Reducing staff numbers is never easy, and is a problem most public sector organisations will face. The NHS has implemented an idea for employees to help lighten the load.
The recent introduction of the Mutually Agreed Resignation Scheme (MARS), which has since been adopted by a number of NHS organisations, shows how the NHS is gearing up to handle the massive change expected over the next few years. This scheme offers NHS organisations a standard approach to the very tricky issue of tackling staff cuts.
As we know, reducing staff numbers is not going to be a problem just for the NHS. Organisations across the public sector will need to restructure to meet squeezed budgets and this will most likely mean they will be smaller and leaner. MARS is up front and in fact mirrors common practice in the private sector. It would seem there are things the public sector can learn from the private sector to help support its people through these transformational times.
A traditional downsizing process will start with a recruitment freeze quickly followed by voluntary redundancy and a call for those who want to take early retirement (which is what we are seeing with MARS). There is much talk of voluntary redundancy in the public sector at the moment, the Government has announced that it will introduce legislation as soon as possible to cap redundancy payments made to civil servants. So the question for many employees is whether to jump now or hang on to see what happens? From a talent and career management perspective, individuals who decide to apply to for voluntary redundancy should consider the long-term implications over the short-term pay-out. The job market is challenging at the moment, however we are seeing a slow but consistent recovery in business which bodes well for those who are unemployed or want to find a new job.
Clearly, public sector workers will have to face some major decisions and employers could support their employees by offering outplacement. Outplacement, which is common HR practice provided by employers in the private sector to support individuals with career transition, can offer valuable help to individuals in this position. Skilled advice and practical support assists individuals to manage their career as opposed to simply finding another job. Professional outplacement, for example, can help public sector managers to identify transferable skills such as managing complex systems with competing priorities – something which will be of interest to private sector companies.
The value that outplacement brings to an overall strategy for moving talent in, on and out of an organisation in a way that aligns with the evolving needs of the business is clearly significant. A recent industry survey revealed that 70% of organisations felt the offer of outplacement improved their reputation; 87% believed it eased the pressure on line managers and 70% believed it improved staff morale, motivation and productivity to see exiting employees receiving professional support.
Outplacement can also assist individuals and organisations to take advantage of redeployment prospects, when there are such opportunities. With the public sector undergoing such massive change, there may be opportunities for movement across organisations and even the sector as a whole. An audit of skills will quickly show where there are capability gaps. Rather than letting go talent to hire other staff with different skill sets, it may be possible to retain valued employees and retrain them where needed, fending off risks of a talent drain in the sector.
Finally, appreciating the significant emotional toll managing and facing the risk of redundancy can take, public sector employers could look to provide their staff with an Employee Assistance Programme (EAP). Both employees and organisations can reap rewards from an EAP. Talking to counsellors and qualified experts, unsurprisingly, reduces stress and absenteeism and can dramatically increase morale, engagement and productivity. The results for an individual are magnified for organisations: workforces are demonstrably fitter, more agile and resilient when supported effectively – all of which will be essential if the sector is to succeed in the turbulent times ahead.
Tony Thornell is Head of Public Sector at Right Management
