ANNUAL WORKFORCE & ORGANISATION DEVELOPMENT REPORT

Item 10.3 ANNUAL WORKFORCE & ORGANISATION DEVELOPMENT REPORT 2015-2016 1. INTRODUCTION The purpose of this report is to provide the NHS Hull Clinical Commissioning Group Board (CCGB) with a summary of progress over the last 15 months (January 2015- March 2016). 2. CONTEXT The update will focus on the key domains of the OD Strategy which are detailed below: Performance Management theme Organisational Climate, Culture & Employee Engagement theme Organisation Development Needs theme (CCG-centric) 3. PERFORMANCE MANAGEMENT It was widely recognised in consultation during 2013 (as part of the OD strategy design) the importance of leaders understanding the clear links between focused performance management and development of workforce capability. Strengthening our performance management process and the habits that go with good practice is key. 3.1 Summary of progress: The CCG organisational objectives using the balanced score card model was launched during the summer. The strategic objectives had been developed in conjunction with the CCG Board and the all staff at an engagement event in April 2015. A revised approach to the Performance and Development Review (PDR) cycle (annual appraisals) was introduced during the summer. The appraisal documentation now includes an agreed Overall Performance Rating (OPR) performance score. This revised form enhances the objective setting element, encouraging greater specification of performance goals and achievement metrics, and thus clarity in the setting of individual performance objectives and measurements of how they would be achieved. The OPR is as follows: Exceptional performer Sound performer Developing performer Under performer The revised PDR (appraisal) format was supported with a programme of process briefings and skills and performance coaching development sessions. This has ensured all managers and staff can be confident they have the understanding of the process, and the conversation/coaching skills to develop a strong partnership model of appraisal discussions which address productivity and behaviours. Page 1 of 9

The appraisal process was evaluated, however only 6 individuals responded, (9%) of staff. Therefore, this number was too small to be considered representative. From the 6 who did respond, the feeling was quite positive. The limited results show that some work is still needed with both the documentation and also manager s skills in carrying out performance reviews to a similar level. In readiness for the 2016/17appraisals the paperwork has been amended and refined and further training sessions have been offered to staff. The CCG s PDR completion rate for 2015/16 was 100%, which is an improvement on the 83% from the previous year. 3.2 Next Steps Establish a calibration panel annually of PDR overall performance ratings to ensure all employees are allocated a final OPR which truly reflects performance and is fairly and equitably decided. Implement an annual Performance Management distribution curve of Overall Performance Ratings which will inform a focused talent management discussion panel at senior manager and SLT levels. The use of a rating distribution curve process and panel calibration of overall performance ratings will prevent inflation of ratings between different managers and teams, and make sure all employees are scored in a consistent and equitable manner across all of the CCG s teams and directorates. The ratings curve encourages good management practices by requiring managers to objectively evaluate each employee's performance in relation to peers in similar job functions, and to distinguish individual performance achievers within a team. Implement an SLT and senior manager talent review forum for the analysis of talent data coming from PDRs and agreement with regards to any talent development activities to be invested in e.g. NHS Leadership Academy programmes and/or externally sourced talent development solutions. Move the timescales for completion of PDRs to a completion date of the end of June. This will better support the organisation s operational demands and priorities including contract renewal and year end. Moving the PDR completion to June enables the consolidation of an annual performance ratings distribution curve, the completion of a talent map, and any performance bonus linked decisions to be made in time for the June Remuneration Committee annually. Timing the development of the talent map for June-July will enable any identified staff to apply for relevant external development programmes if recommended, in line with the start of the academic year 4. ORGANISATIONAL CLIMATE AND EMPLOYEE ENGAGEMENT A key theme of the CCG s OD Strategy is to build and strengthen a culture of high performance. Our OD Strategy states: People will be our only competitive edge, and employee engagement is the lynchpin for releasing the potential to make efficiencies, improve effective spend of the Hull Pound, develop sustainable healthcare services, and ultimately, impact on the quality of the patient experience. Page 2 of 9

