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Great people for growing places A consultation on the strategy for the local government workforce

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Page 1: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing placesA consultation on the strategy for the local government workforce

2 | Great people for growing places

Introduction vision and priorities

This document outlines proposals for phase one of the Local Government Associationrsquos (LGA) refreshed approach to the national strategic workforce priorities in local government We have set out a draft vision and priorities for the workforce that we suggest the sector will be engaging with over the next five to ten years and provide some ideas on how to achieve that vision We want your thoughts on those priorities Please share your views via our online questionnaire by going to wwwlocalgovukworkforcestrategy Your responses will help us shape our future work plans and support you in delivering your key workforce priorities

Every local council and combined authority values what makes their place different their special circumstances and their unique approaches These unique qualities are reflected in their workforce and the challenges they face But all councils and combined authorities have one thing in common ndash they are continuing to develop a workforce that is

bull productive ndash affordable efficient motivated technologically literate and flexible

bull joined up ndash properly integrated across all the different organisations providing services especially in health and social care

bull involved in co-designing and co-creating services ndash so that the ideas and experience of the people most involved in services day- to-day can be fully utilised

bull truly valued and respected ndash supported throughout the stages of life and career and able to enjoy good quality benefits as well as fair pay

bull diverse ndash reflecting the communities it serves and making use of all the talent in those communities

Great people for growing places | 3

To achieve that vision we believe that the sector needs to focus on

bull great leadership that is visionary ambitious and effective and the development of leadership skills at all levels

bull organisational change and development that is focused on people their wellbeing and resilience

bull skills development that is truly innovative and focused on combining organisational and individual needs

bull improved recruitment and retention outcomes based on proper planning and use of best practice techniques

bull pay and reward systems that attracts and retains talent motivating and helping people throughout their careers

Most councils will already be looking at these priorities in different ways Our main focus at this stage is on the directly employed workforce but we believe that the ideas set out here can be used when working in partnership with other organisations

There is a range of local responses to the challenges the public sector workforce faces along with common themes and ideas that we can build on and share

The LGA recognises that a lsquoone-size-fits-allrsquo approach to a workforce strategy wonrsquot work but what we can do at the national level is help to refine strategic thinking and work with others to ensure that ideas thinking approaches and tools are shared helping to enhance approaches to workforce planning The LGArsquos aim is to agree and promote a set of shared priorities and actions to support councils as they continue their work

Many individuals including representatives of the Society of Local Authority Chief Executives (SOLACE) the Public Services People Managerrsquos Association (PPMA) and the LGArsquos Chief Executivesrsquo Sounding Board have contributed informal comments during the development of our thinking and we are grateful for their assistance

4 | Great people for growing places

Councils in a changing world

Councils are at the heart of their local areas improving residentsrsquo lives on a daily basis They play a unique leadership role in promoting social mobility fairness and community cohesion With democratic responsibility for the communities they serve they are the only agency which can ensure everyone wherever they live has access to the opportunities they deserve and the public services they need

With the combined challenges of Brexit austerity and the drive to improve productivity there is a continued need to reshape and remodel the future of our nation and the future of our public services From Cornwall to Carlisle local government staff are working with their communities to deliver the services that matter to them The sector is already thinking differently about the provision of public services and the need to address the critical challenges to ensure public services are fit to secure the best possible future for the people of this country

Local government needs a system that works for people not people that work in a system The challenge is considerable with a workforce some 15 million strong 800 distinct occupations and a pay bill of around pound22 billion a year A modern enthused and engaged workforce is at the heart of bringing people together at a local level contributing to the stability they seek in an uncertain world delivering the core services they need helping people to help themselves and developing the thriving communities they want even at a time of great change for our nation

The importance of BrexitThe Brexit agenda serves in some ways to highlight longer term issues in our economy and society around skills and productivity The workforce must be robust and resilient enough to deal with this new climate Organisations have already been making profound cultural changes but even deeper change is needed to ensure that the workforce is excited and ready to meet future challenges

