Contents
1 Purpose
This document will ensure that posts within the trust, which are hard to recruit to or have high levels of turnover, are reviewed in a fair manner in order to ascertain whether a recruitment and retention premium (RRP) is applicable.
2 Scope
The principles within the SOP can be applied to any staff group.
3 The approach
3.1 Background
A recruitment and retention premium (RRP) is an addition to the pay of an individual post or specific group of posts where market pressures would otherwise prevent the trust from being able to recruit staff to and or retain staff in sufficient numbers for the post(s) concerned at the normal salary for a job of that weight. The trust will specify whether it’s a recruitment premia, retention premia or a recruitment and retention premia.
RRP will be supplementary payments, over and above the pay that the post holder receives by virtue of their position on their pay band, any high cost area supplements, or any payments for unsocial hours or on-call cover.
The RRP applies to the post and not the individual. Therefore, it affects the pay of the people who occupy those posts only so long as they are in those posts and the premia are in operation. When somebody moves from a post that attracts RRP, to a post that does not, they will lose their right to that RRP. They will not receive any protection of pay.
RRP can be applied either:
- locally by the trust to posts of a specific class or type
- awarded nationally to particular groups of staff
3.2 Introduction
The application of a recruitment and retention premium to any post must not be regarded as the only method to resolve recruitment and or retention problems.
Line managers and post holder(s) in collaboration with human resources and the relevant staff side organisation, must consider whether the following options may resolve the problems without the application of a financial incentive, for example:
- flexible working
- enhanced or additional training
- skill mix within the existing team or cross-professional boundary working
3.3 How it works in practice
3.3.1 Local RRP
The trust has the opportunity to agree both short term and long-term premia locally, subject to the criteria set out below and following consultation with stakeholders before implementing any premium.
The trust may only award up to 30% of basic pay for RRP. Valuation of local premia levels will involve consideration of:
- comparison of local and national pay rates
- the local labour market
- value for money versus agency and overtime rates
3.3.1.1 Local short term RRP
Local short term RRP is awarded by the trust and will apply where the
recruitment and retention problems are expected to be short term and where the need for the premium is expected to disappear or reduce in the foreseeable future. Local short-term RRP:
- may be awarded on a one-off basis or for a fixed period
- would be unlikely to extend beyond twenty four months
- will be reviewed at least on an annual basis
- may be withdrawn or have the value adjusted subject to a six months’ notice period unless for a defined fixed-term
- will not be pensionable, or count for the purposes of overtime, unsocial hours payments or any other payments linked to basic pay
3.3.1.2 Local long term RRP
Local long term RRP is awarded by the trust and will apply where the
need for the premium is likely to continue indefinitely, that is, not expected to vary significantly in the foreseeable future. Local long-term RRP:
- will be awarded on a long-term basis, although a timeframe with review periods will be assigned to it
- values will be reviewed at least annually
- will be pensionable and will count for the purposes of calculating
overtime, unsocial hours - payments and any other payments linked to basic pay
There may be tax implications associated with individual annual
allowances or lifetime allowances which are an individual matter for each employee to consider and resolve.
3.3.2 Lump sum payment(s)
Lump sum payment(s) is an alternative award by the trust and will apply where there is a need for a premium. The lump sum payment will be the same irrespective of point on a pay band.
A lump sum payment:
- will be awarded at defined periods, for example, six monthly, although a timeframe with review periods will be assigned to it and consideration regarding the continued payment of it will be undertaken at least annually
- values will be reviewed annually
- any lump sum payment will not be pensionable, nor will it count for the purposes of overtime, unsocial hour’s payments or any other payments linked to basic pay
- payment will only be received if the full qualifying period has been
worked, for example, a full 6 months - payment will not be awarded if someone joins or leaves midway between the awarding periods, for example, the 6 monthly period points
- a person must work in the premium area for at least two months after the 6 month period covered for a lump sum payment to retain the full lump sum payment, if they do not comply with this element the trust will claim the lump sum payment back for the previous 6 months from the first salary in the new post in the none premium area elsewhere in the trust or from the final salary payment if the person is leaving the trust
- if a person receives a promotion from a post eligible to receive a lump sum payment to a post not eligible to receive a lump sum payment and both posts are in a lump sum premium eligibility area, then the staff member will mark time until the basic salary catches up to their current salary inclusive of the lump sum payment
- if a person receives a promotion from a post that is eligible to receive a lump sum payment to a post that is not eligible to receive a lump sum and the new post is not in a premium eligibility area, then the staff member will cease to receive the lump sum payment nor will they mark time. They will go to the appropriate point of the new pay scale without the lump sum being taken into account
3.3.3 Criteria for awarding RRP
The criteria for determining whether a post or staff group will receive RRP will be:
Reason for application, including:
- exit interview results
- response to adverts
- turnover rates for post(s)
- national shortages
- availability of locum or agency equivalents
- comparable external (non-NHS) rates of pay, etc.
