Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting: 23 February, 2015
Report of the Leader
Senior Management Appointment and Grading/Salary Issues
Purpose of the Report
1. To ask Cabinet to consider and endorse proposals in relation to the recruitment and remuneration of the Council's Section 151 Officer and the salary of two other Heads of Service prior to submission to and final approval by Council on the 4 March 2015.
1. That Cabinet consider and endorse a permanent change to the role and salary of the post of Head of Finance as set out in paragraphs 8 to 20 and in the light of the retirement of the current post holder.
2. That subject to the above, arrangements are made to recruit to the revised Head of Finance/Section 151 Officer post under the auspices of the Senior Management Appointment Committee and that the job description and person specification at Appendix A and B are used as a basis for that process.
3. That Cabinet consider and endorse changes to the salary of the Head of Adult Services/LHB Locality Manager (as set out in paragraphs 21 to 31).
4. That Cabinet consider and endorse the provision of delegated authority to the Head of Human Resources in consultation with the Leader to authorise the starting salary for the successful candidate for the post of Head of Regulatory Services in accordance with the proposals as set out in paragraphs 32 to 41.
5. That the recommendations 1 to 4 are referred for consideration and approval by Council on the 4 March 2015.
6. That subject to the above the necessary revisions are made to the Council's 2015/16 Employee Pay Policy.
Reasons for the Recommendations
1. To support the succession arrangements for the statutory post of Section 151 Officer.
2. As 1 above.
3. To reflect HAY Group grading recommendations for the post of Head of Adult Services/LHB Locality Manager.
4. To facilitate the appointment arrangements for the Head of Regulatory Services.
5. To comply with the requirements of the Local Government (Standing Orders) (Wales) (Amendment) Regulations 2014.
6. To ensure the accuracy of the 2015/16 Employee Pay Policy.
2. Members will be aware of plans to review the senior management structure as a result of the retirement of the current Managing Director/Director of Resources on the 31 March 2015.
3. Arrangements are currently in hand to recruit to the discrete role of Managing Director in accordance with the decision of Council on the 17 December 2014 and as a consequence of the Welsh Government's rejection of the Council's voluntary merger bid with Bridgend Council.
4. The appointment of a Managing Director will be important in order to ensure continuity of leadership over the coming years and also to rationalise reporting arrangements in the light of the agreed deletion of the role of Director of Resources.
5. In the meantime, however it has become necessary to bring forward certain aspects of the above review and to also attend to a number of proposed changes to salary and role details for a number of existing posts within the wider management team.
6. Such approval is, in particular sought in order to respond to the recent decision of the Council's Head of Finance to retire from service and the need to pursue permanent arrangements for the Section 151 duties.
7. The details of the above issues are as set out in the following paragraphs.
Head of Finance/Section 151 Officer
8. Members will be aware that prior to August 2012 the statutory role of Section 151 was carried out as part of the substantive duties of the Director of Resources.
9. It was, however necessary to reallocate such duties in 2012 as a result of the senior management restructuring exercise and in the light of the creation of the combined role of Managing Director/Director of Resources.
10. The need to reallocate the statutory responsibilities was driven by the statutory requirement for the roles of Head of Paid Service and Section 151 Officer to be carried out by different officers.
11. As a consequence of the above the Section 151 Officer duties have been undertaken by the Council's Head of Financial Services since August 2012 and the Council's Head of Finance since March 2014.
12. Payment for the additional statutory duties has been made by way of an allowance of £9,469 per annum in addition to the current Head of Service's substantive salary of £64,826 to £72,031 per annum.
13. The above arrangement was initially approved as a three year temporary arrangement subject to review at the end of July 2015.
14. In the last few weeks, however the current Head of Finance has indicated his intention to retire from service at the end of July 2015 and as such it is important to put in place arrangements for the post to be advertised.
15. As part of the above it is proposed that the post should be now advertised on the basis that it includes Section 151 responsibilities as a permanent feature of the role. The arrangement has proved successful over the last three years and continues to makes sense given the obvious overlap between the Head of Finance's corporate financial responsibilities and those prescribed as a Section 151 Officer.
