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PERFORMANCE AND REWARD

Pay Policy

1 Pay Policy

June 2004 V3.0

Contents Chapter 1 1.1 1.2 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 4 4.1 4.2 4.3 5 5.1 5.2 5.3 6 6.1 6.2 6.3 6.4 7 7.1 7.2 7.3 8 8.1 8.2 8.3 8.4 8.5 TITLE INTRODUCTION Overview Delegated authorities THE LSC REWARD STRATEGY Purpose of the reward strategy Structure Principles THE NEW PAY SYSTEM Background Principles of the new pay system Market related pay and pay zones Broad Bands Job families and job levels Position in pay range Performance related salary progression Annual salary review strategy TERMINOLOGY Comparative ratio and the Normal Maximum Role Description Business Case SAFEGUARDS Purpose Principles The need for safeguards PROCESSES FOR NEW POSTS/RESTRUCTURES Replacing an existing role holder at the same level or a lower level Establishing a new role within the LSC Restructures Changing an existing role to a higher Band and/or level APPLYING THE PAY RANGES Internal promotions and/or external recruits Special considerations for contractors/fixed term employees Promotions of internal candidates to permanent posts EFFECTS ON SALARY OF INTERNAL CHANGES Changes to pay - principles Promotions Transferring between pay zones Promoting employees who currently receive more than 100% of the new role Employees with TUPE transfer provisions Page

2 Pay Policy

June 2004 V3.0

4 10 10.2 9.2 10.0 .1 10.3 9.3 Annex 1 TITLE TEMPORARY PROMOTIONS/ADDITIONAL RESPONSIBILITY ALLOWANCES/HONOURARIUMS Principles Additional responsibilities Temporary promotions Calculating the Temporary Promotions Allowance RESPONSIBILITES To employees Pay Budget Audit trails Pay ranges by zone Page 3 Pay Policy June 2004 V3.Contents (continued) Chapter 9 9.1 9.

1 Background 4 Pay Policy June 2004 V3.1. 1. ED or ND wishes to appoint staff or change the pay of staff outside this policy then the prior approval of the National Director of Corporate Services is required. develop. The aim is to offer a fair and transparent structure so everyone can see how individual rewards are determined. motivate and retain high quality people capable of delivering our wideranging remit. 2. before looking at the details of the pay system. competitive.0 .2 Structure The LSC has introduced an integrated Performance and Reward Strategy.1 Purpose of the reward strategy Pay is an important part of the LSC reward strategy however. Our reward system has been designed to enable us to recruit. it might be useful to say a few words about the overall strategy. reward. THE LSC REWARD STRATEGY 2.3 Principles In order to achieve our purpose the reward system must be manageable. offer value for money and link pay to performance. 2. 2. It also provides information about the various processes linked to pay.1 Overview This document provides the detail about the pay system of the Learning + Skills Council (LSC) and is structured to assist all staff in understanding the pay process and their areas of responsibility.2 Delegated authorities Regional Directors (RDs) Executive Directors (EDs) and National Directors (NDs) operate under delegated authorities in respect of appointing staff and changing their terms and conditions. THE NEW PAY SYSTEM 3. equitable. This document sets out the detail of the pay policy. affordable. which is intended to be competitive with the external market. flexible. 3. If an RD. Each item stipulates that the authority is delegated within National HR policies. INTRODUCTION 1. legal.

