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9/30/16 1 HR CHALLENGES IN CIVIL SERVICE International Exchange Seminar Pretoria, South Africa September 26, 2016 A changing public sector context Towards a workforce of professional strategic Innovators Role of the central HR authority Outline

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Page 1: HR CHALLENGES IN CIVIL SERVICE - About Us...Employee Engagement Effectiveness of management Organizational commitment Employee motivation Work / life balance Job satisfaction Use of

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HR CHALLENGES IN CIVIL SERVICEInternational Exchange Seminar

Pretoria, South AfricaSeptember 26, 2016

• A changing public sector context• Towards a workforce of

– professional – strategic– Innovators

• Role of the central HR authority

Outline

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Events• Annual meeting plus expert groups on hot topics (e.g. compensation, workforce

planning, employee engagement, senior civil service)

Comparative Research: • collect statistics through surveys • develop comparative research on a range of topics related to HRM (e.g. strategic

agility, employee engagement, HRM for Innovation)

Country-specific analysis and advice: • HRM reviews (Dominican Republic, Brazil, Belgium), • Public Governance Reviews (Peru, Colombia, Northern Ireland, Spain, Slovak

Republic, Poland, France, etc)• Topic-focused workshops

Public Employment and Management Working Party

A unique practitioner-based forum of senior Public Employment and HRM officials

A CHANGING PUBLIC SECTOR CONTEXT

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Reforms across OECD have reduced publicemployment and choice of instruments (2008-11)

0% 20% 40% 60% 80% 100%

Non or partial replacement of retiring staff

Recruitment freezes

Annual productivity targets (eg: 0.5% personnel …

Outsourcing

Dismissals

Decentralisation of employment to lower …

Privatisation

Percentage of responding countries

Frequent use Moderate use No use

Source: 2014 Survey on Managing Budgeting Constraints: Implications for HRM and Employment in Central Public Administration

Impact of current reform trends on work intensity and stress in central government

0% 20% 40% 60% 80% 100%

Work/job intensity

Work related stress

Percentage of responding countries

High increase Moderate increase No change Moderate decrease High decrease Cannot say

Source: 2014 Survey on Managing Budgeting Constraints: Implications for HRM and Employment in Central Public Administration

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Effects of Reforms on Workplace Behaviour (since 2008)

Source: 2014 Survey on Managing Budgeting Constraints: Implications for HRM and Employment in Central Public Administration

-40

-20

0

20

40

60

80

100

-40

-20

0

20

40

60

80

100

Ger

man

yIs

rael

Icel

and

Slov

ak R

epub

licJa

pan

Switz

erla

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rea

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gary

Cze

ch R

epub

licPo

land

Uni

ted

King

dom

New

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land

Nor

way

Italy

Turk

eySw

eden

Esto

nia

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nite

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ates

Aust

ralia

Mex

ico

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riaFr

ance

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rland

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ain

Finl

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enia

Rus

sia

Indo

nesi

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rica

%Percentage points % in 2014 (right axis) Percentage points change since 2007 (left axis)

Public trust in government has declinedConfidence in national government in 2014 and its change since 2007

Source: Gallup World Poll

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WHAT RESPONSE FROM CIVIL SERVICES?

Fundamentally, man is the key to all problems, not money. Funds are valuable

only when used by trained, experienced and devoted men and women. Such people, on

the other hand, can work miracles even with small resources, and draw wealth out

of barren land.- Dag Hammarskjold (U.N. SG 1953-1961)

A (re)investment in the workforce…

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HR Reform Priorities in OECD countries, 2016

Source: Preliminary findings of the OECD SHRM survey 2016

Laws,Institutions,Leadership

Towards a civil service of professional strategic innovators…

• Networks• Learningculture• Riskacceptance• Knowledge

sharing/transfer• Workplace

quality/wellbeing

• HRstrategyandplanning• Workforcedata• Agilityandflexibility• Competency

management

• Merit-based• Openandfair

recruitment• Performance

management• DiversityandInclusion

Istheworkforceprofessional and

managedthroughfair,rule-based,transparentpractices?Areeducation

andexperiencerewarded?

