project ahead of schedule and with exceptional effectiveness Commitment above and beyond the call of duty in dealing with exceptional events 4
5 Handling an unexpectedly complex task successfully and within agreed timescales Sustained exceptional contribution in role Applications should normally demonstrate that the exceptional contribution has been sustained for at least 6 months and is expected to continue for the foreseeable future. Evidence of sustained exceptional contribution may include but are not limited to: Achieving results consistently meeting, or exceeding objectives and agreed deadlines. Demonstrating excellence working at a consistently high standard and providing the best quality service to students, staff, colleagues and customers. Finding innovative solutions working with creativity to analyse problems and develop innovative and workable solutions. Embracing and enabling change creating and contributing to a climate that encourages innovation, challenging the way things are done and being receptive to new ideas. Developing self and others a commitment to own development and supporting and encouraging others to develop their knowledge, skills and behaviours. This criteria recognises sustained exceptional contribution in the role and not additional sustained and substantive responsibilities on top of their normal duties of the role. This may be rewarded in other ways, please see the Job Evaluation Procedure for further details. The Line Manager is responsible for assessing contributions to determine if they lead to consideration for an award. 5. Process a) Faculty The Faculty Executive Dean will be responsible for setting up a local Faculty Committee to consider the recommendations put forward for Faculty staff. Applications must be submitted to the Faculty by the required deadline. 5
6 The Faculty Committee will consider all the recommendations and Faculty decisions will go to the PRP Review Group for ratification. Details of who is on the Faculty Committee can be provided by Human Resources if required. b) CSAS The relevant Executive Board member will ensure an appropriate process is in place for the Directorate to agree proposed PRP awards. The decisions from each Directorate will go to the PRP Review Group for ratification. 6. The PRP Review Group The PRP Review Group will consider all recommendations and approve outcomes as applicable. They can ask for recommendations to be reconsidered if they decide that to be an appropriate action. The Vice-President, Human Resources will monitor awards across the whole University in order to ensure fairness and consistency. Information on the allocation of PRP will be provided to the Campus Trade Unions at the conclusion of the PRP. Membership of the PRP Review Group will include: Vice-President, Human Resources (Chair) Provost and Executive Vice-President Chief Operating Officer Deputy HR Director (Services) 7. Level of award The level of the award will be determined by the level of funding made available. Awards should be meaningful and reflective of the contribution. It would be unusual for awards to be less than 150 gross or more than 3000 gross. Typical awards are in the region of subject to contribution and funding available. 8. Appeals There is no right to appeal against the non-award of a performance related pay award. The decision of the PRP Review Group is final. Staff will usually receive an explanation if they have been unsuccessful in an application for PRP. 6
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