Strengthening the Governance of Social Security

1. Strengthening the Governance of Social Security Ensuring transparency and fairness Sue Ward

2. Why is transparency important? • Social security institutions are there to ensure the well-being of those who depend on them • However, many people distrust them and suspect those who run them of looking after own interests • Combatting that distrust means acting openly and honestly, putting the client first

3. Transparency and fairness • This session covers • staffing and recruitment policies • the requirement for an “image of frugality” • appointing external contractors or consultants • staff ethical codes and other key instruments • “whistle blowing”

4. The institution should be open about • Its pay structures • its recruitment and promotion policies • how it assesses staff performance • what training it offers and to whom • how it makes decisions on capital investments

5. Leading by example • The institution should follow the policies it wishes other to follow • The procedures adopted, and the rules or codes of guidance adopted, should be open to discussion • Some policies will be be beyond the scope of one institution to change - but you may be able to influence others

6. Questions on staffing policies • What is the code of conduct for staff? • Does it cover conflicts of interest? • Can staff look at their own personnel files? • What is the grading structure and how is it decided? • Is recruitment based on merit? • Are there performance appraisals? • What is the disciplinary procedure?

7. Activity; staffing policy • Look at the box headed “Evaluating staffing policy; important questions for Board members to ask” • Go through the list of questions, and list • those you can answer on the basis of your current information • those where you could look for an answer, with a note of where you would look; and • those where your institution has no policy

8. Recruitment policy should be in a published document • An important element is a proper definition of a job, and the skills and experience required to do it • The institution should set a good example on policies they wish others to follow; • for example, on employment of minority groups, including people with disabilities.

9. The institution’s spending should be “fit for the purpose” • There must be investment to maintain standards of service • It should not be extravagant • The institution’s image is important - and it should be one of frugality

10. Appointing external contractors or consultants • The board should understand the national laws or codes of practice for government bodies entering into contracts • Care in the specification of work at the beginning will pay off in the end • The contract should specify what happens if things go wrong

11. Successful contracts • Imposing large penalties may not be the right approach • a frequent mistake is to assume that the contractor can do the work in isolation, and hand over a nice package at the end • In real life, there are always problems, issues and extra questions • Continuing dialogue works better

12. Staff ethical codes • The obligations of civil and public servants are coming under pressure, and there are areas where values are in conflict • Public bodies need a strong stance against gratuities for services • Corruption must be dealt with firmly and openly - otherwise, the institution’s credibility will suffer

13. Other key instruments to minimize unethical behaviour • Fair selection and recruitment procedures • objective promotion criteria • job rotation and job enrichment opportunities • clear descriptions of task

14. Other key instruments continued • transparent division of responsibilities and separation of competencies • screening of staff • sharing responsibilities

15. “Whistle blowing” • This is reporting by staff, of wrongdoing by a colleague or superior • It is important that the whistleblower has protection • having an independent channel helps Board members

16. Activity; the institution’s practices • In your groups, put together some recommendations for your institution on; • how to ensure its recruitment policy is fair, and in line with ILO convention 168 • what staff ethical codes should say • what the policy on “whistle blowing” should say

17. Transparency in benefit decisions • Some mistakes are inevitable; there must be a willingness to admit them and put them right • there should be formal rules for deciding on benefit claims, with decisions and explanations in writing • If claimants raise questions, look at the reasons behind these

18. Summary • The board’s role is to ensure that the institution acts in an open and honest manner • The institution should lead by example on staffing policy • High levels of transparency are essential in dealing with staffing matters, and with external contractors

19. Summary continued • The institution should spend what it needs without being extravagant • There should be a code of ethics for staff, and adequate protection for whistleblowers • Decisions on benefits should be in writing, and include a clear rationale • Staff should be willing to admit mistakes