Agenda Item No. 5

The Vale of Glamorgan Council

Council Meeting: 18th July 2018

Report of the Leader

Senior Management Restructure - Human Resources and Performance & Development

Purpose of the Report

1. To seek Council's approval to changes to the senior management structure within the Managing Director and Resources Directorate.

Recommendations

1. That Council approves, in principle changes to the senior management structure for Human Resources and Performance & Development within the Management Director and Resources Directorate and as set out in paragraphs 20 to 32 of this report.
2. That specific approval is given to the proposed grading of the redesignated post of Head of People and Performance as set out in paragraphs 21 and 22 of this report.
3. That the proposals are approved as a basis for consultation with staff and the recognised trades unions during August 2018 and, if appropriate implementation from September 2018 onwards.
4. That a referral back to Council is made only in the circumstances where there are substantive changes to the proposals effecting to establishment of the Head of People and Performance and following consultation with staff and the trade unions.
5. That subject to 3 and 4 above, arrangements are put in place to recruit to the post of Head of People and Performance under the auspices of the Council's Senior Management Appointments Committee.
6. That delegated authority is given to the Managing Director, in consultation with the Leader to refine and progress the wider proposals as set out in paragraphs 20 to 32 subject to appropriate consultation with employees and the trade unions.
7. That a specific referral to Cabinet is made in the circumstances where there are substantive changes to the proposed structure below the Head of People and Performance following the consultation process with staff and the trade unions.

Reasons for the Recommendations

1. To ensure that the senior management structure in the Managing Director's Directorate is sufficiently resilient to meet current and future service needs.
2. To ensure compliance with the Local Authorities (Standing Orders) (Wales) Regulations 2014.
3. To ensure compliance with the Council's Managing Change and Avoiding Redundancy Procedures.
4. To ensure compliance with the Council's Constitution
5. As 1 above.
6. As 1 above.
7. As 1 above.

Background

2. The senior management arrangements for Human Resources and Performance & Development were reviewed and restructured in 2015, at the time of the appointment of the current Managing Director.
3. The revised arrangements included the establishment of a Senior Head of Service, with responsibility across Human Resources, Organisational Development and Performance and Development as supported by a Head of Service and four Operational Managers. A copy of the existing structure is attached at Appendix A.
4. The structure has secured high levels of performance over recent years, providing a strategic focus for Organisational Development activity, driving forward the Council's employee engagement strategy, and linking organisational agendas around  people and cultural transformation.
5. The need to now revisit the structure has become necessary as a result of a number of factors.
6. Members will be aware that the current Head of Human Resources & Organisational Development will be leaving the Council at the end of August 2018 and after nine years' service with the Council. It will be important to ensure continuing leadership and momentum in relation to the people and organisational development agendas.
7. The challenges and demands on the Council's services and finances will continue to require an increasingly joined up approach to service provision focusing on internal as well as external collaboration and the sharing of resources.
8. The Directorate is continuing to seek a response to the current in-year savings target of £700k as part of the Reshaping Services Programme.  The proposal as set out in paragraphs 20 to 32 is one of a number of savings proposals across the Directorate and, if approved will help achieve a saving of approximately £90k.
9. The support of Council members in relation to the proposal set out in paragraphs 20 to 32 will help respond to the above issues and will serve to provide a sustainable structure for the Directorate in this key service area.

Relevant Issues and Options

10. In responding to the issues as set out above, consideration has over recent months been given to a number of options as set out below.

Option 1: Status Quo

11. The most straightforward option to implement would be to seek to recruit to the vacant position of Senior Head of Human Resources whilst leaving the wider structure untouched (as set out in Appendix A). Whilst straightforward this would not help with the wider savings agenda within the directorate.

Option 2: Revert to two separate Heads of Service

12. Such an option would mean a return to the arrangements prior to 2015 i.e. a Head of Human Resources and a Head of Performance and Development (without the current senior role). This is set out in Appendix B. It would provide a flatter management structure and would save appropriately £13k. The option would not be as effective in helping bring together the people and performance agendas and related resources, which have been a successful feature since 2015.

Option 3: External Collaboration

13. A programme of work has taken place over recent months to explore the possibility of a shared Human Resources service with Bridgend Council. Such as model would have entailed the development of shared HR transactional team covering both Councils and the development of two HR Business Partnership teams - sharing resources as appropriate but ensuring a dedicated presence in each Council.
14. Such an option would have seen an initial saving of approximately £50,000 with the possibility of further savings over time as efficiencies and economies of scale are realised.
15. Whilst such an option has not been discounted as a future possibility, it has been agreed with Bridgend Council that it is not appropriate to progress it at this time, given concerns about the different operating models for HR within both local authorities and the differing payroll/employee information systems.
16. In addition, and without discounting future collaborative opportunities, there is a concern about the effect collaboration would have on the speed and effectiveness of our own internal transformational programme. The HR and Organisational Development team have helped to support significant developments over recent years (in terms of employee engagement, management development and the broader reshaping agenda) and any loss of momentum would not have been helpful for the Council in responding to current/future challenges.  
17. Regardless of the recommendation in this report, we will continue to work collaboratively with Bridgend (and other Councils) on HR issues/policy development issues and, indeed other corporate services as the need/opportunity arises.