16. Members will be aware that the proposal, as set out above is also in line with the Council's decision to now appoint to the discrete role of Managing Director, delete the role of Director of Resources and rationalise reporting arrangements for Heads of Service to provide corporate leadership on resource issues.
17. The existing arrangement for the Head of Legal/Monitoring Officer and that proposed for the Head of Finance are considered to be congruent with the above aspirations.
18. As part of the above it is recommended that the existing allowance of £9,469 is not altered (other than as a result of any approved national pay award) but simply changed into a fixed, rather than temporary allowance. Again this is congruent with the arrangement for the Council's Head of Legal Services/Monitoring Officer.
19. Subject to the approval of the above recommendations by Council on the 4th March 2015 the necessary recruitment arrangements will be progressed under the auspices of the Council's Senior Appointment Committee.
20. A copy of a draft job description and person specification are set out in Appendix A and B and will be considered by the Senior Management Appointments Committee as a basis for the recruitment and selection exercise.
Head of Adult Services/LHB Locality Manager
21. Members will be aware that the above joint post was created in 2010 as a shared post with the Cardiff and University Health Board.
22. This was an important step for both partner agencies and central to the development of effective integrated health and social care services across the Vale of Glamorgan.
23. Although the post is jointly funded, an agreement was reached for this Council to be the contractual employer. In accordance with the above the post was evaluated using the HAY Group Job Evaluation Scheme and, at the time paid in accordance with the Council's Head of Service salary band (£64,826 to £72,031).
24. A successful appointment was subsequently made and members will be aware of the progress that has been made as part of the developing integration agenda and as a model of increasing best practice across Wales.
25. At the time of the initial evaluation it was clear that the post was considered to be one of the "larger" Head of Service roles and particularly given its significant resource management responsibilities and its strategic and operational reach across organisational boundaries.
26. The grade of the role was, however set in accordance with the Head of Service grade as indicated above on the basis of the post being newly established and something of a new venture for both partner agencies.
27. Over the last five years, as the Council and the Health Board have responded to national and local imperatives for increased integration in all areas of adult services and community health, the strategic and operational significance of the post has become even more apparent. The number and scale of integrated services have increased substantially. The portfolio of line management responsibilities has become even more diverse with a large number of management posts within the division now shared either with the Health Board or with Cardiff Council.
28. Although there has been no change in overall purpose, the challenges and demands within the post have increased because of the crucial role it plays in helping both organisations to meet the agenda for collaborative change at an appropriate pace and in keeping with their aspirations - aligning different ways of working and competing priorities. This agenda becomes even more important as both the Council and the Health Board are required to meet substantial new duties under the Social Services and Well-being Act (Wales) 2014.
29. On the basis of the above the role has recently been re-evaluated by HAY Group and it has been recommended that the grade for the post be revised in line with that for the Council's Head of Legal Services/Monitoring Officer and Head of Finance/Section 151 Officer as set out in paragraph 18 above (i.e. the Head of Service grade plus a fixed annual allowance of £9,469).
30. The proposal has been discussed with appropriate officers within the Cardiff and Vale University Health Board who are content to share the additional costs of the above mentioned regrading proposal.
31. A revised job description for the post is attached at Appendix C.
Head of Regulatory Services
32. Members will be aware that the post of Head of Regulatory Services was approved by this Council on the 12th November 2014 to manage the shared Regulatory Services function across the Vale, Bridgend and Cardiff Councils.
33. Although the post is jointly funded between the three Councils it was agreed that this Council would be the contractual employer. In accordance with the above the post was evaluated using the HAY Group Job Evaluation Scheme and the grade set at £64,826 to £72,031 in accordance with the Council's Head of Service Grade.
34. The appointment to the post has been ring-fenced to the three existing Heads of Service in the three authorities and the selection process delegated to a Joint Committee comprising two Elected Members from each of the three Councils.
