Central Government Reforms and Strategic HR in NL

Central Government Reforms and Strategic HR in NL

Herma KuperusBZK/DGOBR/OPR

DG meeting EUPAN Dublin, 13 June 2013

• App. 109.000 fte = 117.000 employees (civil servants)

• 10 Ministries (excl. Ministry of Defence) with > 40 Agencies

• 1 collective labour agreement (Ministry of Interior coordinates)

• Ministries are responsible for own ICT, HRM & operational management

• Ministry of Interior responsible for interdepartmental coordination and harmonisation, general policies for PA

Central PA in NL

BZK/OPR/HKU/June 2013

Central Government Reforms in NL

Organisation of HR within central public administration (PA)

Challenge to develop a shared HR strategy 2020

How we did it: the process

What came out: the content

Lessons learned

How to become a (better) strategic partnerBZK/OPR/HKU/June 20133

Overview

Reform Process in NL

4

History

De-centralisation of HRM tasks in the eighties: private market concept

From supply-driven to demand-driven: customer orientation

Re-centralisation since 2000: economy of scale, efficiency, flexibility, quality, reduce duplication of processes, harmonisation of conditions

Building Shared Services Organisations for all ministries & agencies

Cost reduction in operations management

Programme: Renewal of central government (2006 – 2010)

1980

1990

2000

2010


Recent reform in NL (1)

5

Multiple demands in times of crises: Fast & transparent - Reliable & incorruptibleFlexible & inexpensive - Secure & solidEfficient & effective - Professional & responsiveMean & lean - Careful & fair

Analyses of operational management:- Fragmentation of the organisation of central PA- Inefficiency: lack of standards, duplication, waste , ....- No coherence between different fields of operations (HR policy, IT, buildings, procurement, facility management, ....)

Compact Central Government/CRD (2011–2015): Cooperation, Harmonisation & standardisation, Bundling & de-duplication, Recycling


B. Agglomerated operational managemment in The Hague

6. A single facilities management service provider

7. A single IT provider8. Organisation of procurement 9. One support services provider for

international positions

C. De-duplication in Inspection and implementation : clustering10. Fine collection services11. Back office subsidies12. Income transfers13. Real Estate

A. Central Government-wide infrastructure

1. A single (administrative) government employer

2. Pooled HR services in HR shared services 3. Agglomeration of government office

locations: 130 60 locations4. IT infrastructure: 60 5 data centres5. Reduce the number of central government

procurement points

Compact Central Government Programme (2011 – 2015)

14. Government inspections/ inspectorates on physical protection of companies

15. Watchdog non-financial markets


7

2011

2016

2018

Coalition Agreement Cabinet Rutte I/II Rutte I: 1.8 billion savings on central PA organisation (2016) Rutte II: 1.1 billion savings extra on central PA organisation (2018)

In total: reduction of 20% in budget and of 10% in employees (2010-2018)

Continuing CRD and expanding to policy making, implementation and inspection Reform agenda & Strategic HR policy for central PA (2013 - 2018)

Minister for Housing and Central Government Reform is overall responsible Central role for Secretaries-General of Ministries Reporting on basis of:

Peer reviews Twice a year to Council of Ministers Once a year to Parliament (Annual report on operational management)

Recent reform in NL (2)


Serving, accurate and cost effective 1. Intensifying Compact Central Government: SSO’s for all OM; one organisation

2. Efficient maintenance, use and management of less & shared governmental buildings

3. Quicker implementation of base registrations: less administrative burdens & fraud

4. Independent bodies join the Shared Services and operational management of central government

5. New, more efficient governance and sourcing model: standardised & central budget

6. Inspections/watchdogs: less and bundling HRM, IT, buildings; one inspection

7. Advisory boards/organisations: merging & bundling, less, better use of advices

8. Policy making: increase flexibility & invest in quality of civil servants, less burocracy

9. Central Government digital in 2017 for services to citizens and for employees

8

Reform Agenda central PA(2013 – 2018)


9

Shift in Approach

Ministry Ministry Ministry Ministry

Flexible policy units

Policy department

Policy department

Policy department

Policy department

Clusters of similar processes or target groups

Executive

organisations Executive



organisations

Inspectorates Inspectorates Inspectorates Inspectorates

Central PA wide infrastructure

Operational Management




Departmental approach‘K

ind

of w

ork’

app

roac

h

Also in HR function and Strategic HR policy 2020


10

Innovation- centre

HRM-executive tasks (Hire-to-retire)

Supporting HRM-tasks (Expertise)

HRM-basic administrations & Salary pay

HRM-Strategy, Policy & Advice

HRM Mana-

gement

Infor-mation

HRMCusto-

mer self

ServiceESSMSS

= 4 SSC HRM/ Expertise Centres

= 1 SSC HRM/ P-direkt

= HR units of Ministries/Agencies + central PA

Backoffice 1

Backoffice 2

Competence centre

Front office

HR function


Economic downturn and restructuring; unclear and unsecure future Increasing general unemployment (7,5 %; 15 % for youth) Flexible, but dual labour market

