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Re-branding the state: the public sector brand in an age of cuts, strikes and reformsKey findings / July 2011
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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Re-branding the state: the public sector brand in an age of cuts, strikes and reformsKey findings
ForewordFor public sector workers, the last few months have been coloured by cuts and crises, strikes and reforms. The public sector has gone through an unprecedented period of change – a vast upheaval, which has led to catastrophically low morale, widespread uncertainty about the future of the sector and jobs, a culture beset by lack of trust and poor communication. The recent strikes over pension reform are the latest manifestation of unrest within the sector as a whole, as workers feel the brunt of Osborne’s sharp cuts, intended to redesign Britain’s economic map. And while highly held benefits packages – for many the critical centrepiece of a public sector career – come under increasing public scrutiny, it appears that the public sector employer brand may well be at as low a point as ever. The Prime Minister’s announcement this week of the Open Services White Paper, a massive overhaul of virtually every area of the public sector, will be considered by many to be but the latest nail in brand public sector’s coffin.
The research that we have carried out over recent months has unilaterally demonstrated a crisis in morale, with the majority of public sector workers, at all levels, reporting poor to average morale. Such a crisis is perhaps highlighted by the fact that in our most recent survey of workers, morale seems not to have improved; three quarters (73.3%) rated morale average to poor.
Yet nonetheless, as this report will demonstrate, there are perhaps the first inklings of positive change to be salvaged from the damage inflicted upon the public sector over the last year. The sector has undergone an important cultural shift. And with morale low, further cuts looming, and the future of the benefits packages uncertain, managers must continue to reassess internal communications strategies. The need for careful, grassroots change management is absolute. The public sector has become suspicious of so-called pauses and
‘listening exercises’; it is now important to ensure that the fragile beginnings of a rejuvenation of the sector are not quashed.
Leaders must now reassert the public sector brand more than ever before. Workers remain loyal to the ideals traditionally offered by the sector – working for the greater good, making a positive difference to society at large, ensuring the proper functioning of UK plc – and this must be accentuated over the coming months. Come October, a year on from Osborne’s initial Comprehensive Spending Review, it will be interesting and important to observe how, if at all, the public sector has repositioned itself, internally and externally. The need to attract and retain talent is as great an imperative as ever; the public sector must now reflect, consolidate and move on. They must familiarise themselves with their adjusted working conditions and make full use of their streamlined workforce’s strengths in the best possible way.
This report analyses some of the most critical questions faced by the public sector, and our programme of ongoing research into the most contemporary and engaging employment issues is a reflection of a commitment to our customers. We believe that a clear understanding of the current issues faced by the public sector is central to our pledge to add demonstrable and measurable value to your entire business model.
Nicola Linkleter Managing Director, Badenoch & Clark
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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Executive summaryOur latest research report shows that public sector morale is still low, nearly a year on from the 2010 Comprehensive Spending Review, and that this has posed the greatest challenge over the last six months. Workplaces are under resourced, and uncertainty still grips the public sector.
In spite of the current situation, public sector workers are not actively seeking alternative employment, and still cherish their traditionally generous benefits packages – so much so that they consider them worth striking over. While the majority of workers did not believe that the strikes would have a positive effect on the public sector workforce, a third said that they would strike over pensions.
Moreover, when asked why they chose a public over private sector career, many suggested that they enjoyed working with their colleagues, or that they felt that their work made a positive difference. In spite of cuts and crises across the sector, workers seem to believe that the strength of the various benefits offered by the public sector outweigh the potential negatives.
Our research perhaps highlights the first movement towards a revival of the public sector brand, with teams united and morale in some sectors rising. There is however still a great way to go. Managers must take the lessons learnt over the last few months into full consideration, and ensure that staff loyalty to the public sector brand is built upon to affect positive and lasting change.