3 Market related pay and pay zones The market-related pay system relates pay in each LSC location to the market conditions prevailing in different parts of the country. As different rates of pay apply in different parts of the country.groups of roles with similar levels of contribution to the business Job families .2 Principles of the new pay System The new pay system is based on a series of principles for deciding how each part of the structure should be organised. During the period of July to September 2002 all employees were offered new contracts during the Harmonisation exercise. 5 Pay Policy June 2004 V3. offices that share similar local pay market characteristics are grouped together into a Pay Zone.groups of roles with similar characteristics but different levels of responsibility and pay Pay Ranges . The key components of the system are: Market related pay . 3. it brought together a large number of organisations. retain and offer competitive pay in the areas where the LSC operates.determined by job function and location Performance-Related Salary Progression . terms and conditions. pay in some locations will be higher than in others.When the LSC was established in April 2001. depending on a wide range of factors. 3.relating pay to personal contribution 3. This type of pay system gives us flexibility to recruit. The bands group together job roles requiring similar levels of responsibility. knowledge and accountability.backed by a system of pay zones Broad Bands . all with their own structures. The LSC pay zone information is given in Annex 1.4 Broad Bands Five broad ‘bands’ have been created that reflect the structure of our organisation.0 . Some organisations reflect variations in regional costs – such as London Weighting Allowances. To establish geographic differences that take account of local conditions. Pay is set for each job level at each LSC location. As a result nearly all staff are now on the same terms and conditions.

The structure is currently being reviewed. but where the job content involves different levels of skills. Job levels reflect the magnitude of the differences between jobs. Each level is measurably different to the one above and the one below. assisting the LSC to function effectively 3. Eight job families have been created Core Functions Finance Communications and Marketing Human Resources General Management Specialists Secretarial Administrators and Technicians These are sub-divided. National and Executive Directors Band 4 – Directors Band 3 – Senior Specialists and Managers Band 2 – Specialists and Managers Band 1 – Support Staff The band structure minimises the number of hierarchies across the organisational structure.5 Job families and job levels Job families complement the five broad bands outlined earlier.The bands are: Band 5 – Regional. a process that allows us to define jobs by what we describe as their ‘size’. For example Marketing and Communications and Finance would be in separate job families because of the different nature of their work and the skills required. knowledge and experience. We have identified that there are 13 distinct ‘sizes’ of job between the bottom of Band 1 and the top of Band 4.0 . to ensure consistency with the New LSC. job families go further taking account of similar roles. These generic job levels are shown below: 6 Pay Policy June 2004 V3. While the broad bands deal with groupings of similar roles.

4 Special. In some cases we do pay more than 100% for people exceeding expectations year after year up to a maximum of 120%. Somebody who is fully competent in all aspects of a role would be expected to be at between 95 to 100% of the range. evaluating progress. People working in Finance below this level may be in the Admin/Tech family for instance. Not all job families have all these levels. As a guide people who are completely new to a role and do not have previous experience may be brought in at 80% of the range. overcoming obstacles. we have created a performance management system to identify effective working practices.Band Level Administrator/ Supervisory/ Technician First Line management 4 C B A 3 B A 2 C Supervisor 2 Admin/Tech 7 B Supervisor 1 Admin/Tech 6 A Admin/Tech 5 1 E Admin/Tech 4 D Admin/Tech 3 C Admin/Tech 2 B Admin/Tech 1 A General Specialist Management Manager 5 Manager 4 Manager 3 Manager 2 Manager 1 Special. The normal maximum for the basic ranges by zone are given in Annex 1. This then allows for a clear career progression path to be established. 2 Special 1 The structure enables a view to be taken on where jobs fit within a job family structure. supporting each 7 Pay Policy June 2004 V3. Clarifying what needs to be done. 3. 3.7 Performance related salary progression Pay related to performance has been introduced to encourage everyone to focus on their contribution to the achievement of the LSC goals. To manage the performance-related pay arrangements. For example the Finance family starts at 1E. because of the nature of their role.0 . 3 Special.6 Position in pay range Salary scales have been introduced which offer a spread of salaries representing the minimum (80%) and the normal maximum (100%) that the LSC will pay for a particular job in a particular pay zone.

