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Badenoch & clark - Public Sector Cuts | Rebranding the state
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Re-branding the state:
the public sector
brand in an age of cuts,
strikes and reforms
Key findings / July 2011
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2. Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011 Page 2 0f 9
Re-branding the state: the public
sector brand in an age of cuts,
strikes and reforms
Key findings
Foreword
For public sector workers, the last few months have been ‘listening exercises’; it is now important to ensure that the fragile
coloured by cuts and crises, strikes and reforms. The public beginnings of a rejuvenation of the sector are not quashed.
sector has gone through an unprecedented period of change –
a vast upheaval, which has led to catastrophically low morale, Leaders must now reassert the public sector brand more than
widespread uncertainty about the future of the sector and jobs, ever before. Workers remain loyal to the ideals traditionally
a culture beset by lack of trust and poor communication. The offered by the sector – working for the greater good, making
recent strikes over pension reform are the latest manifestation a positive difference to society at large, ensuring the proper
of unrest within the sector as a whole, as workers feel the functioning of UK plc – and this must be accentuated over
brunt of Osborne’s sharp cuts, intended to redesign Britain’s the coming months. Come October, a year on from Osborne’s
economic map. And while highly held benefits packages – initial Comprehensive Spending Review, it will be interesting
for many the critical centrepiece of a public sector career and important to observe how, if at all, the public sector
– come under increasing public scrutiny, it appears that the has repositioned itself, internally and externally. The need
public sector employer brand may well be at as low a point to attract and retain talent is as great an imperative as ever;
as ever. The Prime Minister’s announcement this week of the the public sector must now reflect, consolidate and move
Open Services White Paper, a massive overhaul of virtually on. They must familiarise themselves with their adjusted
every area of the public sector, will be considered by many working conditions and make full use of their streamlined
to be but the latest nail in brand public sector’s coffin. workforce’s strengths in the best possible way.
The research that we have carried out over recent months has This report analyses some of the most critical questions faced
unilaterally demonstrated a crisis in morale, with the majority by the public sector, and our programme of ongoing research
of public sector workers, at all levels, reporting poor to average into the most contemporary and engaging employment issues
morale. Such a crisis is perhaps highlighted by the fact that in is a reflection of a commitment to our customers. We believe
our most recent survey of workers, morale seems not to have that a clear understanding of the current issues faced by the
improved; three quarters (73.3%) rated morale average to poor. public sector is central to our pledge to add demonstrable
and measurable value to your entire business model.
Yet nonetheless, as this report will demonstrate, there are
perhaps the first inklings of positive change to be salvaged
from the damage inflicted upon the public sector over the last
year. The sector has undergone an important cultural shift.
And with morale low, further cuts looming, and the future of
the benefits packages uncertain, managers must continue
to reassess internal communications strategies. The need
for careful, grassroots change management is absolute. The Nicola Linkleter
public sector has become suspicious of so-called pauses and Managing Director, Badenoch & Clark
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3. Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011 Page 3 0f 9
Executive summary
Our latest research report shows that Moreover, when asked why they chose a
public sector morale is still low, nearly public over private sector career, many
a year on from the 2010 Comprehensive suggested that they enjoyed working with
Spending Review, and that this has posed their colleagues, or that they felt that
the greatest challenge over the last six their work made a positive difference. In
months. Workplaces are under resourced, spite of cuts and crises across the sector,
and uncertainty still grips the public sector. workers seem to believe that the strength
of the various benefits offered by the public
In spite of the current situation, public sector outweigh the potential negatives.
sector workers are not actively seeking
alternative employment, and still cherish Our research perhaps highlights the first
their traditionally generous benefits movement towards a revival of the public
packages – so much so that they consider sector brand, with teams united and morale
them worth striking over. While the in some sectors rising. There is however
majority of workers did not believe that still a great way to go. Managers must take
the strikes would have a positive effect on the lessons learnt over the last few months
the public sector workforce, a third said into full consideration, and ensure that staff
that they would strike over pensions. loyalty to the public sector brand is built
upon to affect positive and lasting change.
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Key findings by sector
Central Government Local Government
• 51.4% would rate central government • 42.9% believed that an under resourced
morale as ‘poor’ workforce has been their greatest
challenge of late
• 48.6% of central government workers
were optimistic about the strikes, • 64.4% of local government workers
suggesting that they would make a are not currently looking for alternative
positive difference to those striking employment
• 40.5% believe that pay grades for the • 61.5% of local government workers did not
public and private sectors should be equal believe that the June strikes would have
an ultimately positive outcome
Charities
NHS
• 23.7% of public sector charity workers say
that they are happy where they are and • 47.5% said that maintaining morale has
are not looking for alternative employment been their greatest challenge over the last
six months
• 65.8% said that the strikes would not
make a positive difference to those • 43.4% would rate morale in the NHS as
striking ‘average’
• 44.7% said that they would receive a • 64.8% of NHS workers are not currently
better pay and benefits package if they searching for a new job
moved to the private sector
Housing
• 40% said that managing budget cuts has
been the sector’s greatest challenge over
the last six months
• 40% would rate morale in the housing
sector as ‘good’
• 40% believe that pay grades in the public
sector should be better than they currently
are, regardless of comparison with the
private sector
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5. Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011 Page 5 0f 9
Conditions: morale and workplace culture
Public sector has been fluctuating since added media attention that the coalition’s department most clearly feeling the
the first rumours of cuts began to circulate unpopular NHS reforms have attracted will strain of head count cuts (53.2%), with
from Whitehall in early 2010. Indeed, have only added to workplace unrest. the NHS closely following (52.5%).
