HR bodies believe plans announced last week by Chancellor Gordon Brown
giving public sector employers more power to set localised pay rates will help
improve the quality of public services.
Brown, who announced the proposal last week as part of the Government’s
Comprehensive Spending Review, said the public sector national pay structure
hinders recruitment and retention.
Under the plans, public service organisations which achieve service targets
will also be eligible for extra Government funding.
John Philpott, chief economist at the CIPD warns that reforms, although
welcome, must be handled carefully as they could demotivate staff working for
under-performing public bodies.
Philpott believes more emphasis should be placed on teamworking and team
He said: "As the CSR seems to appreciate high performance, early 21st
century public service cannot be built on a mid-20th century approach to pay.
It is clear that teamworking, continual learning and a mix of individual and
team performance-related systems are the key to improvements in productivity
and customer service."
Francesca Okosi, president of local government HR body Socpo, agrees with
the move but does not want councils to compete for staff.
She said: "Pay is a regional issue. It is not as simple as a
north-south divide, it is more complex."