A quick guide to the BT Reward Framework Welcome to the Prospect quick guide to the BT reward framework. We’ve put this simple guide together to try and help explain the BT pay structure for managers and professionals. There’s more information on our website and feedback is very welcome.

Roles and job families 300 + roles Organised into 21 job families: Network planning and design Business improvement Procurement and supply chain Business transformation Product management Client management Project management Corporate services Research Fleet management Sales Finance Service HR Security Legal, regulation & governance Strategy and business planning Marketing and communications Systems, IT and network strategy Media Network engineering There are over 20,000 managers and professionals in BT in the UK. They do a huge range of jobs from sales to managing the engineers in the field. The pay structure groups together similar sized jobs into roles. These roles are then organised into job families. There are 21 of these job families covering the full range of BT activities. Everything from Business improvement to Systems, IT and network strategy.

Head OTB 15% BB 3 STST01   63,700 91,000 118,300 Principal OTB 15% BB 2 STST02 58,800 73,500 88,200 Specialist OTB 10% BB 2 STST03 48,400 60,500 72,600 Lead STST04 40,000 50,000 60,000 Consultant/Snr Prof OTB 10% BB 1 STST05 33,200 41,500 49,800 Analyst/Professional STST06 27,680 34,600 41,520 Each job family will have a number of different size roles in it. This is one of the simplest job families – the Systems, IT and Network Strategy job family. It has just six roles, running from Analyst/Professional at the bottom of the structure to Head at the top, despite containing nearly one in four of all BT’s managers and professionals in the Reward Framework.

  Marketing & Communications Online Marketing Marketing PR& Corporate Relations Employee/Internal Head of Online Marketing Head of Marketing Head of PR& Corp Relations Head of Employee/Int Comms OTB 20% BB3 OTB 20% BB 3 OTB 20 % BB 3 OTB 15% BB 3 MKOL01 MKMK01 MKRE01 MKEC01 64,400 92,000 119,600 63,700 91,000 118,300 63,000 90,000 117,000 Sen Online Marketing Mgr Principal Int/Employee Comms OTB 15% BB2 OTB 15% BB 2 MKOL02 MKEC10 47,200 59,000 70,800 51,200 64,000 76,800 Senior Marketing Manager Senior PR & Corp Relations Manager Senior Employee/ Int Comms 0TB 10% BB 2 OTB 10% BB 2 MKMK02 MKRE02 MKEC02 46,000 57,500 69,000 44,400 55,500 66,600 43,200 54,000 64,800 Online Marketing Manager Marketing Manager PR & Corp Relations Manager Employee/Int Manager OTB 10% BB1 OTB 10% BB 1 OTB10% BB 1 MKOL03 MKMK03 MKRE03 MKEC03 36,000 45,000 54,000 32,400 40,500 48,600 32,160 40,200 48,240 33,200 41,500 49,800 Marketing Professional PR& Corp Relations Prof Employee/Int Comms Prof MKMK04 MKRE04 MKEC04 26,320 32,900 39,480 26,400 33,000 39,600 26,240 32,800 39,360 Other job families are a bit more complex and might have a number of different disciplines within the job family. This is the marketing job family which has four different disciplines. Within these disciplines there are four or five different sized roles. Some roles – like the marketing professional might cross two or more disciplines. This is common at the bottom end of the structure. You can find pictures of all the job families on our website showing pay ranges and bonus levels

Each role in the RF has… A pay range A benefit band – 1, 2 or 3 An On Target Bonus, or Sales, OTB percentage Each role in the structure has 3 things associated and published for it – its pay range, a benefit band, and the OTB or On target bonus % . We’re going to look at pay ranges and how these work in a bit more depth.

Pay ranges Range parameters 80% 100% 120% Range position Min Middle Max Team Manager £25,200 £31,500 £37,800 Pay ranges are built around a midpoint with the bottom of the pay range being 80% of the midpoint and the top of the range being 120% of the midpoint. For all of the pay ranges we publish 3 figures – the min, the midpoint and the max. Taking the Team manager role as an example the midpoint or 100% point is £32,500 – 80% of that is £26,000 which is the min and 120% of £32,500 is £39,000 which is the top of the pay range. For some pay ranges at the very top of the structure the bottom of the pay range is 70% of the midpoint and the top of the pay range is 130% of the midpoint. Where people sit in the pay range is an important determinant of their pay increase.

