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Dr. Demmke delivers a presentatin on civil service reform challenges in teh Member States of the European Union
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© OECD
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CIVIL SERVICE PROFESSIONALISATION IN
THE EUROPEAN EASTERN
NEIGHBOURHOOD
Public Administration Reforms in the EU and OECD
In the context of financial constraints
Christoph Demmke, Advisor to the OECD
Tbilisi, 4-5 November 2014
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Introduction
• Report on Studies for the EU Presidency in 2011 – 2013 in the framework of the EUPAN network (n = 25 EU countries)
• OECD Survey on the Impact of Budgetary Constraints on HRM (2014)
Discussed and adopted in OECD PEM network
32 countries
Survey in early stage, finalisation in 2015
1
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Is the Public Service reform resistant – a myth !
• Reform of Organisational structures
• Debureaucratisation
• Abolishment of careers,
• Mobility policies
• Towards new Work systems
• Reform of Public Employment
• Reform of Working Conditions
• Changes as to the division of public and private tasks(Outsourcing, Shared Services)
• Leadership reforms
• Value Changes2
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Many changes but uncertaintyabout reform outcoumes
• Many prevailing perceptions – not innovative, private sector is better
• Reform fashions and broad concepts: Sustainable PA, Agility, Resilient, Engagement etc.
• Many hasty and ad-hoc approaches
• More reforms than evidence about outcomes
• People not assets but cost factors
• Increasing expectations, less capacities
3
0
10
20
30
40
50
60
70
80
90
100
EL LU CY IE FR PT
DE
BE ES RO IT
HU AT LT PL
BG
MT SI
Mea
n EE LV NL
SK FI UK
DK CZ SE
Debureaucratisation but no new universal model, no convergence
0% = Bureaucracy, 100% = Post-Bureaucracy, Source: Demmke/Moilanen 2010)
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Variations of (perceived) reformpressures in the EU (2007)
Considerable variations between public administration traditions
Little relevance of country size and HR system
technological developments
citizen demands
p.a. top executives
p.a. employees
staff representatives / unions
political parties
public in general /media
private sector
other interest groups
supranational organisations
very low1 2 3 4very strong
economic situation / budget
EU legislation / integration
national parliament / legislation
socio-demogr. developments
Scand.
Scand. Transition
Continental
Transition
Contin./Transition
Mediterr.Mediterr.
Scand.
Anglo.
Anglo.
Anglo.
Mediterr.
Mediterr.
Contin.
Transition
Mediterr.
technological developments
citizen demands
p.a. top executives
p.a. employees
staff representatives / unions
political parties
public in general /media
private sector
other interest groups
supranational organisations
very low1 2 3 4very strong
economic situation / budget
EU legislation / integration
national parliament / legislation
socio-demogr. developments
Scand.
Scand. Transition
Continental
Transition
Contin./Transition
Mediterr.Mediterr.Mediterr.Mediterr.
Scand.
Anglo.
Anglo.
Anglo.
Mediterr.Mediterr.
Mediterr.Mediterr.
Contin.
Transition
Mediterr.
EC
EC
administrative decentralisation
political decentralisation
strengthening accountability
strengthening policy coherence
quality management
aligning public-private employm.
HR decentralisation
budget decentralisation
performance management
open government
customer orientation
ethics / codes of conduct
e-government
public-public partnerships
private sector involvement
relatively
low influence1 2 3 4very high influence
new public management
good governance
use of market-type mechanisms
austerity/saving programmes
Anglo./Scand.
Scand./Anglo.
Continental/Transition
Anglo. small
Scand. small
Continental small
Anglo.
Scand. Continental
Scand. small/Anglo.
Scand. small/Mediterr.
Scand. Continental
Continental
Scand.Anglo.
Scand.
Anglo. Continental
Mediterr./Continental
Anglo.
Mediterr.
Transition
administrative decentralisation
political decentralisation
strengthening accountability
strengthening policy coherence
quality management
aligning public-private employm.
HR decentralisation
budget decentralisation
performance management
open government
customer orientation
ethics / codes of conduct
e-government
public-public partnerships
private sector involvement
relatively
low influence1 2 3 4very high influence
new public management
good governance
use of market-type mechanisms
austerity/saving programmes
Anglo./Scand.
Scand./Anglo.
Continental/Transition
Anglo. small
Scand. small
Continental small
Anglo.
