PERFORMANCE MANAGEMENT IN THE CIVIL SERVICE
5 PCS Negotiating Principles
Introduction
On 7th December 2016 the Cabinet Office issued a performance management
‘Framework Principles’ document. The Framework was agreed by Ministers and
Permanent Secretaries and sets out eight principles against which all Government
Departments should negotiate new performance management arrangements. New
systems should be in place for 2018.
A series of performance management trials have already been launched across
Government – including DWP, HMRC, Home Office, Valuation Office and Ministry of
Defence – which are examining alternative approaches to the current discredited and
discriminatory system.
PCS members will welcome the dismantling of the current system. We should be clear
that it was the PCS bargaining strategy – which was built around member participation
and assertion of their rights under the system, a legal strategy highlighting the
discriminatory elements of the system and campaigning by activists and members –
that has forced the employer to change course.
Our next task is to ensure that replacement systems are fair, equality proofed and
transparent. The system should support and develop staff, not seek to rank them or
discriminate against them.
This negotiating guide has been produced to help PCS negotiators in that process.
The guidance fully reflects our discussions to date with the employer’s representatives
and is backed up by two reports produced for PCS by Keele University.
Given the delegated approach to performance management adopted by Permanent
Secretaries the guidance focuses on strategic principles rather than prescription. We
anticipate an uneven approach on this matter and it is important that negotiators are
able to access further support and guidance throughout negotiations. This can be
obtained from PCS via [email protected]
Negotiating Principles
1. All new systems must be negotiated and agreed
The expectation of Permanent Secretaries and the Cabinet Office is that PCS and
other unions will be fully engaged and involved in discussions on new systems.
On that basis PCS is clear that all new systems will be introduced via negotiation and
agreement. All new systems should look and feel different to the current system which
lacks credibility with our members, irrespective of their grade, and is discriminatory.
New systems should not be used to ration non-consolidated pay and should instead
focus on developing and coaching staff.
2. The link between pay and performance must be scrapped
PCS has commissioned Keele University to analyse data supplied by all government
departments over successive years on their performance management systems.
This research indicates that that there are statistically significant differences in
performance management outcomes based on gender, age, grade and between full
time and part time staff. The evidence also proves that there is a severe difference in
outcome between black staff and white staff and disabled staff in comparison to nondisabled staff.
Put bluntly men, older workers, part time staff, black staff and disabled staff are more
likely to receive a ‘Must Improve’ marking and less likely to receive an ‘Exceed’
marking.
It is therefore no longer sustainable for employers to use performance management
systems for the purposes of pay and the link between pay and performance must be
broken,
PCS will shortly issue further guidance on the use of non-consolidated pay, but it is
essential that PCS make clear at every level that pay must now be removed from
systems and we must not agree any system that uses appraisal as a basis for making
pay awards of any kind.
All negotiating areas are asked to notify PCS immediately where any employer
proposes to retain a link between pay and performance or any other form of appraisal
PCS will be required to consider legal action for indirect discrimination in these areas.
3. Manager Capability and Confidence Addressed – moving towards a
coaching system
New systems should focus on strengthening manager capability and confidence. This
is important because all managers should feel able to coach, support and develop
their staff. Clear guidance and training should also be put in place to help managers
move away from moderating style discussions and towards supporting and developing
the staff that they manage.
There should be no requirement to set objectives, to review them or to award a ‘box
mark’. Instead the focus should be on a regular performance conversation between
line managers and their staff. This conversation should focus on getting the job done
and specifically what training and coaching can be put in place to help staff succeed.
Given the absence of box marking and pay from systems there is obviously no need
for validation groups. However, consideration should be given to some form of
oversight process that is tasked with ensuring that:
•
All staff enjoy a similar quality of conversation,
•
There is clear evidence of action being taken to support individuals,
•
That managers are recording the outcome of conversations in an objective way
and that agreed actions are taken
•
An inclusive management culture is developed at all levels and across all parts
of the organisation.
4. Equality and Diversity
The more inclusive approach outlined above; the removal of box marking and any link
to pay, will help to tackle some of the current discriminatory outcomes.
However, employers will need to go further and will need to use the coaching process
described above to identify high potential individuals from a diverse range of
backgrounds and put in place action plans to support their development.
Individual managers must be expected to explain adverse impacts on individuals with
protected characteristics and at a departmental level an action plan should be agreed
and published explaining what action will be taken to improve declaration rates.
Finally, all new systems should be fully equality proofed and developed through
negotiation with departmental trade union sides.
5. Moving towards a developmental performance management system
Once the above principles are agreed then consideration can be given to the details
of system design.
Until, the principles above have been subject to negotiation and agreement PCS
negotiators should resist any attempt by employers to discuss system design. We want
agreed principles to drive the design of the new system and not the other way around.
System design should be discussed once the following checklist has been negotiated
and agreed:


No link whatsoever between pay and performance/appraisal
No box marking, moderation or ranking – replacement with a coaching system



Performance conversations to replace objective settings
A focus on identifying and supporting high potential individuals from a wide
variety of backgrounds
Full equality proofing of new systems
Further help and guidance
Negotiations around new systems for 2018 should have commenced in all bargaining
areas. If this is not the case the negotiating teams should be pursuing this.
Further guidance for negotiators focussed on system design and the use of pay will
be produced later in 2017. There will also be regular meetings facilitated by the union
nationally for all bargaining areas on performance management throughout the year.
All bargaining areas are encouraged to provide regular updates to the national union
on the progress, or otherwise, of negotiations at delegated level.