In a command paper published yesterday, Action for roads: a network for the 21st century, the DfT says that, under the current system, the Highways Agency “finds it hard to compete for staff on the international labour market” because it is subject to pay grades that are set by the Cabinet Office.
This means that the Highways Agency chief executive cannot be paid more than £208,100 (pay band 3) while the directors have to struggle by on no more than £162,500 (pay band 2). This is evidently not enough for the effective management of the road network.
Yesterday’s document says that making the agency a company will allow it to give staff incentives and performance related pay, giving it “more flexibility to recruit the best staff from across the infrastructure world”.
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