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States of Jersey: Pay Benchmarking (R.99/2009) – addendum.

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STATES OF JERSEY

STATES OF JERSEY: PAY BENCHMARKING (R.99/2009) – ADDENDUM

Presented to the States on 8th September 2009 by the Chief Minister

STATES GREFFE

2009   Price code: A  R.99 Add.

REPORT

  1. Earlier  this  year,  Hassell  Blampied  Associates  were  commissioned  to undertake a pay benchmarking survey of the local private and public sectors of employment. The report confined itself to Manual Worker, Civil Service and  Chief  Officer  jobs  and  did  not  include  jobs  like  Nurses,  Teachers, Policemen, Firefighters and Prison Officers, where local comparisons are not easily made.
  2. Their report shows the following –

States of Jersey pay policy is in general higher relative to the market at the lower end of its pay scales than at the higher end.

BASE SALARY

Clerical and financial jobs

The maximum base salary points for States of Jersey Civil Service Grades 5 to 11 – £25,264 – £50,725 (with Grade 11 representing a middle manager's level) are above the market rates and thereafter are consistent with or below the market.

Manual, technical and engineering jobs

The maximum base salary points in States of Jersey Manual Worker Grades 2 and 3 (unskilled/semi-skilled jobs – £21,658 – £22,708) are above the market; at around the market line for the heavy populated manual worker Grades 5 and 6 – £25,603 – £27,709; and below the market  for  Grades  7  and  8  (£29,462 – £34,081)  where  skilled technicians and many charge-hands are graded.

For Civil Service jobs in these categories, the maximum base salary points  in  Grade 8 –  £35,658  (junior  management)  are  below  the market and the maximum base salary points in Grades 11 to 13 – £50,725 – £63,880 (middle management) are above the market.

Chief Officers

The  actual  base  salaries  for  States  of  Jersey  Chief  Officers  are broadly in line with the market, except for the highest level roles where they fall below the market, in some cases of the order of 20%.

TOTAL CASH

The report concludes that as bonuses are not paid in the public sector, total cash is identical to base pay. As bonuses are paid in many areas of the private sector, this results in many cases in private sector total cash being in excess of that in the public sector, especially at the higher ends of the pay scales.

3

The survey shows that to the extent that base pay is equal to total cash in the public sector, whereas in the private sector total cash can significantly exceed base pay, the private sector has a comfortable lead over States employees in the higher Civil Service Grades 12, 13, 14 and 15 (£55,752 – £79,794) and for Chief Officers.

  1. Generally, the report confirms the broad trends demonstrated in the 2006 Hay survey. The States pay significantly better than the private sector in terms of total cash at the lower grades; are generally competitive at the middle grades; and  continue  to underpay  the  market  at  the  more  senior  levels  in the organisation. This position will be affected by the decision not to increase pay in the public sector in 2009 to the extent that market rates move over the next 12 months.
  2. States employees' pension entitlements are generally better, in some cases significantly, than their private sector counterparts; and the continuation of a final salary calculation basis is a valued public sector benefit. Further, there is generally perceived greater security of employment in the public sector. These factors can assist the public sector to recruit and retain staff, even where the cash value of packages offered is lower than private sector equivalents.
  3. The report also draws attention to the fact that States of Jersey pay scales comprise an "unusually" large number of grades.
  4. A table expressing comparisons at various levels is attached at the Appendix.

Employee Relations September 2009

R.99/2009 Add.

APPENDIX

 

SoJ CS Grade

SoJ MW Grade

SoJ Max

Survey Median

%

+ or -

SoJ Max

Survey Median

%

+ or -

Base Pay

Total Cash

1

 

 

 

 

 

 

2

£21,658

£14,420

50.19%

£21,658

£14,420

50.19%

1

3

£22,708

£18,301

24.08%

£22,708

£18,301

24.08%

2

4

 

 

 

 

 

 

3

£24,114

£21,225

13.61%

£24,114

£22,000

9.61%

4

5

£25,603

£22,363

14.49%

£25,603

£22,461

13.99%

5

6

£27,709

£22,938

20.80%

£27,709

£23,997

15.47%

6

7

£29,462

£26,000

13.32%

£29,462

£28,458

3.53%

7

8

£31,302

£30,500

2.63%

£31,302

£32,085

-2.44%

8

 

£35,658

£32,952

8.21%

£35,658

£35,857

-0.55%

9

 

£41,324

£35,000

18.07%

£41,324

£38,000

8.75%

10

 

£45,535

£40,172

13.35%

£45,535

£44,565

2.18%

11

 

£50,725

£45,000

12.72%

£50,725

£48,906

3.72%

12

 

£55,752

£53,333

4.54%

£55,752

£59,221

-5.86%

13

 

£63,880

£65,000

-1.72%

£63,880

£70,457

-9.33%

14

 

£72,236

£76,796

-5.94%

£72,236

£90,828

-20.47%

15

 

£79,794

£80,391

-0.74%

£79,794

£98,544

-19.03%

"A" & above

 

 

 

 

 

 

 

£7,238  £7,238 £4,407  £4,407

£2,889  £2,114 £3,240  £3,142 £4,771  £3,712 £3,462  £1,004 £802  -£783 £2,706  -£199 £6,324  £3,324 £5,363  £970 £5,725  £1,819 £2,419  -£3,469 -£1,120  -£6,577 -£4,560  -£18,592 -£597  -£18,750