Appraisal and Pay Progression Policy and Procedure Documents/App… · • Scoring for Pay Award • Pay Structure and Pay Step Points • Appraisal Process to Support Determination

Appraisal and Pay Progression Policy and Procedure

Approved By: Policy and Guideline Committee

Date of Original Approval:

31 July 2015

Trust Reference: B16/2015

Version: 3.0

Supersedes: 2.0 – February 2017

Trust Lead(s): Stephen Gulliver, Senior OD and Improvement Manager Kalwant Khaira, HR Lead

Board Director Lead: Hazel Wyton, Director of People And Organisational Development

Date of Latest Approval:

12 April 2019

Next Review Date: April 2022

Page 1 of 22 Appraisal and Pay Progression Policy and Procedure V3 approved by Policy and Guideline Committee on 12 April 2019 Trust Ref: B16/2015 Next Review: April 2022

NB: Paper copies of this document may not be most recent version. The definitive version is held on INsite Documents

CONTENTS

Section Page

1. Introduction and Overview 3

2. Policy Scope 3

3. Definitions and Abbreviations 4

4. Roles and Responsibilities 5

5. Policy Implementation and Associated Documents

• Measurement within the Appraisal Process

• Link to Talent Matrix

• Scoring for Pay Award

• Pay Structure and Pay Step Points

• Appraisal Process to Support Determination of Pay Progression

• SMART Objectives

• 360 Degree Feedback

• Pay Step Submission Process

• Decisions to Delay a Pay Step

• Re-earnable Process for Bands 8c, 8d and 9

• Absent from Work when Pay Step is due

• Retrospective Pay Awards

• Review

• Documentation

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6. Education and Training 19

7. Process for Monitoring Compliance 20

8. Equality Impact Assessment 20

9. Supporting References, Evidence Base and Related Policies 21

10. Process for Version Control, Archiving and Review of Document

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App A Pay Progression Pay step submission process 22 REVIEW DATES AND DETAILS OF CHANGES MADE DURING THE REVIEW April 2019 – To reflect the national changes outlined in the Agenda for Change terms and conditions of service handbook.Appraisal and Pay Progression Policy and Procedure V3 approved by Policy and Guideline Committee on 12 April 2019 Trust ref: B16/2015 Next Review: April 2022


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1 INTRODUCTION AND OVERVIEW 1.1 This document sets out the University Hospitals of Leicester (UHL) NHS

Trust’s Policy and Procedures for determining pay progression linked to appraisal for staff employed on Agenda for Change Terms and Conditions. It is linked to the Trust’s Appraisal Guidance for both managers and staff which are designed to support high quality appraisals. Managers and staff should familiarise themselves with this guidance in order to support pay progression decisions made in accordance with this Policy.

1.2 The appraisal process plays a critical role in identifying individual contribution

in the delivery of Trust objectives, giving individuals clarity about expectations and identifying learning and development needs to support delivery of these expectations and progress towards future career plans.

1.3 The appraisal is the joint responsibility between the individual and the

appraiser in which expectations and outcomes are agreed and reviewed. This review must take place at least every 12 months and should form part of an ongoing process with frequent and regular discussion.

1.4 It is the responsibility of all staff to perform their responsibilities and deliver

their objectives consistently throughout the year and in accordance with Trust values and their associated behaviours. Individuals are also expected to display appropriate levels of knowledge and skills.

1.5 This delivery will be rewarded with pay steps where appropriate and

applicable. 2 POLICY SCOPE 2.1 This Policy applies to staff employed on Agenda for Change Terms and

Conditions. 2.2 This Policy specifically excludes Medical and Dental Staff, Very Senior

Managers and Senior Managers employed on local terms and conditions for whom separate policies exist which operate in accordance with the principles contained within this document.

2.3 This Policy also excludes staff who work for the Trust but are not employed

under a Contract of Employment for example agency workers, staff working under an honorary contract or bank only staff.

2.4 This Policy has been developed in accordance to revisions to Agenda for

Change Terms and Conditions relating to pay progression applicable from 1 April 2019 and in accordance with the principles of Annex 23 of the aforementioned. This Policy also aims to support the pledges contained within the NHS Constitution and UHL’s Values.

2.5 It is the overarching purpose of this Policy to establish a fair, clear and

consistent set of criteria and processes to enable appraisers to make Appraisal and Pay Progression Policy and Procedure V3 approved by Policy and Guideline Committee on 12 April 2019 Trust ref: B16/2015 Next Review: April 2022


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decisions regarding the awarding of pay steps recognising that all staff demonstrating the required standard (outlined in section 6.4) will benefit from pay progression where applicable and appropriate. The overarching process for achieving this aim will be the appraisal and development review system.

