Introduction
Ladies and Gentlemen,
I am delighted to be here to have an opportunity to talk about the Government’s vision for HR and IR in the public service. There is no doubt that the public service still faces significant challenges. Although progress has been made in dealing with the financial situation we remain reliant on funding from the EU and IMF to fund public services and pay people’s wages, pensions and social welfare benefits.
There has never been a greater need to deliver public services more effectively than at present. The services delivered by our hospitals, by our local authorities, by our schools are all paid for by money that is borrowed from the Troika. We must work harder and smarter than ever to increase job creation, to ensure that education, health and local government services are provided as efficiently and effectively as possible, and to ensure that the needs of the less fortunate in this country are not disregarded.
Vision for reform of the public service
I have spoken many times about the Government’s vision for a high performing and efficient public service that works together to meet the needs of our community.
The reality is we are now working with reduced numbers and budgets at a time when demand for services is actually increasing (health, social welfare, education etc). This means that the need to reform the way the public service works is more important than ever.
The Progress Report on the Implementation of the Government’s Reform Plan, published earlier this month, showed that strong progress is being made under the five commitments to change set out in the Plan. These are:
– Placing customer service at the heart of everything we do;
– Maximising new and innovative service delivery channels;
– Radically reducing our costs to drive better value for money;
– Leading, organising and working in new ways; and
– A strong focus on implementation and delivery.
Progress to date:
While I don’t propose to list every achievement made so far under the Plan I think there are some key aspects that are of particular interest to HR teams across the public service.
In radically reducing our costs and leading and organizing new ways of working we are not only downsizing the public service we need to fundamentally change how the public service works.
– We have reduced public service numbersand will continue to do so. The provisional outturn for Quarter 2 2012 stands at 292,000. This is 28,000 below the peak numbers level of 320,000 in 2008 and is comparable to the 2005 staffing levels. By 2015 we intend to see public service numbers at 282,500, an overall reduction of over 37,000 or 12% in numbers serving.
– Over the period 2009 to 2015, the Exchequer pay bill is expected to reduce from €17.5bn (gross) €16.7 (net of the Pensions Related Deduction) in 2009 to €13.7bn (net of the Pensions Related Deduction) by 2015. The 2012 pay Estimate (net of PRD) is €14.4bn (a reduction of some €3bn on the 2009 provision)
– The Government has agreed proposals to improve efficiency in central procurement. These proposals will radically reduce costs through greater centralization and integration of procurement operations and policy, reducing duplication and increasing efficiency.
– The Government has agreed a strategic mandate on Shared Services. The new HR Shared Service – Peoplepoint - is leading the way in providing new and more efficient ways of working in the civil service.
– We are focused on maximising the use of online service delivery and evaluating the opportunities for alternative models of high quality service delivery
Patricia Coleman from the Civil Service HR Directorate in my Department is here today and will be discussing, in greater depth, the changes that are happening in the Civil Service in HR, but from the few examples I have given on the progress made and currently underway, it is clear that the focus of HR and leaders across the public service need to be on developing a high performing work force that is skilled in identifying, managing and successfully delivering those changes.
Croke Park Agreement – as a facilitator of the reforms
It is important to recognise that we are delivering extensive change using the launch pad of a stable industrial relations environment.
Under the framework of the Croke Park Agreement our staff, in all sectors, are co-operating with the implementation of change – change which is essential if we are to maintain and enhance our services to the public, particularly as staff numbers continue to fall towards the Government’s 2015 target.
We should not underestimate the significance of the co-operation which the Agreement has provided and its impact on the ground and in particular in frontline service areas.
We are talking about reforms that are making a real difference to how public servants work and how public services are delivered – a considerable challenge, as you might appreciate - in such a complex system as the public service, with a workforce of over 290,000 spread across many different organisations in different locations.
We can point to important progress under the Croke Park Agreement, much of which would be extremely difficult to achieve in the absence of such an agreement. For example:
̶ Key provisions like redeployment are facilitating flexibility and ensuring that we can make best use of staff resources by moving people to areas of greatest need.