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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Central Government
• 51.4% would rate central government morale as ‘poor’
• 48.6% of central government workers were optimistic about the strikes, suggesting that they would make a positive difference to those striking
• 40.5% believe that pay grades for the public and private sectors should be equal
Charities
• 23.7% of public sector charity workers say that they are happy where they are and are not looking for alternative employment
• 65.8% said that the strikes would not make a positive difference to those striking
• 44.7% said that they would receive a better pay and benefits package if they moved to the private sector
Housing
• 40% said that managing budget cuts has been the sector’s greatest challenge over the last six months
• 40% would rate morale in the housing sector as ‘good’
• 40% believe that pay grades in the public sector should be better than they currently are, regardless of comparison with the private sector
Local Government
• 42.9% believed that an under resourced workforce has been their greatest challenge of late
• 64.4% of local government workers are not currently looking for alternative employment
• 61.5% of local government workers did not believe that the June strikes would have an ultimately positive outcome
NHS
• 47.5% said that maintaining morale has been their greatest challenge over the last six months
• 43.4% would rate morale in the NHS as ‘average’
• 64.8% of NHS workers are not currently searching for a new job
Key findings by sector
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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Conditions: morale and workplace culturePublic sector has been fluctuating since the first rumours of cuts began to circulate from Whitehall in early 2010. Indeed, prior to the October 2010 Comprehensive Spending Review, over a fifth (22%) of those working in the public sector were unsure what to expect, with one in five suggesting they were expecting significant job losses (18%). In March of this year, such a feeling prevailed amongst employers and employees alike, with three quarters (76.6%) citing average to low workplace morale.
On the surface, little seems to have changed. Three quarters (73.3%) rated morale average to poor; this was spread fairly evenly across employers and employees, with 73.5% of employees echoing low ratings on morale, and 75% of senior decision makers.
Moreover, when asked to describe the greatest challenge faced by workers in the wake of public sector cuts, just under half (43.2%) of workers suggested that maintaining high levels of morale was the biggest issue faced by staff. Under resourced workplaces, lack of security, and uncertainty at all levels, is impeding constructive change for many. The crisis is being felt most acutely by senior decision makers, nearly two thirds (61.1%) of whom cite morale as an increasing concern in the workplace.
Morale is a concern for workers throughout the UK, with those in London (40.4%), Scotland (51.3%) and the East Midlands (52.1%) voicing particular frustration. A high number of workers in the NHS (79.9%) suggested that morale amongst staff was average to poor. Clearly, the
added media attention that the coalition’s unpopular NHS reforms have attracted will have only added to workplace unrest.
However, the picture is not entirely gloomy. Nearly half (45%) of those working in the housing sector suggested that morale was good to excellent, along with a third of those who work in public sector procurement, legal or IT services. Although this is clearly far short of a widespread consensus on morale, we may be seeing a move within the public sector away from the disheartened majority of the past year or so, towards a greater expression of the value of the public sector. As we shall see, this is certainly borne out in our wider research, which reflects on the possible rising equity of the public sector brand.
Yet for the time being, there is certainly space for internal work to be done. Managers must, as ever, seek to ease bad feeling amongst staff through strong, clear and effective communication on change. This is particularly the case for under resourced workforces, a key and very current challenge for the public sector. Two in five (43.1%) employees across sectors and departments believe that the cuts have had a distinctly negative impact on the way in which they work – with processes rendered ineffective, and key staff members reduced in numbers. This sentiment is felt even more acutely by over half (52.8%) of senior decision makers.
Those in the West Midlands are particularly affected by an under resourced workplace, with half (50.4%) expressing such concerns. Central Government is the
department most clearly feeling the strain of head count cuts (53.2%), with the NHS closely following (52.5%).
Yet while lack of resource may be a clear issue for the public sector in an age of cuts and reported crisis, it appears that workers are not, on the whole, working harder as a result. Three quarters (74.9%) of employees said they did not work longer hours in the wake of the cuts. This was not, however, the case for public sector employers, two thirds (61.5%) of whom suggest that they now work longer hours.
In contrast, only one fifth (17.9%) of Scottish public sector workers said that they are working longer hours, whilst a third (30.3%) of workers in London are working harder in face of the cuts. Those in housing (40%), central government (28.8%) and NHS (29.7%) also echoed this sentiment. Working practices across departments also differed, with those in legal (52.0%), Marketing (37.5%), IT (33.9%), project management (48.4%) working noticeably longer hours.