2.6 This Policy aims to ensure that all staff are clear about the required standards

of performance, how this will be measured and how they will be supported in the achievement of these standards. Staff will be able to request a review of any decision undertaken by their appraiser with regard to pay progression.

2.7 In terms of broader aims, this Policy aims to:

• Promote effectiveness and performance at work • Promote equality for and diversity of all staff • Form an integral part of performance management and talent

management 2.8 To achieve these aims the Policy will operate in accordance with the following

principles:

• Equity and fairness • Shift from automatic reward for length of service to awarding for performance

and delivery • Measurement which is based on performance strength comprising of delivery

and approach adopted • Rewarding in line with Trust values and associated behaviours • Objectives set must be within the control of the individual

2.9 New starters: 2.9.1 Staff who are new starters to UHL are excluded from appraisal reporting for

the first 60 days following their start date. 2.9.2 Staff that have transferred over from other organisations, under Transfer of

Undertakings (Protection of Employment) Regulations (TUPE) 2006 (as amended 2014), are assumed to have an appraisal in place and are not excluded.

2.9.3 Staff in substantive posts who previously held ‘bank only’ contracts, have 60

days in which to have an appraisal. 3 DEFINITIONS AND ABBREVIATIONS 3.1 Appraisal is the two way meeting held between appraisee and appraiser in

which a review of performance for the previous 12 months takes place. This will include a review of the ‘what’ and the ‘how’ of the delivery of a set of objectives. Objectives will be set for the forthcoming year and a personal development plan put in place to support these. The appraisee and appraiser will also agree a talent rating based on the criteria outlined in UHL’s Talent Management Guidance where appropriate for staff in leadership roles.

Appraisal and Pay Progression Policy and Procedure V3 approved by Policy and Guideline Committee on 12 April 2019 Trust ref: B16/2015 Next Review: April 2022


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3.2 Appraiser is an individual who leads the appraisal process and annual meeting, providing feedback and on-going support to the appraisee.

3.3 Appraisee is an individual who receives feedback and support from the

appraiser on their performance and in identifying development needs in post. 3.4 Approach is a measure of the extent to which effort, skills, knowledge and

behaviours relating to our Trust values have been applied. 3.5 Delivery is a measure of the extent to which objectives have been achieved

taking into consideration complexity. 3.6 Pay Steps are pay awards which are available to be earned by staff on their

designated pay step date (the date on which they commenced in their current pay band) until the maximum point in the payscale is attained. The ability to progress will be dependent upon measurement of performance and delivery as outlined in this Policy.

3.7 Appraisal Review refers to an informal meeting held in between annual

appraisal meetings to review progress against objectives and development activities.

3.8 The Trust refers to University Hospitals of Leicester NHS Trust. 3.9 360 degree appraisal refers to the additional feedback sought from

managers, colleagues and subordinates in accordance with a set of standards or questions.

3.10 Delivery is a measure of the extent to which objectives have been achieved

taking into consideration complexity.

4 ROLES AND RESPONSIBILITIES 4.1 The Chief Executive has nominated the Director of People and Organisational

Development as responsible for strategic developments relating to pay and reward and implementation of Agenda for Change terms and conditions, assisted by the Generalist HR, Workforce and Learning and Development teams.

4.2 All Staff are responsible for:

• participating in the appraisal process each year, regardless of whether or not their next pay step date is that year, and completing documentation referencing evidence in a timely fashion.

• jointly agreeing their objectives and personal development plans with their line manager and making them aware of anything that is preventing them from achieving these objectives or undertaking the relevant training.

• participating in action plans in the event that an pay step is not awarded in any given year

• undertaking a review of their standards together with their line manager, completing local documentation as part of the pay step submission process



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• working with their line manager to ensure that all relevant statutory, mandatory and essential skills training is up to date.

4.3 All Managers/Appraisers are responsible for:

• carrying out annual appraisals and ensuring that these are fully completed. This responsibility should be included in every manager’s objectives and, for the purposes of this Policy, managers carrying out appraisals should be a minimum of Agenda for Change Band 4.

