Contribution Pay

Recognising performance – what is contribution pay at LSE?

Recognising outstanding contributions towards our School’s objectives.

Contribution pay is one way to recognise exceptional contributions and outstanding performance by individual members of staff beyond normal expectations, towards our School’s objectives.

This can be awarded either as a one-off payment or a step increase in your salary. These awards are assessed on an annual basis. The nominations are made in May, followed by moderation processes at the School-level in June, and ending with the contribution pay being awarded to those staff in July or August, depending on the type of award. It is discretionary and falls outside of the national pay award arrangements in higher education which LSE subscribes to as part of the Joint Negotiating Committee for Higher Education Staff (JNCHES). All hourly, fixed term and open-ended/permanent staff are eligible to be nominated for a contribution award regardless of contract type.

Appropriate processes support the various categories of staff, with different oversight committees and review processes, between professional services and academic, education, research and policy staff (henceforth: academic staff) Below, you can find more information about each process, including nominations, moderation and guidance, as well as what we do to ensure parity across all staff.

Please note that guidance and forms for 2024-25 will be available soon.

Supporting transparency and consistency

In order to  build more transparency and parity in the distribution of contribution pay and to ensure equity and diversity, as well as consistent treatment for all staff we continue to enhance the guidance and process at each stage starting with information for managers. In addition to this, each year we assess the distribution of awards across staff groups to gain insights into the distribution of awards.

Clear guidance for staff and managers

To help both staff and managers understand good job performance we’re doing the following:

  • Reviewing the Career Development Review (CDR) process
  • Enhancing our guidance for managers
  • Providing training for line managers
  • Ensuring staff have a good understanding of their job roles through job descriptions, person specifications and regular CDR meetings
  • Ensuring behavioural attributes support staff with career pathways

Using data to understand and address fair distribution

Before the contribution pay process begins, units with more than twenty salaried professional services staff are provided with a breakdown of their awards over the last three years. This data is split by gender, ethnicity, salary band and contract type and is provided to help senior managers monitor any trends and ensure there is no group that is being underrepresented.

Within the moderation process, the deciding committees are provided with data covering the current round of nominations. This analysis allows the opportunity to review how nominations are split across gender, ethnicity, salary band and contract type and assess whether awards are being given fairly across all staff groups. The committees are also provided with the data from the previous three years to identify any emerging trends in distribution.

Outside of the nomination and moderation processes, this data on awards is shared with the HR Management Board, Remuneration Committee and the Joint Negotiation, Information and Consultation Committee (JNICC), the committee in which the School side meets with the School’s three recognised trade unions.

Types of awards

One-off and recurrent awards and examples of when a staff member may receive one. Depending on the type of contribution, staff can be nominated for a non-recurrent (one-off) award or a recurring award.

Non-recurrent awards are one-off payments. They typically reward exceptional contribution and outstanding performance relating to a defined period of time or particular piece of work, e.g. when staff have worked over and above their role to support a short-term objective or to complete a specific, one-off, unscheduled project. These are paid in the July payroll.

Examples of when a staff member may receive a non-recurrent award include:

  • Recognising a one-off special achievement
  • Dealing effectively with a challenge or period of operational difficulty in a particularly noteworthy way
  • Extra-ordinary contributions to education, research / impact / policy or citizenship.

Recurrent awards are expressed in terms of increments and consolidated into salary. These are normally given to staff who have shown continued and sustained exceptional contribution and outstanding performance above the level normally expected for the job. These are effective from 1 August.

Examples of when a staff member may receive a recurrent award:

  • Acquiring a relevant qualification with consequential outstanding performance
  • Taking on greater responsibilities within the current job which are being delivered at an outstanding performance level
  • Sustained positive feedback from service users
  • Personal career ‘growth’ in terms of overall contribution, stature or reputation
  • Sustained extra-ordinary contributions to education, research / impact / policy

For all staff, line managers should take salary relativities and pay equity into account alongside annual performance when considering their contribution award nominations.

Professional services staff

Process and guidance on contribution awards for professional services staff.

Overview

Where there has been exceptional performance, professional services staff may be nominated by their line managers for a recurring or one-off contribution award. Nominations go through a moderation process in June where final decisions are made.  

Key documents

Timeline 

Date / Deadline

Process/task/meeting

Mid-March 2024

Reward team to send link to guidance, indicative budget and salary data to Group Heads and Group E managers

25 April 2024

Service Leads in Groups A-D send their nominations to the Group Heads to collate.

3 May 2024

Group E only: Head of Department/Institute/Centre to send nomination forms to HR Partners.

Group Heads A to D: send nominations to the HR Reward Team (HR.Reward@lse.ac.uk)

6 June 2024

Moderation meeting chaired by the Vice President and Pro-Vice Chancellor (Planning and Resources) and Deputy Director to the LSE President and Vice Chancellor 

27 June 2024

Human Resources Management Board Meeting

Mid July 2024

Reward team informs Group Heads of the Committee’s decision and issues letters for Group Heads, Service Leads and Group E managers to pass on to staff. 

Nomination process for 2024 (March – May) 

At the start of the contribution pay process, Service Leads and Heads of Departments / Centre and Institutes (henceforth known as Heads of Units) are sent their indicative budget and the salary information for all the staff in their unit. Service Leads and Heads of Units will reach out to managers in their division to request nominations for contribution awards. 

School leaders are also given clear guidance and guidelines to follow, to support nominations and discussions at this stage.   

