Pay Policy for AET Central Services Staff

1. 2. 3. 4.

5. 6. 7.

8. Academies Enterprise Trust

9. Pay policy for AET Central Services Staff 10.

11. The AET employment philosophy

12. As an organisation, we aspire to be the ‘employer of choice’ for all staff. To achieve this aspiration, we will develop reward strategies and practices which will enable us to:

 Recruit and retain highly-skilled and trained staff.

 Provide world-class continuous professional development opportunities for all staff. 13. Key principles underpinning the pay policy for AET Central Services Staff

The AET Remuneration Committee have agreed a set of key principles which underpin the pay policy for all AET Central Services Staff. These are:

It will be based on an analytical job evaluation framework 14. All jobs in AET will be evaluated using the HayGroup Chart and Job Profile method of job evaluation which has been used in the UK for over 30 years. Over this period, the method has been applied to several million jobs in public and private sector organisations (including schools). This method measures the “size of jobs” by analysing the inter-relationship of three factors which are present in all jobs – Know-How, Problem Solving and Accountability.

15. It is the degree to which the jobs are seen to require Know-How and Problem Solving and to discharge Accountability which tends to influence views on the size of various jobs.

16. The job evaluation framework enables the AET to compare jobs across different functions and to create groups of different jobs which are of a similar job size. A pay framework has been created which incorporates six groups.

17. It also enables the AET to use this analysis in order to compare our salary levels for different jobs with similar-sized jobs in other organisations (which have been evaluated using the HayGroup method).

Based on pay ranges

18. The job sizes derived from the job evaluation process have enabled us to create pay ranges for each discrete group of jobs. These six job groups and pay ranges are set out in Appendix 1. The midpoint of each pay range is aligned to the median position of similar size jobs in the HayGroup Industrial and Service Sector survey. Each pay range has 7 increments, providing a pay range which spans 15% either side of the midpoint.

2 Linked to external pay markets

Our aim is to be able to recruit and retain high quality staff to the AET. We need to be able to offer salary packages which are competitive in those labour markets from which most of our staff will come. For this reason our pay policy will be aligned to the median position in HayGroup’s Industrial and Service Sector survey (National/April). This is built up from pay data collected from a wide range of public and private organisations in the UK. This is an annual survey and salary ranges will be reviewed in regard to this market in April each year.

Performance-related progression

The AET aims to be a high-performing organisation. We will incentivise individuals to perform at the highest possible level by linking individual contribution to movement through the pay ranges. Your performance will determine how quickly and how far you will progress up the pay range. Specifically, the rates of progression are:

o If you are placed below the midpoint of the range, to progress by 1 increment you have to achieve a ‘Fully Acceptable’ rating in your annual performance review. A performance rating of ‘Outstanding’ will entitle you to a ‘two increment’ rise.

o Once you are at or above the midpoint progression is possible only if you achieve an Outstanding rating.

Growth-related pay ranges

The pay structure has been designed to accommodate the growth of the AET and its impact on individual roles. The structure which is set out in Appendix 1 is based on a ‘ten academy’ organisation – which should be achieved by 2011. We will re-assess the impact of any growth on individual roles. We expect the next review point to be at 20 academies. It may be that some roles - but not all - will move into a higher pay range as a result of this re- assessment.

Market supplements

Whilst we have aligned our pay policy against the median position in HayGroup’s Industrial and Service Sector survey (National / April), it may be necessary from time to time to use market supplements for those roles to which it is particularly difficult to recruit because the ‘market rate’ for these roles is above the median position. Where there is a proven case for a supplement, based on a market analysis, the Remuneration Committee will determine the size of the supplement and its duration. Our expectation is that market supplements will vary in value and will not be a permanent addition to the pay package for any particular role.

3 Fair Assimilation

Individuals will be assimilated into the new pay ranges with effect from 1 September 2010. The ‘rules of assimilation’ are set out below:

o Your current pay will be safeguarded as a result of assimilation into the new ranges.

o Individuals will be assimilated across to the nearest increment in the new pay range above current salary level, up to and including the midpoint of the range.

o If your current salary is above the midpoint of the new range, you will be assimilated to the nearest higher increment on the new range. However, your new salary level will be frozen at that level until such time as it represents the midpoint of the pay range.

o If you are assimilated at a level which is outside the new pay range to which your role has been slotted, your current salary level will be frozen until such time as it fits into the appropriate pay range.