What is my RF role and salary? People System: Employee Self Service -> Payroll and Compensation -> Compensation History On the BT people system Compensation History screen, you will see a 'job title' field. This contains your Reward Framework role. This is in fact the only way in which you can find your RF role.

Position in pay range Q1 80-90 Q2 91-100 Q3 101-110 Q4 110+ Your pay increase depends on your APR performance mark and your position in the pay range. For the pay review each pay range is broken into 4 equal quarters as above. So, the first quarter is 80-90% of the relevant midpoint and so on. For the wider ranges at the top of the structure in BB3 the same principle applies but Q1 is 70-85, Q2 is 86-100 and so on. In recent years we have been successful in ensuring that the pay ranges have moved. This means that many more people are in the bottom end of the pay range and will thus see higher pay increases for the same level of performance.

What is my range position? https://library.prospect.org.uk/id/2014/00611 Role and Range Look Up Facility   Please use the look up facility below to locate where you are in the pay range for your role. This details the new pay rates that apply as from 1 June 2014, i.e. prior to the calculation of your pay review this year. Enter your Reward Framework role code here >>> pssc04 (You can find this on the separate 'Role codes' tab). If you don’t know to which role you are mapped, you can find this from BT's People System, by going to: Employee Self Service -> Payroll and Compensation -> Compensation History The 'job title' field contains your Reward Framework role You are in benefits band: 1 Your job family is: Procurement & Supply Chain Management And your role title is: Snr Buyer Now, enter your current salary to the right >>> £31,650 Your salary puts you in Q1 of the range for your role The mid-point of your range is: £39,200 As of 1 June 2014, the mid-point was increased by: 2.62% And the range min is: £31,360 While the range max is: £47,040 Q1 of this role runs from: to: £35,279 Q2 of this role runs from: £35,280 £39,199 Q3 of this role runs from: £43,119 Q4 of this role runs from: £43,120 There is a look up spreadsheet on our website which works out your pay range quarter – you just need your current salary and your role code – and what increase your range has seen this year.

2014 pay matrix * Here is the pay matrix for June 2014. You can read off the pay range you can expect by looking up your performance rating on the left and then working out where you sit in the pay range for your role along the top. * For people rated as ‘Development Needed’ a zero award may be considered where an individual is currently subject to the formal performance process or where there is clear supporting evidence of a continued deterioration in performance towards an ‘Unsatisfactory’ rating. Where this is applied individuals will be advised of this by their line managers.

Benefits bands Dependent on the additional benefits that are awarded to people mapped to different roles: Band 1: no additional benefits Band 2: a perk (not business needs) car or cash allowance, plus family health care, plus telephone allowance Band 3: As band 2, but with a bigger car… In detail, these are the additional benefits: Band 2: £450pcm car list or £400 cash, plus family health care cover, plus free installation, line rental, £33.60 quarterly free call allowance, 3 extensions & up to 4 telephones Band 3: £565pcm car list or £500 cash, plus the band 2 health care and telephone allowance

Bonus Each role has a bonus OTB For 2013/14, bonus operation has changed Should in principle lead to a clearer line of sight between the assessment of achievements and the actual bonus eventually received BUT… Annual DPR rating will drive the process Most people are on OTB bonus regimes of 10%, 15% or 20% of salary. Those on sales bonuses have regimes of commonly up to 50% of salary. You can find these details on our spreadsheets referred to earlier The changes to the system were focused on an attempt to increase transparency by simplifying the process. In June those not on a sales bonus plan will be sent their pay review letter. This will include their bonus score and you should be able to see exactly how your individual bonus has been calculated For those sales pay plans, bonus remains based on performance against the pay plan.

Areas for change Job sizing and mapping inconsistencies Over-complexity Silo effects Need for better career paths, including for grads coming off scheme Length of ranges (need to be shorter) and lack of progression, creating: - differentials issues – no incentive to take promotion, esp in London - equal pay issues Bonus issues, esp surrounding cascaded objectives Non-monetary rewards: sabbatical; opportunity to work on pet projects Market – how significant an influence in practice? We all know that the RF needs to change - a view that BT shares, at least in part. These are some of the issues which we have been pressing to BT as being in most urgent need of attention.

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