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0004 2023/24
26/05/2023
Finance and Governance
None
Introduction of Market Supplement Policy
This proposal seeks to introduce a Market Supplement Policy to provide a framework for ensuring the application of additional payments when required in exceptional circumstances to aid recruitment / retention in difficult areas is justified and defendable.
The purpose of the Market Supplement policy is to provide Council managers with a clear and consistent approach when considering recruitment / retention difficulties. Market Supplements are temporary payments are made in rare occasions where there are significant difficulties in recruiting to or retaining employees in certain posts, where current market forces mean that the salary the Council pays is is below the market rate. As supplementary pay of this nature can lead to a difference in pay between posts that have been evaluated to be of equal value, the Council must be able to demonstrate that the additional pay is a proportionate means of meeting a legitimate aim (i.e. to ensure that the Council can recruit and retain quality employees). This policy will assist managers to decide whether a market supplement is appropriate and to gather relevant evidence to demonstrate that there is a genuine recruitment and retention issue relating to pay. This will therefore assist in protecting the Council against any equal pay claims relating to the payment of such an allowance.
The Council must ensure there are fair, consistent and equitable pay arrangements to all employees. To comply with the Equality Act 2010, male and female employees should generally receive the same level of pay if they are carrying out equivalent work. In order to achieve a pay structure that is free from bias the Council’s pay rates are set via agreed job evaluation schemes. There may however be exceptional circumstances where the Council is able to demonstrate that there are difficulties in recruiting or retaining employees on the evaluated grade. In these circumstances, there are a range of non-pay related options that may make the role more attractive to current and potential employees. It may be that, after exploring non-pay related options, the difficulties in recruiting or retaining quality employees remain. In these exceptional cases, a payment of a temporary additional element of pay may be justified. The introduction of this policy would ensure that any decisions taken to award a market supplement would be able to be defended if challenged as they will be supported by evidence of recruitment / retention difficulties.
The introduction of the Market Supplement Policy would support Council managers with recruitment and retention of employees and would provide protection from the Council should supplements be required.
Introducing additional pay for certain roles could present a risk of equal pay challenge. The introduction of this policy is key in managing that risk.
The introduction of the Market Supplement Policy provides protection against the risk of equal pay claims where additional payments are made in exceptional circumstances.
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Please contact Phil Ingham on 01744 676704
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