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

Session 4: Attracting & Retaining the Right Staff Presented to: Presented by: World Bank Staff Joseph Rugumyamheto & PREM Knowledge & Learning Week Denyse Morin Washington, DC April 17-19, 2007 Rugumyamheto & Morin Page1 Civil Service Reform Course The World Bank

Building Blocks Meritocratic and transparent Human 1. Resources Management (HRM) system Well functioning compensation system 2. Adequate work tools and environment 3. Positive public service culture and image 4. Rugumyamheto & Morin Page2 Civil Service Reform Course The World Bank

1- Meritocratic & Transparent Human Resources Management System Philosophy and Principles � Institutional and administrative environment � Rugumyamheto & Morin Page3 Civil Service Reform Course The World Bank

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) Rugumyamheto & Morin Page4 Civil Service Reform Course The World Bank

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) Rugumyamheto & Morin Page5 Civil Service Reform Course The World Bank

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 Rugumyamheto & Morin Page6 Civil Service Reform Course The World Bank

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) Rugumyamheto & Morin Page7 Civil Service Reform Course The World Bank

Choosing an Option - - Challenge Challenge Choosing an Option � 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 Rugumyamheto & Morin Page8 Civil Service Reform Course The World Bank

Experience with Pay Reform in Experience with Pay Reform in Tanzania Tanzania Policy shift 1. Coping with wage bill constraints 2. Selected Accelerated Salary 3. Enhancement (SASE) Managing the politics (technocratic) 4. Rugumyamheto & Morin Page9 Civil Service Reform Course The World Bank

1 - - Achieving a Policy Shift Achieving a Policy Shift 1 � 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. Rugumyamheto & Morin Page10 Civil Service Reform Course The World Bank

2 - - Model Trends Model Trends 2 � Botsw ana � Botsw ana � Ghana � Uganda � Tanzania TR � Burkina � Botsw ana � Botsw ana � Uganda Faso � Benin PRA � Senegal � Senegal � Senegal � Senegal � Zam bia � Senegal � Botsw ana � Zam bia � Ghana � Tanzania � Tanzania � Burkina � Burkina � Uganda Faso Faso � Tanzania � Benin � Ghana � Zam bia � Tanzania � Benin � Burkina Faso � Zam bia � Ghana PRE � Benin � Burkina Faso � Ghana � Zam bia � Benin � Uganda � Uganda PERIOD 1960-75 1975-85 1985-90 1990-95 1995-to Rugumyamheto & Morin Page11 date Civil Service Reform Course The World Bank

Salary Compression Ratios Salary Compression Ratios 35.0 30.0 25.0 20.0 Ratio 15.0 10.0 5.0 - 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Year Benin Botsw ana Burkina Faso Ghana Senegal Tanzania Uganda Zambia Rugumyamheto & Morin Page12 Civil Service Reform Course The World Bank

3 - - SASE SASE – – Features & Results Features & Results 3 � 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). Rugumyamheto & Morin Page13 Civil Service Reform Course The World Bank

Balancing Politics and Technical Rationality Balancing Politics and Technical Rationality High Technically rational Politically rational Institutionalization Politically reactive Low High Rugumyamheto & Morin Competitiveness of Politics Page14 Civil Service Reform Course The World Bank

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. Rugumyamheto & Morin Page15 Civil Service Reform Course The World Bank

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 Rugumyamheto & Morin Page16 Civil Service Reform Course The World Bank

Comprehensive and Long- -Term Perspective in Tanzania Term Perspective in Tanzania Comprehensive and Long Phase I I I : Quality I m provem ent Cycles Note: dates are those described in Phase I I : PSRP docum ents and do not reflect Perform ance delays in im plem entation Managem ent Culture ( 2 0 0 5 - 2 0 0 8 ) PSRP I : Perform ance Managem ent System s ( 2 0 0 0 to 2 0 0 5 ) CSRP I I ( I nstitutional Developm ent) 1 9 9 5 to 1 9 9 8 CSRP I ( Cost Containm ent) : 1 9 9 1 to 1 9 9 5 2000 2005 2010 1990 1995 2015 Rugumyamheto & Morin Page17 Civil Service Reform Course The World Bank

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. Rugumyamheto & Morin Page18 Civil Service Reform Course The World Bank

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. Rugumyamheto & Morin Page19 Civil Service Reform Course The World Bank

Political Considerations � Struggle despite the political support � The Past � Institutional politics Rugumyamheto & Morin Page20 Civil Service Reform Course The World Bank

Capacity Development � Biggest problem: transformation of existing service (mindset) � Diversity of leadership competency Rugumyamheto & Morin Page21 Civil Service Reform Course The World Bank

Human Resources Management and Development Practices � Defining more rigorous accountability regime � Work supervision and performance appraisal � Positive managerial culture � Addressing deviations from policies swiftly Rugumyamheto & Morin Page22 Civil Service Reform Course The World Bank

Growth � Economic growth is paramount. Confidence to move boldly Rugumyamheto & Morin Page23 Civil Service Reform Course The World Bank

External Influences � Private sector � NGOs � Development partners � Neighbouring countries Rugumyamheto & Morin Page24 Civil Service Reform Course The World Bank

Lessons learnt � Rigorous technical analysis � Keep in focus long-term issues � Constantly focusing on economic growth � Strong coordination � Expand knowledge base Rugumyamheto & Morin Page25 Civil Service Reform Course The World Bank