Option 4: The People and Performance Model

18. This option is considered the strongest of the proposals presented, offering the Council resilience, service continuity and the ability to make the best use of shared resources. It is recommended for the purposes of formal consultation with employees and trade unions and, if appropriate implementation from September onwards.
19. The option sees the bringing together of the two existing Heads of Service (Head of HR and Head of Performance and Development) into a new post of Head of People and Performance, and the regrouping of functions below this post.
20. A copy of the structure chart which sets out the detail of this proposed model is attached at Appendix  C together with a job description for the post of Head of People and Performance at Appendix D.
21. Such a model would help to build on the organisational development work that has taken place over the last two years and the increased sharing of expertise and capacity across the Council's Organisational Development, HR Business Partnership and Performance and Business Improvement Teams.
22. The model would realise initial savings of £90K which could be both used to part offset the wider savings target across the Directorate and also to improve capacity in a number of the current reshaping agendas e.g. commercialisation and digitalisation.
23. Council Members are asked to endorse the proposal in principle as a basis for continuing consultation with employees and trade unions during July/August and in accordance with the Council's Management of Change Policies.
24. Specific approval is needed in relation the establishment/grading of the role of Head of People & Performance. The proposed grading is in line with the salary (and range of responsibilities) of the current Head of Human Resources i.e. £67,453 to £74,950 plus the current allowance for senior Head of Service responsibility i.e. £9,854. These salary references will be subject to change depending on the outcome of the 2018/19 Pay Award for Local Government Chief Officers.
25. The grade level as referred to in 24 above was established via HAY job evaluation in 2015 and in consultation with the Independent Remuneration Panel for Wales. It is not considered necessary, therefore to revisit this.
26. Subject to approval by Council on the 18 July 2018 the formal consultation process will take place in relation to this new structure throughout July and August.
27. Dependent on the outcome of that consultation Council Members are asked to provide delegated authority to the Managing Director in consultation with the Leader to progress or refine the implementation of the proposals as appropriate, including the putting in place of any necessary interim/acting up arrangements.
28. The appointment arrangements in the relation to the Head of People & Performance will (if approved) be progressed under the auspices of the Council's Senior Management Appointments Committee and will be subject to both an internal/external recruitment campaign.
29. It is recommended that referral back to Council is only made in circumstances where there are substantive changes to the proposal as set out in paragraph 26 above (i.e. the establishment and grading of the new post of Head of People & Performance).
30. It is also recommended that any significant or material change or refinement of the wider restructuring proposals below the proposed new role of Head of People & Performance is referred for consideration/determination by Cabinet.

Resource Implications (Financial and Employment)

31. The proposals set out in this report would see a saving of approximately £90k based on a comparison of the current budget and appointment to the new establishment., albeit any other changes to provide additional capacity and resilience would see that initial saving reduced.
32. The changes would have an impact upon a small number of current staff and would be managed in accordance with the Council's Managing Change policies.

Sustainability and Climate Change Implications

33. The new structure seeks to respond to the longer-term needs of the Directorate, the wider Council and reflect the need to deliver services in a financially sustainable manner.

Legal Implications (to Include Human Rights Implications)

34. The Local Authorities (Standing Orders) (Wales) Regulations 2014 require the Full Council to determine or approve changes to the salaries of officers designated as Chief Officers within the definition of the Local Government and Housing Act.

Crime and Disorder Implications

35. None identified.

Equal Opportunities Implications (to include Welsh Language issues)

36. Any selection process resulting from the proposals in this report will be managed in accordance with the Council's equality proofed recruitment and selection policy.

Corporate/Service Objectives

37. The restructure seeks to support the delivery of service objectives set out in the Council's Corporate Plan. Policy Framework and Budget

Policy Framework and Budget

38. The issues within this report are largely a matter for determination by Cabinet except for the determination of grades as set out in recommendation 2 and which will need approval of Full Council on the 18 July 2018.

Consultation (including Ward Member Consultation)

39. The proposals in this report will be subject to consultation with staff and trade unions as set out in recommendation 3 of this report.

Relevant Scrutiny Committee

40. Corporate Performance and Resources

Background Papers

None

Contact Officer

Rob Thomas, Managing Director

Officers Consulted

Corporate Management Team

Responsible Officer:

Rob Thomas, Managing Director