It is clear that Brexit will bring specific risks as well as opportunities to different localities and there must be continued work to understand the detail and impact of this the LGA continues to seek submissions from members to better understand what they expect the local impact to be1 In terms of the local government workforce one key concern emerging is the recruitment of key specialist staff such as social workers where there are already recruitment issues irrespective of Brexit2

1 wwwlocalgovukbrexit-impacts-call-information2 wwwlocalgovukparliamentbriefings-and-responsesresponse-

migration-advisory-committee-call-evidence-contribution

Great people for growing places | 5

What is the sector facing

Over the next ten years the sector is facing a funding gap of pound58 billion changes to the financing structure of local government and further uncertainty over social care funding as well as the impact ndash both the risks and opportunities ndash of Brexit on the labour market all of which make strategic planning and managing risks crucial There is also a sustained drive to bring in service integration and partnership working under various umbrella policies as well as the implications of devolution With all this pressure it is clear that public services will need to continue on its transformation journey

The world of work is changing as well Just a few of the things we are already seeing or expect to see in the near future are

bull demographic change and growing diversity

bull changes to the state pension age

bull evolving consumer needs including on demand services and gig economy models

bull a workforce that will contain multiple generations from Generation Z to those in their 60s with different needs and expectations

bull changing technologies digital services and automationrobotics

From these shifts we can anticipate

bull changing work environments

bull cross-disciplinary skills changing professional lives

bull a growing desire for a better worklife balance

bull income uncertainty

bull a more commercial income generating approach taken by councils

Direct and indirect workforcesAlthough our primary focus is on the directly-employed workforce due to the LGAlsquos role as an employer representative body it is very important to debate and share any vision for the public service workforce across local places as set out for example in the concept of the 21st Century Public Servant3

We recognise that many workers are engaged on an agency basis as well as through commissioning or located on a shared service basis the aim has to be that good practice developed for the directly employed workforce can be shared and further developed with partners

3 wwwlocalgovukour-supportworkforce-and-hr-supportworkforce-podcasts21st-century-public-servant

6 | Great people for growing places

The 21st Century Public ServantThe concept of the 21st Century Public Servant has been developed over recent years by the University of Birmingham and has influenced a lot of the LGArsquos work Very distinctive language is used based directly on the thinking of people working in local government to describe the quite different roles that are needed now and in the future to work with local people Briefly the new breed of public servant

bull is a lsquomunicipal entrepreneurrsquo undertaking a wide range of roles

bull engages with citizens in a way that expresses their shared humanity and pooled expertise

bull is recruited and rewarded for generic skills as well as technical expertise

bull builds a career which is fluid across sectors and services

bull combines an ethos of publicness with an understanding of commerciality

bull is rethinking public services to enable them to survive an era of lsquoperma-austerityrsquo

bull needs organisations which are fluid and supportive rather than lsquosiloedrsquo and controlling

bull rejects heroic leadership in favour of distributed and collaborative models of leading

bull is rooted in a locality which frames a sense of loyalty and identity

bull reflects on practice and learns from that of others

People and improved productivity There is an urgent need to improve business efficiency and therefore productivity and from our discussions with local leaders it has emerged as a key priority for them There are of course many approaches to improving productivity including technology and restructuring basic tasks to add greater value Undoubtedly reducing employment costs will always be a factor However it will be important to focus on making sure people feel more engaged by addressing issues of wellbeing and personal development as well as making the right investments in technology and processes Generally innovations will only succeed if people are equipped to make use of them

Improved internal communications effective sickness absence management and promotion of a proper worklife balance are the next most important contributors to productivity beyond the development of leadership and management4 Training and development of non-managers proper team-based working and improved recruitment and retention are also regarded as effective in boosting performance and productivity Good relationships with trade unions and robust inclusion and equality policies are also important