Such are the conditions in which the public sector is operating at present. Indeed, while some progress has been made to effect internal change, our repeated calls for a review of internal communication processes are yet to be actualised by public sector leaders. Clearly the need for strong internal communications is as much of an imperative as ever, with stronger morale almost necessarily leading to a stronger, more effective public sector brand.
Badenoch & Clark morale tracker: How would you rate morale in your department?
2.6%
20.8%
39.1%
Excellent
Good
Average
37.5%Poor
March 2011
3.5%
23.3%
38%
35.3%
July 2011
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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In the wake of the recent strikes over public sector pension reform, commentators were quick to criticise those workers who spoke out in the defense of the so-called gold-plated schemes, which public sector workers have traditionally enjoyed. Yet in spite of widespread criticism of public sector benefits – pensions, leave, working hours, and so forth – it appears that workers themselves continue to firmly advocate their compensation packages. Indeed, a third (32%) of public sector workers believe that they should be paid more than they currently are; and two fifths (40%) believe that their pay should at least be equal with that of their private sector. This attitude is particularly prevalent in metropolitan areas, where the ‘squeezed middle’ of austerity Britain –according to the Financial Times, typically constituted by public sector workers – are feeling the pressure of inflation and VAT rises. Over a third (37.4%) of London-based workers firmly believe that they should receive better remuneration.
Across sectors, there is a resounding belief that the public and private sector workers should be on a level economic footing. A third (33%) of NHS workers, and half (49.5%) of local government workers believe that pay should equal that of the private sector – a view shared particularly across departments by those working in IT (61%) and marketing (50%) services.
An important consideration thus comes to the forefront of analysis: what, then, are the implications for the public sector brand? Will the pension reforms, strikes, working conditions and cuts dissuade candidates from seeking public sector roles? And will we see a talent drain in the coming months and years?
Our research highlights that feeling amongst workers is mixed. While nearly half (46.1%) believe that if they moved to the private sector, that both pay and benefits would be higher, one fifth (19.6%) believe that while private sector pay may
well be better, the benefits would not be so. This was echoed by a fifth (19.5%) of employees, and a quarter (25%) of senior decision makers across the public sector, a third (33.3%) of those based in London and a third (35.1%) of Central Government workers. However, traditionally lucrative areas are better paid in the private sector, according to half of IT workers (54.2%) and Legal services employees (52.0%).
Nonetheless, in spite of the lure of private sector pay packets, relatively generous benefits packages are still coveted by public sector workers. When asked whether they would relinquish pay for benefits, employees were split almost 50/50; 55.2% disagreed, 44.8% agreed. Perhaps this highlights that a commitment to the constituent elements of ‘brand public sector’ – pensions, holidays, working hours - is far from waning.
Value and remuneration
Do you think you would receive a better remuneration package in the private sector?
19.6%
46.1%
18.7%
15.7%
Yes, both pay and benefits would be better
Yes, pay would be higher but the benefits would not be as good
No, I think the public sector pays better and provides better benefits
No, benefits would be better but pay would not be as good
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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Employer and employee brandingThe recent public sector strikes were in many ways demonstrative of a firm commitment from many to safeguarding the hallmarks of the public sector brand – the working culture and compensation and benefits packages on offer. Although our research reports mixed beliefs regarding the overall success of the strikes, many public sector workers were nonetheless vocal about the value of striking itself.
When asked to assess which issues were most worth striking over, a third (33.8%) said pensions, a quarter (26.1%) said pay, and a fifth (20%) would defend their benefits package.
The strikes themselves were perhaps a testament to the continued strength of the public sector brand; paradoxically, in striking, public sector workers demonstrated a commitment to the value of their employer. Indeed, when asked which factors attracted them to the public
sector, over a third (38.3%) noted that they feel as if their work makes a difference in the grander scheme of things – with nearly half (45.5%) of London-based workers, and half (50.2%) of NHS workers, echoing this sentiment. And on a purely utilitarian level, two fifths (41.1%) of workers felt that they had been employed in the public sector for a number of years and as a result did not want to change job – with half (50.7%) in the North East of a similar belief. A third (28.1%) feel that work/life balance is better in public than private sector.