Line managers should be using the Career Development Review (CDR) process as well as other relevant information and knowledge, to make informed decisions about staff. The achievements of staff should be evidenced in supporting managers' contribution pay submissions to Group Heads.   

Service Leads are also asked to jointly reach decisions through active involvement with their senior team. This will ensure that all staff are considered and the sizes of awards are consistent.  

Once all the nominations are in, an analysis is done on nominations split across gender, ethnicity, salary band and contract. In some instances, group heads may ask managers to review awards again if needed.   

Moderation process for 2024 (June) 

After this initial process, professional services staff contribution pay nominations are considered by the Professional Services Staff Contribution (PSSC) group.  

The moderation process allows the committee to consider all nominations to ensure staff are being reviewed consistently across the School. Below, you can find more details on the mechanisms in place to support a fair and informed process.  

Monitoring consistent treatment of staff 

Nominations for staff can be based on the CDR form reflecting progress against agreed objectives/performance and overall achievement. These sections of the CDR form may be used to form the evidence for a contribution award.  

Line managers should keep a local record of the reasons for award nominations. For some staff (PS staff based in departments, centres and institutes) a nomination form is used. The period being assessed should be the 12 months prior. 

For staff for whom managers are not familiar with or unaware of their performance, the manager should pro-actively seek feedback from other managers and supervisors to ensure everyone in their area has been fairly considered, irrespective of their contract type or pay grade. 

Prior to the PSSC moderation meeting, Group Heads are provided with an analysis of the nominations for their Group. This helps highlight if there are any staff groups that have been under-represented in the nominations.  

Supporting diversity and inclusiveness 

At several stages through the process an analysis of nominations is conducted:  

Before the contribution pay process begins, units with more than twenty salaried professional services staff are provided with a breakdown of their awards over the last three years. This data is split by gender, ethnicity, salary band and contract type and is provided to help senior managers monitor any trends and ensure there is no group that is being underrepresented.  

Following the nominations being sent to Group Heads prior to the PSSC moderation meeting, the nominations are reviewed to monitor whether awards are fairly spread across gender, ethnicity, salary band and contract type. Group Heads may ask managers to review awards again if needed. 

At the PSSC meeting, an overall analysis is provided to the Committees to help monitor the situation for the current year compared to data from the three previous years.  

The Committee is supported by a member of the HR Reward Team who also takes notes of the meeting.  

Other methods to reward staff

The Spotlight Prizes and Praises Scheme for Professional Services Staff is separate from, but complimentary to the contribution pay process and is intended to provide more instant recognition for staff when they go the extra mile. More information can be found here.

Academic staff

Process and guidance on contribution awards for academic, education, research and policy staff.

Where there has been exceptional performance, academic staff may be nominated by their line managers for a recurring or one-off contribution award. Nominations go through a moderation process in June where final decisions are made. 

Key documents

Timeline 

Date/Deadline

 Process/task/meeting

By end of March 2024

HR Reward team to send salary information, indicative budget and guidelines to line managers

24 May 2024

Line managers to send nominations to the HR Reward team (HR.Reward@lse.ac.uk)

19 June 2024

Academic Staff Reward Committee meeting chaired by the Director

End of June 2024

Remuneration Committee

27 June 2024

Human Resources Management Board meeting

Mid July

HR Reward team issues letters to line managers to pass on to staff

Nomination process in 2024 (March – May)  

At the start of the contribution pay process in mid-March, Heads of Units (Heads of Departments, Institute Directors, Research Centre Directors) are sent their indicative budget and the salary information for all the staff in their unit. Alongside this, they also receive guidance to help inform the process. Heads of Units should use the CDR and Annual Performance Review (APR) as well as other relevant information and knowledge, to make informed decisions about staff. The achievements of staff should be evidenced in the Heads of Units contribution pay submissions to the ASRC.  

Moderation process in 2024 (June - July)  

Following nominations, academic staff are considered by the Academic Staff Reward Committee (ASRC) within the moderation process.  

The moderation process allows the committee to consider all nominations to ensure staff are being reviewed consistently across the School. Below, you can find more details on the mechanisms in place to support a fair and informed process.  

Letters are sent to managers to pass onto staff in July.  

Monitoring consistent treatment of staff 

The APR should be used to evidence the performance of full professors and Heads of Departments should provide the ASRC with the reason for any nominations. ASRC will have access to all APR forms and for full professors, filling in the APR is a precondition for being eligible for a contribution pay award.  

For all other staff, Heads of Units should use all available information from the CDR process, where relevant, but also from teaching evaluations and feedback on service contributions. 

The Vice President and Pro-Vice Chancellor (Faculty Development) is available to meet with  Heads of Units o discuss their nominations.  

Members of the ASRC have access to APRs, CDRs and teaching scores alongside Head of Unit nominations to support decision making. 

The steps above ensure that academics are being reviewed consistently across the School. 

The Committee is supported by a member of the HR Reward Team who also takes notes of the meeting. 

Supporting diversity and inclusiveness

At the ASRC moderation meeting, an overall analysis is provided to the Committee to review how nominations are split across gender, ethnicity, salary band and contract type. This allows the committee to monitor that the awards are being given to staff fairly across all staff groups. ASRC are also provided with the previous three years of data to show if there are any trends in the awards. 

Resources and documents

 

If you have any further queries, do not hesitate to contact a member of the HR Reward Team at hr.reward@lse.ac.uk.