Agenda item

M Rawdon presented the report, noting that during autumn 2022 a project wasundertaken to explore recruitment difficulties and high areas of agency spend. A key finding identified some recruitment retention issues across parts of the Council and that some roles across the Council would benefit from a market forces payment to overcome some of these issues. The project also highlighted the need for the Council to revise its existing market forces policy as there needs to be a stronger focus on governance and the application of market forces payments.

M Rawdon noted the revised policy under appendix 1, advising that they would be following steps to ensure a robust business as (1) why the market forces payment is required, (2) the correct market forces payment, (3) actions already taken to ensure recruitment and retention issues are not there in the first place, and (4) a revised approval route via HR (Human Resources) and the leadership team. Other key amendments look at how to change, reduce or terminate the market forces payments and the required timeline for each payment to be reviewed. The revised policy will provide the Council a more robust procedure to apply market forces payments in a more consistent manner.

Councillor Townsend asked if the market forces payment is a one-off payment or is an increment to the salary on offer.

M Rawdon advised that the payment is a supplement paid annually until it is removed or changed.

Councillor Townsend noted that new employees would therefore accept the risk of that salary being removed after 2 years.

M Rawdon agreed and confirmed that all documentation stipulates that it is a supplement for a period of time that will be reviewed.

Councillor Townsend asked if there is an internal estimate on how much it will cost the Council to pay these supplements.

M Rawdon confirmed that an assessment was undertaken and they have budgeted £200k for next year to cover the cost.

Councillor Mahmood asked what market is assessed for the supplements and whether most staff are lost to London.

M Rawdon stated that analysis would principally be across Hertfordshire, though it is suggested that they look wider given that people can work more flexibly.

Councillor Mahmood asked how holistic the whole process is and if they are looking at other areas to help with retention.

M Rawdon noted that market forces payments are a relatively short-term fix and that the business case does request for managers to look for other methods to ensure that these payments don't need to continue. M Rawdon added that they are also looking how to keep people motivated and engaged, as well as looking at how they recognise and reward staff. M Rawdon noted that the latest turnover report is 6%, which is particularly low, and that they typically run at around 10-15%.

The Chairman noted the flexibility and to adapt to short-term market trends.

M Rawdon agreed, noting that the new policy is clearer on this and is written in a way to ensure there is ongoing review.

Councillor Symington suggested that the market forces payment was currently only applicable for Waste services and asked what other areas they expect to target. Councillor Symington commented that there may be an ongoing shortage for some roles and that a supplement may not resolve these issues.

M Rawdon commented that the areas originally identified were professional areas, principally planning, surveying, environmental health officers and legal, and stated that market forces should help attract some talent, though they also need to consider overall recruitment and ensuring that they are communicating the full benefits package on offer.

Councillor Tindall asked what approach had been given to the various organisations covering the whole of Hertfordshire, such as the University, Colleges and various business sectors, to encourage training and recruitment of such skills shortages given that the issues in recruiting these roles appear to be long-term. He queried if districts have lobbied educational bodies to look at additional training, as has taken place with care workers.

M Rawdon explained that a recruitment meeting has been set up across Hertfordshire and that he would bring up working with local colleges to see what support there was.

Councillor Tindall asked if they liaise with neighbouring authorities to ensure that higher supplements aren't being offered elsewhere.

M Rawdon noted that they don't currently pay market forces though most other authorities do and that this will therefore bring them up to the same level. M Rawdon noted that there is a risk that others will continue to increase their supplements too.

Councillor Tindall referred to item 3.4 in the report and the mention of pensions, noting that this was unusual in market supplements. Councillor Tindall stated that if they pay a supplement for someone aged 30 and that person doesn't retire until 55-60, this supplement won't count towards their pension calculation.

M Rawdon advised that the approach was consistent across other policies. He said he would investigate the matter and advise members of the decision.

C Hamilton commented that if they are looking at long-term market forces then they should be reevaluating jobs and building this into baseline budgets. Market forces are therefore a short-term measure to react to the market and pressures on recruitment.

Councillor Tindall recommended that they check the pension’s contribution and remove this if it is optional.

The Chairman confirmed that a written response would be provided to members.

Councillor Tindall referred to item 3.5 in the report and asked that any payments be reviewed annually.

M Rawdon noted that the process would take around 3 months and would therefore an annual review would use up significant officer time.

Councillor Tindall suggested that this could be reviewed quickly by monitoring the market on the particular function.

C Hamilton noted that they also need to attract people into these roles and that people are unlikely to commit to a role for a one-year market supplement. A 2-year review also allows DBC to fully assess the role and baseline it if necessary.

Councillor Tindall requested that an annual report on market forces be presented to the Committee.

The Chairman stated that if they maintain the 2-year review, any specific reviews could be brought to the Committee. He agreed that the policy should be reviewed after the first year to assess if any re-adjustment is required.

The Chairman commented on the item on pages 57 and 58 regarding not-protected characteristics and other factors, and requested that care leavers be included in this to represent young people who have been in local authority care. No objections were raised on this matter.

Outcome

The committee considered the report and provided their feedback on the Market Forces Supplements Policy and Procedure to Cabinet.

Actions

M Rawdon to check pension contribution comment under item 3.4 in report.

M Rawdon to add 'care leavers' to list of non-protected characteristics on pages 57-58 of the report.