Managing Early Departures in Central Government

Book excerpt: The 2010 Spending Review required most departments to make cost savings, which would require staff reductions. Departments have reduced their number of employees to around 35,000 in 2011, nearly 18,000 of which have been achieved through early departures. If these staff reductions achieved and planned, are to be sustainable then they will need to be supported by a redesign of the way business is carried out. The Committee is not convinced that all departments are putting in place the fundamental redesign in working practices that is needed to operate permanently with a lower number of staff and this with the pace and scale of reductions means that there is a real risk to departments' ability to deliver services. And there concern about the lack of clear information to track the extent to which this risk is materialising. Without this information it is difficult to know to what extent services are being adversely affected by staff departures. The efficiency of early departures has been hampered by poor management information. Departments are considering individuals' performance when making decisions on staff departures. But the quality of data in performance appraisals has not been detailed enough to support this decision-making. The Committee considers that improving the quality and consistency of performance appraisal arrangements would bring both efficiency savings and better decision-making about the management of the workforce. The Treasury is responsible for signing off any individual exit payments that exceed the terms of the compensation scheme. It was discovered that the Treasury does not keep proper records of such requests and the Committee expects to see this rectified. The Cabinet Office estimates that around half of the required headcount reduction is yet to come and this is likely to be more challenging as the more achievable cuts have already been made and future cuts are likely to involve more compulsory redundancies.