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Trends in Strategic Workforce Management in OECD Countries

Trends in Strategic Workforce Management in OECD Countries. Zsuzsanna Lonti Public Governance and Territorial Development OECD . EUPAN Dublin 4-5 April 2013. The size of the public workforce has remained relatively stable…. Employment in general government as % of labour force.

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Trends in Strategic Workforce Management in OECD Countries

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  1. Trends in Strategic Workforce Management in OECD Countries • Zsuzsanna LontiPublic Governance and Territorial DevelopmentOECD • EUPAN • Dublin • 4-5 April 2013

  2. The size of the public workforce has remained relatively stable… Employment in general government as % of labour force Sources: International Labour Organization (ILO) LABORSTA Database and OECD Labour Force Statistics Database.

  3. …While compensation has shown greater variation Compensation of general government employees as % of GDP Source: OECD National Accounts Statistics.

  4. Many OECD countries have an ageing public workforce Percent of central government employees aged 50 years or older Source: 2010 Survey on Strategic HRM in Central/Federal Governments of OECD Countries

  5. And most countries are restructuring the public sector Quantified expenditure reductions (2009-15) 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

  6. Measures include cuts in workforce size and pay • Cuts to operational expenditures affect public workforce numbers and remuneration. Operational expenditure reduction measures Source: OECD Fiscal Consolidation Survey 2012.

  7. Workforce reductions include staff cuts and replacement rates Anticipated changes in employment levels in more than 50% of agencies and ministries Sources: 2010 Survey on Strategic HRM in Central/Federal Governments of OECD Countries; OECD (2011), Public Servants as Partners for Growth.

  8. Effective management of cuts requires strategic HRM practices Strategic HRM practices in central government (2010) 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

  9. 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.

  10. 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.

  11. 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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