HR/895
Introduction
A key strategic issue for the University is the ability to attract and retain high quality staff whose skills and attributes
contribute to achieving its strategic goals. The job markets in which the University operates, depending on role, vary from local to international,
are highly competitive and are therefore subject to a range of different influences, that require a range of responses. Our policy on market pay provides
the facility, based on clear and documented evidence of need and shortage, to introduce a market supplement to subject areas or professional non-academic
roles that are recognised pressure points.
At times the University may need to employ other supplements to attract and retain top talent, where this is clearly in the interests of the institution.
This document describes the parameters for attraction incentives (Golden Hello) and retention incentives (Golden Handcuffs).
Golden Hello
The University may offer a Golden Hello payment when:
- The preferred candidate has scarce skills e.g. highly regarded researcher
- The preferred candidate is able to command a higher remuneration package for similar employment than that offered by Lancaster University
- The market has been properly and recently tested
A Golden Hello will be:
- For a fixed period and normally no more than 3 years
- The value of the supplement per annum will not normally exceed 10% of annual base salary
- Non-superannuable
- Potentially repayable if the appointee does not remain for the period stipulated in the contract of employment
- Clearly identified in the contract of employment
The Vice Chancellor will determine, on request from a Dean, Director or equivalent and with advice from the Director of HR, when to award a Golden Hello to an appointee. There will be a written record of the reasons for the request, the evidence to support it, and the decision made.
Retention Payments
The University may employ two approaches when it wishes to retain a particularly valuable employee because their specific capabilities are either of particular importance to the University or they are in short supply, making a replacement appointment of similar calibre unlikely. The two options are:
a) To fast-track incremental progression or a promotion or regrading, but only when the performance achievements fully warrants incremental advancement or the role satisfies the criteria for a higher grade (as demonstrated through the job evaluation process); or
b) To award a retention payment (Golden Handcuff). A retention payment can take one of several forms:
b1) a future one-off payment to the member of staff linked to a date (for example, a commitment to remain in post for a further 30 months until DD/MM/YY) or an event (for example, publication of a major book or successful achievement of an important project) and/or
b2) an investment in the remuneration package (for example enhanced pension, enhanced sabbatical) or a supplement to base salary (normally for a fixed period of up to 3 years and non-superannuable). In this case a review will be undertaken to prior to the expiry date to determine if there is a case for continuation.
The value of a retention payment will not normally exceed 10% of annual base salary across the relevant period.
Deans and Directors have discretion to make awards under (a) (where it falls within delegated authority for promotion processes) and (b1). The Vice Chancellor will determine if a retention award in category (a) above the Deans/Directors delegated authority or (b2) is appropriate. Deans or Directors will consult with the Director of HR in the first instance regarding the case and possible options. They will then provide a short written statement setting out the grounds for the payment and evidence to support the case to the Vice Chancellor. This must include evidence of a real retention risk. .
Monitoring
The Director of HR will monitor and report to the Remuneration Committee on the use of Golden Hellos and retention payments.
Deans and Directors are responsible for ensuring that equal opportunity principles are taken into account when dealing with this type of case.