Good performing central PA (OECD and SCP studies) Continues reform process in central PA since decades Continues financial cuts reduction of employees in central PA New cabinet: reform, new cuts and other ambitions until end of 2018/20 (more positions

on lower level, more handicapped employees, more women in high positions)

Challenge: How to solve current problems and at the same time prevent future ones How to invest in sustainability, quality and flexibility in times of budget cuts How to combine short term restrictions with long term needs

11

The challenge as employer


12

STRATEGIC HR

Strategic Agenda HR & OrganisationHR STRATEGY 2020

Existing Current

Needed

ScenariosDynamicsIn/through/out

:Forecasted Gaps

Surplus of people, vacancies

Workforceplanning

Positions Employees

Analysis oflabour market development in NL & EU

VISION

Strategic HR: HR Strategy 2020


Scenarios of external trends

Consequences fortasks, role and position

VISION

Organisation & Personnel

To do workforce planning (WP)• Formulated as two year project

• Started end of 2010• Central project leader/chair • With HR/WP experts of ministries• External expert for a common model• Exchange of experiences• Ways of doing the work (technical)

and putting on the agenda• Regular meetings over the year

13

Process


14

Content: Impression of HR Strategy 2020

Variation

Selection(Specialisation)

Security Freedom

Variation

Selection Specialisation)

Security Freedom

Organisation Employees


15

(anti cyclical) anticipate & invest in adaptability, flexibility and quality

Is this needed?Complexity & plurality of society

Tension between short - long time

IT and e-Gov

Internationalisation

Blurring boarders between organisations, sectors & countries

Changing SD & ‘Poldermodel’

Ageing workforce

Dynamics in workforce

Composition and size of labour force will change

Decrease central PA

Qualitative shortages


The only security is no security at all and permanent change

16

How are we going to do so?

Organisation

Employees

Steering & Leadership

Labour market

Labour relations and -conditions


17

Organisation Increase adaptability/flexibility . . .

• Implementation of CRD/Reform programme

• Time-, place- and equipment independent working is normal• Organic restructuring: permanent increase of productivity & efficiency

• Harmonisation & modernisation

. . . and strengthen quality

• Top influence in knowledge and relationships

• Knowledge development and transfer in chains and networks

Differences between types of workBZK/OPR/HKU/June 2013

18

Organisation Differences between types of work

Policy makingBroaden and flexible working within knowledge area; using ITDynamic organising in theme’s and political priorities of the cabinetInternationalisation/ Europeanization

Policy Execution/implementationBundling similar tasks (processes, target groups or clients)Organising in chains and networks

Using IT for client oriented self service

InspectionBundling similar tasks (processes, target groups or clients)Organising in chains and networksUsing IT for theme/area-crossing work methods

Operational managementStandardised and uniformed work for whole of central government in SSO Organised in as ‘plug and play’ for primary process; digital, self serviceLeaving tasks more to the private market


19

Employees

Using talent of all in a complementary wayUp to date knowledge is baseLearning & development is obligatory: lifelong & license to operateDialogue between employee and manager is crucial

Own responsibility for vitality & sustainable employability for internal and external labour market

Strengthen quality ……


20

Employees

• Regular change of position/team: three phase model (e.g. 3-5-7 years)• Variation in appointment conditions and/or combination of contracts possible: new balances

flexibility & security• Employer and employee invest in permanent development and vitality • Yearly judgement on functioning ánd sustainable employability for each employee• Self confidence and proud will increase position and image on the labour market

From job to work security

Increase adaptability/flexibility


21

Steering & LeadershipBased on (5R)

Giving direction Giving space Delivering results Accountability In Relationship: dialogue between manager and employee

dialogue between several institutions

Managing/using diversity and complementary of employees

Leadership: common profile, values and development programme increase quality of managers


22

Labour market

• HR policy for all kind of employees (including fixed, flexible contracts) • Not only permanent or temporary contracts but a whole range of contract forms• Normalisation civil service status: eliminate obstacles for exchange with private sector• From work to work: transparency and open labour market• Anticipate on changes to make (temporary) fit demand - supply: anti cyclic recruitment• Using diversity of labour supply also in Europe and worldwide• Societal responsible employer ship: role model of governmental policy• Compete on work content, sustainable employability, variation in employment contracts

and individual budgets

Increase adaptability/flexibility


23

Labour relations

Labour conditions: - Basics- Individual budget with options to choose- Partly specific conditions related to the type of work- Decrease of generic conditions for specific situations or target groups

Collective agreements prepared with also consultation of all employees Three phase model (e.g. 3-5-7 years) in charge for everybody Different types of labour contracts and combinations possible Development of rewarding in line with other public sectors and private market

Agreement until 1-1-2016: job to job mobility instead of dismissal by reorganisation – no last in first out in general but in age cohorts

