'Haemorrhage of talent' at council where hundreds are facing wages being cut after pay review

There has been a “haemorrhage of talent” from a Yorkshire council where hundreds face losing money as a result of a job review and evaluation scheme, a committee heard.

Some £2.25m of taxpayers money was spent paying Los Angeles-based consultants Korn Ferry (Hay) to conduct the review at East Riding Council.

The overview management and scrutiny committee heard that over 10,000 council employees had been sent “illustrations” of what they’d get. Just over three per cent – around 400 people – will lose out. It has been suggested some could lose up to 12 per cent or up to £5,000.

Hide Ad
Hide Ad

Staff who are members of Unison, Unite and GMB trade unions have accepted the "total pay and reward” strategy, following a ballot which closed on Friday.

East Riding Council's headquarters at County Hall in BeverleyEast Riding Council's headquarters at County Hall in Beverley
East Riding Council's headquarters at County Hall in Beverley

Unison members voted resoundingly in favour, with 80 per cent for.

Lib Dem group leader Councillor Denis Healy told members at the committee meeting last week there had already been a "haemorrhage of senior talent". He said: "This is about attracting, retaining and motivating the workforce; it feels to me we are not there by a long way and that we are in a less strong position than before this started. My inbox is full of senior peoples’ leaving parties. We have lost a chief executive, we are losing service directors – we are even losing service directors who are managing this process.

"People have their reasons for leaving obviously – there is a haemorrhaging of senior talent at the moment which may or may not even be related to this.”

Hide Ad
Hide Ad

In response Executive Director of Corporate Resources Darren Stevens said a lot of what Coun Healy referred to was not necessarily related to the job evaluation scheme.

Mr Stevens – who set the terms of reference for the programme – told councillors unions had “strongly” supported the proposals and that overall the pay bill was going up. Those among the “small number” of staff who lost out would be able to appeal.

However committee chair Coun Lyn Healing said the majority of those facing a pay cut were losing “their mortgage”.

She added: “They are not going to stay here. They are experienced staff; they feel undervalued. The morale amongst them is dreadful; I have never known it to be so low.”

Hide Ad
Hide Ad

An East Riding Council spokesperson said the scheme was introduced to modernise the council's pay and reward system, following a Cabinet decision in 2021. It will be introduced from April 1, with 72 per cent of staff seeing “immediate benefits”. A statement added: “We recognise that a small number of staff (3.25 per cent) will be in detriment following the review, and have worked to mitigate immediate impacts of this by negotiating agreed pay protection arrangements with the trade unions."

Among those leaving the authority is Director of People Services Lynsey Linton, one of a number of leads on the pay and reward programme. Also going is Brigette Giles, Head of Digital, Change and Technology while Head of Culture Ian Rayner is retiring. The departure of chief executive Caroline Lacey was announced last month.

Related topics:

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.