• undertaking training to ensure knowledge and understanding of their responsibilities in relation to this Policy and their equality responsibilities

• undertaking the appraisal no more than four months prior to and no later than the 15th (or nearest working day) of the month immediately prior to the month in which pay step is due. This will allow sufficient time for reporting to the Appraisal Coordinator and input into ESR by the end of the month in accordance with the process described in 5.7. Eg pay step due in November; appraisal must take place within the four month period July to October and must be notified to the Appraisal Coordinator by 15th October for input onto the system before 1st November.. By way of an example, please find a grid below:

Increment MonthMonths for appraisal to take place

Deadline for submission to Appraisal Coordinator

Deadline for input on ESR

January Sept Oct Nov Dec(15th) 15th December 31st DecemberFebruary Oct Nov Dec Jan (15th) 15th January 31st JanuaryMarch Nov Dec Jan Feb (15th) 15th February 28th FebruaryApril Dec Jan Feb Mar (15th) 15th March 31st MarchMay Jan Feb Mar Apr (15th) 15th April 30th AprilJune Feb Mar Apr May (15th) 15th May 31st MayJuly Mar Apr May Jun (15th) 15th June 30th JuneAugust Apr May Jun Jul (15th) 15th July 31st JulySeptember May Jun Jul Aug (15th) 15th August 31st AugustOctober Jun Jul Aug Sept (15th) 15th September 30th SeptemberNovember July Aug Sept Oct (15th) 15th October 31st OctoberDecember Aug Sept Oct Nov (15th) 15th November 30th November

The appraisal details must be input on ESR by 31st Decembereg: January increments need an appraisal betw een 1st September and 15th December)

• giving staff notice of the appraisal and allowing sufficient time for

preparation including the collation of 360 degree feedback • conducting an objective review of the individual’s work against the

required standards as part of the annual appraisal process, which should include an assessment of the employee’s achievement of any personal and/or organisational objectives, including values and behaviours agreeing performance objectives and expectations including those relating to UHL People Capability Framework which includes UHL Values and Behaviours

• agreeing an appropriate and resourced Personal Development Plan • reviewing submitted evidence to demonstrate that the staff member has

met the required standards, recording the outcomes of the appraisal



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discussion and deciding on and recording the decision regarding the award of pay steps if applicable

• completion of the Appraisal Data Capture tool • putting in place appropriate training and support for staff who are not

awarded pay steps in any given year • ensuring sign off of the appraisal outcomes via the appraiser’s line

manager and participating in reviews where appropriate • acting in a line manager capacity for direct reports undertaking appraisals

and making decisions with regard to pay progression • undertaking review discussions throughout the year in order to ensure the

appraisal process operates under the principle of ‘no surprises’, so that any concerns regarding performance and capability form part of prior discussion in advance of the appraisal in order to take remedial action at the earliest opportunity

• Completing the prescribed processing paperwork to ensure the award of pay steps in a timely fashion

• Undertaking appropriate reviews as described in this Policy where pay steps have not been awarded in connection with the existence of disciplinary and/or capability sanctions

• Completion of documentation in the event that a pay step is awarded retrospectively (exceptional circumstances only).

4.4 All those with line manager responsibility are responsible for:

• Undertaking all of the roles and responsibilities above where they are operating in the capacity of the appraiser for those covered by this Policy.

• ensuring that all employees have access to, and undertake, statutory/mandatory and any essential skills training

• demonstrating they have encouraged and supported the employee to achieve the standards required during each local appraisal process

• ensuring that staff understand what evidence they will need and its relevance to achieving the required standards

• Reviewing the fair and equitable application of standards and measures outlined in the Policy

• Undertaking a formal review of the pay progression decision where appropriate

• Ensuring that an appropriate plan of training and support is available for staff who are not awarded a pay step in any given year

• Ensuring no discrimination or bias towards any ‘protected characteristic’ group in the application of this Policy.

4.5 HR and Training are responsible for:

• Dissemination and training on this Policy for all staff and managers • Overseeing audit and compliance and implementing action plans • Ensuring ongoing equality monitoring to ensure there is no detrimental

impact on any protected characteristic group during implementation of this Policy.

5.6 Appraisal Coordinators are responsible for

• Entering information from the Appraisal Data Capture on ESR by the end of the month prior to the month in which the pay step is due



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5.7. Appraisal Reporting Requirements:

• Dates of completed appraisal meetings are to be reported by month end via the Appraisal Data Capture Tool available on Insite http://insite.xuhl-tr.nhs.uk/homepage/working-life/employment-info/hr-systems-and-payroll/appraisals

• The Appraisal Coordinators will input this information into ESR. • Collated and checked appraisal data is to be reported to the Trust Board,

and will be reviewed during the CMG Monthly Performance Meetings and actions will be cascaded from there.

5 POLICY IMPLEMENTATION AND ASSOCIATED DOCUMENTS 5.1 This Policy is designed to raise levels of performance in order improve levels

and quality of patient care at UHL whether individuals are directly or indirectly involved in the delivery of care. Individuals who meet required performance levels will be rewarded with a pay step where applicable. The principles and process of this Policy will continue to apply when the top of the payscale is reached.