prior to the October 2010 Comprehensive
Spending Review, over a fifth (22%) of However, the picture is not entirely gloomy. Yet while lack of resource may be a clear
those working in the public sector were Nearly half (45%) of those working in the issue for the public sector in an age of
unsure what to expect, with one in five housing sector suggested that morale cuts and reported crisis, it appears that
suggesting they were expecting significant was good to excellent, along with a workers are not, on the whole, working
job losses (18%). In March of this year, such third of those who work in public sector harder as a result. Three quarters (74.9%)
a feeling prevailed amongst employers and procurement, legal or IT services. Although of employees said they did not work longer
employees alike, with three quarters (76.6%) this is clearly far short of a widespread hours in the wake of the cuts. This was
citing average to low workplace morale. consensus on morale, we may be seeing not, however, the case for public sector
a move within the public sector away from employers, two thirds (61.5%) of whom
On the surface, little seems to have changed. the disheartened majority of the past year suggest that they now work longer hours.
Three quarters (73.3%) rated morale average or so, towards a greater expression of the
to poor; this was spread fairly evenly across value of the public sector. As we shall see, In contrast, only one fifth (17.9%) of Scottish
employers and employees, with 73.5% of this is certainly borne out in our wider public sector workers said that they are
employees echoing low ratings on morale, research, which reflects on the possible working longer hours, whilst a third (30.3%)
and 75% of senior decision makers. rising equity of the public sector brand. of workers in London are working harder in
face of the cuts. Those in housing (40%),
Moreover, when asked to describe the Yet for the time being, there is certainly central government (28.8%) and NHS
greatest challenge faced by workers in space for internal work to be done. Managers (29.7%) also echoed this sentiment. Working
the wake of public sector cuts, just under must, as ever, seek to ease bad feeling practices across departments also differed,
half (43.2%) of workers suggested that amongst staff through strong, clear and with those in legal (52.0%), Marketing
maintaining high levels of morale was the effective communication on change. This (37.5%), IT (33.9%), project management
biggest issue faced by staff. Under resourced is particularly the case for under resourced (48.4%) working noticeably longer hours.
workplaces, lack of security, and uncertainty workforces, a key and very current challenge
at all levels, is impeding constructive change for the public sector. Two in five (43.1%) Such are the conditions in which the public
for many. The crisis is being felt most employees across sectors and departments sector is operating at present. Indeed,
acutely by senior decision makers, nearly believe that the cuts have had a distinctly while some progress has been made to
two thirds (61.1%) of whom cite morale as negative impact on the way in which they effect internal change, our repeated calls
an increasing concern in the workplace. work – with processes rendered ineffective, for a review of internal communication
and key staff members reduced in numbers. processes are yet to be actualised by public
Morale is a concern for workers throughout This sentiment is felt even more acutely by sector leaders. Clearly the need for strong
the UK, with those in London (40.4%), over half (52.8%) of senior decision makers. internal communications is as much of an
Scotland (51.3%) and the East Midlands imperative as ever, with stronger morale
(52.1%) voicing particular frustration. Those in the West Midlands are particularly almost necessarily leading to a stronger,
A high number of workers in the NHS affected by an under resourced workplace, more effective public sector brand.
(79.9%) suggested that morale amongst with half (50.4%) expressing such
staff was average to poor. Clearly, the concerns. Central Government is the
Badenoch & Clark morale tracker: How would you rate morale in your department?
March 2011 July 2011
Excellent 2.6% 3.5%
Good 20.8% 23.3%
Average 39.1% 38%
Poor 37.5% 35.3%
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6. Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011 Page 6 0f 9
Value and remuneration
In the wake of the recent strikes over public Across sectors, there is a resounding well be better, the benefits would not be
sector pension reform, commentators belief that the public and private sector so. This was echoed by a fifth (19.5%) of
were quick to criticise those workers who workers should be on a level economic employees, and a quarter (25%) of senior
spoke out in the defense of the so-called footing. A third (33%) of NHS workers, and decision makers across the public sector,
gold-plated schemes, which public sector half (49.5%) of local government workers a third (33.3%) of those based in London
workers have traditionally enjoyed. Yet believe that pay should equal that of the and a third (35.1%) of Central Government
in spite of widespread criticism of public private sector – a view shared particularly workers. However, traditionally lucrative
sector benefits – pensions, leave, working across departments by those working in areas are better paid in the private sector,
hours, and so forth – it appears that IT (61%) and marketing (50%) services. according to half of IT workers (54.2%)
workers themselves continue to firmly and Legal services employees (52.0%).