Scand. Continental
Scand. small/Anglo.
Scand. small/Mediterr.
Scand. Continental
Continental
Scand.Anglo.
Scand.
Anglo. Continental
Mediterr./Continental
Anglo.
Mediterr.
Transition
Context, fashions and pressuresdetermine reform priorities?
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Since 2008 budgetary constraints as No 1
reform pressure but situation of countries differ
….a widening gap as regards theimplementation of reform measures(Germany, Sweden, Luxemburg vs. Portugal, Greece, Spain, Japan etc)
Evidence on impact of budgetary constraintson HRM policies „thin“
Framework for recessionary bundles and reform trajectories in the field of managing
budgetary constraints and impact on HRM Source: Paul Teague et al. (adapted)
Soft employee focused reform path
Responsible restructuring
Tough efficiency focused restructuring/
downsizing path No compulsory lay
offs
Voluntary lay-offs
High use of
communication/leader
ship to explain
rational for HR
bundles
Focus on efficiency,
productivity,
innovation and
learning, skill
training, reallocation
and value
management
Retention of staff
Abolishing seniority
Employees involved
in developing options
for responding to the
recession
Further investments in
skill, learning and
innovation policies
Focus on Leadership
Introduced short-time
working while
maintaining pay
Improved workforce
planning
Relaxing Job Security
Reform of Civil
Service Status
Flexibilisation of
Working Time
Longer Working hours
Reform of Pension
systems
Introduction of
voluntary departures
Furloughs
Reform of holiday
system
Active new health
policies in order to
reduce sickness rates
Reform of bonus
system (cuts)
Dismissal for poor
performance
Replacement of civil
servants by more
fixed-term employees
Increasing training
efficiency
Reform of promotions
Professionalization of
recruitment system,
mobility policies
Maintenance of skill,
learning and
innovation and
leadership policies Introduced
outsourcing after
careful evaluation of
added value
Set up new shared
services after careful
evaluation of added
value
Downsizing personal
Cut wages, reform
pension system
Enhanced job
security abolished
Working longer,
reform of holiday
system
Tightened discipline,
time keeping and
attendance
requirements
Promotions and
recruitments frozen
Reduction of civil
servants
Abolishment of civil
servant status
Enhanced
outsourcing and
introduction of new
shared services
Staff performance
managed more
rigorously
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No 2 Reform pressure Demographic challenges/ Age management
Measures in order to boost public employment participation
• Increase participation rates of older employees
• female participation
Enhancing greater immigration
Attempts to increase fertility rates
Increasing labor productivity and efficiency Efficiency
Fighting discrimination, enhancing inter-generational fairness
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Still, all EU/OECD countries face a common challenge
• Is it possible a) to do more with a smaller workforce, enhance productivity while increasing efficiency, b) remain an attractive employer who can retain and attract employees in a more competitive context?
• More uncertainties than evidence
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Some Trends
• EU
• OECD
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Current employment trends
• Public employment
• Composition of workforce
• Alignment of working conditions between public and private sector
• Changes in employment conditions such as pay, training, job security etc
• Reform outcomes: Impact of the crisis on workplace behavior, trust, stress, positive outcomes
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Size: General public employment trend in the EU
• Trend is very clear: there is a strong decrease in employment in central administrations of the EU Member States (26 responses, overall score 4.241)
• Trend is very strong in those countries which are subject to austerity measures (11 countries, score 4.45) but almost equally strong among non-austerity countries (15 countries, score 4.07)
1 1=increase in employment, 5=decrease in employment
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EU: Public employment trends andimpact on employment groups
• Some countries cut employment as regards different employment categories due to financial constraints (e.g. ES, IT, PT, BG, EL etc)
Overall, biggest reductions in civil service employment (exceptions in DE, IT, PL, BG)
Slight decrease in fixed-term employment but also increase in some cases (DE, NL, EC)
• In some countries, fixed-term employees almost do not exist (MT, PL*) on central governmental level, in others strong group (Sweden 18%, Portugal 16%)
Public law
employees
Labour law
employees
Fixed-term
employment (*)
No austerity measures
Mean 3,36 3,15 2,92
N 14 13 12
Std. Dev. 1,008 ,987 1,165
Austerity countries
Mean 3,91 3,64 3,11
N 11 11 9
Std. Dev. ,944 1,120 ,928
Total
Mean 3,60 3,38 3,00
N 25 24 21
Std. Dev. 1,000 1,056 1,049
General public employment trend on central level by austerity and non-austerity
countries in EU-27
(1=increase in employment, 5=decrease in employment)
(*) flexible, limited and/or short-term contracts
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OECD: Overall trend in central public employment since 2008
High decrease: 17.9%
Moderate decrease: 46.4%
No relevant change: 10.7%
Moderate increase: 21.4%
High increase: 3.6%
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OECD: Use of instruments in reducing employment levels since
2008
17
0% 20% 40% 60% 80% 100%
Non or partial replacement of retiring staff
Recruitment freezes
Annual productivity targets (eg: 0.5% personnelreductions)
Outsourcing
Dismissals
Decentralisation of employment to lowergovernment level agencies
Privatisation
Percentage of responding countries
Frequent use Moderate use No use
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A changing workforce
• The changing composition of Public Employment
• Towards a core civil service
• Changing Status and alignment
• Changing Working Conditions18
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Government in the 21st century
19
• Composition• Status, Working Conditions
• Size• Structure
From unified tofragmented,
decentralisation ofHR, agencification, shared services, outsourcing etc.
