To consider an update on the current application of market rate supplements to posts across Central Bedfordshire Council.

The Committee considered a report by the Director of Improvement and Corporate Services which set out an update on the current application of Market Rate Supplements (MRS) to posts across Central Bedfordshire Council.  The report provided information covering:

·         The number of MRS payments against salary bands

·         The number of MRS payments by MRS band

·         The percentage cost of MRS payments against the total salary bill by directorate

·         Staff turnover in the service areas in receipt of MRS.

The Assistant Director People introduced the report, drawing Members’ attention to the payment of Enhanced MRS to particular staff that were already in receipt of Standard MRS.  In connection with this the meeting noted that all staff in posts requiring a social work degree received a Standard MRS but those experienced workers (Social Worker level 2 and above) with case holding responsibilities in those teams with hard to fill vacancies received the Enhanced MRS.  The meeting noted that that this had proved to be a successful strategy and had enabled the Council to compete in the highly competitive job market.  Further, the recruitment of experienced social workers had enabled a reduction in the use of agency staff and, therefore, a reduction in the overall spend on agency workers.  Whilst there had been an increase in the proportionate spend on MRS payments to permanent members of staff this represented a better use of resources than funding the long term use of agency/interim workers.  It also maximised the chance of a child building a long term relationship with their social worker rather than be subject to frequent changes through the use of temporary members of staff.

The Assistant Director People drew Members’ attention to the recent approval by the Council’s Corporate Management Team for the increase and extension of the current MRS payments for particular posts in social care to overcome recruitment and retention difficulties.  The Assistant Director People stressed that the supplements were mainly paid to middle ranking posts and not to senior members of staff.  Further, they were only paid to those officers ‘in post’ and not to agency staff.

Various queries followed from Members.  Arising from discussion on the substantial increase in the voluntary turnover rate within Information Technology during 2015/16 Members requested that future reports include the total number of people within a particular team together with the number of staff actually leaving so that the context could be established.  The Assistant Director undertook to supply such information in future reports.

A Member referred to the development of capped rates paid to agency workers in the Eastern Region in an attempt to managing costs and sought additional information on this matter.  In response the Assistant Director People stated that a maximum rate had been agreed by councils and the results had proved so successful that other regions were considering adopting the same approach.  In response to a further query regarding the overall saving in agency worker costs the Assistant Director People undertook to examine this issue and advise Members.

A Member referred to Appendix C to the report which set out MRS as a percentage of salary costs over the last three financial years and expressed concern at the rapid increase in MRS costs from approximately £0.5m in 2013/14 to approximately £1.0m in 2015/16.  In response the Assistant Director People explained that the costs had increased because permanent experienced staff, who attracted MRS payments, had replaced agency staff in teams where vacancies had been hard to fill.  She added that she did not envisage this cost being reduced.  However, she emphasised that whilst an increase in such permanent staff had led to increased MRS costs there was an overall saving because the cost of the permanent staff, even with MRS payments, was less than the cost of agency staff.  Another Member reminded the meeting of the positive impact of the Academy of Central Bedfordshire at which social workers were being trained and developed ‘in-house’ and how this approach, although medium term in its contribution towards easing the current shortage of social workers, had been adopted to varying degrees elsewhere.

RESOLVED

that the annual update on the current application of market rate supplements to posts across Central Bedfordshire Council be received.