Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

HR strategy

Council indecision over shared services wastes chance to save millions

by Louisa Peacock 12 Jan 2010
by Louisa Peacock 12 Jan 2010

Too many councils ‘faff around’ without making decisions on shared services or other money-saving schemes – preventing authorities from saving millions, a former HR chief has warned.


Alan Warner, ex-Hertfordshire HR director and lead on communications at the Public Sector People Managers Association (PPMA), claimed councils spend too much time considering how to reduce overheads without making decisions.


The warning comes just days after Deloitte called for a new law forcing councils to share back-office operations, which could save £100m a year.


A report by the consultancy said just a small number of councils had reduced overheads by combining legal, payroll or finance functions, and said a legal obligation would switch the debate from whether to implement shared services, to how and when to do it.


Warner told Personnel Today he was against introducing a new law for shared services. However, he said: “Options for saving money [within councils] should be evaluated more quickly. For me there’s too much discussion, too much time taken – the councils need to get off the scent. They need to get in there, set out what they’re going to do, and do it.”


Warner added councils were being expected to introduce significant changes in the way services were run when staff had little or no experience – possibly why authorities were “slower” than the private sector in making efficiency savings.


He called on the government to provide extra funding for councils to train managers to improve project management skills or hire consultants to help bosses work out the best way of saving money.


A report by former Logica boss Martin Read, endorsed by the government last spring, recommended shared services were sped up across the entire public sector.


The government is unlikely to mandate shared services. However, if two-thirds of districts shared financial services alone, annual savings could exceed £20m, according to Department for Communities and Local Government figures released last month.


Leading council HR chiefs slammed the proposal to create a new law to introduce shared back-office functions, claiming councils were already doing what they could.


George Bishop, director of personnel and general services at The Royal Borough of Kensington and Chelsea, said: “It’s a misrepresentation to think that it’s taking too long to implement shared services.


“In west London, seven councils looked at sharing payroll and some HR services. The problem was that across the seven councils, there were four different HR systems and for some, the cost of changing to a common system was prohibitive.”


Somerset County Council’s head of HR and development Richard Crouch added he would rather “put his head down a toilet” than witness a new law. “It’s nonsense to legally require back-office services to merge while not doing the same with front-office services,” he said.


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Meanwhile, Graham White, HR director at Westminster City Council, said: “I am not in favour of making it law, but only because this will create panic buying by the public sector and under-pricing by the private sector, both of which will result in poor delivery.”


Mark Lawrie, local government partner at Deloitte, said a new law would “remove the need for a long, protracted debate and address a wider, pressing need to save money”. He said the average county saved between £1-2m a year by introducing shared services, which could equate to nearly £100m annually across England’s 48 counties.

Louisa Peacock

previous post
UK graduate jobs market lags behind global competition but employers remain unfazed
next post
AOL staff in UK face axe as firm plans to cut more than 1,000 jobs in Europe

You may also like

University of Salford launches Better Working Lives cluster

14 May 2025

Why HR burnout is a strategic issue

12 May 2025

Succession planning now ‘more of a priority than...

24 Apr 2025

High performance is not the preserve of ‘superstar’...

3 Apr 2025

What do HR specialists enjoy most about their...

21 Mar 2025

Ben & Jerry’s accuses Unilever for sacking boss...

20 Mar 2025

Employee engagement: Growing disconnect between effort and recognition,...

13 Mar 2025

Mitie appoints Kathryn Dolan as chief people officer

6 Mar 2025

Return to the office: Gartner highlights the risks...

27 Feb 2025

Josh Bersin research: most HR leaders are now...

20 Feb 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+