Their challenge
Cygnet Health Care are one of the UK's largest independent providers of mental health treatment and associated care services. When we first began working with Cygnet in 2015 the business was experiencing a number of issues with Reward. Primarily, they were having difficulty with recruiting and retaining staff at the right levels. There was a lack of progression within pay bands, which was exacerbated by the introduction of the National Living Wage. Finally, the wage bill was higher than it should be, due to a reliance on agency staff and inconsistent shift premiums.
Our solution
First, to address issues around pay progression, we designed and delivered a pay structure with varying levels within roles, allowing pay to reflect experience and skills. The new pay ranges were designed with progression in mind, meaning that staff are aware of their career level and how this informs their pay. Second, to reduce their reliance on agency staff, Cygnet needed flexible rota arrangements. We modelled various scenarios to identify ‘winners and losers’, consulting and engaging throughout to ensure the best possible outcome, and eventually decided on a move to overall salary instead of hourly pay. We simplified and recalibrated the existing premiums for location, unsociable hours etc which reduced costs and confusion over additional payments. And finally, the Discovery phase had revealed that Cygnet’s benefits offer lacked appeal compared to competitors within their industry. We recommended several enhancements including increased annual leave, enhanced maternity pay, and a health cash plan.
The outcome
Cygnet implemented the new structure with a phased approach, starting with core Nursing staff and later including Allied Health Professionals and non-clinical hospital staff. The changes were well-received, and the results of the annual employee survey 2017 showed a marked improvement. For instance, the positive percentage of answers to the question “I am satisfied with my overall benefits package” went up from 28% to 50%. Cygnet now has a fair and flexible pay structure which supports the present needs of the business and enables them to easily absorb future acquisitions.
Client feedback
"Innecto worked seamlessly with our internal HR team to pin down exactly what we needed from our pay arrangements. Their approach was responsive, flexible and innovative, and I really appreciated their support in making sure senior management ‘got’ the importance of the redesign."
