We are regularly informed by Pharmacists that Boots senior management apply a rigid and forced distribution of performance ratings and pay awards; this process is euphemistically described as a “calibration exercise”, which presumably is meant to sound more palatable to those it applies to.
If Pharmacists vote for PDA Union recognition, this brings the legal right to negotiate over matters relating to their pay, and this unfair system will be high on the list of issues that Boots pharmacists will be seeking to change.
The PDA Union believe it is legitimate to recognise individual performance and then check that managers have been consistently applying the criteria. That is a good thing that can help reduce pay inequality and motivate staff. However, what Boots senior management do appears to be beyond that.
The company forced distribution model requires circa 1000 pharmacists, equating to 15% of the population, to be graded as underperforming each year (see diagram) and we understand that each part of the company is required to have the same profile of ratings. No matter if everyone in that section is high performing or low performing a strict forced distribution means that ratings must be distributed in line with a bell curve where 15% of pharmacists are graded as underperforming, 70% as performing and the fortunate 15%, as above performing.
We understand that Managers meet in closed forums without the people they are talking about being present and decide who will get which rating by a process of what can only be described as “horse trading”, these meetings are undocumented and important decisions are made behind closed doors about an individual’s performance that have far-reaching consequences for their pay and bonus entitlement.
Such a process favours more “visible” pharmacists over those who quietly perform an excellent job and the most assertive line managers are usually the best at getting their pharmacists higher up the bell curve.
So a pharmacist’s pay increase doesn’t only depend on how they have performed but also on how well their line manager argues for them (or against them). This has serious consequences because how quickly a pharmacists pay reaches the median market rate depends on their performance management rating.
We believe this approach also means that Pharmacists know that they are in competition with each other for the higher performance ratings which can damage team spirit. Under forced distribution, it is in an individual’s interest that they are seen to perform better than some of their colleagues. Presently if members of a pharmacy team worked collaboratively to all achieve collective high performance some would still be penalized because some pharmacists will still get a low rating as the distribution of grades must be forced.
In addition to all of the above, the current process is complex, and many line managers seem unable to operate it properly. Approximately 9 out of 10 pharmacists who challenge an underperforming grading through the PDA Union, are successful in getting it improved.
The ballot period at Boots is scheduled to start on 4th February 2019 and will run for five weeks. Approximately 7,000 Pharmacists and pre-registration pharmacists at grade 5, 6 & 7 in stores will be entitled to vote and if 40% or more vote for PDA Union to be recognised the senior management will have to agree a recognition agreement. Boots is the first employer which the PDA Union are taking through the legal process to secure recognition, but the aim is to secure recognition wherever their members work.