Aretherightpeoplewiththerightskillsareworkingintherightplaceattherighttime,todeliveryresultsasefficientlyas

possible?

Doesyourworkforcecontributedrive

performancethroughinnovationand

continuousimprovement?

Professional Strategic Innovators

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PROFESSIONAL

• Fair and open recruitment• Transparent and fair performance appraisal• Promotion based on objective criteria

Current challenges in OECD countries:• Traditional approach to merit (e.g. Civil Service

Exams) may not be well adapted to new skills needs• Processes can be slow and burdensome, leading to loss

of attractiveness• Values and behavioural competencies are essential but

difficult to assess objectively

A professional, merit-based civil service:

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Performance management and the right balance of incentives

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

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Extent of the use of performance assessment

Composite indicator (2016) OECD-31 average (2016)

OECD-31 average (2011) Composite indicator (2011)Source: Preliminary findings of the OECD SHRM survey 2016

An increasing focus on top leaders

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1

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Cost

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Use of separate HRM practices for senior civil servants (SCS)

Composite indicator 2016 OECD Average 2016 OECD 31 Average 2011

Source: Preliminary findings of the OECD SHRM survey 2016

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Differences in selection process for senior managers

Source: Preliminary findings of the OECD SHRM survey 2016

0 2 4 6 8 10 12 14 16 18 20

Other

Different set of Standardized exams

All vacancies are published separately from other civil servants

Final decision is bound by report of panel / assessment centre

Greater use of Assessment centres

Recruitment is made with special panels

A more centralized recruitment process / monitoring / oversight

Number of responding countries

Merit and Diversity: towards a more open and inclusive civil service

Share of central government employment filled by women (2010)

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STRATEGY

• Strategic Vision• Workforce Planning• Competency Management• Workforce Data• Agility and Mobility

Strategic Workforce Management

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A Vision for Canada’s Federal Public Service• A world-class Public Service equipped to serve Canada and

Canadians now and into the future.– “We will be recognized as having the best people working together with citizens,

making smart use of new technologies and achieving the best possible outcomes with efficient, interconnected and nimble processes, structures and systems. Our core objective is to improve the lives of our citizens and secure a strong future for our country.”

Guiding Principles– An open and networked environment that engages citizens and partners for the

public good.• together with…

– A whole-of-government approach that enhances service delivery and value for money.

• enabled by…– A modern workplace that makes smart use of new technologies to improve

networking, access to data and customer service.• and…

– A capable, confident and high-performing workforce that embraces new ways of working and mobilizing the diversity of talent to serve the country’s evolving needs.

Canada’s Blueprint 2020

A focus on competencies and skills

Existence of common competency framework…

Source: Preliminary findings of the OECD SHRM survey 2016

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Competencies most often highlighted in competency profiles (2016)

Source: Preliminary findings of the OECD SHRM survey 2016

0 5 10 15 20 25

Innovation

Professionalism

Interpersonal relationships

Problem solving

Team work

Communication

Strategic Thinking

Leadership

Values and ethics

Achieving results

Skills prioritised in the recruitment and development of public leaders (2016)

Source: Preliminary findings of the OECD 2016 SHRM survey

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1. Create vision and strategy2. Mobilise people 3. Uphold integrity and respect4. Collaborate with partners and

stakeholders5. Promote innovation and guide change6. Achieve results

Canada’s leadership competencies

Public sector skills manage public value?

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Managing skills: the use of strategic workforce planning

Use of systematic strategic workforce planning

Source: Preliminary findings of the OECD SHRM survey 2016

Strategic workforce planning takes into consideration…

Source: Preliminary findings of the OECD SHRM survey 2016

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Towards an increasingly data-driven HRM

Which employee data are countries collecting in a standardised way?

Source: Preliminary findings of the OECD SHRM survey 2016

Still some gaps in using HR data…

Source: Preliminary findings of the OECD SHRM survey 2016

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INNOVATION

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Why a project on innovation skills?

… yet we know very little about them!