If they join the organisation after 1 February. Staff who join after 1 May should be recruited to the new pay ranges so will not be eligible for an increase until July of the following year. 3. their performance will be formally reviewed.8 Annual salary review strategy The annual review date for all salaries is 1 July.0 . The pay of those that are higher in the range is slowed. This grid is established as part of the negotiated settlement with the union and must. it would not be practical to judge their performance on less than two months in a role and they will not need to have a formal review. it does not mean that pay will automatically be increased. promoting innovation and making continuous improvements in skills and knowledge are just some of the attributes that constitute effective working. Detailed guidance is circulated every year.other with encouragement and coaching. They will however be subject to the normal probationary review process. Individual salary reviews are related to three main factors: • the current salary level in the salary range • the amount of money available • performance. As mentioned above. This gives employees a right to a review of their pay. therefore. The performance management system runs from 1 April-31 March which allows time for performance issues to be incorporated into the annual pay review. governed by LSC pay management guidelines and budgets and moderated by the national HR team to ensure consistent application of criteria and compliance with budget allocations. mainly due to the use of non-consolidated pay increases. Our performance management system ensures that such qualities will be recognised and form part of the annual salary review. be followed. Salary review decisions are made locally under delegated authorities within each LSC or directorate. Individual reviews are applied according to a grid. people can see how they can move up the pay range if their performance warrants it. staff joining after the 1 February will not have a performance assessment rating so will not get a performance related increase but may be eligible for a pay positioning increase. The effect of applying this grid is that the pay position of staff who are lower in the range than they should be is accelerated. TERMINOLOGY 8 Pay Policy June 2004 V3. which is effective from 1 July each year If an employee joins the organisation more than two months prior to the end of the performance year (that is before 1 February). 4. In this way.

2 Role description A role description provides a systematic.450 The compa-ratio represents the position of actual pay to the Normal Max for the role. to what and what is achieved. It must describe the purpose of the role and the underlying contribution of the role to the organisation. 4. The role description serves several purposes It acts as the job specification in the recruitment process It provides information about what the role holder needs to achieve in order to be successful in their role It gives HRMs and the decision makers information in order that they can determine the ‘size’ of the role so that it can be allocated to the correct band and level - The role description describes the role not the person undertaking the role. a business case will be required. if we continue the above example. In this context the Normal Max is the 100% position for a level in a zone. clear. to provide the decision makers (RDs/EDs/NDs. if the person undertaking this 1A role in Zone 1 is actually paid £13. It will contain some details about the skills necessary to undertake the role successfully. Compensation & Benefits team) with all the information necessary to agree that: the post is required the indicated bands and levels are consistent with both the job family descriptors and the local environment 9 Pay Policy June 2004 V3. It should describe what is done. objective and current account of the role.4. 4. It shows why the role exists. So.0 .3 Business case Except in the case of a like for like replacement. Detailed information about how to complete Role Descriptions is available in the LSC Recruitment and Selection Policy. for example.132 their compa-ratio would be 85%. So. if you look at the table in Annex 1 you will see that a 1A role in Zone 1 has a Normal Max of £15.1 Comparative ratio and the Normal Maximum In the following sections we will be using the expressions compa-ratio and Normal Max. It fleshes out the main characteristics and features of the role.

future affordability risk A system that has so many inconsistencies it is no longer sustainable Individuals paid too high and so ending up ‘trapped’ in the organisation.2 Principles The main principle behind the safeguards is to try and ensure consistency of application of the Reward Strategy principles. For each type of change there are different levels of safeguard. restricting flexibility both from the individual’s and the organisation’s perspective 6. In this section the rationale for these safeguards is given. 5. 5. PROCESSES FOR NEW POSTS/RESTRUCTURES 10 Pay Policy June 2004 V3.3 The need for safeguards There are three main reasons why safeguards are required. cost and consistency.- any cost/benefit analysis is reasonable In the cases of band level reviews and restructures it is preferable to include new and old organisation charts which should show the band and levels of adjoining roles. 5. This should be achieved at a local level by peer group review. If an organisation lacks sufficiently rigourous safeguards the following issues can arise: • • • • • • • Pay drift/grade drift Inequity between offices Equal pay cases Pay rates too high for jobs against the standard benchmarks Current affordability issues for the organisation and.1 Purpose In section 6 the change processes are explained in detail.0 . backed up by a review at national level. SAFEGUARDS 5. more importantly. In the case of band 3 & 4 roles it should also indicate how this role fits with its local peer group. equal pay issues.

