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

Portwall Lane

Bristol

BS1 6NA

Tel: 0117 376 2066 Fax: 0117 376 2001

www.smith.williamson.co.uk

Smith & Williamson LLP

Regulated by the Institute of Chartered Accountants in England and Wales

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