Percentage Positive 4.1 Climate Survey The field work period for the barometer survey at Hull CCG was 3 rd 25 th March 2015. There was a total response rate of 77%. The survey aimed to measure employee engagement amongst the workforce and to measure the health and wellbeing of the workforce based on the HSE Stress Assessment Tool. In order to measure employee engagement consistently and provide a trend analysis the eight questions used to measure engagement in June 2014 were re-asked. The HSE stress assessment tool was used at the CCG in May 2013. The 2015 mid-year survey was not undertaken due to the TUPE of staff from commissioning support and the CCG restructure. The 2016 survey is currently being prepared. 4.2 Employee Engagement Using the agreed ORC International Stay, Say, Strive model the overall employee engagement score was 68%, a fall of 5 percentage points since employee engagement was measured in June 2014. Graph 1, shows the employee engagement trend. Graph 1: Employee Engagement Trend December 13* March 2015. Graph 1: Employee Engagement Trend Analysis 85% 80% 75% 70% 65% 60% Timeframe *It should be noted that the December 2013 survey calculated an employee engagement score using different metrics to those set out in the ORC International Stay, Say, Strive. Table 1 sets out the positive responses to the employee engagement questions for the March 2015 and June 2014 surveys. As table 1 shows the areas where the positive response has decreased significantly are: Strive I try to suggest ideas to improve the way of doing things. Stay I would like to be working for the CCG in 12 months time. Page 3 of 9

Table 1: Employee Engagement Positive Responses Question % positive % Positive Variance March 15 June 2014 % I am proud to work for the CCG 73.6 79.5-5.9 I would be happy to recommend Hull CCG and the work it carries out 76.5 72.2 +4.3 I would tell people that Hull CCG is a good place to work 64.7 70.2-5.5 I feel a strong sense of belonging to Hull CCG 67.6 56.7 +10.9 The CCG is a good employer 67.6 67.5 +0.01 I would like to be working for the CCG in 12 months time 55.8 67.5-11.7 I try to suggest ideas to improve ways of doing things 70.6 91.7-21.1 Working here makes me want to do the best work I can 70.6 75.6-5 As table 1 shows the areas where the positive response has increased significantly are: Say I would be happy to recommend Hull CCG and the work it carries out. Say I feel a strong sense of belonging to Hull CCG. 4.3 Health and Wellbeing HSE Stress Assessment Tool Table 2 sets out the summary of results from the HSE Stress Assessment Tool. It should be noted that as the CCG is in the top 80 th percentile for three stress factors stressors (Managers Support, Peer Support and Change). Table 2: HSE Stress Assessment Tool Summary Hull CCG Suggested Suggested Results Interim Longer Term Target Target Demands 2.86 3.00 3.29 Control 3.61 3.64 3.72 Managers' Support 3.84 3.84 3.84 * Peer Support 4.01 4.01 4.01 * Relationships 3.99 4.04 4.04 Role 4.05 4.12 4.31 Change 3.26 3.26 3.26 * *The CCG is doing very well on the following stress factors: Managers' Support, Peer Support, Change (you are above the 80th percentile for these stress factors). HSE suggest that you set your own interim and longer-term targets for continuous improvement. KEY: Data Set: Organisational Averages Doing very well - need to maintain performance Represents those at, above or close to the 80th percentile Good, but need for improvement Represents those better than average but not yet at, above or close to the 80th percentile Clear need for improvement Represents those likely to be below average but not below the 20th percentile Page 4 of 9

