What makes up the Total Remuneration Package
Historically, we have tended to discuss topics such as pay, benefits and pensions in isolation from one another. In truth, they are all components of an interconnected package.
This holistic approach is distinctive to Imperial in the Higher Education sector - we set our own frameworks and approaches to pay and benefits, driven by our ambition to compete with comparable world-leading institutions. Our pension schemes, however, are multi-employer pension schemes with the design of the scheme and costs collectively agreed between the Trustees of the schemes and all employers.
Total Remuneration pie chart
What we spend on TRP
Our goal is to maintain our position as a world-leading institution, and our people are the cornerstone of this. This requires significant investment.
More than half of our annual spend goes towards our people, which in 2019/20 totalled £567m. The amount we spend on TRP, however, is not unchangeable. We are able to rebalance our overall package to reflect the priorities of our staff. Each component, however, is interconnected: changes to one part will have a resultant impact on all parts. Informing this are two key factors that influence what we can spend on TRP:
How we decide what we spend
Benchmarking
If we want to attract, support and retain the best, we need to understand what our competitors are offering and how we compare. In July 2022, we published our second benchmarking report - a comprehensive, public assessment of how our overall remuneration package compares with both national and international comparators. This is part of our commitment to make information on remunerations more transparent and accessible for all.
Affordability
In building a TRP that is appropriate for our status as a world-leading institution, we need to make sure that our approach enables not just excellence, but one that is sustainable over a long-term period. This means that we need to ensure what we spend on TRP is affordable within what we generate and balanced with the other commitments we have. Over two thirds of our income comes from research grants, contracts and tuition fees. Much of this funds the delivery of research or courses. With what remains, we’re always trading off investments in different areas – salaries, building refurbishments, running costs etc. On average, we’ve spent £120m per year on the ‘core estate’ over the past 6 years, compared with an average of £570m per year on staff.
Principles of TRP
We aim to pay median to upper quartile rates of pay for our staff, informed by benchmarking against appropriate external comparators wherever possible. This is then reviewed annually through mechanisms such as the Equity and Achievement Pay Review process in addition to Local Pay Bargaining.
A complete overview of the principles we use in determining salary and how we review it are available on the principles of pay website.
The annual Equity and Achievement Pay Review processes allow managers to address equal pay and internal benchmarking disparities in their area and to reward staff for exceptional contribution and achievement.
Each year, Local Decision-Making Boards for Faculty/Business School/Support Service areas ensure all pay review decisions are made using a fair and consistent approach, in line with the criteria for the processes and determining that sufficient evidence is provided to support recommendations. The pay review processes aim to strengthen the College’s commitment to reducing its gender and ethnicity pay gaps.
Outside of financial remuneration, we encourage departments, line managers and principal investigators to give informal recognition of excellent work and positive feedback on success. There are a number of schemes in place designed to reward staff who demonstrate excellent achievement. The President's Awards, Provost's Awards and Julia Higgins Medal and Awards celebrate the achievements of staff across a number of areas and designed for staff at all levels and job families. We organise an annual Long Service Reception and Dinner to recognise and celebrate our long-serving staff who have completed over 20 years’ service.
We provide a wide-ranging benefits package that includes resources, tools and networks to promote a positive working environment. This includes a variety of loans to help with transport, education or renting a home, as well as financial assistance with childcare (in addition to our award-winning Early Years Education Centre). We also provide a range of networks and training resources to enable you to develop your professional skills.
The College offers two occupational pension schemes. Which scheme you're eligible for is dependent on grade. (Existing NHS scheme members are also able to continue membership of that scheme when they first join the College, or they can choose to join a university scheme.)
All schemes offer generous levels of pension income in retirement, early retirement due to incapacity, and security for loved ones in the event of death. Both College schemes are multi-employer pension schemes with the design of the scheme and costs collectively agreed between the Trustees of the schemes and all employers.
A healthy and sustainable work-life balance is essential. To support this, we offer a generous annual leave allowance, as well as special and family leave when you most need it.
We aim to empower and support you in managing your mental and physical wellbeing. If you need to speak with someone, we have a wide range of support options available to you, including our Confidential Care, Occupational Health and Chaplaincy services. Our Health and Wellbeing website provides a variety of resources and materials for you, whilst our in-house gyms at Move Imperial enable you to look after your physical wellbeing.
You're also able to access a range of exclusive discounts as part of our Perks At Work scheme. This includes discounts on restaurants, cinemas, subscriptions, holidays and much more.
Remunerations and Nominations Committee
The Committee is made up of four external Council members who annually review Imperial's reward strategy to ensure that remuneration is being managed in a fair and equitable way. It will also review and approve the application of the Imperial's pay relativity criteria for the President and the Provost, their senior staff direct reports and members of the University Management Board (UMB).
This review is informed by:
- Details of the across-the-board local pay award and any variation to benefits for all staff
- Summary information on the application of discretionary pay adjustments for all staff
- The annual equal pay audit
- The annual gender and ethnicity pay audit (and other specific protected pay audits as published)
- Pay ratios and relevant comparator information
- Information on numbers of staff earning a total salary of more than £100,000, with trend data on average increases for the previous five years compared to average increases for all staff over five years
- Detail of the individuals earning over £150,000 and the justification for any variation to pay (above Imperial across-the-board increase) reported on an individual basis and with reference to Imperial's pay relativity criteria applied to all staff.