5.2 In the event that performance standards are not met, principles outlined in the

Capability Policy will apply. 5.3 Robust application of this Policy should also see improvements in the Friends

and Family Test score and other quality indicators in addition to improvement in NHS Staff Survey results

5.4 Measurement within the Appraisal Process

Measure Detail/ Comment

1a Objectives - The delivery of objectives i.e. the extent to which objectives/job standards have been achieved (the what)

Best practice suggests that no more than six/eight objectives in total are set. Evidence around key achievements and key areas for development will provide the basis for rating each objective. This score will be combined with 1b to give a total score relating to performance strength (section 6.4 and 6.5) Wherever possible standardised objectives will be used.

1b Objectives - The approach adopted through the application of effort, skills, qualities and behaviours linked to our values in the achievement of

This will be measured across each of the values and associated behaviours. Evidence for scoring in this area will



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The appraisal process will incorporate four measures summarised below: 5.5 How the measures will be undertaken

In order to arrive at a score for an appraisal/talent rating outlined in 5.4, delivery of objectives and people capability delivery will be measured separately and then aggregated.

5.5.1 Measure 1a: Delivery of Objectives

The delivery score (D) is a measure of the extent to which the objectives were fully delivered, taking into consideration complexity and challenge. As outlined in 5.4, objectives (normally a total of six/eight) will be set with each objective to include considerations of:

o Quality o People o Performance and Operations o Finance

During the appraisal discussion, the appraiser and appraisee will discuss and agree a score out of 5 for each of the domains. The minimum score will be 0 (objectives not met) to 3 (objectives exceeded to a high standard). The scores

objectives (the how) be supplemented by evidence obtained from 360 degree feedback. This score will be combined with 1a to give a total score for performance strength (section 5.5 and 5.6)

2 Whether Core training is up to date

This measure will operate as an pay step bar i.e. if not achieved, there will be no pay step award. Consideration will be given if training is cancelled or not available through no fault of the appraisee. A further opportunity for award is available in specified circumstances (see section 5.8.9).

3. Sanctions - Whether there is a formal sanction in place under the Disciplinary, Capability Policies

The individual will not be considered to have met the required level of performance and therefore a pay step will not be awarded unless extenuating circumstances apply. This will apply where there is a live sanction in the 12 month review period and is subject to review by the manager/appraiser. (See section 5.8.9).



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will be evidenced through a description of achievements and areas for development to ensure there is a meaningful appraisal: Quality In relation to objectives: Achievements Developments Total Score (0-5)

People In relation to objectives: Achievements Developments Total Score (0-5)

Performance and Operations In relation to objectives: Achievements Developments Total Score (0-5)

Finance In relation to objectives: Achievements Developments Total Score (0-5)

Total Maximum Score out of 20

5.5.2 Measure 1b: Approach Measured Through the Application of Skills,

Qualities and Behaviours

This score is an overall measure of the application of behaviours and effort relating to our organisational values. For each of our values , the appraisee and appraiser will discuss and agree a score for each value, The minimum score will be 0 (behaviour not in line with this value ) to 5 (behaviour epitomises this value . The maximum score will be 25.

5.5.3 Measure Two: Core Training This will be a simple complete or not complete measure taking into consideration factors outlined in 5.4 section 2, above. There will be a further opportunity to achieve the pay step in the year as described in section 5.8.9.

5.5.4 Measure Three : Existence of a Formal Sanction

The appraising manager must take into consideration formal ‘live’ sanctions issued under both the Disciplinary and Capability Policies in the previous 12 month review period and ordinarily not award a pay step except in extenuating circumstances. Advice in making this decision can be sought from the original panel chair and/or the appraising manager’s line manager. In the event of any involvement by the line manager in determining whether there is a pay step, the request for a review will need to be referred to a manager who can make an independent decision. There will be a further opportunity to achieve the pay step as described in 5.8.9.

5.6 Link to Talent Matrix (Leadership Roles) 5.6.1 Performance strength is a measure within the Talent Matrix (see UHL Talent

Management Guidance). The bottom row (excluding high potential) is low



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performance strength, the centre row medium performance strength and the top row is high performance strength. This matrix also indicates approximately what percentage of staff would fall into each level of performance strength.

5.6.2 The scores from measures 1a and 1b will be combined to create a

performance strength rating and this needs to be reflected by managers in discussions with employees as to where they are placed on the Talent Matrix. The total possible score from measuring 1a and 1b is 45 (20 for delivery and 25 for approach). In terms of the Talent Matrix see proposed:

(i) Low Performance Strength = Total score for 1a and 1b of 0 – 18 (ii) Medium Performance Strength = Total score for 1a and 1b of 19 – 36 (iii) High Performance Strength = Total score for 1a and 1b of 37- 45

To be awarded an incremental award medium and high performance strength should be demonstrated.

