What external market pressures will shape the workforce strategies of social care providers in 2011/12?
Payment by results, outcome based commissioning and social impact bonds will become increasingly prevalent. With future payments linked to achievement of outcomes, performance management and performance related pay policies will need to be dusted off to form critical components of workforce strategies.
Funding cuts will continue to dominate as local government budgets bite in 2011/12; redundancies and re-organisations will continue at a fast pace. Employee engagement strategies will be essential to retain a skilled and competent workforce. Social care employers can download an introductory guide to managing redundancies by clicking here.
Social care services previously provided in-house by local authorities and NHS Trusts will be transferred out with expectations of significant cost and efficiency savings. Implementing changes entailing changes to the workforce will require robust ETO cases and intensive partnership working with trade unions.
The Code of Practice in Workforce Matters in Public Sector Service Contracts was withdrawn in December 2010. It’s successor, the voluntary, “Principles of Good Employment Practices” will shape the workforce strategies of providers tendering for central government contracts. Providers will have to wait and see if the Code of Practice will be withdrawn for Local Authority contracts.
What is the outlook for the social care labour market? CQC reported in October 2010 that 1000 care homes are without a registered manager. Social care pay levels will remain static and may well dip into decline. Providers will need to review their salary levels and structures to adapt to the dynamic market conditions.
For further details on HR Trends in Social Care check out Pivotal HR’s Social Care Trends 2011 report.