̶ We are seeing significant changes to roster regimes in various sectors. In An Garda Síochána, for example, a new roster has been introduced - the first in 40 years. This is making a real difference to ensuring more Gardaí are available at peak times and resources are being better matched to policing needs.
̶ In the health sector, staff have co-operated with the necessary re-configuration of services and work practice changes, including extended working arrangements for medical laboratory workers and radiographers. We have also seen, the hugely significant, recent agreement between management and hospital consultants at the Labour Relations Commission.
̶ The introduction of extra teaching hours at every level in the education sector is helping to meet the demands of a much enlarged student population. The Labour Court has also recently issued a binding recommendation which will go a long way toward standardising working hours in the local government sector where diverse arrangements have traditionally applied.
̶ Annual leave, sick leave and pension arrangements are all being standardised and the elimination of outdated practices, like bank time and privilege days in the civil service, are being realised.
These are just some examples of the positive stories, which sadly don’t get enough coverage. I think it is important that we acknowledge the efforts that have been made.
Another key benefit of the Croke Park Agreement is the robust mechanism for the resolution of disagreements where the parties are unable to reach agreement themselves. This timebound and binding process has proved very valuable in addressing issues much more quickly than would have been possible in the past. Notable issues addressed through this mechanism include the standardisation of annual leave across the public service and also reform of the sick leave arrangements.
Future of the Agreement
There has been a lot of speculation about the future of the Agreement and about what follows. The Government has made it clear that it is committed to the Croke Park Agreement, which, as you know runs, to 2014. What is critical now, is that we re-invigorate the process and ensure that over its remaining lifetime, the Agreement continues to deliver the scale of savings and reform that is required. I believe the current framework offers great potential. The real challenge is for public service management to bring forward ambitious plans for change under this Agreement and to engage pro-actively with staff and their representatives on their implementation. The Agreement is under enormous scrutiny and there can be no let up in momentum.
Challenges we face
I do not underestimate the challenges that the type of reform that we need brings. Certainly, the radical downsizing of the civil and public service provides us with many opportunities to improve the way we do business. It not only offers us the opportunity to become more innovative and streamlined in the way we work – it demands it. Possibly for the first time, staff in the public service must really think about the work they do, the way that they do it and, more importantly, the value they are adding. The squeeze on staff numbers means that we must all play a much more productive role at work. The drive for greater efficiency and productivity must be relentless and I believe that there is still much that can be done to achieve greater savings and benefits for the taxpayer.
However, this downsizing has exposed weaknesses in the system.
Building leadership and management capability
I think it is fair to say that we have not sufficiently valued the importance of strong leadership and management in the public service.
We have now established the Senior Public Service which will promote a more integrated public service and strengthen its senior management and leadership capacity. Mobility and development opportunities for senior staff through the SPS will strengthen the leadership capability across the public service. Public service leaders of today need to leave the legacy of a better organized and managed system of public service.
While the focus of the SPS will remain on the civil service in the immediate future our intention is to extend the SPS to the wider public service in the medium term.
Managers need to be held accountable for delivery of results, and if their teams are not performing they must be responsible for addressing this underperformance in a speedy and professional way.
More flexible and responsive culture and behaviours
Delivering this type of long term sustainable change requires a real change in the culture and behaviours we see across the public service. We need to develop a culture that recognizes and nurtures innovation, flexibility and adaptability. We need to value and listen to those who are willing and able to challenge the status quo.
Role of HR and IR in delivering the reforms
If we are to build real and sustainable change across the public service HR must together with managers and leaders across the public service, lead the way in
· delivering a high performing public service
· developing the type of cultural and behavioural change we need
· developing the types of skills and capabilities we need
· nurturing the talent we have and developing people to be the best they can, free from the blockages of slow and bureaucratic systems.
Conclusion
I do not underestimate the enormity of this task. But leaders, managers and in particular HR teams across the public service must be at the forefront in developing the type of cultural change that is required to build a sustainable and high performing public service over the medium and long term.