The completed role description must include the relevant job family with a recommended pay band and level.3. it may be worth talking to the C&B team as there may be a generic role description covering the role available. The band and level must be agreed by the relevant peer group.0 . business case and organisation chart in conjunction with the appropriate HR representative in accordance with the guidelines and by reference to the job family structure If it’s an entirely new role. the process detailed below should be followed. 6. The ATR should then be sent to the Compensation & Benefits team. as far as possible In the case of a disagreement the role can be reviewed by a National Review Panel. 6. For posts in Band 4 and 5 the ATR will be reviewed by the Director of Performance and Reward. then signed by the RD/ED/ND.2. An ATR must be completed.1 Replacing an existing role holder at the same level or a lower level An Authority to Recruit form (ATR) should be completed showing the name and level of the incumbent. For the time being posts in Bands 1. 2 and 3 the ATR will be reviewed by the Compensation & Benefits team. which will meet when necessary. The purpose of the National Office review is to obtain consistency across Offices/Directorates. - 6.1 Process The local line manager to draft the role description. signed by the RD/ED/ND (or their delegated representative) and then sent to the Compensation & Benefits Team. The ATR should be agreed by the Office/Directorate Senior Management Team (SMT) to ensure consistency within the Office/Directorate.1 Definition of restructure 11 Pay Policy June 2004 V3.3 Restructures 6.2.2 Establishing a new role within the LSC When a business need arises to establish a new role or to fill a vacancy that has been left for six months or more within either a local office or national office group.6.2 ATR reviews The purpose of the internal reviews is to obtain consistency within the Office/Directorate. - - - - 6.

6. and it would seem advisable for the local manager to discuss the issue with the Director of Performance and Reward before making a formal submission.1 Internal promotions and/or external recruits 12 Pay Policy June 2004 V3.g. that responsibilities are not sliced too thinly. There must be a justified business case for changing a band and/or level. 6.2 Support available When thinking about organisational change there are a great many factors which need to be taken into consideration. The same process as above will need to be followed.0 .3. Clearly the business case and the organisation charts will be more complex. chains of command are clear. such as: • • • • • • Ensuring appropriate job design. if posts are being made redundant Changes made are not later open to challenge if incorrect procedures have been followed These are all areas where the Specialist teams have specific expertise and issues can be avoided if advice is sought beforehand. When undertaking a restructure offices/Directorates must take into account the effect the restructure will have on the potential Normal Max of all the changes. 7.4 Changing an existing role to a higher Band and/or level Where business needs determine that a role should be amended to reflect changed duties and responsibilities the same process as outlined above for establishing a new role should be adopted. APPLYING THE PAY RANGES 7.A restructure will involve more than one role and should be forwarded to the Director of Performance and Reward in the first instance. to ensure overall costs are not increased which may compromise future affordability. workflow is organised logically Cost structures are appropriate There is Union consultation on organisational changes There is awareness of obligations and/or legal requirements e. jobs are not too big for one person Structures are appropriate and workable.