5.7 Summary of Scoring for Purposes of Determining Pay Award

Taking into account the provision in both the Disciplinary and Capability Policies, appraisers will consider the guidance below when making their decision to grant the pay step award.

Level of award/ Performance measure

Incremental award

Low Performance Strength 0-18 (combination of delivery and approach)

No award

Medium Performance Strength 19-36 (combination of delivery and approach)

Award

High Performance Strength 37-45 (combination of delivery and approach)

Award

Core Performer

5%

Under Performer

5-10%

Under Achiever

5-10%

Good Contributor

45-55%

Key Performer

5-10%

Excellent Performer 5%

5%

Highly

Promising 5%

High Potential

5%

POTENTIAL

PERFORMANCE

Low High

Low

High

Solid Contributor

10-20%



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5.8 Pay Structure and Pay Step Points 5.8.1 The expectation is that all staff will meet the required standards and therefore

be able to progress through the pay structure. Therefore, the mandatory annual appraisal process should involve regular conversations between staff and their line manager to ensure the required standards are understood and additional support identified in good time.

5.8.2 Staff will progress to the next pay step point in their pay band where the

following can be demonstrated: • The appraisal process has been completed with outcomes in line with the

organisation’s standards • There is no formal capability process is in place • There is no formal disciplinary action live on the staff member’s record • Statutory and/or mandatory training has been completed • For line managers only – appraisals have been completed for all their

staff as required 5.8.3 Pay Structure:

5.8.4 The estimated time taken to reach the top of each pay band reflects the

minimum period of time staff must remain at each pay step point before progressing to the next.

5.8.5 It is expected that employees who meet the required standards at their pay

step date will progress to the next pay step point.

Core training incomplete See 6.4 section 2 and 6.8.3.

No Award

Formal Sanction under Disciplinary and Capability Policies *See 5.5.4 and 5.8.3

Ordinarily No Award



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5.8.6 Pay step points will be ‘closed’ on the payroll system (ESR). Line managers will initiate a meeting to review standards. Once the line manager is satisfied that the required standards, as assessed through their local appraisal processes, have been met, the pay step point will be ‘opened’.

5.8.7 It is expected that staff will achieve the required standards at the point of their

next pay step date. It is also expected that staff and their line manager should be aware of any problems in reaching the required standards before the pay step date. This will allow time for issues to be raised and possible solutions to be found.

5.8.8 Where a pay step is not awarded for performance strength, pay progression

will not be permitted until the next due date. An action plan will make reference to any training and support required and will be agreed between appraiser and appraisee. This will be reviewed regularly to enable future progression. The appraisee will be expected to focus on developing their performance over the next 12 months in order to reach the required standard; this will be supported by the appraiser and conducted through the Capability Policy.

5.8.9 There will be two opportunities to consider the award of a pay step part way

through the year. The first relates to Core training and the second relates to disciplinary and capability sanction: • In respect of Core training, completion by individuals (not covered in 5.4,

section 2) will be given an additional 12 weeks from the appraisal date to complete their training. If all requisite training has been completed within the 12 weeks, the pay step will be awarded 12 weeks after the pay step date (i.e. a deferral of 12 weeks). The pay step date will not be amended.

• Where the pay step has not been awarded as a result of the existence of a formal disciplinary or capability sanction as described in 5.5.4, the appraiser will review performance at 6 months from the due pay step date for first written warnings and 12 months for final written warnings with a view to awarding the pay step from that point in time. The pay progression date will remain unchanged.

5.8.10 Where the individual is at the top of the payscale 5.8.2 will equally apply in

terms of the action plan and development of performance. 5.9 Appraisal Process to Support Determination of Pay Progression

This should be read in conjunction UHL Talent Management Guidance. For staff in Bands 8A and below managers will need to ensure that there is alignment between an appraisal and the pay step date i.e. an appraisal discussion should take place no earlier than 4 months prior to the month in which pay step is due and no later than the 15th (or nearest working day) prior to the month in which pay step is due.

5.9.1 Step One Assess



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Prior to the appraisal meeting (2-3 weeks) the appraisee and appraiser will assess and score the previous years’ objectives in terms of delivery and approach and record evidence which is supplemented by 360 degree feedback.

5.9.2 Step Two Review

At the appraisal meeting, the appraisee and appraiser review and agree the above scores and agree the overall performance score. Using this score and an assessment of the measures summarised in 57 and 5.8, a decision is made on pay step award.

5.9.3 Step Three Plan

Appraisee and appraiser will agree objectives for the forthcoming year and plan development needs. If appropriate, particular attention will be given to raising performance to the required standard in the forthcoming year, through appropriate training and support. Appraisee and appraiser will agree the final dimension of the Talent Matrix following a discussion on ambition and potential (see Talent Management Guidance).

