Session 4: Attracting & Retaining the Right Staff Presented - - PowerPoint PPT Presentation

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Presented to: World Bank Staff PREM Knowledge & Learning Week Washington, DC April 17-19, 2007

Presented by: Joseph Rugumyamheto & Denyse Morin

Session 4: Attracting & Retaining the Right Staff

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Building Blocks

1.

Meritocratic and transparent Human Resources Management (HRM) system

2.

Well functioning compensation system

3.

Adequate work tools and environment

4.

Positive public service culture and image

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1- Meritocratic & Transparent Human Resources Management System

• Philosophy and Principles
• Institutional and administrative environment

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Philosophy & Principles Philosophy & Principles

Paradigm shift – End of patronage Major policy initiative (Public Service

Management and Employment Policy – 1999 in Tanzania).

Political support from the top. Moderated by equity and diversity concerns ► Changing mindset of public service

leaders and managers (PO-PSM)

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Institutional and Administrative Environment Institutional and Administrative Environment

Legislative support needed to legitimize and

sustain the changes (Public Service Act in Tanzania)

Oversight institutions (Constitutionally

autonomous Public Service Commission)

Transparent systems for appointments,

appraisal and career progression (advertising for posts, competitive selection, open performance appraisals)

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2 - Compensation System

More critical than readily acknowledged -

positive or negative impact is pervasive

Real challenge = attract, retain & motivate

technical & professional skills and those with critical responsibilities

Many options but no easy ones

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Compensation Options Compensation Options

Simple, decompressed pay structure (minimal non-

salary allowances and perks, high compression ratio)

All around low salary with many allowances and

perks

Contracts for select positions (PSs in Uganda) Selective top-ups (SASE in Tanzania, health sector

in Malawi)

Selective scheme (Senior Executive Service as an

idea but not tried)

Enclaving (quasi-autonomous agencies—Revenue

Authorities)

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Choosing an Option Choosing an Option -

• Challenge

Challenge

Politics - Achieving shift in philosophy and

policy from populism and egalitarianism (Pay policy in Tanzania) to meritocracy and competitiveness

Budget/wage bill constraint (severe in aid

dependent countries)

Sustaining technocratic choices

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Experience with Pay Reform in Experience with Pay Reform in Tanzania Tanzania

1.

Policy shift

2.

Coping with wage bill constraints

3.

Selected Accelerated Salary Enhancement (SASE)

4.

Managing the politics (technocratic)

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1 1 -

• Achieving a Policy Shift

Achieving a Policy Shift

Recognition of budgetary constraints. Core strategy: Decompression of pay structure in

recognition of value of technical, professional and managerial groups.

Long-term perspective but with specific medium-term

targets.

Stop-gap intervention in the form of SASE. Not easy to accomplish – especially with a political

and social legacy of egalitarianism.

Major implementation challenges remain.

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2 2 -

• Model Trends

Model Trends

1995-to date 1990-95 1985-90 1975-85 1960-75

PERIOD

Benin Ghana Zam bia Tanzania Zam bia Ghana Zam bia Burkina Faso Benin Uganda Ghana Burkina Faso Benin Uganda

PRE

Uganda Senegal Burkina

Faso

Senegal Burkina

Faso

Benin Botsw ana Senegal Tanzania Botsw ana Senegal Zam bia Tanzania Burkina

Faso

Benin Senegal Zam bia Botsw ana Ghana Uganda Tanzania

PRA

Botsw ana Tanzania Botsw ana Uganda Ghana

TR

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Salary Compression Ratios Salary Compression Ratios

• 5.0

10.0 15.0 20.0 25.0 30.0 35.0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Year Ratio Benin Botsw ana Burkina Faso Ghana Senegal Tanzania Uganda Zambia

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3 3 -

• SASE

SASE – – Features & Results Features & Results

Top-up targeted at technical, professsional &

managerial personnel

Based on medium-term pay targets Selection criteria, rules of access and

performance evaluation

Piloted in 3 MDAs (PO-PSM, MOF, MOH) Popular and positive impact in these three MDAs Generally unpopular in other MDAs and political

leaders

Ultimately, politically terminated but serve to

leverage political leaders’ continued commitment to the pay reform agenda – new President bold initiative is underway (wage bill budget raised by 42%, or 7 % of GDP in current financial year).

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Balancing Politics and Technical Rationality Balancing Politics and Technical Rationality

High Low

Institutionalization

Technically rational Politically rational Politically reactive Competitiveness of Politics

High

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3 - Work Tools and Environment

Pay is necessary but not sufficient condition to

attract, motivate and retain staff

Political leaders have to be convinced that better

pay will result in improved performance

Need to complement pay with improved work tools

and environment – to improve performance.

Need to rationalise and balance between wage bill

and other operating and maintenance budgets = permanent technical challenge.

Performance Improvement Fund based upon

legitimate performance management instruments can be a useful complement to pay reform.

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4 – Public Service Culture and Image

Reinstating public service ethos and values

(including anti-corruption measures) must go hand in hand with pursuit of meritocracy and pay reform

Comprehensive and long-term approach to

public service transformation is critical to sustainable results

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Comprehensive and Long Comprehensive and Long-

• Term Perspective in Tanzania

Term Perspective in Tanzania

CSRP I ( Cost Containm ent) : 1 9 9 1 to 1 9 9 5 CSRP I I ( I nstitutional Developm ent) 1 9 9 5 to 1 9 9 8 PSRP I : Perform ance Managem ent System s ( 2 0 0 0 to 2 0 0 5 ) Phase I I : Perform ance Managem ent Culture ( 2 0 0 5 - 2 0 0 8 ) Phase I I I : Quality I m provem ent Cycles

2000 2005 2010 2015 1990 1995

Note: dates are those described in PSRP docum ents and do not reflect delays in im plem entation

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Summary Remarks

Pay is critical but particularly problematic. Politics matters – delicate balance with

technocratic options.

Other building blocks are also critical –

meritocratic system, work tools and environment, culture and image.

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Summary Remarks

Pay is critical but particularly problematic. Politics matters – delicate balance with

technocratic options.

Other building blocks are also critical –

meritocratic system, work tools and environment, culture and image.

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Political Considerations

Struggle despite the political support The Past Institutional politics

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Capacity Development

Biggest problem: transformation of existing

service (mindset)

Diversity of leadership competency

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Human Resources Management and Development Practices

Defining more rigorous accountability regime Work supervision and performance appraisal Positive managerial culture Addressing deviations from policies swiftly

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Growth

Economic growth is paramount. Confidence

to move boldly

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External Influences

Private sector NGOs Development partners Neighbouring countries

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Lessons learnt

Rigorous technical analysis Keep in focus long-term issues Constantly focusing on economic growth Strong coordination Expand knowledge base

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Q&A Q&A