This will take into account: Background. New recruits who commence after 1st May in any year must be advised that their salary will not be reviewed until 1st July of the following year. Account should be taken of any market premiums that have been added into the pay ranges for certain sectors.2 Special considerations for contractors/fixed term employees With the recent changes in legislation we are obliged to offer contractors and fixed term employees similar terms and conditions as permanent staff so there should be no significant difference in treatment. What type of culture are they used to operating in? Are there any issues about working with the LSC values? Experience. 7. What skills are necessary? Development needs. Can any identified training needs be accommodated? Is further training required? - - - By assessing the individual against all relevant factors you will form a judgement of how proficient he/she will be in the initial performance of the role and therefore how much salary should be paid. particularly at the higher job band levels have a greater level of relevant experience. Managers in conjunction with their HR colleagues are expected to make a judgement as to the relevant experience and worth of potential new recruits against their current employees. job descriptions and pay ranges. it is likely that candidates are seeking a significant rise on their current salary to compensate for moving into a new environment.0 .When promoting an internal employee or offering a role to an external employee you will need to estimate where the individual will sit within the pay range. There will be cases where potential new employees have been seemingly overpaid or underpaid by their current/previous employers relative to the LSC job families and pay bands. However In seeking to recruit from outside the LSC. although there can be exceptions. Is previous experience relevant to the new role? Is their experience transferable? Knowledge. 7. The initial target rate for both new recruits and promotees is 80%-90%. In addition it is likely that new external candidates.3 Promotions of internal candidates to permanent posts 13 Pay Policy June 2004 V3. Do they have the knowledge necessary for the role? Can it be learned? Do they apply the knowledge they already have? Competencies. Consequently a greater level of flexibility may be required when appointing employees in such circumstances.

i. 8. It is normal for the vast majority of promotions to be either an increase of 1. or exceptionally 3 steps. in fact. 80%. 14 Pay Policy June 2004 V3. EFFECTS ON SALARY OF INTERNAL CHANGES 8. Paying an additional allowance may be.0 . up to and including promotion to 2C. and 1 or 2 steps up to and including promotion to 4C. The second principle is that an employee’s pay should not be increased simply because they are excelling at their role.Promotion is defined as a move to a role at a higher Band level. Again the performance management system should be used to reward the additional effort. in order to deliver the demanding targets it has been set. The steps are bigger as employees progress up the structure and consequently account should be taken of the greater increases in duties and responsibilities between steps as employees progress. 2.2 Promotions The following are guidelines as to the practical application of the pay ranges for promoting internal employees. The third principle is that employees should not automatically receive an allowance for covering the whole or part of another role. There may be cases which fall outside of this guideline and they will require additional justification. affordability and consistency. There should be no mid year pay increases. inequity. Where there is a 1-step change. The first principle is that an individual’s pay should not normally be increased outside of the annual pay review as this may raise issues about equal pay.1 Changes to pay . you should give the total percentage required to bring the employee to the normal minimum of the range. 8.e. Pay and bonus are linked to the Performance Management System and this system should be used in order to recognise the additional effort/responsibility. an increase of up to 10% could be considered.principles Before looking at the details of increases. there are some important principles that should be applied. The rationale behind these principles is that the LSC needs to introduce greater flexibility into its work practices. If the employee’s salary is above the normal band range minimum and not above the normal band range maximum. duplicating payment. With the integrated job banding structure and job families the steps between each of the levels is significant and reflects significant increases in duties and responsibilities.

