Hello Bloggers

I was idling through the business pages this weekend (I know…my actions qualify me for a Millet’s overcoat!) and stumbled across a fascinating review of a new management book published by Canongate books - the title being Drive: The Surprising Truth about What Motivates Us. The author Daniel H Pink, business leader, was writing about his experience at work. This feature made me leap from my chair with a yelp and Mrs S shot me an agonised glance that said ‘Oh Lord, he’s off again!’

Daniel Pink was describing the complex problem of pay and rewards for two private sector ICT companies (from the US and UK) and, more specifically, how their sales team were motivated to increase sales. Equally complex systems had evolved in both companies where commissions were characteristic as the main means of increasing motivation to improve sales -in sales a fairly traditional mechanism to stimulate employee productivity.

The two companies (Red Gate Software from Cambridge in the UK and System Source from Baltimore in the US) had developed increasingly sophisticated means to overcome human behaviours that manipulated ‘the system’ in order to maximise commission returns. Eventually, and entirely independently of each other, they thought the unthinkable and decided to scrap the commission-based carrot and stick reward system - preferring a flat-rate, salaried approach.

The result? Improved teamwork, improved employee engagement and improved sales.

In the public sector as we contemplate total rewards and contribution pay, Daniel Pink’s work suggests to me that we need to construct and implement our reward strategies with great care. After all…we’re strapped for cash as it is.

Dean

Just when you thought there was a chilling post-Budget menace from Chancellor Alistair Darling’s cross-examination by the press concerning the anticipated level of public sector cuts (under media scrutiny he likened the level of retrenchment to that witnessed in Margaret Thatcher’s era), here’s an even cooler blast from across the Irish Sea to chill you to the marrow…

The ‘Celtic Tiger’ - a few years ago - was renowned for an unmatched economic joie de vivre, but the world recession has put paid to that. Like mainland Britain it seems to bail out the national debt the only option is to make savage cutbacks in the Irish public sector.

However - in events unparalleled in mainland Britain - Irish Finance Minister, Brian Lenihan, has reduced 6.1 million Irish public sector workers’ pay on average by up to 15% per annum - this has been achieved either through direct pay cuts, or forcing the Irish public sector workers to make significantly higher contributions to pensions where the Irish Government has withdrawn funding. In all Mr Lenihan has announced cuts in public sector spending of up to 4 billion euros. For more about this read an article by Henry McDonald (in Dublin) and Larry Elliot in the Guardian, Friday 11 December 2009, or Neil Tweedie of the Daily Telegraph, 29 March 2010.

Public servants, such as teachers, have been badly hit by the cuts. For example, the 31,000-strong Irish National Teachers’ Organisation says the average primary teacher’s salary of 60,000 Euros will be reduced by a fifth following a 6.5% pay cut, combined with two other cuts in pay last March and April. Sheila Nunan, the organisation’s incoming general secretary, said morale among Irish teachers was “the worst ever”, due to the Budget.

In Ireland these events have been compared to the British Winter of Discontent of 1979, when the Prime Minister, James Callaghan, attempted to hold a pay freeze to combat inflation.

However, strikes in Britain now seem to be beginning to build a head of steam - such as British Airways, Network Rail, as well as other public services including courts, job centres plus and the like, led by the public and commercial services union. So, things aren’t exactly plain sailing here either. But what would their reaction and yours, be to taking a 15% lop in your pay? Could this be a stark reality for the UK after the General Election…? 

What are your thoughts on this?

Dean

The following article features PPMA President Gill Hibberd:

1. Public Sector leaders back calls for pay transparency published 17th March 2010 on personneltoday.com

The following article features PPMA President Gill Hibberd:

1. Brown Announces Senior Public-Sector Pay Freeze published 10th March 2010 on peoplemanagement.co.uk

The following articles feature PPMA President Gill Hibberd:

1. BBC defends its dominance over HR Directors pay published 2nd February 2010 on hrmagazine.co.uk
2. Fit-notes will cause arguments about ’suitable work’ definition published 2nd February 2010 on personneltoday.com
3. Councils search for ways to cut costs without compulsory redundencies published 8th February on personneltoday.com

The following article features PPMA President Gill Hibberd:

1. Minimum Wage may be frozen for younger workers published 12th January 2010 on AP Partnership’s Blog

Last week saw a flurry of activity following the Chancellor’s pre-budget speech containing a number of controversial measures to control public sector spending. I was quite literally inundated with calls from the media asking for a PPMA view on the proposals. It is very satisfying that we are now demonstrating our objective of being the ‘voice of public sector people management professionals.’ I think the degree to which our view on such issues are sought is testimony to our success with this objective.