Urgent needed action Represents those below the 20th percentile The CCG staff survey/hse Stress Survey helps to identify priority areas for the CCG to address. This has led to the development of the Employee Health, Safety and Wellbeing strategy and action plan. Significant progress has been made in 2015/16 including staff training, staff policies, cycle to work schemes etc. Please see Appendix 1 for the progress against the action plan. A staff engagement group meets regularly and is well attended, providing a more informal way of discussing issues and improving the day to day working environment including the opportunity to influence the development of new working space for our expanded organisation. In response to a request for support and information on living a healthy lifestyle a walking group meets each week and there is a health newsletter for staff called An Apple a Day. The development of mindfulness and mental health awareness training for 2016-17 is planned. Ensuring that we set a good example in creating a healthier city, during 2015-16 a number of CCG team members took part in long distance cycle rides, marathon runs and a bowling evening. The CCG participated in A New You 2015, a major health campaign in partnership with the Hull Daily Mail throughout 2015. 2016-17 will also see the development of a staff volunteering programme to encourage and support staff that wish to volunteer for programmes the CCG supports. The focus of our staff Annual General Meeting (AGM) in April 2015 was on reflecting on the priorities of the organisation and reviewing the organisational objectives. Our recent CCG restructure benefitted from the input of staff across the organisation. The CCG encourages all individuals to raise any concerns that they may have about the conduct of others in the CCG or the way in which it is run. The CCG has a Whistleblower Policy to enable staff to raise concerns or suspicions about any issues of malpractice at an early stage and in the right way. 5. STAFF CONSULTATION Recognising the benefits of partnership working, Hull CCG is an active member of the Joint Trade Union Partnership Forum organised by the Workforce Team within Yorkshire and Humber Commissioning Support. The aim of the Joint Trade Union Partnership Forum is to provide a formal negotiation and consultation group for the CCGs and the Unions to discuss and debate issues in an environment of mutual trust and respect. In particular, it: engages employers and trade union representatives in meaningful discussion on the development and implications of future policy; provides a forum for the exchange of comments and feedback on issues that have a direct or indirect effect on the workforce; and promotes effective and meaningful communication between all parties that can be subsequently disseminated across the membership. 6. VALUES AND BEHAVIOURS At the July 2015 CCG Board Meeting we adopted the CCG Values and Behavioural Framework. Briefing sessions have been held with staff during October 2015 to introduce them to the framework. Page 5 of 9

7. PROMOTING EQUALITY Hull CCG is committed to developing, supporting and sustaining a diverse workforce that is representative of the community it serves. Central to our function is commissioning health services that meets the needs of the local population, and does not discriminate on the grounds of gender, gender identity, race, ethnic origin, nationality, disability, sexual orientation, religion or age. The CCG also takes an asset-based approach to equality and diversity, which means that we recognise the expertise in our diverse communities and we seek to work together with communities to improve access to and experience of local health services. At the end of 31 March 2016 the following breakdowns for NHS Hull CCG in terms of gender of CCG Board, employees and Council of Members (CoM) were as follows: Female Male CCG Board 9 10 CCG Employees 46 14 CCG membership (Council of Members)* 8 47 * Council of Members has 49 members in total, with some representing more than one practice. 8. POLICIES REGARDING DISABLED EMPLOYEES As an employer the CCG recognises and values people as individuals and accommodates differences wherever possible by making adjustments to working arrangements or practices. We actively work to remove any discriminatory practices, eliminate all forms of harassment and promote equality of opportunity in our recruitment, training, performance management and development practices. Policies and processes in place to support this include: Managing Performance Disciplinary / Conduct Grievance Staff Induction Bullying and Harassment Flexible working NHS Code of Conduct for Managers Job descriptions (including statements regarding equality and diversity expectations) Health policies Annual appraisals with staff Employment equality monitoring forms Our policies are available at www.hullccg.nhs.uk 9. NEXT STEPS Continue to deliver and build upon the Employee, Health, Safety and Wellbeing Strategy Action Plan. Page 6 of 9

Further work is required to support staff in using the Behavioural Framework for recruitment and the appraisal process. Further sessions have been offered to staff in April and May. Launch of the 2016 climate survey. Delivery of the Equality Delivery System (EDS2) workforce objectives. 10. ORGANISATION DEVELOPMENT NEEDS THEME (CCG-CENTRIC) As our OD Strategy stated in October 2013: To ensure we can keep the knowledge skills and expertise we already have in the business, continue to attract high calibre people to bring in new thinking, secure organic succession potential when needed, and grow the culture of a high performing team, the CCG must develop and maintain a compelling employee proposition, at all organisational levels for all roles. To do this, we must set out and/or continue to embed, clearly and concisely for the whole workforce. 11. SKILLS A skills audit was commissioned to assess what training needs could be identified in order to build and strengthen the capability of staff within the CCG. The skills which were measured were divided into 3 main subject areas 1. Managerial Skills and Knowledge 2. Commissioning Skills and Knowledge 3. Generic Skills and Knowledge 62 Staff were asked to self-assess their level of competence on 45 skill areas. Their options when self-assessing were: None Basic Moderate Extensive Perceived areas of strength were: Communication Skills Organisational Skills Patient/Customer satisfaction Following completion of the skills audit the CCG has identified some immediate skills development requirements for the workforce and which are being addressed imminently. These are o o Project Management Skills Development - Prince 2 (Delivered by QA) Foundation level workshops scheduled in for 6 staff for 21 st and 22 nd April Programme Management Skills Development MSP (Delivered by QA) Foundation level offered to staff for 31 st May 2 nd June Page 7 of 9