making salary £15.324 Further payment on 1st February of £1.91%) Therefore 50% of increase on 1st August of £1.Where there is a 2 step change and where an increase to the minimum of the band/level requires greater than 10% but less than 20% a phased increase should be actioned in 2 stages: 50% of the amount immediately and 50% 6 months later.000 New salary = £16.33 % immediately from the date of promotion. subject to satisfactory performance. but the increased duties and responsibilities as a result of the significant step change in roles.18%) Therefore 33.33% on 1st December making salary £14. 15 Pay Policy June 2004 V3. A further rationale behind this approach is to manage employees’ future salary increase expectations with more realistic values.648 (18. see below.036 Final payment of £1.33% after 6 months in the role and 33.324 bringing salary to £16. Phased increases are being retained to bridge the significant gap that occurs not only in pay.648 Where an increase to the minimum of the grade requires between 20% and 40%.324. Employee appointed to grade 2A in zone 5 post with effect from 1st August.g. If a promotion is awarded on or after 1st May in any year the employee should be advised that their next review will not be until 1st July of the following year.804 (28.304 Pay awards will still apply. these will most likely span the 1st July (Annual Pay Review Date) and the normal pay review processes will apply.500 New salary = £17.268 on 1st November making salary £17. e.g.304 (80% of range) Increase of £3. due to an increase the pay ranges.768 Further payment of £1. Current salary = £14.33% after 12 months. If an employee’s salary turns out to be below the normal pay band minimum on the date of the final payment. e. a phased increase should be actioned in three stages: 33.268 on 1st May making salary £16. Employee appointed to grade 2A in a zone 4 post with effect from 1st December Current salary = £13.0 . Where there are 3 fixed payments. a business case for this level of increase should be submitted to the Director of Performance and Reward. You should not normally offer more than 90% of the normal market maximum as you will restrict salary progression No moves beyond 100% can be authorised. If you wish to go above a comparatio of 80% and the resulting salary increase is above 10%.648 (80% of range) Increase of £2. 33 . Phased payments are to be fixed at the outset and added to basic salary on the set dates. then the salary should be increased to the appropriate level.

the equivalent comparatio in Pay Zone 2 should be taken into consideration. This is the same principle that applied to promotions prior to harmonisation. 8. this would effectively distort their relative position in the new salary ranges when compared against their peers.3 Transferring Between pay zones Where an employee applies for and is successful in gaining a post in a location which is in a different pay zone to the one the employee is currently in. where a phased increase is being progressed.1 above will need to be applied. If they are transferring to a post in Pay Zone 2.500 at Band 3A in Pay Zone 5. Example 1.4 Promoting employees who currently receive more than 100% of the new role Where employees seek a change of role to a post where they are currently paid more than the normal job banding maximum (100%) no increase should be awarded.746 so the increase would be (£33.500). the following principle should be applied: The comparatio that the employee is currently paid should be replicated in the same grade in the new Pay Zone and the same principles applied. Dental Insurance. equitably and positioned within the LSC salary structures.£31.No probationary periods will apply to internal promotions.746 . If we use the above example but say that the employee is moving from Pay Zone 2 to Pay Zone 5 their salary would decrease by £2.746 down to £31. Moving to a higher Pay Zone. If individual performance is not meeting expectations. The Reward Strategy is aimed at ensuring that all employees are treated fairly. however. If an employee is paid £31. for example. 16 Pay Policy June 2004 V3.0 .246 (from £33. the principles in section 7. Example 2. In this example 91.01%. only to new recruits. If there is a promotion involved. this should be withheld subject to appropriate consultation with the employee.500) = £2. If TUPE contractual benefits were retained. a car or contractual Car Parking this must be excluded from any revised contract following promotion. 8. Private Medical Insurance. Moving to a lower Pay Zone. 8.5 Employees with TUPE Transfer Provisions Where employees have retained their TUPE entitlement to additional benefits.01% of the 3A Pay Band in Pay Zone 2 equals £33. Permanent Health Insurance.246. The employee concerned will have already benefited from receiving a higher level of pay relative to the value of the role they have been undertaking and is being given an opportunity to undertake a more substantive and rewarding role. their comparatio is 91.

