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The Squeeze On Spending – Public Sector HR Response 1st November 2012 – ECC Conference

The Squeeze On Spending – Public Sector HR Response 1st November 2012 – ECC Conference PPMA President - 2012/13 Martin Rayson. Political & Economic Context. Budget reductions, past present and future Growing demand Managing uncertainties Changes in responsibility.

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The Squeeze On Spending – Public Sector HR Response 1st November 2012 – ECC Conference

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  1. The Squeeze On Spending – Public Sector HR Response 1st November 2012 – ECC Conference PPMA President - 2012/13 Martin Rayson

  2. Political & Economic Context • Budget reductions, past present and future • Growing demand • Managing uncertainties • Changes in responsibility

  3. LB Barking & Dagenham Case Study • Budget spend = £270m (excluding benefits) • % reductions = 30% • Still £6m to find for 14/15, despite doing the radical things • One of the lowest household incomes in London making it difficult to sustain town centre growth • The percentage of residents with no qualifications (23.2%) is almost twice the London (12%) and national (12.4%) rates. • The percentage of Borough residents with degree level qualifications or equivalent (22.37%) is the lowest in London and almost half the rate for the capital as a whole (39.7%) • Public sectors cuts and benefits changes further reducing incomes and weakening the local economy • 37.9% of the private sector housing stock (owner occupied and rented) in the borough is non decent • Urgent need for additional school places with rising birth rate

  4. Changes in the Shape of the Public Sector • “Public services” rather than “public sector” • Councils are becoming more diverse – range of different approaches and operating models • Working with others to meet local needs and build the conditions for economic growth • Leadership role – magnanimous letting go

  5. Implications for LB Barking & Dagenham

  6. Implications For HR Citius, Altius, Fortius Swifter, Higher, Stronger

  7. Engagement Challenge • “Engaging for Success” • Key determinants of engagement: • Create a strategic vision • Engage your managers • Give employees a voice • Organisational integrity CIPD Employee Outlook Survey 2012: Levels of Engagement: Views of “Senior Managers”:

  8. Leadership Challenge • Commercial skills – greater understanding of cost, not budget • Managers as collaborators, negotiators and coalition-builders – not traditional managers • Flexibility • Managing change and uncertainty • Better communications and involvement

  9. Talent Challenge • Media attention on the sector • Senior salaries • Lack of investment • Career paths

  10. Reward Challenge (with acknowledgement to Mercer)

  11. Employee Value Proposition or “Deal” (with acknowledgement to Edinburgh Napier University)

  12. The State of the “Deal” at LB Barking & Dagenham Inducements Contributions

  13. LB Barking & Dagenham - Biggest “Tensions” 1). We are expecting people to do “more with less” • “Lack of capacity in the team to deliver” • “Competing for precious time to deliver services” 2). Lack of support from the “organisation” - “No real understanding from higher management of what individuals and teams actually do and what their resource needs are” 3). The suppression of negative issues - “At team meetings, issues are discussed, although I feel due to pressure from management not to be negative, these issues are never passed on”

  14. LB Barking & Dagenham Response • Defining and communicating the strategic narrative • Leadership and management development programme • Constructive/courageous conversations training • Managing pressure and creating productive workplaces • Retaining and recruiting talent • Future managers programme • Engaging staff around a “Staff Charter”

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