People are at the centre of innovation…

Unlocking civil servants’ innovative potential

Ability I can do it

• Skills (hard and soft)• Knowledge

Motivation I want to do it

• Intrinsic• Extrinsic

OpportunityI am allowed to do it

• Work design• Organisation

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OECD/Chile project on innovation capabilities in the civil service

CONTEXTUAL

ORGANISATIONAL

PERSONAL

• develop understanding about world megatrends and their impact

• create understanding how horizontal cooperation can build innovation

• develop the ability to see “behind the information”

• rethink the ways to overcome structural and cultural inertness

• provide knowledge and skills to make the change in organizational culture happen

• provide tools how a leader can create a motivating and innovation-prone workingenvironment

• stretch the mind (out of box thinking)

• encourage to see above most obvious connections

• develop creative thinking and support creative confidence

• acquire techniques and conceptual tools to increase innovation capacity

Estonia’s Innovation Boot Camp

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Building an open and innovation-oriented organisational culture:

Source: Preliminary findings of the OECD 2016 SHRM survey

0 5 10 15 20 25 30 35

OtherInclusion

HarassmentSkills match

Effectiveness of HRM systemsImpacts on employees of workplace …

Integrity at the workplaceDiscrimination

Perceived employer imageStress levels

Work intensityEmployee Engagement

Effectiveness of managementOrganizational commitment

Employee motivationWork / life balance

Job satisfaction

Use of employee surveys to measure and assess…

38

80% 77%

66% 63%

56% 54%

2010 2011 2012 2013 2014

Employee Engagement IndexHigh Department Score Governmentwide Low Department Score

2010 2011 2012 2013 2014

Employee Engagement Index 66 67 65 64 63

Leaders Lead 55 56 54 53 50 Supervisors 71 72 71 70 71 Intrinsic Work Experience 72 72 71 69 68

20 January 2015

Data trends from the US Civil Service Viewpoints Survey

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ROLE OF CENTRAL HR AUTHORITY

Role of central HR Authority in OECD countries

0 5 10 15 20 25 30 35 40

Other

the actual management of HRM at central/national/federal …

defining and controlling the payroll

dealing with retirement and pension plans

identifying performance management indicators

the provision of training

promoting diversity across the civil service

defining salary levels and benefits across the public service

designing the pay system

the coordination and supervision in the implementation of …

transmitting public service values

designing an HR strategy

standardizing recruitment and defining skills profiles

providing advice on the legal framework

providing leadership and guidance on human resource …

Number of countries

Source: Preliminary findings of the OECD SHRM survey 2016

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Extent of delegation of HRM functions to agencies/ministries

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

Slov

ak R

epub

licSw

eden

Ger

man

yAu

stra

liaPo

rtug

alIt

aly

Icel

and

Esto

nia

New

Zea

land

Finl

and

Nor

way

Slov

enia

Den

mar

kU

nite

d K

ingd

omFr

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Pola

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Belg

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Uni

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and

Hun

gary

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Latv

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sta

Ric

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Lith

uani

a

Composite indicator 2016 OECD 34 Average 2016

Source: Preliminary findings of the OECD SHRM survey 2016

Delegation by function (1=centralised)

0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8

Individual dismissal (organizational restructuring, performance, misconduct)

Individual career management

Management of performance related pay

Recruitment into the civil service (choice of individuals)

Adjustments to working conditions (part-time, etc.)

Number and types of posts within organizations

Training

Flexibility of working conditions (number of hours, etc.)

Allocation of budget envelope between payroll and other expenses

Performance appraisal systems

Post classification system - grades

Code of conduct

Ethics, equal opportunity, equity issues

General management of pay systems (salary levels, progressions)

Source: Preliminary findings of the OECD SHRM survey 2016

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• Building and enabling a high-capacity civil service requires reflection not only on the appropriate size and cost, but also on the quality of the workforce and the way they are managed.

• The role of a central HRM authority is essential to set guidelines, provide support and ensure coherence.

• There is a careful balance to be struck between regulation, compliance, support and innovation.

• Leadership is essential but requires systematic support.

Concluding thoughts

THANK YOUDaniel Gerson: [email protected]