CIVIL SERVICE AND PERSONNEL REFORMS TO IMPROVE SERVICE DELIVERY paths and options Knut Rexed

A triple focus: A fair and democratic society can only based on due legal processes Every penny unwisely spent is stolen from the poor Gustav Möller, Swedish Minister of Social Affairs Economic growth and prosperity requires adequate and trusted institutions Nobel Prize Laureate Douglass C. North

No single truth, no “one size fits all” reforms A spectrum across OECD countries from very centralised statute-based systems to very decentralised contract-based systems A spectrum within OECD countries caused by the heterogeneity of public activities

Cross currents Decentralisation, flexibilisation and de-regulation in established systems; Centralisation, standardisation and extended regulation in transition countries

My country - Sweden First documented national assembly in 1527 Independently managed agencies since 1634 First freedom of information laws enacted in 1766 Parliamentary system since the beginning of the 20 th century Strong staff unions able to assume responsibility

A Nordic neighbour, Estonia Under Russian autocratic rule from 1721 A fragile democracy from 1918 Occupied and annexed by the Soviet Union in 1939 Independent from 1992 Volatile party system Weak and fragmented trade unions

Our common ground The need to focus on performance The need to preserve trust and propriety The need to prevent patronage and political capture The need to preserve and strengthen a set of civil service values

Performance is a multidimensional concept Organisational performance: Doing the right things Doing them the right way Doing them efficiently Individual performance: Commitment Being a team player Adhering to core values

Performance orientation State and promote the desired core values of the public service Make a clear statement about the expected performance of each organisation and each employee Ensure that the performances are objectively assessed and evaluated

Accountability Public servants should provide accounts of their actions and decisions to both superiors and the general public They should be rewarded for good results and performances They should be held to account for sub-standard results and performances

Squaring the circle We need to give public managers the necessary authority to promote good performance by active human resource management … and at the same time … We need to protect the public employees against subjective and discriminatory treatment

Transparency Easy access to information about the use of public authority and public resources Obligation to state the motive and legal ground for all such decisions Access to appeal to an independent body Whistle-blower protection

Recruitment/promotion All vacant posts – permanent and temporary – should be advertised All recruitments and promotions should be based on written merit and competency requirements Belgium: A single recruitment authority (SELOR) Ireland: A supervisory Public Appointment Service

Two models for Human Resource Management The French model All public employees are civil servants but belong to different corps The German model Only core government employees are civil servants, others are public employees

… the employer is obliged to provide suitable maintenance commensurate to the office assigned to active civil servants, also if they become disabled or reach retirement age. … remuneration is intended to ensure that civil servants are able to devote themselves entirely to their jobs; only a financially independent civil service is able to fulfil the functions assigned to it by the Constitution. German description of their constitutional rule Civil service pay /1

Traditionally, pay depends on objective factors such as position and formal education, and increases with length of service. Rewarding good performances requires a degree of discretionary pay setting. Discretionary pay setting requires new managerial competences Civil service pay /2

Individual and differentiated salaries Salaries are set at agency level through collective bargaining with staff unions Agencies cooperate in negotiating a national framework agreement Decentralisation enables adaptation to specific needs and conditions Agencies are only compensated for a standard level of salary increases Swedish pay system for state employees

Transition from the classical system to this system took over two decades Transition was made in small steps thus enabling public managers and staff unions to acquire the necessary competence Swedish pay system for state employees

Challenges for modern Human Resource Management A more competitive labour market More demanding labour education, specialization, post-industrial values Lower identification with public service …. …. but stronger identification with professional community

Knut Rexed Rexed&Spörndly AB