000 Flex allowance £ 600 Bonus £ 450 Total £15. 9. TEMPORARY PROMOTIONS/ADDITIONAL RESPONSIBILITY ALLOWANCE ETC 9. With a basic salary of £14.600 Car Parking £ 750 Total £18. under LSC terms they will receive: Basic Pay £14. not the value of their package.000 in Band 1. Any temporary promotion allowances should be agreed at the outset and cover the whole period of the temporary promotion. It should be remembered that the Performance Management System is performance related. which will mean not only a potentially higher salary increase but also a higher level of bonus. Part of this means that the payment of any of these types of allowances should be regarded as the exception rather than the rule. Continued exceptional contribution can be acknowledged by an EE rating.700 The total package represents 124% when compared to their peer. A judgement will need to be made as to the percentage of the increased role the employee is undertaking.050 Basic Pay £14. An assessment has to be made of where the individual fits within the pay range as to the level of pay increase to be granted on promotion.1 Principles As mentioned previously the LSC is aiming to increase the flexibility and adaptability of employees.0 . so the allowance will not be changed if there is a pay review during the period of cover.2 Additional responsibilities Additional responsibility allowances are when an employee undertakes a proportion of a higher banded role without undertaking the full range of duties and responsibilities. Where employees are undertaking additional responsibilities it is envisaged that up to 80% of the temporary promotion allowance for the difference should be paid. 17 Pay Policy June 2004 V3.It is essential to adopt the process outlined below when comparing the situations of employees with retained contractual benefits against their colleagues on LSC terms.000 PMI £ 350 Car (cost to LSC) £ 3. 9.

Special consideration must be given if a period in excess of 12 months is being envisaged. which should be discussed with the Director of Performance and Reward. Maximum Percentage Increases on Temporary Promotion Temporary Promotion 1 Step 2 steps 3 steps 4 steps Up to 1E Up to 2C Up to 3B Up to 4C 10% 15% 20% N/A 10% 15% 20% N/A 10% 20% N/A N/A N/A N/A N/A N/A The normal temporary promotion will be to 80% of the rate for the role being covered by the employee or the salary at which the employee would be appointed if he/she is beyond the 80% grade minimum.3 Temporary promotions Temporary promotions are when an employee undertakes the full range of additional duties and responsibilities of a higher banded role within the same office for a period in excess of 3 months. Employees should not be offered the salary level of the employee for whom they are acting. Where an individual is undertaking a role in an office that is not their normal place of work. in that the maximum increase to be paid is limited to 10% on appointment with a further increase if appropriate after 6 months of undertaking the increased duties and responsibilities. the Secondment policy applies.4 Calculating the Temporary Promotions Allowance The matrix below represents the maximum that should be paid to employees undertaking temporary promotions. 9.0 . to a maximum of twelve months. at Band Level 3B and above it is not envisaged that employees will be undertaking the full duties and responsibilities of the post owing to the potentially limited timescale involved in undertaking the role. 9. a special case can be made to the Director of Performance and Reward where it is considered appropriate. even though this may not reach the band level minimum. The same principles apply to temporary promotions as permanent promotions. 18 Pay Policy June 2004 V3.As a guide. As for permanent appointments. This reflects the fact that there are potentially significant step changes involved.

3 Audit Trails There are processes and procedures in place to ensure that necessary budget controls. It is. but are non-pensionable.0 . national insurance. particularly regarding equal pay legislation. reasonable. financial guidelines and audit requirements are met and that pay is managed locally throughout the LSC on a fair. in making appointments due account must be taken of the long term consequences of decisions. each Director’s responsibility to manage the budget allocated to his/her unit and to ensure that all individual pay decisions are equitable. economic and consistent basis. as what may be affordable in the short term may not be in the longer term with the potential for all salaries to reach 100% of the pay band.The beginning and end dates for the temporary promotion/additional responsibilities must be clear even if provisional. There will be no temporary allowances for Bands 4. The role of the Compensation and Benefits team is to try and ensure consistency across the whole organisation. 10.2 Pay budget The day to day operational management of pay rests with the 47 local LSC units and each National Office group. affordable. 19 Pay Policy June 2004 V3.1 To employess Employees should not be advised or sent any documentation regarding any increases until it has been approved as this could lead to an unfair raising of expectations and could also put unnecessary pressure on other staff involved in the process. 10. RESPONSIBILITIES 10. All allowances are paid monthly and are subject to tax. Individuals at this level are expected to be flexible and cover for each other as necessary. Each National or Executive Director has accountability for his/her budget. therefore. However it must be remembered that a decision in one office may have broader implications. 10. Against this background however. It is not envisaged that any temporary promotions/ additional responsibilities allowances will be paid to employees if the grade differential is more than 2 steps at Band 3A or 3B. within the existing budget and within these LSC management guidelines.