4 LGAProductivityPerformanceandImprovement2002

Great people for growing places | 7

Key themes

The LGA has identified five key areas which we believe will shape the development of the local government workforce for the foreseeable future

bull organisational development

bull leadership

bull skills development

bull recruitment and retention

bull pay and rewards

In this section we explore the current picture for these areas and different approaches that are being taken Our initial starting point is to identify actions for the LGA to support the sectorrsquos understanding of these issues and its ability to meet their challenges this will be followed at a later date with guidance and suggested approaches for councils

Organisational development

An approach to organisational change and development that is focused on people their wellbeing and resilience

The funding challenges already discussed together with wide-ranging public sector reform have prompted councils to undertake transformation programmes and in some cases radically shift how they approach delivering services

Councilsrsquo understanding of their role has evolved they are now collaborators and place leaders rather than simply providing services to residents in a two-way transaction Different models now being used include commissioning councils commercial councils and cooperative councils As with any organisation the workforce is at the heart of these changes

Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation However in conversations with councils the LGA regularly hears that OD capacity is lacking in their organisation Councils need to think about improving this capacity so they can take advantage of best practice

As individual councils look to predict the workforce roles or job types and structures they will need in the future depending on the structure and form that those individual councils decide to develop increasingly we are seeing and will continue to see changes in how they employ organise and manage their staff

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 2: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

2 | Great people for growing places

Introduction vision and priorities

This document outlines proposals for phase one of the Local Government Associationrsquos (LGA) refreshed approach to the national strategic workforce priorities in local government We have set out a draft vision and priorities for the workforce that we suggest the sector will be engaging with over the next five to ten years and provide some ideas on how to achieve that vision We want your thoughts on those priorities Please share your views via our online questionnaire by going to wwwlocalgovukworkforcestrategy Your responses will help us shape our future work plans and support you in delivering your key workforce priorities

Every local council and combined authority values what makes their place different their special circumstances and their unique approaches These unique qualities are reflected in their workforce and the challenges they face But all councils and combined authorities have one thing in common ndash they are continuing to develop a workforce that is

bull productive ndash affordable efficient motivated technologically literate and flexible

bull joined up ndash properly integrated across all the different organisations providing services especially in health and social care

bull involved in co-designing and co-creating services ndash so that the ideas and experience of the people most involved in services day- to-day can be fully utilised

bull truly valued and respected ndash supported throughout the stages of life and career and able to enjoy good quality benefits as well as fair pay

bull diverse ndash reflecting the communities it serves and making use of all the talent in those communities

Great people for growing places | 3

To achieve that vision we believe that the sector needs to focus on

bull great leadership that is visionary ambitious and effective and the development of leadership skills at all levels

bull organisational change and development that is focused on people their wellbeing and resilience

bull skills development that is truly innovative and focused on combining organisational and individual needs

bull improved recruitment and retention outcomes based on proper planning and use of best practice techniques

bull pay and reward systems that attracts and retains talent motivating and helping people throughout their careers

Most councils will already be looking at these priorities in different ways Our main focus at this stage is on the directly employed workforce but we believe that the ideas set out here can be used when working in partnership with other organisations

There is a range of local responses to the challenges the public sector workforce faces along with common themes and ideas that we can build on and share

The LGA recognises that a lsquoone-size-fits-allrsquo approach to a workforce strategy wonrsquot work but what we can do at the national level is help to refine strategic thinking and work with others to ensure that ideas thinking approaches and tools are shared helping to enhance approaches to workforce planning The LGArsquos aim is to agree and promote a set of shared priorities and actions to support councils as they continue their work

Many individuals including representatives of the Society of Local Authority Chief Executives (SOLACE) the Public Services People Managerrsquos Association (PPMA) and the LGArsquos Chief Executivesrsquo Sounding Board have contributed informal comments during the development of our thinking and we are grateful for their assistance

4 | Great people for growing places

Councils in a changing world

Councils are at the heart of their local areas improving residentsrsquo lives on a daily basis They play a unique leadership role in promoting social mobility fairness and community cohesion With democratic responsibility for the communities they serve they are the only agency which can ensure everyone wherever they live has access to the opportunities they deserve and the public services they need

