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BackSchool introduces new staff pay review processNotices HR

School introduces new staff pay review process

LBS is introducing a new pay review process this year in response to staff feedback – both from the 2017 Staff Survey and consultation with Staff and Management Committees.

Information sessions

Information sessions have taken place with Management Committee and Staff Committee and briefing sessions have been held across the School. School wide briefings open to all employees took place in May.

Throughout September, heads of department were trained in the process and their role as a decision maker, and there have been additional briefing sessions for line managers who will take a new role in the process - becoming ‘Designated Managers’.

What has changed?

There will no longer be a performance rating with a hard link to percentage increase to your salary. Instead, the pay award will now be split into:

  1. A ‘Standard’ flat rate increase for all that is set centrally, which for this year has been set to 1%.
  2. An ‘Above Standard’ variable amount which is set and decided locally.

The budget process and overall budget amount available have not changed, but the above two elements to the annual pay increase have been introduced. The move to this approach and create the ‘Standard’ element has been decided following consultation and review of the wider market.  A key principle at the heart of the new pay process is a fairer and more equitable system that does not focus solely on performance, but takes into account a range of factors. 

Since pay increases are no longer solely based on a performance rating, heads of department will have a budget to allocate into their teams for the ‘Above Standard’ amount, and can do so using a pay tool that includes a range of information. It is the role of the Head of Department to consider this range of information and allocate budget across their team. 

What happens next?

The pay review process has been aligned with budget cycle and this means that data will be prepared throughout October data and line managers will be making recommendations to designated managers. 

This will then be shared with the heads of department to review recommendations and allocate budget across their areas of responsibility. These decisions are checked for fairness and affordability by HR and Accounts before the SMT member for each area signs off the budget allocation once they are comfortable with the information they have received. As before, pay increases will come into place from 1 February.

Further information

Your manager or head of department will be able to answer any questions you may have. Alternatively, you can review the material on the HR section of Portal, where there is a section on Pay Process 2018.