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ITEM CG8

 

CABINET – 20 JUNE 2007

 

ESTABLISHMENT REVIEW

 

Report by Head of Human Resources & Organisational Development

 

Introduction

 

1.                  This report provides an update on activity since implementation of the new Establishment Review and associated Recruitment Approval process on 1 August 2005 . It makes particular reference to the objectives and targets of the Review and progress made against them. In addition it gives details of the agreed establishment figure at 31 March 2007 together with staff numbers reported at that date.

 

Objectives of the Review

 

2.                  The overall objectives of the review are to:-

·                    gain control over the numbers of staff, which should result in an initial stabilisation and subsequent reduction in numbers as well as cost savings;

·                    achieve a shift in distribution of resources to front-line services and certain approved business critical roles;

·                    reduce overall costs associated with temporary/interim staff and recruitment advertising;

·                    handle  redeployment more effectively;

·                    raise accountability across the Council in terms of resource allocation.

 

Progress against Targets

 

3.                  To ensure that we delivered the agreed objectives of the Establishment Review a number of targets were proposed. These are outlined below with a statement of progress to date.

 

4.                  The identification of an agreed establishment figure. All Service areas within Directorates have an agreed establishment figure which is updated on a quarterly basis. 

 

5.                  A documented case for each vacancy, with a detailed audit trail for a decision to recruit or remove from establishment has been in place since August 2005.

 

6.                  An agreed description of front-line, business critical and back-office services would be in place. The exempt list was reduced in scope with effect from 1 April 2006 and continues to be monitored in terms of appropriateness.

7.                  A centralised system of approvals for recruitment based in Corporate Human Resources & Organisational Development. This has been done, with the system going live on 1 August 2005 . We now have a clear “business as usual” process in place across the Council with the objective of turning around requests within two working days of receipt.

 

8.                  The involvement of the Cabinet Member for Change Management in the process. Regular updates on progress are in place.

 

9.                  All staff in the redeployment pool to be considered for each vacancy.  This is now an integral part of the recruitment approval process.  All vacancies coming through the approvals process go to the Job Finder Service before being released for advertisement.  Since the service was introduced in January 2007, there have been 11 successful redeployments.

 

10.             There were also annual reduction targets set for the costs of hiring temporary staff and recruitment advertising. We are continuing to drive efficiencies in both areas.

 

Current Numbers

 

11.             Establishment changes between 1 January 2007 and 31 March 2007 are shown below. 

 

Establishment Changes between

1 January 2007 and 31 March 2007

 

	Changes	Establishment expressed in FTE
Reported establishment Figure at 31 December 2006 – Non-Schools		5388.28
Additions to Establishment	136.02	5524.30
Deletions from Establishment	65.09	5459.21
Establishment Figure at  31 March 2007		5459.21
Net Change	+70.93

 

A breakdown of movements by Directorate and Service area is attached at Annex 1 and Annex 2 (download as .xls file) . 

 

12.             In support of this, Heads of Service continue to provide reports by their service area on the following basis (dates below reflect this quarter’s reporting):

·                    Establishment figure (FTE) at  31 December 2006 .

·                    Authorised vacancies (FTE) included in that number.

·                    FTE employed at 31 March 2007 .

·                    Reason for movement over the last quarter – details of new posts, resignations, temporary appointments.

·                    Vacancies at 31 March 2007 (FTE).

·                    Number of posts removed from the establishment in this quarter.

·                    Number of posts added to the establishment in this quarter.

·                    Grant funded posts (FTE).

·                    Vacancies included in these numbers covered by agency staff – in terms of FTE and cost.

 

13.             In headline terms, the establishment and staffing numbers (FTE) as at 31 March 2007 are Establishment 5459.21 (FTE in post4727.85).  These figures exclude the school bloc.

 

14.             The latest trend data on the balance of teaching and non-teaching staff is as follows:

 

	31 December 2006	31 March 2007	Change
Schools – teaching	4709	4721	12
Schools – non-teaching	3557	3605	48
Schools Total	8266	8326	60

 

15.             There have been 999 applications through the Recruitment Approval process during the period 1 August 2005 and 31 March 2007 . 

 

16.             During the period 1 January 2007 to 31 March 2007 there were 527 new starters with the Council, 312 of whom were Schools and 215 non-schools.

 

Current Activity

 

17.             In taking the Establishment Review forward into its second year we agreed three additional areas which needed further attention.

 

·                    trend data on the balance between teaching and non-teaching staff would be monitored and included in future reports (see paragraph 14). 

 

·                    vacancies held for longer than 6 months would need to be justified by directorates.  More needs to be done on this as if such high levels of vacancies are maintained there must always be the risk of returning to the previous culture of ‘new task, new person’.  Vacancy numbers this quarter are showing an increase of 61.48 FTE from the last quarter.  This represents an increase from 12.93% of total establishment in December, to 13.88% of total establishment in March. The broader issue of vacancy reductions is being progressed via Business Managers.  The increase in this quarter is believed to be created by the first transfers into the Shared Service Centre, with the posts vacated within the directorates not being immediately deleted and thereby artificially inflating the overall numbers.  This too is being investigated with Business Managers and we are working with the Shared Service Centre to ensure robust arrangements are in place to identify and secure the required savings in staff numbers.  

 

·                    balance between full time and part time workers would be monitored to ensure that the best interests of the Council and the taxpayer are served.  For information, the numbers as at 31 March 2007 were as follows: Full time – 7589 and Part time – 13557. This equates to a total of 13366.0 FTE. 

 

18.             We continue to review the establishment process based on feedback from managers.  All requests to recruit are now channelled through the Job Finder Service to ensure that anyone whose job is at risk is considered prior to advertising, provided that  they meet the minimum specification for the job. 

 

19.             The recruitment activity is moving to the Shared Services Centre on 2 July 2007 .  As part of this transfer of work we are undertaking a critical review of the establishment monitoring process to ensure that robust processes are in place to underpin the Establishment Review.  Options being considered include directorates managing their recruitment within an approved, fully funded complement and a mechanism to track required reductions in headcount following initiatives such as Shared Services.  Proposals will be agreed with CCMT and the Cabinet Member for Change Management prior to implementation.

 

RECOMMENDATION

 

20.             The Cabinet is RECOMMENDED to:

 

(a)               note the report; and

 

(b)              confirm that the Establishment Review continues to meet requirements in reporting and managing staffing numbers.

 

 

STEVE MUNN

Head of Human Resources & Organisational Development

 

Background Papers:            Nil.

 

Contact Officer:         Sue James, Corporate HR Officer, Tel: 01865 815465.

 

June 2007

 

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