5.9.4 Step Four Line Manager Sign off

The appraiser’s line manager will ensure consistency and fairness and undertake formal ‘reviews’ where necessary. They will ‘sign off’ all appraisal documentation. Where a pay step has not been awarded, the appraiser will not refer the appraisal for ‘sign off’ until 10 working days have lapsed to allow sufficient time for the employee to request a review. The review option does not apply to staff at the top of their payscale.

5.10 SMART Objectives (Specific, Measurable, Achievable, Realistic, Time-

Bound)

Objectives will be set which meet the standards outlined in the Appraisal Guidance and must be measurable and achievable with sufficient stretch and challenge. Wherever possible, objectives will be standardised.

5.11 360 Degree Feedback

As part of ongoing development staff in line management roles should seek to undertake a 360 degree feedback against the Healthcare Leadership Framework giving examples of how behaviour is demonstrated. Staff without line management responsibility may ask three simple questions based on the ‘friends and family test’. • If you were a patient/ colleague would you wish to be treated/ supported

by me? • Do you believe I uphold the Trust Values and Behaviours? • Do I demonstrate a commitment to a high quality service?



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5.12 Pay step submission process 5.12.1 The pay step submission process is as follows:

i. Line managers will receive notification before an individual’s next pay step date and initiate a meeting to review whether the requirements for progression have been met. It is not necessary to schedule appraisals to coincide with pay step dates.

ii. The pay step decision must be recorded by completion of the appraisal paperwork.

iii. This will then be used as the basis for confirmation of movement to the next pay step point.

5.12.2 Pay step points will be closed on the payroll system. Once the pay step

review has been successfully completed the line manager must take the necessary action to open the pay step point by completing the appraisal data capture tool.

5.12.3 Line managers must ensure that the pay step submission process is

completed in a timely fashion to ensure that pay step points can be implemented in time for the staff member’s pay step date. This must take account of local payroll timescales (1st of the month).

5.12.4 If the last appraisal outcome was not satisfactory but remedial actions have

been successfully completed by the time of the pay step date the staff member will be able to progress without delay if they meet the other standards.

5.13 Decisions to delay a pay step 5.13.1 It is expected that staff will achieve the required standards at the point of

their pay step date. It is also expected that staff and their line manager should have regular discussions about any problems in reaching the required standards before the pay step date. This will allow time for issues to be raised and possible solutions found to enable the pay step point to be opened on time.

5.13.2 Where factors beyond the individual’s control, such as organisational or

operational issues, have prevented compliance with any of the requirements in paragraph 5.8.2 these should not prevent the employee from progressing. Managers should ensure they take full account of such factors and staff should bring these to the attention of their line manager as soon as possible (not waiting for the pay step review) so that these can be addressed and remedied.

5.13.3 In situations where standards have not been met, and there are no

mitigating factors sufficient to justify this, it is expected that an individual’s pay step will be delayed, subject to arrangements outlined in paragraphs 5.13.4 to 5.13.10.



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5.13.4 The line manager must use the pay step review meeting process in paragraph 5.12.1 to discuss the standards that have not been met and review previous discussions about these, consider any mitigating factors, and record their decision in the appraisal paperwork.

5.13.5 The line manager should advise the member of staff of their right to contest

any decision using the review process within the policy where the required level of performance is deemed not to have been met in line with the local policy. If this is upheld, the pay step should be applied backdated to the pay step date.

5.13.6 The line manager should also discuss and agree a plan with the staff

member for any remedial action needed to ensure that the required standards for pay progression are met, including a timescale, and how any training and support needs will be met.

5.13.7 The staff member must take all necessary steps to meet the requirements

as soon as possible and the line manager must provide the necessary support.

5.13.8 A further pay step review meeting should be arranged at an agreed date to

review progress and, where satisfactory, initiate the opening of the pay step. The effective date for progressing to the next pay step should be the earliest date that the relevant requirements are shown to have been met. The pay step date for future years will remain unchanged.

5.13.9 Where a pay step is delayed due to a ‘live’ disciplinary sanction, or a formal

capability process, the line manager should initiate a pay step review meeting before the expiry of the sanction or capability plan. This should be used to confirm that all other requirements have been met and to ensure that the staff member progresses to the next pay step, effective the day after the sanction expires. The pay step date will remain unchanged.

5.13.10 A disciplinary sanction cannot be applied retrospectively to delay a pay step

if it comes into effect after the pay step date. 5.14 Re-earnable process for bands 8c, 8d and 9 5.14.1 The principles and standards for pay progression and then re-earnable pay

for staff in bands 8c, 8d and 9 are the same as the principles and standards for all other staff.