35. It is now likely that the appointments process will be concluded at a meeting of the Joint Committee at the end of March subject to the signing off of a Joint Working Agreement between the three Councils.
36. Members will be aware that appointment to the post would normally be at one of the first three increments of the grade (i.e. £64,826, £66,627 or £68,431). Access to the fourth and fifth point would be subject to performance, rated under the Council's Appraisal Scheme and payment made on an unconsolidated basis.
37. If an appointment is made as a result of the above appointments process it is possible that the successful applicant may be offered appointment at a lower salary level given the difference between their current salary level and the consolidated part of the Head of Service grade.
38. The above situation would be anomalous for two reasons; the first being that all other employees who are "in-scope" for the new service would initially enjoy TUPE related pay protection. As such it is possible that a candidate for the Head of Regulatory Services post could initially be financially better off if they were unsuccessful in their application and then transfer to the new service with salary protection.
39. The second reason relates to the fact that there is a difference in pay rates between the three local authorities and it would not be helpful for an employee to be asked to undertake the new and challenging role and, at the same time suffer a significant pay reduction. Whilst the grade for the new post has already been agreed it would seem reasonable to seek measures to anticipate and mitigate the above concerns.
40. On the basis of the above it is proposed that, should the need arise, delegated authority be given to the Head of Human Resources in consultation with the Leader to authorise the appointment of Head of Regulatory Services at a potentially higher incremental point within the agreed grade and if necessary waiving the strict performance related criteria for access to the top two non-consolidated increments.
41. Such an arrangement to be approved on an exceptional basis depending on the circumstances presented to the Joint Committee and acknowledging the particular circumstance of this joint appointment, the cross authority challenges of the collaboration exercise and the need to apply a degree of protection for the successful candidate.
Resource Implications (Financial and Employment)
42. The salary implications of the proposed changes are set out in the body of the report.
43. The continued (albeit fixed) cost of the supplement for the Head of Finance / Section 151 Officer (approximately £12k per annum) was considered as part of the senior management restructuring report to Council on the 17th December 2014.
44. The re-grading costs for the Head of Adult Services / LHB Locality Manager would be shared with the Cardiff and Vale University Health Board. For this Council the costs would amount to approximately £6k per annum.
45. The salary costs for the Head of Regulatory Service were approved by each Council in October/November 2014 based on the grading level set out in this report. The maximum additional cost arising from the proposals as set out in this report would be approximately £4k shared between the three Councils.
Sustainability and Climate Change Implications
46. There are no sustainability and climate change implications arising from this report.
Legal Implications (to Include Human Rights Implications)
47. The Council has a statutory responsibility to designate one of its officers as a Section 151 Officer. The recommendations within this report seek to ensure that this statutory responsibility is fulfilled.
48. The Local Authorities (Standing Orders) (Wales) Regulations 2014 require a Council to approve changes to the salary levels of officers designated as Chief Officers within the definition of the Local Government and Housing Act 1989. The officers affected by the proposals in this report fall within that definition.
Crime and Disorder Implications
49. There are no crime and disorder implications directly arising from this report.
Equal Opportunities Implications (to include Welsh Language issues)
50. Any recruitment process resulting from proposals in this report will be managed in accordance with the Council's equality proofed recruitment and selection policy and the provisions of the Local Authorities (Standing Orders) (Wales) Regulations 2014.
51. The grading issues set out in this report have been supported through the application of an equal pay compliant job evaluation methodology.
52. The proposals within this report have been designed to ensure a sustainable management structure for the Council.
Policy Framework and Budget
53. This report is a matter for consideration by Council.
Consultation (including Ward Member Consultation)
54. Consultation has taken place with the Managing Director, Head of Human Resources, Corporate Management Team, appropriate Cabinet Members and the trade unions in relation to the issues set out in this report.
Relevant Scrutiny Committee
55. Corporate Resources.
Contact Officer: The Leader
Corporate Management Team.
Responsible Officer: Sian Davies, Managing Director