Built on an effective Performance Management process

Because we are designing a strong link between progression up the pay ranges, we have introduced a Performance Management process to underpin these pay arrangements. We envisage that the process will help individuals, with the agreement of their line managers, to identify those key performance objectives and leadership styles that will help them achieve a high level of performance in their role and to maximise their contribution to AET strategic objectives. Also individuals will be given objective feedback about their contribution and will discuss their performance rating with their line managers.

A defensible pay policy

We have to demonstrate that our pay policy is fair, transparent, equitable and justifiable in the context of tighter scrutiny of public sector spending. We are confident that the key features which underpin our pay policy – namely the use of an analytical job evaluation process, the link to external pay markets and regular advice from an external, reputable reward consultancy – will provide a sound defence for any potential criticism of our pay policy.

19. Implementation and maintenance of the new pay policy

The new pay policy will be implemented with effect from 1 September 2010 with all staff notified of their new pay range and salary level. Individuals will

4 be entitled to request a review of any pay decision on their grade or pay level. Such requests should be address to the Director of HR.

The Remuneration Committee will keep the pay policy under review and annually will determine the adjustment of the pay ranges to the HayGroup Industrial and Service Sector market.

20. The role of the Remuneration Committee

The Remuneration Committee is the body which sets the pay policy and it has the responsibility to ensure that it is implemented in a fair and equitable way. It also has to ensure that it is helping the AET to recruit, retain and motivate high quality staff. The pay policy will be kept under review and will play a leading role in monitoring the Company’s effectiveness.

The Committee will determine any movements in the pay ranges on an annual basis by reference to movements in the market rates through the HayGroup Industrial and Service Sector survey (which is supplied each year in April).

It will also monitor the effectiveness of the Performance Management process, particularly the outcome of annual performance reviews. It is essential that meetings with line managers are held prior to performance reviews in order to create a consistent framework for performance reviews across the AET. All ‘Outstanding’ ratings of individual performance will be subject to the approval of the Remuneration Committee.

5 Appendix 1: The AET pay structure, with effect from 1 September 2012

AET Grade Roles 1a)  Chief Executive 1b)  NDE – Secondary  NDE – Special  Group Secretary & General Counsel

2a)  Regional Directors – Secondary  National Director of Academy programmes  Group Finance Director  COO  NDE - Primary 2b)  Director of Intervention  Director of Teaching School Alliance

3a)  Group Facilities Director  Primary Intervention Manager  Deputy Director of Teaching School Alliance 3b)  Group HR Director  Head of Capital Programmes  Head of School Self-Evaluation  Maths/Numeracy Leader  English/Literacy Leader  Head of CPD & HR Operations  Northern Regional Manager/national trainer  Capital Programmes Education Manager 3c)  Director of ICT Strategy

 Executive PA  Partnership Leader  Employability Pathways Programme Manager  CPD Managers  English/Literacy Specialists  Maths/Numeracy Specialists  Financial Controller

4a)  Director of Data Intelligence  Senior Project Manager  Commercial Sales Director (AET Solutions) 4b)  Learning Technologies Manager  Community Sports Development Manager

6  Community Sports Support  Regional Facilities Managers  ICT Infrastructure Manager  Data Managers  Recruitment & Retention Manager  Area Finance Managers

5a)  Payroll Manager  Teaching School Alliance Administrator 5b)  Assistant Project Managers  HR Advisors 6a)  Central Service Office Manager  PA/Office Manager – northern office.  Facilities & H & S Manager  Recruiters  Academy Improvement Resource Manager  IT Services Delivery Manager 6b)  Video Tech/E-Production Asst.  Finance Assistants  Learning Technology Assistant  Web Developer  Web Assistants  PA to NDEs  PA to Executive Assistant & Team  HR/Recruitment Administrator  Payroll Assistant  Project Co-ordinator  Facilities Administrative Assistant  Building Manager  HR Systems Officer  E-Development Specialist  PA & Admin Assistant to Education Team  Central Services Receptionist  Facilities Administrator  IT technicians

 The Group Operating Officer will initially be a two-day per week post and will be paid pro-rata.