Agenda item

Purpose of the report:  Performance Management

To outline the forward plan for recording and reporting on appraisals at Surrey County Council.

This is in response to the attached audit report and, in particular, the actions planned to address the recommendation for ‘significant improvement’ to monitoring appraisal completion.

Declarations of interest: None.

Witnesses: Pascal Barras, Compliance Auditor

Sue Lewry-Jones, Chief Internal Auditor

Carmel Millar, Head of Human Resources and Organisational Development

Neil Bradley, HR Group Manager

David Hodge, Leader of the Council

Key points raised during the discussion:

1.    The Chairman commented that appraisals had been an historic area of concern for the Committee, and noted that Members were disappointed that the audit had identified significant concerns. Officers offered an apology, and outlined that the audit had been based on a manual counting exercise. The Committee was informed that the SAP Portal had been upgraded from March 2014 to enable managers to electronically input whether an appraisal had been completed. The Committee was told that this information was then reported up through the management structure to ensure that there was appropriate oversight. Officers circulated information about a number of measures that were being undertaken to ensure the number of appraisals increased.

2.    Members queried whether the updated system would lead to managers completing appraisals in a superficial manner, in order to show full completion. Officers clarified that a package of training and development supported the appraisal process in order to ensure they were of sufficient quality.

3.    The Committee commented that there should be steps taken to ensure that a digital record was being made of the appraisal documents. Officers explained that the decision had been taken not to do so, as it was felt that it would require a significant IT resource. Members expressed the view that there should be further consideration about how a digital solution might support the appraisal process. It was highlighted that appraisal information needed to be retained to ensure continuity when managers changed.

4.    Officers commented that one appraisal form for all staff might not be suitable, as different staff had different requirements. It was highlighted that the emphasis was on the quality of conversation around performance and support needs, rather than following a rigid process.

5.    The Committee expressed concern about the lack of response to telephone messages left by the auditor during the course of the investigation. The Chief Internal Auditor welcomed the Committee’s support and commented that efforts were made to ensure that investigations were undertaken directly with staff when there was sufficient resource to do so.

6.    Members questioned whether the low number of appraisals undertaken in some Directorates had an impact on retaining staff. Officers expressed the view that quality of management had an influence on how staff viewed their employment, and that it was recognised that it was important to have in place measures to support good management. It was commented that the relevant individual Select Committees should follow-up the appraisal figures for those Directorates that reported low completion rates.

7.    It was highlighted by officers that work was being undertaken to review the Council’s Pay and Reward Strategy. The Committee commented that the proposed changes should be supported by the appraisal process, and stressed the importance of ensuring staff were involved in a development conversation with managers. It was also highlighted that there were a number of risks to the Council, both in terms of its reputation and in cases where certain matters could go to an employment tribunal.

Recommendations:

a)    That Cabinet note that the Council Overview & Scrutiny Committee’s significant concern about the present level of appraisal completion, as highlighted in the internal audit report, and that the Cabinet and Corporate Leadership Team work to ensure that managers are achieving 100% completion of appraisals for eligible staff by May 2015.

Action by: Cabinet/Corporate Leadership Team

b)    That the Chief Executive and Corporate Leadership Team reiterate to staff the importance of the work of the Internal Audit Team, and ensure that all requests for information are responded to in a timely fashion.

Action by: Chief Executive/Corporate Leadership Team

c)    That HR investigate options to move towards a digital appraisal process as a means of improving both the quality of appraisals and the completion rates.

Action by: Head of HR and Organisational Development

Actions/further information to be provided:

None.

Committee Next Steps:

None.