Presented to: Presented by: World Bank Staff Gary Reid PREM - PowerPoint PPT Presentation

Presented to: Presented by: World Bank Staff Gary Reid PREM Knowledge & Learning Week Coordinator, Washington, DC Administrative & Civil April 17-19, 2007 Service Reform Thematic Group PREM Public Sector Governance The World Bank

Outline � What is the civil service? � What are the objectives of CSR? � Why bother with CSR? � CSR track record � Addressing the technical challenges of CSR � Building blocks of human resource management (HRM) � Tools for designing HRM reforms � Addressing political economy challenges of CSR � Improving the Bank’s support for CSR Gary Reid Page 2 Civil Service Reform Course The World Bank

What is the Civil Service? Gary Reid Page 3 Civil Service Reform Course The World Bank

What are the objectives of CSR? � Ensure a fiscally sustainable wage bill � Get and keep the right staff � Ensure depoliticized personnel management � Enforce professional conduct standards � Offer terms of employment that attract and retain required human capital skills and talent. � Provide due process protections � Make staff productive � Motivate staff to achieve organizational objectives � Provide needed complementary inputs Gary Reid Page 4 Civil Service Reform Course The World Bank

Why bother with CSR? � Effective public administrations matter (WDR 1997) � Meritocratic CS management matters (Rauch and Evans (2000); Anderson, Reid and Ryterman (2003); Recanatini, Prati and Tabellini (2005)) � Lousy pay can matter (Gorodnichenko and Sabirianova Peter (2006); Van Rijckeghem and Weder (1997)) Gary Reid Page 5 Civil Service Reform Course The World Bank

CSR track record � Not especially impressive (OED (1999) � Particularly sensitive to political commitment (SSIU (2005); GMR (2006); Levy and Kpundeh (2004) � Poor monitoring of immediate impacts Gary Reid Page 6 Civil Service Reform Course The World Bank

Addressing the technical challenges of CSR: HRM Building Blocks � Ensuring a fiscally sustainable wage bill � Employment and wage bill management � Getting and keeping the right staff � Ensure depoliticized personnel management � Offer terms of employment that attract and retain required human capital skills and talent � Personnel management practices � Making staff productive � Motivate staff to achieve organizational objectives � Enforce professional conduct standards � Provide needed complementary inputs Gary Reid Page 7 Civil Service Reform Course The World Bank

Ensuring a fiscally sustainable wage bill � Establishment correction: Retrenchment options � Establishment control � Establishment registry linked to salary payment system � Establishment authorization procedures � Recruitment authorization procedures � Job evaluation and position classification � Salary setting � Structure � Individual salary setting Gary Reid Page 8 Civil Service Reform Course The World Bank

Ensuring a fiscally sustainable wage bill � Establishment control systems and practices � Salary setting systems and practices � Retrenchment, downsizing or rightsizing � Continuous monitoring and evaluation of establishment and wage bill control effectiveness Gary Reid Page 9 Civil Service Reform Course The World Bank

Establishment control systems and practices � Authorizing positions � Authorizing new hires � Tracking positions and personnel � Linking treasury and establishment control systems Gary Reid Page 10 Civil Service Reform Course The World Bank

Salary setting systems and practices � Setting salary structures � Setting individual salaries � Tracking individual and aggregate wage bill payments � Linking treasury and establishment control systems Gary Reid Page 11 Civil Service Reform Course The World Bank

Retrenchment, downsizing or rightsizing � Big-bang reductions vs. institutional reforms aimed at improving priority setting and management � Ensuring adequate planning of the reform effort � Addressing sources of resistance � Sequencing � Targeting reductions � Facilitating re-entry into the labor force for retrenched workers � Making severance attractive and cost-effective Gary Reid Page 12 Civil Service Reform Course The World Bank

Continuous monitoring and evaluation of establishment & wage bill control effectiveness � Total employment (overall and by organizational unit and/or program/sector – total and relative to, e.g., population) � Employment composition (overall and by organizational unit and/or program/sector) � Total wage bill (overall and by organizational unit and/or program/sector – in absolute terms and also relative to, e.g., GDP, total recurrent costs, etc. – relative to Government-adopted target) Gary Reid Page 13 Civil Service Reform Course The World Bank

