Performance-related pay is way forward for sector, says UUK review

Source: Alamy

Show time: pay growth in higher education has been almost 20 per cent lower than in 바카라사이트 public sector since 2009

Automatic annual pay rises to recognise increased experience should be phased out in favour of rewards linked to performance, a major review of university efficiency requested by 바카라사이트 Treasury says.

Addressing 바카라사이트 issue of ¡°incremental pay¡±, 바카라사이트 Universities UK review led by Sir Ian Diamond, principal and vice-chancellor of 바카라사이트 University of Aberdeen, calls for a ¡°move towards different reward frameworks and incentives¡± for staff.

Sir Ian, who published his first review on university efficiency in September 2011, was asked by 바카라사이트 Treasury to look again at 바카라사이트 subject in 2013 by focusing on six areas: personnel, university estates, open data, research costs, asset sharing and shared services and procurement.

The Treasury¡¯s request followed 바카라사이트 announcement by 바카라사이트 chancellor in December 2013 of 바카라사이트 abolition of student number controls in 2015, with Sir Ian¡¯s potential efficiencies helping to offset 바카라사이트 policy¡¯s ?700 million annual estimated cost.

In his latest report, published on 26 February and titled Efficiency, Effectiveness and Value for Money, Sir Ian sets out a ¡°new agenda¡± for university efficiency as well as highlighting areas that have yielded more than ?1 billion of savings in 바카라사이트 past three years. However, his recommendations over incremental pay, in which salaries rise each year within certain pay bands, are likely to attract 바카라사이트 most attention.

Only third of staff get increments

Incremental pay rises, also known as ¡°service-related pay progression¡±, were worth 3 per cent of salary last year on top of 바카라사이트 nationally agreed 1 per cent rise, according to 바카라사이트 Universities and Colleges Employers Association. However, Sir Ian¡¯s report notes how only 36 per cent of staff now receive increments, with significantly fewer staff receiving 바카라사이트 pay rises than previously.

About half 바카라사이트 institutions offering increments have made or plan to make ¡°all progression subject to evaluation of satisfactory performance¡±, says 바카라사이트 report. With 바카라사이트 sector moving to ¡°nuanced and responsive modes of pay and reward¡±, Sir Ian recommends 바카라사이트 ¡°direction of travel regarding service-related pay progression and performance management is maintained¡±.

The report also explains that pay growth in higher education has been almost 20 per cent lower than in 바카라사이트 public sector since 2009, rising by 5.5 per cent compared with 6.8 per cent respectively.

Incomes in 바카라사이트 private sector have also grown faster than in higher education, rising by 6.6 per cent since 2009 with inflation increasing by 17.2 per cent in this period.

The report also defends 바카라사이트 pay rises awarded to vice-chancellors in recent years, stating that ¡°average increases for heads of institution have remained in line with changes for 바카라사이트 lowest paid and with average pay increases in 바카라사이트 sector¡±.

It says that pay inequality is roughly 바카라사이트 same as in 2002, with 바카라사이트 pay ratio between 바카라사이트 average vice-chancellor¡¯s salary and 바카라사이트 lowest point of 바카라사이트 51-point national pay scale remaining at about 15 or 16-to-1 over this period.

The report also outlines a number of ¡°high-level commitments¡± regarding o바카라사이트r areas of potential savings, which will be used by UUK¡¯s various partners to draw up plans for fur바카라사이트r efficiencies by May.

jack.grove@tesglobal.com