advocate their compensation packages. An important consideration thus comes
Indeed, a third (32%) of public sector to the forefront of analysis: what, then, Nonetheless, in spite of the lure of private
workers believe that they should be are the implications for the public sector sector pay packets, relatively generous
paid more than they currently are; and brand? Will the pension reforms, strikes, benefits packages are still coveted by
two fifths (40%) believe that their pay working conditions and cuts dissuade public sector workers. When asked
should at least be equal with that of their candidates from seeking public sector whether they would relinquish pay for
private sector. This attitude is particularly roles? And will we see a talent drain benefits, employees were split almost
prevalent in metropolitan areas, where in the coming months and years? 50/50; 55.2% disagreed, 44.8% agreed.
the ‘squeezed middle’ of austerity Britain Perhaps this highlights that a commitment
–according to the Financial Times, typically Our research highlights that feeling to the constituent elements of ‘brand
constituted by public sector workers – are amongst workers is mixed. While nearly public sector’ – pensions, holidays,
feeling the pressure of inflation and VAT half (46.1%) believe that if they moved working hours - is far from waning.
rises. Over a third (37.4%) of London- to the private sector, that both pay and
based workers firmly believe that they benefits would be higher, one fifth (19.6%)
should receive better remuneration. believe that while private sector pay may
Do you think you would receive a better remuneration package in the private sector?
Yes, both pay and benefits
would be better 46.1%
Yes, pay would be higher but the
benefits would not be as good 19.6%
No, I think the public sector pays
better and provides better benefits 18.7%
No, benefits would be better
but pay would not be as good 15.7%
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7. Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011 Page 7 0f 9
Employer and employee branding
The recent public sector strikes were sector, over a third (38.3%) noted that they
in many ways demonstrative of a firm feel as if their work makes a difference in
commitment from many to safeguarding the the grander scheme of things – with nearly
hallmarks of the public sector brand – the half (45.5%) of London-based workers, and
working culture and compensation and half (50.2%) of NHS workers, echoing this
benefits packages on offer. Although our sentiment. And on a purely utilitarian level,
research reports mixed beliefs regarding two fifths (41.1%) of workers felt that they
the overall success of the strikes, many had been employed in the public sector
public sector workers were nonetheless for a number of years and as a result did
vocal about the value of striking itself. not want to change job – with half (50.7%)
in the North East of a similar belief. A
When asked to assess which issues third (28.1%) feel that work/life balance
were most worth striking over, a third is better in public than private sector.
(33.8%) said pensions, a quarter
(26.1%) said pay, and a fifth (20%) As a result, two thirds (64.7%) of public
would defend their benefits package. sector workers are not currently searching
for a new job. Commitment to the sector
The strikes themselves were perhaps a does seem to strengthen month by month,
testament to the continued strength of as teams navigate through the cuts and
the public sector brand; paradoxically, get used to new ways of working.
in striking, public sector workers
demonstrated a commitment to the value
of their employer. Indeed, when asked
which factors attracted them to the public
What attracts you to working in the public sector?
I’ve been in my job a number of
years and don’t want to change 41.1%
I feel like I make a difference 38.3%
My colleagues are
good to work with 33.2%
The work/life balance is better
than the private sector 28.1%
I can’t get a job anywhere else at
the moment so have to stay 19%
The benefits are better
than private sector 14.9%
The remuneration is good 12.5%
I don’t feel I have the
skills to move 11.9%
I’m actively looking in
the private sector 4.4%
Other 3.8%
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8. Re-branding the state: the public sector brand in an age of cuts, strikes and reforms / Key findings / July 2011 Page 8 0f 9
Concluding thoughts
The public sector brand has undergone an few months into full consideration. We
almost unprecedented period of change. have suggested that the cuts could be
We have previously suggested that key seen as a genuinely positive opportunity to
to the sector’s full regeneration will be reassess internal direction and reposition
internal development, for external gain. the public sector employer brand. This will
Effective communication would be key to only be possible if the correct emphasis is
reinvigorating the public sector workforce, made on building staff trust, on ensuring
to strengthen morale and ensure the that listening exercises are genuine, and
redevelopment of the public sector brand. making sure that highly held compensation
This in turn would ensure that a drain on and benefits packages will remain the
talent would be lessened, and that the public sector’s unique selling point.
employer brand was able to attract further
talent to public sector organisations. As we have seen over the last year,
failure to do so will only lead to the
Our research perhaps demonstrates that worsening of morale, the deepening
the future for the public sector remains of antagonism at all levels, and
as uncertain as ever. Cuts and reforms decreasing performance and results.
have been poorly managed, and have
led to a great feeling of unease amongst However, if employers continue to listen
workers. Morale is still low – amongst to staff, and make sure that their concerns
workers and employers. And the recent are indeed addressed satisfactorily,
strikes highlighted that the threat to we may see the public sector remerge
much prized benefits packages has led triumphant over the next six months.
to outrage throughout the ranks. Come October, a year on from Osborne’s
Comprehensive Spending Review, it will be
In our last two reports, we have resolutely hugely interesting to see how far the public
stated that in times of crisis, communication sector may have developed – if at all.
is key. While morale in certain sectors
appears to be lifting, public sector managers
must take the lessons learnt over the last
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