Government employment, as % of population Early 1990s 9 8 7 Percentage of population 3.4 6 5 5.1 4 1.6 2.5 3 1.1 1 2 0.9 0.8 0.7 0.8 0.7 0.3 1 1.8 1.4 1.2 1 0.9 0.9 0 Africa Asia ECA LAC MENA OECD Central Government Local Government Teaching and Health Gary Reid Page 14 Civil Service Reform Course The World Bank Source: World Bank Policy Research Working Paper

Central Government Wages & Salaries Early 1990s 12 9.8 10 8 P 6.7 of GD 6 4.9 % 4.7 4.5 3.7 4 2 0 Africa Asia ECA LAC MENA OECD Source: World Bank Policy Research Working Paper 1996 Gary Reid Page 15 Civil Service Reform Course The World Bank

Getting and keeping the right staff � Ensure depoliticized personnel management � Enforce professional conduct standards � Provide due process protections � Offer terms of employment that attract and retain required human capital skills and talent. Gary Reid Page 16 Civil Service Reform Course The World Bank

Ensure depoliticized personnel management � Rules and procedures governing major personnel actions � Division of responsibilities for management of personnel according to rules � Continuous monitoring and evaluation of evidence of depoliticization Gary Reid Page 17 Civil Service Reform Course The World Bank

Rules & procedures governing major personnel actions � Recruitment and selection � Ensuring competition � Well defined criteria based on accurate job descriptions � Tiered screens (long listing, short listing, final selection) � Promotions � Transfers � Performance evaluations (see below) � Career development � Disciplinary actions Gary Reid Page 18 Civil Service Reform Course The World Bank

Division of responsibilities for management of personnel according to rules � Personnel policy making: Establishing the rules � Personnel management: Implementing the rules � Oversight of personnel management: Ensuring that implementation of the rules is consistent with both the letter and the spirit of those rules � Redress: Protecting staff from misuse or abuse of the rules Gary Reid Page 19 Civil Service Reform Course The World Bank

Continuous monitoring and evaluation of evidence of depoliticization � Incidence of competitive recruitments by things like type of position, organizational units, political appointments vs. civil servants vs. other staff, etc. � Annual and quarterly turnover rates mapped against changes in political leadership -- by things like type of position, organizational units, political appointments vs. civil servants vs. other staff Gary Reid Page 20 Civil Service Reform Course The World Bank

Enforce professional conduct standards � Conflict of interest provisions � Asset declaration requirements � Codes of conduct � (Immunity protections) Gary Reid Page 21 Civil Service Reform Course The World Bank

Due process protections � Checks on all major personnel actions � Tenure protections � Redress Gary Reid Page 22 Civil Service Reform Course The World Bank

Offer terms of employment that attract and retain required human capital skills and talent � Remuneration � Personnel management practices Gary Reid Page 23 Civil Service Reform Course The World Bank

Remuneration � Composition – linked to human capital (core salary) – linked to non-human capital factors (e.g., housing entitlements, transportation allowances, etc.) � Transparency – Cash vs. in-kind elements of remuneration – Rules-based vs. discretionary assignment of particular elements of remuneration – Checks on setting of individual remuneration packages � Competitiveness of total remuneration package – Static (public/private comparators) – Dynamic (potential for career growth: compression ratios) Gary Reid Page 24 Civil Service Reform Course The World Bank

Romania Remuneration Pattern: Total Remuneration Gary Reid Page 25 Civil Service Reform Course The World Bank

Sierra Leone Pay Competitiveness Ratio of average GoSL pay to median of private sector pay 60% 50% 40% 30% 20% 10% 0% B1 (G1-2) B2 (G3-4) B3 (G5-6) B4 (G7) B5 (G8-9) B6 (G10) B7 (G11- B8 (G13- 12) 14) Gary Reid Page 26 Civil Service Reform Course The World Bank