What is recruitment and retention premia?

Under Agenda for Change, additional payments may be made to an individual post or specific groups of posts where market pressures would otherwise prevent the employer from being able to recruit and retain staff.

These payments are described as recruitment and retention premia. There will be two types of recruitment and retention premia, depending on whether the labour market pressures are expected to continue in the longer run or whether they are expected to be relatively short-term.

long-term recruitment and retention premia will be pensionable and will be taken into account when calculating the level of unsocial hours payments, on-call payments, overtime and high cost area payments
short-term recruitment and retention premia will not be pensionable and will usually be awarded for a time-limited period.
Where there are widespread pressures affecting the recruitment and retention of a particular group of staff, premia may be decided on a national basis on the recommendation of the Review Body or the new Pay Negotiating Council for non-Review Body staff.

The total value of a recruitment and retention premium will not normally exceed 30 per cent of basic salary.

In NHS jobs where external labour market pressures already exist across large parts of the UK, it has been proposed that employers may apply long term recruitment and retention premia from the outset.

Guidance should be put in place to ensure that the levels of this premia are at least sufficient to prevent any reduction in earnings when staff move to the new system.

Frequently asked questions

Is there scope for trusts to set higher rates of pay for staff e.g. nurses doing extra hours comparable to agency rates?

It is possible to use singly or in combination overtime, recruitment and retention premia, or in London high cost area payments (subject to para 3.9 of the Agenda for Change Proposed Agreement).

How are on-call payments calculated when a staff member/s also receive long term recruitment and retention premia?

They should be calculated taking account of both basic pay and the applicable long term recruitment and retention premia.

Where staff are called out and do work they are entitled to overtime payments. If they also received long term recruitment and retention premia how should their overtime be calculated?

It should be calculated taking account of both basic pay and the applicable long term recruitment and retention premia.

Will there be local arrangements for recruitment and retention premia?

Employers will have the facility to agree both short and long-term premia locally in partnership with other local NHS employers, trade unions and the Workforce Development Confederation.

Payments could be awarded if recruitment and retention difficulties are still evident after the following measures have been put in place:

  • posts had been advertised in local, regional and national press
  • non-pay benefits had been sufficiently developed
  • regular exit surveys had been undertaken to assess how far pay is a factor.

Once local premia are awarded, they will be reviewed annually to take account of vacancy rates, the impact of the payments, the impact which the withdrawal of payments may have and any changes in the local labour market.

What about national arrangements for recruitment and retention premia?

Recruitment and retention premia could be awarded on a national basis on the recommendation of the Review Body and/or the Negotiating Council for non-review body staff (based on evidence or advice from NHS employers and from UNISON and other trade unions).

These payments would be awarded to particular staff groups and would apply where the normal job evaluated pay level is not enough to recruit and retain sufficient numbers for a particular post. The payment may be specified, or where the underlying problem varies across the country, guidance would be given on the appropriate level of payment.

How much would these payments be?

These details have not been clarified. Upon implementation of the agreement at Early Implementer sites, management will work in partnership with the RCN and other staff side organisations to review evidence locally and set the appropriate level of payment for these staff groups.

The total value of a recruitment and retention premium will not normally exceed 30 per cent of basic salary.

I work in an area that will attract a high cost payment.

Will it be possible to receive a Recruitment and Retention Premia as well?

Yes. Premia can be paid on top of high cost payments. It may also be possible to get a national Premia (via the Review Body) and a locally determined Premia on top of that, although the value of both is not normally expected to exceed 30 per cent of basic pay.

How will you identify recruitment and retention as a problem in order to get extra money to recruit?

Premia can be paid where there are vacancy problems, either nationally or locally. Two main factors will be used to judge whether premia can be paid or not. These are if vacancy rates are higher than the national average and, locally, those attempts to fill posts have failed. Local premia will be negotiated at a local level.

How will Recruitment and Retention Premia (RRP) work?

Premia will be worth up to 30 per cent of basic pay. Payments will be made to staff groups and individual posts that are hard to recruit and retain. They may be paid and funded nationally (via the Review Body), in an individual trust or by a group of trusts. They will be open to annual review and may be long-term or short-term.

Short-term premia will apply where the need for a premium is expected to disappear or reduce in the near or foreseeable future. Short-term premia may be withdrawn or have the value adjusted subject to a six-month notice period and are non-pensionable. Long-term premia will be pensionable.