Council considers pay boost for senior staff

Anthony Lewis, local democracy reporter

A council is considering increasing pay for senior management in line with other councils in a bid to keep and attract people to the roles.

A report on director remuneration due to go before Merthyr Tydfil Council council on Wednesday, 18 September said that current salary structures are significantly lower compared to other councils in south and mid Wales, creating substantial challenges in attracting and retaining senior management.

It said that recent recruitment efforts have highlighted the difficulties faced due to uncompetitive remuneration, with key positions remaining unfilled or attracting only a small pool of candidates.

An independent review conducted by Anne Phillimore FCIPD (Fellow of the Chartered Institute of Personnel and Development) aimed to address the critical issue of attracting and retaining senior management within the council.

Analysis

It includes an analysis and benchmarking of the council’s pay levels against other public sector organisations.

The findings show a clear need for adjustments to ensure that “the council can build and maintain a strong leadership team capable of driving the council’s strategic and operational goals,” the council report said.

It also said that the benchmarking exercise revealed that the council’s senior salaries are positioned in the lower quartile for south and mid Wales which “places the council at a disadvantage in the competitive job market, impacting its ability to attract and retain experienced and capable leaders.”

The review compares the council’s salary levels with those of neighbouring councils and other public sector organisations and shows that neighbouring councils offer starting salaries for comparable roles at around £90,000, with some positions going up to £115,000 while Merthyr Tydfi’s current average salary for director roles is approximately £83,729.

The report said: “Low numbers of suitable applicants and the need for repeated re-advertisements indicate a clear issue with the attractiveness of the offered salaries.

‘Significant risk’

It added: “The inability to attract and retain experienced senior management poses a significant risk to the council’s long-term sustainability and performance” and that “A strong and competitive remuneration package is essential to ensure that the council can build and maintain an effective leadership team capable of driving its strategic goals.”

The review also highlighted that Merthyr Tydfil, being one of the smaller local authorities in Wales, faces specific challenges such as geographic limitations and competition from other local public sector employers like the Welsh Government and local health boards and the impact of remote working, which has expanded job opportunities for staff, increasing the risk of losing them to better-paying roles elsewhere.

Recommendations include repositioning director roles from tier four to tier three, adopting a four point salary scale and conducting a broader remuneration review.

If approved, the structure changes would involve a budget increase of £81,023 for 2024/25, £87,273 for 2025/26, £93,638 for 2026/27 and £101,598 for 2027/28.

Budget increase

The £81,023 budget increase for this financial year (2024/2025) would be made up of £16,779 towards the directors of neighbourhood services, education and social services, £12,469 towards the director of governance and resources and £18,217 towards the director of finance.

For the next financial year (2025/2026) the £87,273 budget increase would include £17,164 towards the directors of neighbourhood services, education and social services, £15,027 towards the director of governance and resources and £20,754 towards the director of finance.

In May 2019, the requested support from the Welsh Government to address
several key issues, including long-term sustainability, improving the performance culture and reviewing the senior management structure, roles, and responsibilities.

Audit Wales also highlighted a lack of capacity and expertise to drive and
sustain the transformation agenda, highlighting the need for a more permanent and capable senior management team.

In response, the council implemented a revised senior management structure
starting from November 2021 with key changes including the re-designation of chief officer roles to director roles and the creation of the director of governance and resources role.

Despite these changes, recruitment efforts for senior roles faced significant
challenges including low numbers of suitable applicants and difficulty in filling roles such as the director of governance and resources due to uncompetitive remuneration.

The council report said: “Addressing these salary shortfalls is essential to mitigate the risk of losing current directors and to ensure successful recruitment of new ones.

“Implementing these recommendations will position Merthyr Tydfil County Borough Council as an employer of choice, capable of attracting high-calibre professionals to lead our services effectively.”

Due to current vacancies/recruitment process the report said there will be variation in the 2024/25 full year effect and that there would be an increased cost to the authority on an ongoing basis if these changes are taken forward.