Attraction and retention premia

Exceptionally, the University will consider the application of attraction and retention premia for certain roles, as a supplement to the pay for the grade of the role, where:

  • there is a clear business need, assessed against the strategic priorities of the University; and
  • there is appropriate evidence that market pay rates are significantly higher than the University rate; and
  • there is evidence of recruitment and retention difficulties; and
  • all other approaches towards recruitment and retention have been considered.

In addition, there must be a clear and justifiable ‘ring-fence’ around the roles which are to be covered by the proposed attraction and retention premia, defined by (for example) specialist discipline and level/grade. Where attraction and retention premia are approved, they will apply equally to current and new appointments in the ‘ring-fence’.

Where the University is intending to apply attraction and retention premia, it will consult with trade union representatives appropriate to that area of work prior to a decision being made.

Attraction and retention premia must be approved by the College Dean/Head of Service, the Director of Human Resources and the line manager Deputy Vice Chancellor (for staff in Colleges) or the Registrar and Secretary (for staff in Professional Services).

Attraction and retention premia may be one-off payments (on appointment or following a fixed period provided the individual remains in employment) or ‘market supplements’ to salary (paid in monthly instalments with salary). Attraction and retention premia will be subject to statutory deductions and, except in the case of one-off payments, will be pensionable.

Human Resources will maintain a record of the rationale for each attraction and retention premium and will write to employees who receive an attraction and retention premium advising them of the additional payment and the circumstances in which it may be reduced or withdrawn and referring to this policy.

Attraction and retention premia which are paid as market supplements will be reviewed by the Director of Human Resources at annual intervals to ensure that there is a continued justification and that the level of premium is appropriate. The review may conclude that the market supplement should be maintained, increased, reduced or withdrawn. Where the market supplement is not reduced or withdrawn following this review, it will be adjusted in line with general increases to the national payspine.

In the event that the market supplement is reduced or withdrawn, the employee will be given three months notification in writing before any change takes effect. Where
the market supplement is to be withdrawn or reduced, this change will be phased over three years (ie reduce by one third of its original value each year).

Attraction and retention premia address differences between market pay rates and the rate for the University grade. Consequently, unless a continued and revised premium is justified and approved under this policy, any currently held attraction or retention premium above the new salary will be phased out in accordance with paragraph above when the employee is promoted or regraded.

The University will monitor the application of attraction and retention premia as part of its equal pay review process. The University reserves the right to amend this policy and to revise and withdraw attraction and retention premia in order to comply with equal pay standards.