As a result, two thirds (64.7%) of public sector workers are not currently searching for a new job. Commitment to the sector does seem to strengthen month by month, as teams navigate through the cuts and get used to new ways of working.
What attracts you to working in the public sector?
41.1%I’ve been in my job a number of years and don’t want to change
38.3%
33.2%
28.1%
I feel like I make a difference
My colleagues are good to work with
The work/life balance is better than the private sector
19%
14.9%
12.5%
I can’t get a job anywhere else at the moment so have to stay
The benefits are better than private sector
The remuneration is good
11.9%
4.4%
3.8%
I don’t feel I have the skills to move
I’m actively looking in the private sector
Other
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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Concluding thoughtsThe public sector brand has undergone an almost unprecedented period of change. We have previously suggested that key to the sector’s full regeneration will be internal development, for external gain. Effective communication would be key to reinvigorating the public sector workforce, to strengthen morale and ensure the redevelopment of the public sector brand. This in turn would ensure that a drain on talent would be lessened, and that the employer brand was able to attract further talent to public sector organisations.
Our research perhaps demonstrates that the future for the public sector remains as uncertain as ever. Cuts and reforms have been poorly managed, and have led to a great feeling of unease amongst workers. Morale is still low – amongst workers and employers. And the recent strikes highlighted that the threat to much prized benefits packages has led to outrage throughout the ranks.
In our last two reports, we have resolutely stated that in times of crisis, communication is key. While morale in certain sectors appears to be lifting, public sector managers must take the lessons learnt over the last
few months into full consideration. We have suggested that the cuts could be seen as a genuinely positive opportunity to reassess internal direction and reposition the public sector employer brand. This will only be possible if the correct emphasis is made on building staff trust, on ensuring that listening exercises are genuine, and making sure that highly held compensation and benefits packages will remain the public sector’s unique selling point.
As we have seen over the last year, failure to do so will only lead to the worsening of morale, the deepening of antagonism at all levels, and decreasing performance and results.
However, if employers continue to listen to staff, and make sure that their concerns are indeed addressed satisfactorily, we may see the public sector remerge triumphant over the next six months. Come October, a year on from Osborne’s Comprehensive Spending Review, it will be hugely interesting to see how far the public sector may have developed – if at all.
Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011
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Recruitment specialists for: Accounting & Finance, Banking & Financial Services, Human Resources, IT, Legal, Marketing & Communications, Procurement & Supply Chain, Project & Programme Management, Public Sector
© 2011 Badenoch & Clark. All rights reserved. Badenoch & Clark accepts no liability for the accuracy of the contents or the opinions expressed herein.
Other Badenoch & Clark resources
Public sector cuts: budgeting for the big society Read the key findings from our opinion research undertaken in March 2011.
Public sector cuts: workplace worries Read the key findings from our opinion research undertaken prior to the Comprehensive Spending Review in October 2010.
Nationwide career clinics Our career clinics provided solutions on how to cope with the anticipated redundancy programme as part of the Comprehensive Spending Review. They helped public sector professionals prepare for the jobs market by providing expert advice on CV writing; interview techniques; personal branding and career plans. Download the tools discussed and ensure you are ready to take your career forward.
insight.badenochandclark.com Market commentary, news and analysis for customers and contacts of Badenoch & Clark. Insight is here to help you make informed career and talent management decisions, by keeping you on the cutting edge of developments in your profession and a thought leader in your field.
ConnectionsOur unique magazine for customers and contacts of Badenoch & Clark, published three times of year. Packed with comment, opinion, news and analysis on recruitment, talent management and broader business issues.
Career guides A series of ‘how-to’ guides for employers and employees focusing on topics including employer branding, career planning and work-life balance.
www.happinessatworkindex.co.uk A quarterly index tracking employee happiness across the UK office workforce. Results by profession and region.
Contact usFor more information on our research please contact Elvira Tynan at [email protected]
Details and methodology
About Badenoch & Clark
The research was conducted by an independent research company between 17 June 2011 and 27 June 2011. 1001 UK public
sector professionals were surveyed across Central Government, Charities, Housing, Local Government and the NHS.
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