With the combined challenges of Brexit austerity and the drive to improve productivity there is a continued need to reshape and remodel the future of our nation and the future of our public services From Cornwall to Carlisle local government staff are working with their communities to deliver the services that matter to them The sector is already thinking differently about the provision of public services and the need to address the critical challenges to ensure public services are fit to secure the best possible future for the people of this country

Local government needs a system that works for people not people that work in a system The challenge is considerable with a workforce some 15 million strong 800 distinct occupations and a pay bill of around pound22 billion a year A modern enthused and engaged workforce is at the heart of bringing people together at a local level contributing to the stability they seek in an uncertain world delivering the core services they need helping people to help themselves and developing the thriving communities they want even at a time of great change for our nation

The importance of BrexitThe Brexit agenda serves in some ways to highlight longer term issues in our economy and society around skills and productivity The workforce must be robust and resilient enough to deal with this new climate Organisations have already been making profound cultural changes but even deeper change is needed to ensure that the workforce is excited and ready to meet future challenges

It is clear that Brexit will bring specific risks as well as opportunities to different localities and there must be continued work to understand the detail and impact of this the LGA continues to seek submissions from members to better understand what they expect the local impact to be1 In terms of the local government workforce one key concern emerging is the recruitment of key specialist staff such as social workers where there are already recruitment issues irrespective of Brexit2

1 wwwlocalgovukbrexit-impacts-call-information2 wwwlocalgovukparliamentbriefings-and-responsesresponse-

migration-advisory-committee-call-evidence-contribution

Great people for growing places | 5

What is the sector facing

Over the next ten years the sector is facing a funding gap of pound58 billion changes to the financing structure of local government and further uncertainty over social care funding as well as the impact ndash both the risks and opportunities ndash of Brexit on the labour market all of which make strategic planning and managing risks crucial There is also a sustained drive to bring in service integration and partnership working under various umbrella policies as well as the implications of devolution With all this pressure it is clear that public services will need to continue on its transformation journey

The world of work is changing as well Just a few of the things we are already seeing or expect to see in the near future are

bull demographic change and growing diversity

bull changes to the state pension age

bull evolving consumer needs including on demand services and gig economy models

bull a workforce that will contain multiple generations from Generation Z to those in their 60s with different needs and expectations

bull changing technologies digital services and automationrobotics

From these shifts we can anticipate

bull changing work environments

bull cross-disciplinary skills changing professional lives

bull a growing desire for a better worklife balance

bull income uncertainty

bull a more commercial income generating approach taken by councils

Direct and indirect workforcesAlthough our primary focus is on the directly-employed workforce due to the LGAlsquos role as an employer representative body it is very important to debate and share any vision for the public service workforce across local places as set out for example in the concept of the 21st Century Public Servant3

We recognise that many workers are engaged on an agency basis as well as through commissioning or located on a shared service basis the aim has to be that good practice developed for the directly employed workforce can be shared and further developed with partners

3 wwwlocalgovukour-supportworkforce-and-hr-supportworkforce-podcasts21st-century-public-servant

6 | Great people for growing places

The 21st Century Public ServantThe concept of the 21st Century Public Servant has been developed over recent years by the University of Birmingham and has influenced a lot of the LGArsquos work Very distinctive language is used based directly on the thinking of people working in local government to describe the quite different roles that are needed now and in the future to work with local people Briefly the new breed of public servant

bull is a lsquomunicipal entrepreneurrsquo undertaking a wide range of roles

bull engages with citizens in a way that expresses their shared humanity and pooled expertise

bull is recruited and rewarded for generic skills as well as technical expertise

bull builds a career which is fluid across sectors and services

bull combines an ethos of publicness with an understanding of commerciality

bull is rethinking public services to enable them to survive an era of lsquoperma-austerityrsquo

bull needs organisations which are fluid and supportive rather than lsquosiloedrsquo and controlling

bull rejects heroic leadership in favour of distributed and collaborative models of leading

bull is rooted in a locality which frames a sense of loyalty and identity

bull reflects on practice and learns from that of others

People and improved productivity There is an urgent need to improve business efficiency and therefore productivity and from our discussions with local leaders it has emerged as a key priority for them There are of course many approaches to improving productivity including technology and restructuring basic tasks to add greater value Undoubtedly reducing employment costs will always be a factor However it will be important to focus on making sure people feel more engaged by addressing issues of wellbeing and personal development as well as making the right investments in technology and processes Generally innovations will only succeed if people are equipped to make use of them

