Market pay policy
| This scheme requires authorisation by the Reward Team |
Occasionally the University will need to respond to the very difficult conditions which from time-to-time prevail in its labour market, by considering market-based supplements to certain salaries.
Particularly difficult market conditions, leading to problems recruiting and retaining particular categories of staff, should be discussed with the Reward team who will be able to advise as to whether a market-based supplement may be helpful.
HR Business Partners should be contacted in case of difficulties in recruiting and retaining particular categories of academic-related posts.
The following policy statement on market pay has been agreed with the joint committees representing university support staff and academic-related staff and any supplements, where necessary, must be paid in line with these arrangements:
1. The University of Oxford is an equal opportunities employer and is committed to the principles of equal pay for work of equal value.
2. An appropriate analytical job evaluation system, consistently and fairly applied, will determine an appropriate grade within the University’s pay structure.
3. Outstanding performance is rewarded separately through the arrangements for merit increments.
4. Market supplements are handled separately from basic pay. Cases for market supplements will be considered under Personnel Committee procedures in line with the following principles.
5. In all cases, additions to basic pay must be subject to the ability of the employing department to pay the additional costs.
6. The University will adjust pay for specific roles based on the market pay analysis where there is objective evidence that the following conditions are satisfied:
6.1 heads of division or heads of department report a significant risk to business critical activities caused by lack of staff with key skills in the specific roles because there are vacancies or significant risk of vacancies and evidence that suitable candidates do not or will not apply; and
6.2 data for the relevant external market indicates a significant premium (see para. 9 below) for specific roles or functions; and
6.3 non-pay recruitment and retention initiatives are not sufficient to secure the key skills.
6.4 In cases of market supplements for retention purposes, the staff member(s) must be performing all aspects of their roles to the complete satisfaction of the head of department.
7. Market data will be obtained by Personnel Services from specialist consultants with access to relevant and appropriate pay market data. Analytical job evaluation will be used to assist the process of pay market comparisons for the University as a whole and for specific roles of functions within the University.
8. Subject to the appropriate authority, market-based pay adjustments may be made via one of the following bases:
8.1 through the use of discretionary increments within the normal pay range or the superscale range of the appropriate grade under the Personnel Committee’s procedures for recruitment and retention; or
8.2 in exceptional circumstances where the superscale range has been used in its entirety and regrading is not justified, through a ‘market premium supplement’ to basic pay (see 9 below) which is paid with monthly salary.
9. Where the market pay data indicates a premium in excess of 10 per cent, the full difference necessary to recruit the candidate will be paid up to the maximum indicated by the formula. The market premium supplement will be defined as the difference in salary between (a) the maximum superscale point for the relevant grade less any superscale increment(s) paid solely on grounds of merit, and (b) the upper quartile for the relevant external market for the university pay grade.
10. The market premium supplement will be reviewed annually and, if appropriate, adjusted in the light of up-to-date market pay data and the up-to-date position on the risk of lack of staff with the key skills in question. Where the market data indicates that the skills no longer command a premium in the external market, the supplement will be frozen at its current level.
Example calculation for market supplement
| a | Maximum of superscale point for grade in question | 25,000 |
| b | Less any increments awarded on grounds of merit (i.e. not for recruitment or retention purposes). In this example, one £2000 increment was awarded for merit. | 2,000 |
| c | a minus b = c | 23,000 |
| d | Upper quartile salary of relevant external market for comparable role as defined by objective salary data | 30,000 |
| Maximum market supplement = d – c | 7,000 |
QRG: CH4 Change: New Allowance 
(146kb)
QRG: CH12 End Allowances (110kb)