Download Gender Diversity in Public Employment

Trends in Strategic Workforce
Management in OECD Countries
Zsuzsanna Lonti
Public Governance and
Territorial Development
OECD
EUPAN
Dublin
4-5 April 2013
2011
Russian Federation
Brazil
South Africa
Ukraine
%
35
Norway
Denmark
Sweden
Finland
France
Hungary
Estonia
United Kingdom
Luxembourg
Canada
Belgium
Ireland
Israel
Slovenia
Australia
OECD
United States
Italy
Spain
Slovak Republic
Czech Republic
Netherlands
Portugal
Turkey
Austria
Germany
Switzerland
New Zealand
Poland
Chile
Mexico
Greece
Japan
The size of the public workforce has remained relatively stable…
Employment in general government as % of labour force
2001
30
25
20
15
10
5
0
Sources: International Labour Organization (ILO) LABORSTA Database and OECD Labour Force Statistics Database.
2
%
2011
Source: OECD National Accounts Statistics.
Russian Federation
Denmark
Iceland
Finland
Sweden
Norway
France
Canada
Slovenia
Belgium
Greece
Ireland
Israel
Spain
Portugal
United Kingdom
Estonia
OECD
United States
Italy
Hungary
New Zealand
Netherlands
Poland
Austria
Mexico
Turkey
Luxembourg
Switzerland
Germany
Czech Republic
Slovak Republic
Korea
Japan
…While compensation has shown greater variation
Compensation of general government employees as % of GDP
2001
35
30
25
20
15
10
5
0
3
2000
Source: 2010 Survey on Strategic HRM in Central/Federal Governments of OECD Countries
Brazil
Russia
Ukraine
Italy
Iceland
Sweden
Belgium
Germany
United States
Denmark
Slovak Republic
Greece
Israel
Norway
Spain
Finland
Netherlands
Canada
OECD
Ireland
Austria
Hungary
Portugal
Switzerland
United Kingdom
New Zealand
France
Slovenia
Poland
Mexico
Australia
Japan
Estonia
Chile
Korea
Many OECD countries have an ageing public workforce
Percent of central government employees aged 50 years or older
2009
60%
50%
40%
30%
20%
10%
0%
4
And most countries are restructuring the public sector
Quantified expenditure reductions (2009-15)
% of GDP
8
Operational
Programme
Other
7
6
5
4
3
2
1
0
IRL HUN PRT GRC SVN ESP SVK NZL ISL ITA NLD AUT FRA POL CZE BEL DEU LUX GBR DNK CAN FIN SWE AUS CHE NOR
Source: OECD Fiscal Consolidation Survey 2012; and OECD (2011), “Restoring Public Finances: Fiscal Consolidation in
OECD Countries”, Special issue of the OECD Journal on Budgeting, Volume 2011/2
5
Measures include cuts in workforce size and pay
Cuts to operational expenditures affect public workforce numbers
and remuneration.
Operational expenditure reduction measures
Plan 2012
%
100
Plan 2011
90
Percenatge of participating countries
•
Operational expenditure measures specified:
80
70
60
50
40
30
20
10
0
Operational
expenditures
Source: OECD Fiscal Consolidation Survey 2012.
Wage cuts
Staff reductions Other operational
expenditures
6
Workforce reductions include staff cuts and replacement rates
Brazil
No change
expected
(5 countries)
Ukraine
Anticipated changes in employment levels in more than 50% of agencies and ministries
Decrease
expected
(28 countries)
Slovenia
Czech Republic
Country
Measure
Country
Measure
Austria
Replacing 50% of retiring staff
Italy
Replacing 20% of retiring staff
Czech Republic
10% reduction in staff in 2010
Netherlands
Reduction of 120,000 to 150,000 jobs
Denmark
Reduction of administrative staff
Poland
10% reduction in staff
Estonia
15% decrease in personnel costs
Portugal
1% reduction in staff per year, 2012 to 2014
France
Replacing 50% of retiring staff
Slovak Republic
Hiring freeze
Greece
Replacing 10% of retiring staff
Spain
Replacing 10% of retiring staff
Ireland
12% reduction in staff by 2010
United Kingdom
Reduction of 490,000 jobs; hiring freeze
Sources: 2010 Survey on Strategic HRM in Central/Federal Governments of OECD Countries; OECD (2011), Public
Servants as Partners for Growth.
7
Effective management of cuts requires strategic HRM practices
Strategic HRM practices in central government (2010)
Composite Indicator
OECD31 Average
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
The index is composed of the following variables: the existence of a general accountability framework; the existence of HRM targets built into performance assessments of
top and middle managers; elements that top and middle management should take into account when planning and reporting within the general accountability framework;
regular review and assessment of Ministries’/Departments’ HRM capacity; existence of forward planning to adjust for adequate workforces to deliver services; and elements
considered in governments’ forward planning. The index ranges between 0 (low utilisation of strategic HRM practices) and 1 (high utilisation of strategic HRM practices).
Source: 2010 OECD Survey on Strategic HRM in Central / Federal Governments
8
And greater use of strategic workforce planning
What is Strategic Workforce Planning?
• A core HRM process shaped by organisational strategy.
• Helps identify, develop and sustain the necessary
workforce skills while satisfying career and lifestyle
goals of employees.
• Ensures the organisation has the right number of
people, with the right skills in the right place at the
right time.
• Requires high quality information and discussion,
organisational strategies and efficiency concerns.
9
OECD Conclusions on Strategic Workforce Planning (I)
• Develop a strategic long-term vision through
forward-looking management.
• Develop the capacity for strategic workforce
planning.
• Take an integrated approach to HRM.
• Enhance flexibility in HRM.
• Balance cost, quality and investment in the public
workforce.
• Manage competencies with a view to performance.
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OECD Conclusions on Strategic Workforce Planning (II)
• Foster diversity in the public service.
• Ensure the prevalence of merit.
• Strengthen performance management to enhance
accountability.
• Ensure senior managers possess strategic
foresight and leadership.
• Assess HR initiatives systematically.
• Sustain reforms through quality strategy.
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