This isn’t an exhaustive list.
Other action that has been taken or considered, including:
- flexible working
- additional training
- recruitment initiative
Whether any other posts may be affected. Other posts can include
posts within the trust and in other local NHS employers. Consideration
may also be given to posts within the integrated care system area and
nationally, where appropriate.
The expected benefits of applying RRP, such as improved recruitment and reduced turnover etc.
3.3.4 Nationally agreed RRP
There are a limited number of posts for which the award of a premium has been agreed nationally on the basis that there is a national recruitment and retention problem.
3.3.5 Maximum level of premia any post can attract
The combined value of any nationally awarded and any locally awarded recruitment and retention premium must not exceed 30% of basic salary.
3.3.6 Consultation with neighbouring NHS employers or place partners
It is expected that the trust will carry out consultation with neighbouring NHS employers within the integrated care system and place partners before implementing any premium.
3.4 Procedure for Appling for RRP
The following procedure must be used in all applications and reviews for RRP, in order to ensure that a transparent and consistent procedure is followed in applying RRP within the trust.
Departmental managers wishing to apply for RRP for post(s) within their department will, in conjunction with their HR partner and care group director or head of corporate service area submit their application using the attached application form (appendix A) to the chief operating officer for or the relevant corporate director. If supported by the chief operating officer or corporate director they should then forward it to the AskHR mailbox.
A senior member of the HR team will arrange a meeting for the care group director or head of corporate service area to discuss the application with the staff side chair to the trust staff council (TSC) and any feedback received from the staff side chair will be shared with the clinical leadership executive (CLE) for consideration with the application.
The CLE will:
- consider the new RRP request upon application
- ensure that the application is completed correctly, requesting any further information that may be required.
- analyse the case and evidence submitted
- consider the proposal with comments and either:
- accept application, including recommendation to award premia on a long term or short term basis
- reject application
Once final approval has been given by the CLE all parties involved in the application for RRP will be informed via the care group director or head of corporate service. The care group director or deputy care group director will then inform the staff and the payroll department as appropriate. The care group directors or head of corporate services are responsible for updating the employee(s) on the progress of their application and should update within six weeks of the application being received.
3.5 Review
In order to allow for RRP to be included in the annual business plans and budget setting, premia must be reviewed each financial year for premia payable from the following April.
The reviews will take place through relevant service or department heads with any points for consideration through to the CLE
The reviews will include:
- how far the RRP have allowed the trust to reduce its vacancy rates and turnover
- the likely impact on the service of removing or reducing RRP
- any changes in the labour market circumstances
The review will determine whether a given premium should be either:
- withdrawn, with appropriate notice
- increased or reduced
- move from short term to long term or vice versa
- inflation rate upgrade added
If at the first or second annual review of a short term recruitment and
retention premium, it is decided that the labour market conditions are expected to take longer than previously expected to disappear or resolve, then consideration should be given as to whether this premia should be converted to a long term recruitment and retention premium. If a short-term recruitment and retention premium is still being applied after three years, it must automatically convert to a long-term recruitment and retention premium. Any additional enhancements will be applied in line with the long term premia from the date it is converted. There will be no back pay applied.
4 Equality impact assessment screening
To access a copy of the overarching equality impact assessment please follow the link: Equality impact assessment.
5 Links to any other associated documents
To access the policy which overarches this SOP please follow the link: Appointment of staff policy.
6 Appendices
6.1 Appendix A Appendix A Application for RRP
6.2 Appendix B Stakeholder consultation on application for RRP
6.3 Appendix C RRP record form
6.4 Appendix D Acknowledgement of receipt of RRP application form
6.5 Appendix E Unsuccessful RRP letter
6.6 Appendix F Successful RRP letter to staff
Document control
- Version: 2.
- Approved by: Corporate policy approval group.
- Date approved: 7 November 2023.
- Name of originator or author: HR partner.
- Name of responsible individual: Executive director of people and organisational development.
- Date issued: 8 November 2023.
- Review date: 31 November 2026.
- Target audience: All employees.
Page last reviewed: April 12, 2024
Next review due: April 12, 2025