Following submitting the results of the Professional Grade pay distribution survey to the company and engaging in discussions with them, AXA UK have agreed that the pay awards for Professional grade employees will be calculated in 2024 using the pay matrix, rather than manager discretion.
Thanks to everyone who completed the survey and provided feedback, and to the reps who worked hard at persuading the company to change the distribution back to the approach favoured by employees.
Unite in AXA have issued a newsletter as we start the 2024 pay round consulting with our members. Please leave your feedback below or talk to your local union rep.
This statement applies to all AXA UK employees other than those in AXA Health
The 2023 pay budget has been negotiated by AXA and Unite
A 7% pay review budget has been offered for the Unite bargaining group (Associates, Senior Associates and Professionals). Pay awards for each of these grades will be distributed via a fixed matrix which accounts for an individual’s 2022 performance and current position in the pay range
A 7% pay review budget will also be provided to Senior Professionals, Leaders and Senior Leaders, following consultation with AXA’s Manager representatives. Individual pay awards for employees in these grades will be made by manager discretion
The Hybrid Working Allowance will be extended on an on-going basis
Unite members will go to ballot (i.e. vote on the offer) between 16th and 22nd February
All pay increases will be effective 1 April 2023
Each year the pay budget (the amount of spend allocated to pay increases) and how it is distributed out to our people is reviewed. These elements are negotiated between AXA and Unite for all AXA UK employees in Associate to Professional grades, except for those in AXA Health.
AXA Health has also released their own pay statement today.
Overall budgets
This year’s negotiations between AXA and Unite have taken place during a very challenging economic backdrop, with high inflation and a cost-of-living pressures putting pressure on both our people and our business. Despite this difficult backdrop, negotiations have progressed in good spirits with both sides trying to find a fair outcome.
Negotiations have now concluded with an offer of a 7% overall pay budget increase for all colleagues across the Associate to Professional grades.
Similarly, a budget increase of 7% will also apply to the Senior Professional to Senior Leader grades, as agreed during consultation with AXA’s Manager Representatives.
How AXA distributes pay awards – matrix vs. discretionary approaches
AXA distributes pay awards based on either a matrix or discretionary approach according to employee grade. Both approaches are described in more detail below, but this table shows which approach, and proposed pay budget value, applies to each employee grade in 2023:
Matrix pay distribution
Discretionary pay distribution
Associate
Yes – 7% budget
No
Senior Associate
Yes – 7% budget
No
Professional
Yes – 7% budget
No
Senior Professional
No
Yes – 7.0% budget
Leader
No
Yes – 7.0% budget
Senior Leader
No
Yes – 7.0% budget
Unlike recent years, Professional grades are being included in the matrix pay distribution approach for 2023 awards.
2023 Matrix pay distribution approach (Associate, Senior Associate & Professional)
The total 2023 pay budget increase (the amount available to spend) for this group is 7%, however the actual pay award for each individual will be influenced by their performance rating and the position of their salary in the pay range. Following the matrix below, this means that larger awards will be provided to those with a higher performance rating and those positioned at the lower end of the pay range.
Further information about how pay is distributed using the matrix (including how to calculate your position in range) can be found on the My Pay page on ONE.
Why is AXA proposing to include the Professional grade in the matrix approach in 2023?
In recent years, Professional grades have typically been included in the discretionary approach of distributing pay. However, we are changing this approach for 2023.
Feedback received from our Professional-graded colleagues is that they would prefer to have the greater certainty of pay award outcomes that a matrix pay approach provides.
At this point, this change is effective for the 2023 pay awards only but we have agreed with Unite that we will conduct a review later in the year to review the matrix approach and the grades that it is applied to. The outcome of that review will take effect for the 2024 pay awards.
Managers who are responsible for making pay decisions during the pay review process (also known as Pool Heads) will use their discretion to provide pay awards for employees in Senior Professional to Senior Leader grades, keeping within the overall 7% budget.
Pool Heads consider a range of factors when making a decision on an individual’s pay including their performance, position in the salary range, the external market and comparison to peers. Outcomes are reviewed centrally to ensure fairness. The process for these checks and the guidance provided to Pool Heads ahead of pay review are reconsidered each year to ensure that they continue to be fit for purpose and lead to appropriate pay outcomes.
Hybrid Working Allowance
The Hybrid Working Allowance of £6 per week is to continue on an on-going basis (subject to HMRC continuing or modifying the arrangement). The payments will be available to all employees at all levels up to Senior Leader (apart from those who are 100% office-based) and are not subject to tax or National Insurance Contributions.
Adjustments to pay ranges
Minimum salaries in the UK pay ranges were uplifted above the new Real Living Wage for National and London in October 2022.