o o Appraisal Refreshers (Delivered by embed) Access to bite sized 2 hour refreshers offered to staff Bite sized workshops- (Delivered by embed) February 2015 onwards include: Assertiveness Skills, Coaching Skills, Managing Conflict, Managing Through Change, Presentation Skills and Introduction to Leadership This audit whilst useful from an individual s own perspective, did not take into account departmental specific needs and is now being refined further into department clusters so the organisation can assess what skills are actually needed as opposed to which are nice to haves. The departmental collated answers have three main benefits. 1. It allows the manager to cross check the level of competency the colleague believes they have to what they actually have; thus allowing for a development review conversations. 2. The manager can highlight the key skills which are needed in their specific department and identify if there are any significant gaps, therefore enabling training priorities to be identified. 3. It also allows for individual development opportunities to be highlighted which are specific to business needs. (Need to have rather than nice to have) 12. WORKFORCE PERFORMANCE All staff are required to complete the full range of statutory/mandatory training delivered through the CBLS e- learning system. The full range of e- learning modules for staff delivered through the CBLS system consists of those listed below. Access to this is 24/7 and staff have a duty to ensure that they complete the training and comply. In addition to statutory and mandatory training CCG staff were offered CPR and defibrillator training, bite-sized first aid, Dementia Awareness, modern day slavery and counter terrorism training. The overall completion rate for 15/16 was 85% and Hull compares favourably when benchmarked against other local CCGs. Further work is required to ensure delivery of the 95% target. As at 31 st March 2016, Hull CCG had a headcount of 61 employees (fulltime equivalent 55.6). This compares with 46 employees (full time equivalent 42.9) as at 31 st March 2015. This is a significant increase due to the TUPE transfer of 18 employees into the CCG on the 1 st December 2015 from Yorkshire and Humber Commissioning Support. The CCG average turnover continues to be low, therefore not giving cause for concern although this has increased from 0. 66% in 2015 to 1.25% as at the 31 st March 2016. In 2015/16 the CCG sickness rate was 3.36%, compared to 5.2% for 2014/15. The CCG has no set target and this will be an area of development in 2016/17, including compliance of return to work interviews after periods of short term illness. Page 8 of 9

13. LEADERSHIP Board The CCG Board has remained committed to being high performing and therefore has continued to engage with the Oxford Group and has had further sessions on the 27 th February 2015 and the 29 th April 2016. The Board has continued to develop the high performing skills and implement these skills and behaviours at other Boards and Committees. Senior Leadership Team (SLT) The SLT have participated in 1:1 coaching which has supported the SLT team in their development. Coaching has also been offered to the newly appointed directors. All staff The CCG is committed to developing all staff and the Oxford Group have recently facilitated a session with the senior managers to look at their development moving forward. A small number of staff are engaged with the Leadership Academy programmes. Bitesize Leadership sessions have been offered to all staff. 14. NEXT STEPS - SKILLS AUDIT Department leads to review their own teams self-assessment skills audit data Highlight areas of crucial skills to doing the job effectively and efficiently Assess who can do what and what cover that leaves in case of illness or people moving on. Identify significant skills gaps Prioritise training needs Source solutions 15. NEXT STEPS - WORKFORCE PERFORMANCE Improved compliance with statutory and Mandatory training Refresh of the Learning and Development Policy To improve compliance with return to work interviews for short term sickness and set a staff sickness rate reduction target which also benchmarks against other CCGs. 16. NEXT STEPS LEADERSHIP To build upon the CCG Board development and senior managers with the remaining CCG workforce. 17. CONCLUSION It is recommended that the CCG Board supports and endorses all of the actions set out in the next steps sections of the report. Over the forth coming months there will be focussed work to refresh the strategy. 18. RECOMMENDATIONS To note the OD and Workforce Report. Page 9 of 9