The 2013 CHC survey results (and some practical tips for 2014)
Rachel StonePartner, People Management
January 2014
Context
• October 2013 results show a slight fall in unemployment in Wales (8.0% down from 8.9% at the same time last year)
• RPI has continued to fall, from 3.1% in December 2012 to 2.7% in December 2013
• CPI now at 2.0%
• RPI and CPI predicted to rise slightly in next few months
• Nationally, pay settlements running at 2.0%
Pay trends by level of role
J ob level2012/ 13 %
change
Chief Executive 2.0%
Directors 6.0%
Heads of Function 2.0%
Department Manager or Strategic Adviser 3.9%
Middle Manager or Senior Specialist 3.5%
J unior Manager or Technical Specialist 1.2%
Supervisor or Senior Technician 3.5%
Senior Clerical or Technician - 0.4%
Admin Support or Senior Operative - 0.1%
Clerical or Operative Staff 1.1%
Comparison of salary levels for Executive roles in English and Welsh Associations
£0 £10 £20 £30 £40 £50
£50,000
£75,000
£100,000
£125,000
£150,000
Turnover (£m)
Sal
ary
Welsh English
Key Messages from our HA Executive Reward Survey
• Year on year executive pay has increased by 3.2%
• Median expected rise is 2%, with 59% expected to award between 1% and 2%
• Less than 1/3rd of HA Executive receiving bonus
• Car Allowances steady at 8% of base pay
• 65% of associations expect staff numbers to remain steady, 26% expect growth
Key Themes for Welsh HAs (1)
• The gap between general housing and supported housing pay is remaining constant
• Half of organisations continue with pay restraint
• Half of associations expect staff numbers to stay constant
• A third expect increase linked to business growth or diversification
Key Themes for Welsh HAs (2)
• Recruitment challenge is for technical and skilled support roles
• Community networks trump job centres
• Succession planning still informal in most associations
• Staff turnover increased from 11.2% to 12.9%
• 71.6% of leavers left the housing sector completely
Key Themes for Welsh HAs (3)
• Sickness absence levels increased slightly (3.5% to 3.8%)
• Stress is still the most common cause of long term absence
• Enhanced benefits still key, including family friendly, annual leave and flexible working – now taken as the norm
• Training spend increasing to an average of £617 last year
What’s just around the corner?
Hot topics in reward for 2014 – It’s all down to cost ….
1. Ongoing impact of the “Personalisation Agenda”
2. Changing economic environment
3. Automatic enrolment
Hot topics – forward thinking
1. Get aligned – total spend, not salary focus
2. Innovative design
3. Education, education, financial education
4. Personalise for me
5. Benefits - tell me more…
More strategic approach to communication of reward
Automatic Enrolment
• Staging Dates
• Employer responsibilities
• Communication
• Education
• Implementation
Personalising reward choices
• ‘My Reward’
• Mixing baseline benefits and personal choice
• Learn from consumer marketing
• Easy technology tools to support
Housing sector requests
• Very specific role benchmarking
• Moving away from ranges and towards spot salaries
• Improving value and ‘fit’ of benefits spend
• Longer term exec pay models
First signs of economic growth...
Any Questions??
This presentation is of a general nature and is not a substitute for professional advice. No
responsibility can be accepted for the consequences of any action taken or refrained
from as a result of what is said.
Disclaimer
Smith & Williamson LLP
Portwall Place
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Bristol
BS1 6NA
Tel: 0117 376 2066 Fax: 0117 376 2001
www.smith.williamson.co.uk
Smith & Williamson LLP
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for a range of investment business activities.Members of Nexia International.
Portwall Place, Portwall Lane
Bristol BS1 6NA
Tel: 0117 376 2000 Fax: 0117 376 2001
www.smith.williamson.co.uk