Pay ranges have been assessed again to determine whether further adjustments are required, keeping the external market in mind. The revised 2023 pay ranges will be available in the Manager area on ONE towards the end of February and will be effective 1 April 2023.
Competency Frameworks
Spot rates in the Insurance Competency Frameworks were reviewed in October 2022, with uplifts being applied where spot rates remained lower than the new AXA UK minimum salary.
All current frameworks are now being reviewed against the market and any further adjustments to spot rates will be applied with effect on 1 April 2023.
Next steps
Unite members will go to ballot on this offer between the 16th and 22nd February. The final pay budget won’t be confirmed until the results of the ballot are known.
Individual pay outcomes will be formally communicated to employees in March and any pay increases will take effect from 1 April 2023.
There is more information on the pay review process on the My Pay page on ONE. Please speak to your line manager or Unite representative if you have any further questions.
This statement applies to all AXA UK employees other than AXA Health or AXA Global Healthcare
The 2022 pay budget has been negotiated by AXA and Unite
A 4.5% pay review budget increase has been offered for the bargaining group, Associates to Professionals
3% will be provided to Senior Professionals to Senior Leaders
Individual pay increases will vary based on performance and position in pay range, and will be effective 1 April 2022
Unite members will go to ballot (i.e. vote on the offer) between 8-17 February
Each year we review the pay budget (how much AXA has to spend on pay increases) and how it is distributed out to employees. These elements are negotiated between AXA and Unite for all AXA UK employees at Associate to Professional grades, except for those in AXA Health and AXA Global Health.
AXA Health and AXA Global Healthcare have also released their own pay statements today and other AXA entities based in the UK will have their own pay arrangements.
Overall budgets
This year, the negotiation has concluded with an offer of a 4.5% overall pay budget increase for employees across the Associate to Professional grades. Separately, a budget increase of 3% will apply to the Senior Professional to Senior Leader grades.
Why is AXA proposing a higher budget for our Associate to Professional grades compared to Senior Professional and Senior Leader grades?
This is because the main purpose of pay review for AXA is to keep pay rates competitive in the market, and careful external research and benchmarking has shown that in the Associate to Professional grades AXA needs to invest more to be competitive. We’re also aware that cost of living has been rising significantly over recent months and often this disproportionately affects people at these levels.
Whilst the overall budgets will be shared across all eligible employees, individual increases will vary based on the factors set out below.
How AXA distributes pay awards – matrix vs. discretionary approaches
AXA distributes pay awards based on either a matrix or discretionary approach according to employee grade. Both approaches are described further below but first this table shows which approach and proposed pay budget value applies to each employee grade
Matrix pay distribution approach (Associate and Senior Associate)
The total 2022 pay budget increase (the amount available to spend) for this group is 4.5%, however the actual pay award for each individual will be influenced by their performance rating and the position of their salary in the pay range. Following the matrix below, this means that larger awards will be provided to those with a higher performance rating and those positioned at the low end of the pay range.
Further information about how pay is distributed using the matrix (including how to calculate your position in range) can be found on the My Pay page on ONE.
Managers who are responsible for making pay decisions during the pay review process (also known as Pool Heads) will use their discretion to provide pay awards for employees in Professional to Senior Leader grades, keeping within the overall budgets.
A range of factors are considered when making a decision on an individual’s pay including their performance, the external market and comparison to peers. Outcomes are reviewed centrally to ensure fairness. The process for these checks and the guidance provided to Pool Heads ahead of pay review are reconsidered each year to ensure that they continue to be fit for purpose and lead to appropriate pay outcomes for employees.
Adjustments to pay ranges
Minimum salaries in the UK pay ranges will be increased in line with the new Real Living Wage for National and London (£18,018 and £20,111, respectively, for a 35-hour FTE contract). Where necessary, these adjustments are being made in addition to the pay budgets described above.
Separately, the pay ranges will be assessed to determine whether further upward adjustments are required, keeping the external market in mind.
The revised 2022 pay ranges will be available in the Manager area on ONE towards the end of February and will be effective 1 April 2022.
Next steps
Unite members will go to ballot on this offer between the 8 and 17 February. The final pay budget won’t be confirmed until the results of the ballot are known.
Individual pay outcomes will be formally communicated to employees in March and any pay increases will take effect from 1 April 2022.
There is more information on the pay review process on the My Pay page on ONE. Please speak to your line manager or Unite representative if you have any questions.
Unite in AXA have issued a newsletter detailing the 2022 Pay Claim we have presented to the company today. Please leave your feedback below or talk to your local union rep.
Click here to read the latest Unite in AXA newsletter detailing the 2020 Pay Claim we have presented to the company. Please leave your feedback below or talk to your local union rep.