5.14.2 Once they have reached the top of their band, the expectation is that all staff

will meet the required standards and will re-earn the relevant element of pay annually. The first point at which the re-earnable element becomes relevant is 12 months after employees have passed through their pay step point to reach the top of the band.

5.14.3 In the year after an employee has reached the top of bands 8c, 8d or 9, 5 per

cent or 10 per cent of basic salary will become re-earnable. Where the standards in paragraph 5.8.2 are met, salary is retained at the top of the band. If standards are not met salary may be reduced by 5 per cent or 10 per



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cent from the pay step date, subject to the provisions in paragraph 5.13.2. 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 required standards. The employee has the right to contest a decision to reduce their pay using the locally agreed procedure.

5.14.4 Staff on the top two points of these bands on 31 March 2013 have reserved

rights to the relevant point. This reserved right will be retained on a marked time basis. At the end of 2020/21, 5 per cent of pay will become annually earned and then, when annual increases to the top of the band add a further 5 per cent, annually earned pay will apply to 10 per cent of basic pay.

5.14.5 The application of the annually earned 5 and 10 per cent will only come into

effect following the implementation of clearly defined parameters from NHS Employers and / or a review of the UHL appraisal process.

5.15 Absent from work when pay step is due 5.15.1 If a staff member is absent from work for reasons such as sickness or

parental leave when a pay step is due, the principle of equal and fair treatment should be followed so that no detriment is suffered as a result.

5.15.2 In the case of planned long-term paid absence such as maternity, adoption

and shared parental leave the pay step review can be conducted early if this is reasonable and practical, allowing the pay step to be applied on their pay step date in their absence.

5.15.3 If an individual is on long-term paid absence such as maternity, adoption and

shared parental leave and a pay step review cannot be conducted prior to the pay step date, the pay step point should be automatically applied in the individual’s absence, subject to paragraph 5.14.5.

5.15.4 If there was a live disciplinary sanction in place at the point the individual went

on leave, the pay step point should be applied in their absence if appropriate, effective the day after the sanction expires.

5.15.5 If there was an active formal capability process underway at the point they

went on leave, the pay step point can be delayed. The improvement process should be resumed immediately upon their return. On satisfactory completion, the period of their absence should be set aside and the pay step point backdated to an agreed date as if they had completed the improvement process without being absence. Employers will need to take particular care to avoid any discrimination or detriment on the grounds of maternity, sex or disability that could arise in relation to staff on maternity/adoption/parental leave or sick leave.

5.15.6 Suspension from work on full pay is a neutral act. In order to ensure that this

is the case, employers should ensure that the pay step point is applied from the pay step review date where an individual is suspended on that date, provided they were meeting the standards in paragraph 5.8.2 at the point of suspension.



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5.16 Retrospective Pay Step Awards There are three circumstances in which pay steps may be applied retrospectively: (i) As described in 5.8 above ie completion of Core training within 12 weeks of appraisal date or review of Disciplinary or Capability sanction. In these circumstances an HR 2 will be completed. With section 3a stating: Pay step point XXX

Wef XXXX

Reason for delay XXXX

Date of Review of training/ sanction xxxxx

(ii) In exceptional circumstances where an appraisal has been delayed not

through the fault of the individual. In these circumstances an HR 2 will be

completed with section 3a stating:

Pay step point XXX

Wef XXXX

Reason for delay XXXX

Date of Appraisal XXXX

(iii) As a result of a successful review, in line with section 5.12 of this Policy.

5.17 Review 5.17.1 Staff will be able to request a review of any decision undertaken by their

appraiser with regard to pay progression, as outlined below. 5.17.2 Every effort should be made to ensure that the appraiser and appraisee are

able to resolve differences of opinion during the appraisal informally. 5.17.3 If there is a disagreement about any aspect of the appraisal process or annual

appraisal meeting, either party can approach the next line manager, for assistance to resolve the issue.

5.17.4 An individual must request a review in writing within 10 working days of the

receipt of the pay progression decision wherever possible. 5.17.5 The appraiser’s line manager must undertake the review within a further 10

working days of this request wherever possible. 5.17.6 The appraiser’s line manager will review the scoring and evidence and any

mitigation presented in order to evaluate the objectivity of the scoring taking into account the complexity of the objective. The score will be benchmarked with others in the team.



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5.17.7 If the line manager has been involved in advising the appraising manager regarding the disciplinary/capability sanction previously, the review will be referred to the next level of decision making.

5.17.8 The decision of the appraiser’s line manager is final. 5.18 Documentation

The latest versions of the appraisal documentation will be available on Insite.

6.0 EDUCATION AND TRAINING REQUIREMENTS 6.1 All appraisees and appraisers will receive guidance or have access to training

as appropriate on this Policy in order that the criteria and process are understood and there is consistent application.