Below is a link to the current LSC salary scales.0 . the budget setting process. etc.These include the sign off for increases over 10% by the Head of Performance and Reward Management. LSC Salary Scales 20 Pay Policy June 2004 V3. Authorisation to Recruit form.

664 £15.680 £74.860 £11.704 £17.450 £71.904 £14.336 £18.824 £20.700 £67.331 £14.032 £12.440 £51.470 £21.090 £54.140 £29.331 £10.144 £59.460 £37.712 £13.190 £27.860 £11.160 £32.630 £22.640 £16.350 £71.330 £35.860 £11.800 £24.800 £24.752 £44.630 Zone 3 Normal minimum £7.450 £45.010 £50.864 £62.976 £18.488 £16.370 £66.040 £38.2005 Salary Scales Zone 2 Band/Level M1 M2 1B 1C 1D 1E 2A 2B 2C 3A 3B 4A 4B 4C Normal minimum £7.331 £10.192 £29.2004.760 £17.608 £14.520 £34.400 £28.760 £53.340 £43.920 £33.888 £9.860 £11.848 £20.860 £11.888 £9.910 £42.950 £68.888 £9.856 £16.680 Normal Maximum £9.080 £78.736 £49.630 £18.920 £61.640 £19.080 Zone 5 Normal minimum £7.072 £35.650 £42.608 £40.504 £55.960 £36.464 £28.664 £13.648 £25.320 Berkshire London .200 £29.180 £27.510 £19.008 £15.304 £15.510 £19.704 Normal Maximum £9.240 £36.860 £11.144 £20.410 £14.008 £42.130 £18.272 £19.344 £22.600 Zone 6 Normal minimum £7.560 £54.570 £20.040 £72.280 £14.150 £38.360 £21.600 £16.488 £46.430 £25.060 £31.224 Normal Maximum £9.008 £15.560 £54.720 £30.584 £50.650 £17.250 £20.520 £14.940 £55.656 Normal Maximum £9.190 £45.220 £23.832 £58.864 Normal Maximum £9.110 £58.520 £23.270 £16.590 £24.680 £56.416 £12.664 £14.112 £23.552 £36.560 £26.552 Normal Maximum £9.320 £25.880 £13.780 Zone 4 Normal minimum £7.000 £27.128 £15.072 £43.288 £41.000 £14.000 £30.936 £27.280 £26.576 £17.790 £15.190 Normal minimum £7.830 £21.East London .331 £11.850 £16.888 £9.North Essex Hertfordshire Kent/Medway Bedfordshire Birmingham & Solihull Cambridgeshire Bournemouth/Dorset/Poole Cheshire Derbyshire Cumbria Devon & Cornwall Durham County .050 £64.331 £11.660 £19.980 £63.888 £9.250 £11.960 £23.928 £33.888 £9.750 £34.050 £48.496 £52.064 £17.560 £56.400 £11.950 £40.420 £23.552 £21.331 £12.664 £12.900 £32.664 £13.130 £69.600 £18.168 £29.860 £51.664 £17.

West Surrey MKOB Coventry & Warwickshire Greater Manchester Hampshire/IOW/Portsmouth Northamptonshire Sussex West of England Wiltshire/Swindon National Office Gloucestershire Hereford/Worcestershire Lancashire Leicestershire Merseyside/Halton Nottinghamshire The Black Country Tyne & Wear Humberside Lincolnshire/Rutland Norfolk North Yorkshire Northumberland Shropshire Somerset South Yorkshire Staffordshire Suffolk Tees Valley West Yorkshire .London .South London .