I feel that the tone that the government is trying to set around public sector pay transparency is entirely the right direction of travel. However, the focus on senior pay and overburdening control by the Treasury is difficult to justify. I’ve posted most of my comments on the blog so you can follow my view and let me know if you agree or not!

On Thursday this week I had the pleasure of speaking at the first of our regional launches of the tHRu portal. The product has been supported by a number of ‘experts’ and in particular EurekaStep, KPMG and IES have been involved. I also want to thank Martin Reddington for his support. Above all I want to thank and congratulate Martin Rayson for bringing this product to fruition. It really is a superb addition to our product portfolio for members. I would highly recommend attendance at the regional events if you haven’t already booked!

Finally, can I wish everyone a very happy Christmas and a successful New Year. I’ve thoroughly enjoyed the privilege of being your President over the past 8 months and I hope 2010 proves to be the most successful ever for PPMA.

Best wishes

Gill

The following articles feature PPMA President Gill Hibberd:

1. Perils of a public sector pay cap - published 13th December 2009 in The Sunday Times
2. Public sector faces job losses ‘on unprecedented scale’ published 11th December 2009 on peoplemanagement.co.uk

I’m back from a very restful break – to a mound of emails and papers! Hope that you are all enjoying the summer and are managing to find time to take a break yourselves at some point. With this in mind I am reminded of the wise words of Dave Ulrich at our conference earlier this year when he talked about us looking after our health and being responsible for our own well-being!

I’ve been catching up on news that I missed whilst away and see that the debate on public sector pay still rumbles on. The reality of the current economic climate has to hit home at some point and the need for pay restraint must surely apply as equally to the public sector as it does in the private sector. BA have taken the interesting stance of asking its workforce to volunteer to work for nothing for periods of a week to a month. Can you imagine the response that would be received in the public sector to similar suggestions? Personally I think it’s an innovative response to difficult times and we will all be challenged over the coming months to be more and more creative in the solutions we need to find to keep out organisations afloat.

My first opnion piece in People Management magazine on the issue of the bureaucracy we create in HR seems to have caused a stir! The week after it appeared a flurry of letters were received by People Management on the subject from various commentators – exactly the response I was hoping for. I know that not everyone will agree with my views but it’s always healthy to have a debate and to take on board the views of others.

My next piece will be on the issue of organisational design and should appear in the August edition of People Management.

One of the great jobs I get to do as PPMA President is to judge the overall winner of the Personnel Today Awards, which will be announced later in the year. The rather large judging file has just landed on my desk – watch out for more news on this later in the year!

I’m also putting together a plan for the next PPMA Board meeting which I hope will cover the big issues of the future of reward in the public sector as well as looking at the future world of work and what the challenges might be.

I will be back with more blogs soon, In the meantime enjoy what little sun we seem to be getting!

Gill

Hi All

Well this week has really been interesting! I decided to “go for it” in responding to some comments published in Personnel Today (PT) last week about my views on not freezing public sector pay and challenging my own remuneration package.

The published piece wasn’t quite the nuclear option I originally drafted and deleted, but I think anyone reading my opinion piece would get the point. Locally this attracted some press interest because I chose to publish my salary. Which brings me to a point - why should actual public sector pay be hidden behind a fog of FOI exemptions and pay bands? It shouldn’t.

We all pay taxes and the public should expect openness from their public servants about their pay. However, openness about pay levels doesn’t justify uninformed criticism - pay has to be set in the context of the role concerned. Additionally, if people think that some public servants are paid too highly, then I respect the fact that they have an opinion. However, people also need to respect the fact that if public sector pay is frozen and higher earners have their pay regulated by Whitehall (I refer you to John Healey’s recent comments), then public services will once again become less able to draw in talented people and retain them at all levels. Time for a healthy debate with the public, politicians and others I think.

We’ll see what the reaction is in PT next week. Thanks for the messages from far and wide I’ve already received in support of my opinion piece. I’m sorry if some PPMA members think I’ve been too controversial, but being in a leadership role occasionally means putting yourself up to be shot at…and I made that choice consciously. PPMA has to, in my view, say things sometimes that others can’t and won’t. Public sector bashing is THE story in the media and I, for one, won’t sit quietly and be bludgeoned to death.

On other PPMA matters, I had the pleasure of representing us at the Association of County Chief Executives last night and in another guise as their Honorary Secretary for the day, standing in for my boss. It was very useful to be in this august company and to be part of discussions about issues of the day, include Lord Laming’s Report and all things CAA.

To prove that there is life outside work, I’m now heading off for a long weekend, in advance of my final PPMA Policy Board meeting as President next Friday.

Best wishes

Stephen