Improved internal communications effective sickness absence management and promotion of a proper worklife balance are the next most important contributors to productivity beyond the development of leadership and management4 Training and development of non-managers proper team-based working and improved recruitment and retention are also regarded as effective in boosting performance and productivity Good relationships with trade unions and robust inclusion and equality policies are also important

4 LGAProductivityPerformanceandImprovement2002

Great people for growing places | 7

Key themes

The LGA has identified five key areas which we believe will shape the development of the local government workforce for the foreseeable future

bull organisational development

bull leadership

bull skills development

bull recruitment and retention

bull pay and rewards

In this section we explore the current picture for these areas and different approaches that are being taken Our initial starting point is to identify actions for the LGA to support the sectorrsquos understanding of these issues and its ability to meet their challenges this will be followed at a later date with guidance and suggested approaches for councils

Organisational development

An approach to organisational change and development that is focused on people their wellbeing and resilience

The funding challenges already discussed together with wide-ranging public sector reform have prompted councils to undertake transformation programmes and in some cases radically shift how they approach delivering services

Councilsrsquo understanding of their role has evolved they are now collaborators and place leaders rather than simply providing services to residents in a two-way transaction Different models now being used include commissioning councils commercial councils and cooperative councils As with any organisation the workforce is at the heart of these changes

Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation However in conversations with councils the LGA regularly hears that OD capacity is lacking in their organisation Councils need to think about improving this capacity so they can take advantage of best practice

As individual councils look to predict the workforce roles or job types and structures they will need in the future depending on the structure and form that those individual councils decide to develop increasingly we are seeing and will continue to see changes in how they employ organise and manage their staff

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 3: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 3

To achieve that vision we believe that the sector needs to focus on

bull great leadership that is visionary ambitious and effective and the development of leadership skills at all levels

bull organisational change and development that is focused on people their wellbeing and resilience

bull skills development that is truly innovative and focused on combining organisational and individual needs

bull improved recruitment and retention outcomes based on proper planning and use of best practice techniques

bull pay and reward systems that attracts and retains talent motivating and helping people throughout their careers

Most councils will already be looking at these priorities in different ways Our main focus at this stage is on the directly employed workforce but we believe that the ideas set out here can be used when working in partnership with other organisations

There is a range of local responses to the challenges the public sector workforce faces along with common themes and ideas that we can build on and share

The LGA recognises that a lsquoone-size-fits-allrsquo approach to a workforce strategy wonrsquot work but what we can do at the national level is help to refine strategic thinking and work with others to ensure that ideas thinking approaches and tools are shared helping to enhance approaches to workforce planning The LGArsquos aim is to agree and promote a set of shared priorities and actions to support councils as they continue their work

Many individuals including representatives of the Society of Local Authority Chief Executives (SOLACE) the Public Services People Managerrsquos Association (PPMA) and the LGArsquos Chief Executivesrsquo Sounding Board have contributed informal comments during the development of our thinking and we are grateful for their assistance

4 | Great people for growing places

Councils in a changing world

Councils are at the heart of their local areas improving residentsrsquo lives on a daily basis They play a unique leadership role in promoting social mobility fairness and community cohesion With democratic responsibility for the communities they serve they are the only agency which can ensure everyone wherever they live has access to the opportunities they deserve and the public services they need

