Only good employers should provide public services

Private companies which have taken over the delivery of public services are amongst some of the best employers in Britain, and it is a myth that public service workers prefer to be employed by the state.

These are two of the key conclusions of a new CBI report published last week that suggests guidelines for good employment in public service delivery.

The business lobby group also warns that public sector clients must share responsibility for ensuring good employment practice in public services contracts when they are negotiated. Failure to do so will result in poor outcomes as only an engaged, motivated and properly trained workforce can deliver effective, high quality public services.

All government contracts - and the organisations that fulfil them - should have employment practice as a top priority.Public, private and voluntary providers which do not should not be awarded them.

Using independent research and in-depth interviews with employers and employees, the CBI has analysed some of the best examples of public service employment and has devised 10 good practice guidelines which it believes should be used by all employers delivering public services.These include recommendations on training, absence and performance management, pension provision and diversity.

The report, Working together: embedding good employment in public services, also shows that employees can benefit greatly from transferring from the public sector to the private sector because of better performance management and increased opportunities for promotion.

John Cridland, CBI Deputy Director-General, said: For most public service users, contact with an employee on the front line in the classroom, the hospital ward, or the council office determines how they feel about their public service experience.

This is why practices that help employees shine and deliver customer satisfaction are vital to delivering high quality public services. There can be no excuses for contract specifications that do not ensure good employment practice or employers who fail to take into account the needs and interests of their staff. People are the greatest asset any organisation has, and they must be given the chance to develop and progress.

Too often, monolithic and old-fashioned employment practice in the public sector holds back staff from achieving their full potential. This report shows that modern employment practices and improved performance management brought in by the private sector can unlock the potential of our public servants and help deliver the excellent services the public wants and deserves. It also exposes the myth that public service workers prefer to be employed by the state.

As the UK public services market increases in size and diversity, we hope these guidelines will be used by public sector clients to judge new and existing suppliers, as well as by employees and their representatives.

John Swinney, chief executive of Pinnacle PSG, whose partnership with the London Borough of Hackney is a case study in the report, said: ìFor too long, the employment debate about the public or private provision of public services has been sterile and stained by a handful of bad examples.

Now, with this report, we have a more balanced view based on companies providing public services for the long-term. The evidence shows that the private sector provides career development, equality and diversity, a real focus on service and places where people want to work.

The evidence is clear: the myths and stereotypes about private sector employment are not reflected in todayís reality.î

Ruth Spellman, chief executive of Investors in People UK, said: This report draws attention to the importance of good people management practices in public services and identifies employment issues as being central to achieving high service levels and effective procurement processes.

We fully endorse the 10 principles of good practice presented by the CBI.the emphasis on involvement of employees, performance management systems, training and development and equal treatment is all part and parcel of being a good employer.

However, without a rigorous framework in place, such as the Investors in People Standard, it is too easy for poor contracts to be set up which neglect to engage properly with the staff who are involved in delivery.Organisations need to be particularly aware of this as more services are developed using the talents of employers from all sectors.

The report includes a total of 12 case studies of successful contracts with strong employee relations and good employment practice.These have been used to help develop the guidelines, which can be applied across all areas of employment in public services.They are:

Public sector clients and service providers have a shared responsibility for good employment practice. The public sector should always partner with providers committed to good employment

Employees should be involved in the procurement process to help ensure that any transfer of staff, and the subsequent operation of the contract, are successful

Effective performance management is needed to drive improvements in service delivery. Public service employees must have clear objectives and appraisal

Good absence management ensures a reliable service for users and fairness for employees, and should be required of all employers

Employers should train and develop all employees. Government agencies should recognise the legitimate cost of training when awarding contracts

Providing opportunities for promotion based on merit motivates employees, and these opportunities must be open to all staff.

Consulting and involving staff on an ongoing basis is integral to improving service delivery, as employee satisfaction is related to customer satisfaction TUPE, the two-tier code and Cabinet Office guidance must be honoured.

Employers and employees have a shared responsibility for pension provision. Transferred employees should not lose pension benefits, and new recruits must be offered a reasonable pension

Respecting diversity is important for both employee relations and for service delivery.