Case Study: Large Local Authority achieves improved service delivery and £1m pay savings with NHS Employers performance-linked pay progression

Large local authority - Customer Case Study

NHS Employers worked with a Large Local Authority that wanted to improve service delivery by building a “fully committed and skilled workforce.” The council needed to move away from automatic, time-served pay progression and create a clearer link between performance, behaviours, and reward, while also improving consistency in how staff were managed and developed.

NHS Employers supported the authority with a performance management and pay progression approach built around up to six objectives, role-based behaviours, formal mid-year and end-of-year reviews, grandparent review, and an online PDR system. Pay increments were tied to overall performance ratings, with lower performers supported through intervention and stronger moderation to control rating drift. The results included completed performance reviews rising from 30% to 90%, improved service delivery and employee understanding, and a significant saving of around £1m in year one by ending automatic pay progression.