Report shows HR rising to Gershon challenge

Public sector modernisation and reform are top of the Governmentís policy agenda. New action research from the Chartered Institute of Personnel and Development (CIPD), supported by the major sector bodies for central and local government, shows that government departments, agencies and local authorities are currently engaged in a radical review of the organisation and capabilities of their HR function. The effectiveness with which these reviews are conducted will critically affect public sector organisationsí ability to carry through successfully the restructuring processes to which they are committed, and their ability to deliver on their wider service delivery objectives, according to the report.

The Gershon review of government efficiency reinforced the challenge for HR departments across the public sector, leaving them to simultaneously manage enormous change within their organisations, whilst also looking to reduce costs and streamline their own functions. These twin challenges and the responses to them are examined in ëFit for Businessí, a major new action research report from the CIPD, published today.

Media comment on the Gershon recommendations has focused largely on the intention to make substantial reductions in staffing. But equally important to achieving long term improvements in efficiency will be raising the professionalism of the HR function and improving people management processes across the public sector. Reforms and performance improvements will not be effectively delivered if the hearts and minds of employees are not engaged.

ëFit for Businessí, is based on a detailed year-long programme of work by nine organisations across central and local government as they wrestled with the strategic and practical challenges they face in transforming their HR function.

Mike Emmott, CIPD Employee Relations Adviser, who led the research project, said:

ìThe Gershon review increased the pressures to improve public sector efficiency and performance. HR has a key role to play in supporting the wider change process and ensuring staff remain motivated and equipped to deliver demanding public service delivery targets. At the same time, HR is also having to examine its own role, and find new ways to add value to the business.

ìThe significance of the changes under way can hardly be over-estimated. They focus on putting people issues at the heart of the reform agenda. Targets and budgets are important tools for public service managers but engaging the hearts and minds of employees will be critical to raising performance and service standards. The interests and views of those affected need to be taken into account at the outset, when changes are being planned. This will only be done effectively if HR is actively engaged in the business, understands the needs of the organisation, speaks a language that employees and managers understand, and establishes close and productive working relationships with line managers.

ìAt the same time, HR needs to develop its skills and its ability to adapt, particularly when staffing levels in HR are planned to fall significantly, and parts of the public sector are moving swiftly towards establishing shared service centres to deliver many of the administrative tasks formerly performed by HR.î

The report includes many examples of the practical steps being taken by HR managers in the public sector to respond to the challenges presented by the change agenda, for example:

Derbyshire County Council has identified the need for a can do culture to carry through its change programme. Research was conducted with a cross-section of staff to identify barriers to change and how these might be overcome. The outcomes of this project are helping to inform development of a new HR strategy.

HSE is in the process of a major restructuring of the HR function and as part of this has identified a list of HR competencies which it believes are just as important as HR expertise in helping HR fulfil a more strategic role.

Gateshead Council has produced a route map that illustrates how an HR service can evaluate its options prior to committing to a revised delivery model.

DWP is embarked on a huge programme of HR reform. It has focused on some important early wins such as simplifying HR administration and improving training for managers. They have also piloted a new 2-day learning programme involving HR business partners and their line managers to enable them to build relationships while tackling critical issues for their business units.

The Food Standards Agency is developing measures to assess how HR is affecting the performance of the organisation.