Modernisation of labour contracts, -relations and- conditions


24

To be an attractive and societal responsible employer investment in people is crucial. Influence on top level makes knowledge most important in content and in relationships. To secure a competent & divers workforce in the future, anti cyclic recruitment is needed Lifelong learning & development is obligatory for management and employees. Sustainable employability on the labour market will increase adaptability & flexibility

Regular mobility within networks and chains is a start to make it normal for everybody

Modernisation of labour contracts, -relations and –conditions is needed for future Harmonisation if possible and differentiation (e.g. types of work) where needed Needs other way of steering and leadership on all management levels

Summary HR Strategy 2020

From job security to work security

Towards a sustainable central public administration in NL


Involve from the beginning the top level /SG’s for guidance and commitment Use strategic experts in the core business of the ministries Bring senior management HR, top management and strategic experts together and help them

understand each others language and point of view Be very clear where and when you need a process or a project: workforce planning, started as a

project with HR experts, failed to formulate a HR strategy. A broaden process was needed to do so and to raise urgency for workforce planning

Don’t put effort in making nice books with scenario’s, visions and dreams but invest in a flexible, adaptable presentation as a living document to be used by everybody and easily adjusted to new situations

Make a shared strategic agenda for short and long term, formulate projects/programmes to implement and let different stakeholders take over responsibility for common results

HR strategy should be linked to the core business and other parts of operational management (integrated approach)

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Lessons learned


• Know and understand the core business + critical performance indicators• Be able to analyse quantitative and qualitative information in order to forecast and point

out risks, problems, alternatives for short and long term (evidence based)• Indicate the consequences for core business and organisation, also in financial terms• Translate changes in the environment of the organisation, specifically in the field of core

business and labour market: for example the impact of technology development on numbers of employees, skills, competences needed or on organisational structures & BPR

• Be able to work in interdisciplinary settings with other stakeholders (e.g. business process, financials, IT, housing, general strategy units)

• Speak and understand the - more economic - ‘language’ of general Top managers• Be pro-active, creative and able to show the added value of the HR and Organisational

expertise

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To become a (better)strategic partner


• The centralisation of HR administration and HR expertise in shared services

• Exchange of employees between HR and primary process of the ministries

• Skills and knowledge of the HR unit, especially of the senior HR managers, that enables them to discuss and design strategic issues on board level and to develop organisational and HR strategy in relation to the core business of the organisation

• The strategic and HR abilities of the general top managers (DG’s and directors) in the ministries

• Competence profiles and recruitment in line with above mentioned skills; promote exchanges

• Urgency/pressure to be creative, innovate and develop strategies in difficult times

27

Important enablers


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Thank you for your attention!

Questions?

For further information please contact: [email protected]


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Attachments

29 BZK/OPR/HKU/June 2013

3030

-

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2012 2013 2014 2015 2016 2017 2018 2019 2020

pensioenakkoord lenteakkoord herfstakkoord

bron: BZK

Exit to pension between 2011 and 2020: • based on pension agreement 19.419 = 16,3%• based on spring agreement 18.418 = 15,5%• based on autumn agreement 16.886 = 14,2%

More older civil servants will retire


31

Less young civil servants

313131

12,0%

13,0%

14,0%

15,0%

16,0%

17,0%

18,0%scen. C scen. C + 390

scen. C 16,6% 15,4% 14,4% 13,6% 13,1% 12,8% 12,9% 13,0% 13,2% 14,7% 16,5%

scen. C + 390 16,6% 15,4% 14,7% 13,9% 13,3% 13,1% 13,1% 13,2% 13,4% 14,8% 16,6%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Vergelijking effecten op aandeel jongeren: Scenario C. en Scenario C met extra inzet 390 jongeren in 2013

Scenario: in 2013 extra recruitment of 390 employees between 19 - 30 years, with the pattern of 2011. Effect: 0,2 %-punt more


32

Age of civil servants 2001 - 2020leeftijdsverdeling 2001 t/m 2020scenario: 4 x 2,5%, vervolgens 5 x 1,5%; instroom cf. patroon 2011

25,5%16,6% 13,1% 15,7%

33,9%

26,4%23,6% 20,2%

29,9%

34,3%33,6%

29,8%

10,7%22,7%

29,7% 34,4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2011 2015 2020

55 enouder45-54

35-44

tot 35

bron: BZK


33333333

• Targets for reduction defined until 2018: less positions in central PA

• Age related exit is slowly increasing • Other exit restricted because of labour market situation

Less space for new recruitment Qualitative mismatches and shortages

Dynamics in workforce

Exit in total

Exit to Pension


34

Composition of labour force changes

34

33%

17%

36%

16%

27%

26%

23%

20%

26%

34%

26%

30%

14%23%

15%

34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ned. Rijk Ned. Rijk

2010/2011 2020

55 tot 65

45 tot 55

35 tot 45

tot 35

bron: BZK

Comparison of NL and central PA in 2010 en 2020 BZK/OPR/HKU/June 2013

3535

more ‘ not-western immigrants’ . . . . . and more women

Composition of NL labour force changes


Documents

Central Government Reforms and Strategic HR in NL