Leaner, smaller but shortages in some
sectors
Diversity (women, ageing,
representativeness, international)
"Hollowing out" ofstatus , reform of
WC (pay, allowances etc.)
Composition. Towards a new public workforce
• Status exercised by nationals
• Discrimination
• Young age structure, early
retirement
• Dominance of male employment
• Dominance of public law status
• Dominance of experts, recruited on
the basis of qualification and
expertise
• “Stagnant”workforce
• Status exercised also by non-
nationals
• Principle of non-discrimination,
Diversity, Representative Government
• Ageing of workforce, increase of
employment rates of older employees
• Increase in female employment
• Dominance of labour law status
• Continuous adaptation of skills,
competency management
• Mobile workforce, restructuring,
shifting
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0% 20% 40% 60% 80% 100%
Hospitals
University
Education
Military
Police
Judiciary
Diplomatic service
Governmentagencies
Central government
Central civilservice
Specific civilservice
Notpart ofcivilservice
Towards a core central civil service? (EU 25)
• Differences in working/employment conditionsdecreasing amongst civil servants andpublic/private sector employees
• Differences remain as regards pay, recruitment, job security, career development
• However, also pay, job security, recruitment policies etc. are being reformed and further flexibilised etc.
Alignment trends amongst public employees and private sector employees
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Differences between civil servant employment and contract employment by issues (average)
(1=very much, 2=somewhat, 3=fairly little, 4=not at all)
3.4
3.2
3.1
2.8
2.7
2.6
2.5
2.4
2.2
2.0
1.0 1.5 2.0 2.5 3.0 3.5 4.0
health insurance
working time arrangements
holiday arrangements
ethical obligations
pension system
right to strike
pay systems
career development procedures
job security
recruitment procedures
dif
fere
nt
sim
ila
r
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Reforms of employment conditions
• EXAMPLES:
Job Security
Pay
Training
24
The end of life-time tenure? Termination of civil-servant employment by EU Member State (1=Yes, 2=No)
A B C D E F G H
Germany 1 0 0 0 0 0 0 1
Greece 1 0 0 0 0 0 0 1
Luxembourg 1 0 0 0 0 0 0 1
Belgium 1 1 0 0 0 0 0 2
Cyprus 1 0 0 0 0 0 1 2
Ireland 1 1 0 0 0 0 0 2
Italy 1 1 0 0 0 0 0 2
Portugal 1 1 0 0 0 0 0 2
Spain 1 1 0 0 0 0 0 2
Austria 1 1 0 0 0 0 1 3
Malta 1 0 1 1 0 0 0 3
Sweden 1 0 1 1 0 0 0 3
Czech Republic 1 0 1 1 1 0 0 4
Estonia 1 1 1 1 1 0 0 5
France 1 1 1 1 1 0 0 5
Hungary 1 0 1 1 1 1 0 5
Lithuania 1 1 1 1 1 0 0 5
United Kingdom 1 1 1 1 1 0 0 5
Bulgaria 1 1 1 1 1 0 1 6
Denmark 1 1 1 1 1 1 0 6
Finland 1 1 1 1 1 1 0 6
Latvia 1 1 1 1 1 1 0 6
Netherlands 1 1 1 1 1 1 0 6
Poland 1 1 1 1 1 1 0 6
Slovakia 1 1 1 1 1 0 1 6
Slovenia 1 1 1 1 1 1 0 6
Romania 1 1 1 1 1 1 1 7
Mean 1.00 0.71 0.61 0.61 0.54 0.29 0.18 3.93
A = Disciplinary reasonsB = Poor performanceC = Restructuring D = Downsizing E = Re-organisationF = Economic difficulties G = Other
H = Sum
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But limited changes in employment protection since 2008
0% 20% 40% 60% 80% 100%
It has become easier to dismiss publicemployees
It has become easier to dismiss civil servants
Notice periods have been shortened
Other
Percentage of respondent countries
Yes No Cannot say
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Focus is on remuneration reforms in central public administration since 2008
75% of surveyed countries implemented remuneration reforms since 2008
0% 20% 40% 60% 80%
Pay freeze
Reduction or abolishment of allowances(e.g., Christmas allowance, 13th salary)
Reduction of performance-related-pay/bonuses
Reduction of remuneration for all staff
Reduction of remuneration specifically fortop-level
Percentage of responding countries
Outcome of Remuneration Reforms
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and on….Training policies in central public administration since 2008
0% 20% 40% 60% 80% 100%
Training budgets
Training days
Percentage of responding countries
Implementation of reforms in training policies:
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Reform outcomes
• Workplace behaviour
• Trust
• Stress, Job Intensity
• Attractiveness of Public Sector Employment
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Critical challenges
• And in your country? Do you agree…..
30
Impact of austerity measures on workplacelevel (N=25) (Demmke/Moilanen, 2013)
0% 20% 40% 60% 80% 100%
inappropriate use of resources
higher stress levels and job intensity
greater tendency towards corruption
decline of ethical values
perceived unfairness (private sector)
decrease in loyalty
perceived unfairness (colleagues)
decrease of trust in the organisation
increase in anger
decrease in workplace commitment
decrease of trust in leadership
lowering of job satisfaction
Effect
No effect
Hard to say
Missing
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Effects of reforms on workplace behaviour (OECD)
0% 20% 40% 60% 80% 100%
Decrease of trust in leadership
Lowering of job satisfaction
Decrease in workplace commitment
Perception of unfairness compared to how…
Increase in anger
Decline of ethical values
Decrease in loyalty
Perception of unfairness compared to how private…
Unethical behaviour arising from higher stress…
Increase in inappropriate use of resources, e.g.,…
Greater tendency towards corruption
Percentage of responding countries
Effect No effect Cannot say
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Impact of current reform trends on work intensity and stress in central public administration
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
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Attractiveness of Public Service Employment
• Decreasing
• Challenge in times of demographic pressuresand more competitiveness in the „war fortalent“
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Positive challenges
• And in your country? Do you agree…..
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Relation better Workplace Quality/Work Organisation
36
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Strongly deteriorated
Not available
Strongly improved
Moderately deteriorated
No change
Moderately improved
Percentage of respondent countries
Change in overall organisation of work and workplace quality since 2008
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Other positive challenges
• Trend also brings many opportunities
Reform of civil services, increase efficiency
Placing emphasis on Innovative HRM policies
Discussion on need for specific civil services and as relationship between civil servants and private sector employees
Age management and anti-discrimination Bringing generations together
A j
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EC
D a
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pri
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Positive challenges
0% 20% 40% 60% 80% 100%
The current situation will force publicadministrations to improve and professionalise
workforce planning and improve data managementbecause of the need to reallocate HR resourcesacross sectors resulting from additional demands…The need to downsize public employment makesit easier to anticipate future demographic changes
and pressures and forces to think morestrategically on the structure, composition and size
of the future workforceThe current situation opens the possibility to
rethink the need for having differences (or not) inemployment and working conditions between civilservants, other public employees and private
sector employees
The current situation opens the possibility torethink the division of labour between the public
and the private sector
Percentage of responding countries
Totally agree Rather agree Rather not agree Does not agree
A j
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t i
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f th
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D a
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by t
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EU
Future HRM challenges
• Organisational Fairness and Trust
• Towards a more refined Leadership theory (transformational, transactional, ethical leadership etc.)