6.2 Training is available for both appraisers and staff with details available on

INsite



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7.0 PROCESS FOR MONITORING COMPLIANCE

7.1 Key performance indicators / audit standards Element to be monitored

Lead Tool Frequency

Reporting arrangements

Acting on recommendations and Lead(s)

Change in practice and lessons to be shared

Evidence of annual appraisals being carried out

HR - Workforce

ESR Monthly reporting.

The lead is expected to read and interrogate the report to identify deficiencies in the system and act upon them.

Required actions will be identified and completed in a specified timeframe.

Required changes to practice will be identified and actioned within a specific time frame. A lead member of the team will be identified to take each change forward where appropriate. Lessons will be shared with all the relevant stakeholders.

Data on pay step and re-earnable pay outcomes

HR - Workforce

ESR Annual The lead is expected to provide the data for HR to discuss with staff side



Evidence of appraisal having a positive impact on staff experience; having clear objectives

HR – Appraisal Lead

National Staff Survey

Annual The lead is expected to read and interrogate the survey results to identify deficiencies in the system and act upon them.



Evidence of appraisal process meeting the quality standards set out.

HR – Appraisal Lead

Annual Appraisal Quality Audit

Annual The lead is expected to read and interrogate the audit findings to identify deficiencies in the system and act upon them.



8.0 EQUALITY IMPACT ASSESSMENT

8.1 The Trust recognises the diversity of the local community it serves. Our aim therefore is to provide a safe environment free from discrimination and treat all individuals fairly with dignity and appropriately according to their needs.

8.2 As part of its development, this policy and its impact on equality have been reviewed and no detriment was identified.



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9. SUPPORTING REFERENCES, EVIDENCE BASE AND RELATED POLICIES

9.1 This Policy has been written with reference to Agenda for Change Terms and

Conditions, revised April 2018 including Annex 23 and the Framework Agreement on the Reform of Agenda for Change (NHS Staff Council). This Policy interfaces with the following UHL Policies and Guidance Documents: UHL Disciplinary Policy (Trust reference:A6/2004) Improving Performance (Capability) Non Medical Staff UHL Policy (Trust Reference:B12/2014) Core Training (Statutory and Mandatory) Training UHL Policy (Trust reference: B21/2005) Sickness Absence Management UHL Policy (Trust reference: B21/2005) UHL Talent Management Guidance (available on INsite not Policy and Guidelines Library)

10.0 PROCESS FOR VERSION CONTROL, ARCHIVING AND REVIEW OF THE DOCUMENT

10.1 The HR and OD team are responsible for the reviewing and updating of this Policy.

DEVELOPMENT AND APPROVAL RECORD FOR THIS DOCUMENT Author / Lead Officer:

Louise Gallagher Job Title: Workforce Development Manager

Reviewed by:

Kalwant Khaira – CMG HR Lead Stephen Gulliver – Senior OD and Improvement Manager

Approved by:

Policy and Guideline Committee Date Approved: 12 April 2019

REVIEW RECORD Date Issu

e Number

Reviewed By Description Of Changes (If Any)

14.12.16 Louise Gallagher Dates of appraisal and Appraisal Process 14.12.16 Louise Gallagher Addition of Appraisal Guidance appendix April 2019

Kalwant Khaira and Stephen Gulliver

To reflect the national changes outlined in the Agenda for Change terms and conditions of service handbook.

The updated version of the Policy is available through INsite Documents.



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APPENDIX A

Pay progression Pay step submission process This flowchart explains the pay step submission process for the pay progression system implemented on 1 April 2019:

If employee is absent, line manager to refer to NHS Terms and Conditions of Service Handbook (annex 23) and guidance.

Line manager receives ESR notification when

an employee’s pay step date is imminent.

Line manager notifies the employee and

arranges a pay step review meeting.

Line manager meets with employee to review whether the standards have

been met. This discussion should draw on the most recent appraisal. This does not need to be linked to the pay step date.

The line manager should communicate the

pay step by completion of the appraisal paperwork which should be signed by the line manager and the member of staff. The line manager must also then submit the appraisal data capture form to process the pay step.

Standards have not been met. The reason for this is recorded. Individual is advised of right to contest.

Standards have been met and the individual is approved to move to their next pay step.

Reasons for non-progression: 1. The appraisal outcomes are not in line with the organisation’s

standards. 2. Formal capability process is in place. 3. Formal live disciplinary sanction on record. 4. Statutory and/or mandatory training not completed. 5. For line managers only – not completed appraisals for all

their staff.

Line manager opens the pay step point.

Employee moves to the

next pay step.

Line manager discusses and agrees a plan with the employee for any remedial action needed, including timescales. On successful completion, manager applies pay step following deferral.



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