With the combined challenges of Brexit austerity and the drive to improve productivity there is a continued need to reshape and remodel the future of our nation and the future of our public services From Cornwall to Carlisle local government staff are working with their communities to deliver the services that matter to them The sector is already thinking differently about the provision of public services and the need to address the critical challenges to ensure public services are fit to secure the best possible future for the people of this country

Local government needs a system that works for people not people that work in a system The challenge is considerable with a workforce some 15 million strong 800 distinct occupations and a pay bill of around pound22 billion a year A modern enthused and engaged workforce is at the heart of bringing people together at a local level contributing to the stability they seek in an uncertain world delivering the core services they need helping people to help themselves and developing the thriving communities they want even at a time of great change for our nation

The importance of BrexitThe Brexit agenda serves in some ways to highlight longer term issues in our economy and society around skills and productivity The workforce must be robust and resilient enough to deal with this new climate Organisations have already been making profound cultural changes but even deeper change is needed to ensure that the workforce is excited and ready to meet future challenges

It is clear that Brexit will bring specific risks as well as opportunities to different localities and there must be continued work to understand the detail and impact of this the LGA continues to seek submissions from members to better understand what they expect the local impact to be1 In terms of the local government workforce one key concern emerging is the recruitment of key specialist staff such as social workers where there are already recruitment issues irrespective of Brexit2

1 wwwlocalgovukbrexit-impacts-call-information2 wwwlocalgovukparliamentbriefings-and-responsesresponse-

migration-advisory-committee-call-evidence-contribution

Great people for growing places | 5

What is the sector facing

Over the next ten years the sector is facing a funding gap of pound58 billion changes to the financing structure of local government and further uncertainty over social care funding as well as the impact ndash both the risks and opportunities ndash of Brexit on the labour market all of which make strategic planning and managing risks crucial There is also a sustained drive to bring in service integration and partnership working under various umbrella policies as well as the implications of devolution With all this pressure it is clear that public services will need to continue on its transformation journey

The world of work is changing as well Just a few of the things we are already seeing or expect to see in the near future are

bull demographic change and growing diversity

bull changes to the state pension age

bull evolving consumer needs including on demand services and gig economy models

bull a workforce that will contain multiple generations from Generation Z to those in their 60s with different needs and expectations

bull changing technologies digital services and automationrobotics

From these shifts we can anticipate

bull changing work environments

bull cross-disciplinary skills changing professional lives

bull a growing desire for a better worklife balance

bull income uncertainty

bull a more commercial income generating approach taken by councils

Direct and indirect workforcesAlthough our primary focus is on the directly-employed workforce due to the LGAlsquos role as an employer representative body it is very important to debate and share any vision for the public service workforce across local places as set out for example in the concept of the 21st Century Public Servant3

We recognise that many workers are engaged on an agency basis as well as through commissioning or located on a shared service basis the aim has to be that good practice developed for the directly employed workforce can be shared and further developed with partners

3 wwwlocalgovukour-supportworkforce-and-hr-supportworkforce-podcasts21st-century-public-servant

6 | Great people for growing places

The 21st Century Public ServantThe concept of the 21st Century Public Servant has been developed over recent years by the University of Birmingham and has influenced a lot of the LGArsquos work Very distinctive language is used based directly on the thinking of people working in local government to describe the quite different roles that are needed now and in the future to work with local people Briefly the new breed of public servant

bull is a lsquomunicipal entrepreneurrsquo undertaking a wide range of roles

bull engages with citizens in a way that expresses their shared humanity and pooled expertise

bull is recruited and rewarded for generic skills as well as technical expertise

bull builds a career which is fluid across sectors and services

bull combines an ethos of publicness with an understanding of commerciality

bull is rethinking public services to enable them to survive an era of lsquoperma-austerityrsquo

bull needs organisations which are fluid and supportive rather than lsquosiloedrsquo and controlling

bull rejects heroic leadership in favour of distributed and collaborative models of leading

bull is rooted in a locality which frames a sense of loyalty and identity

bull reflects on practice and learns from that of others

People and improved productivity There is an urgent need to improve business efficiency and therefore productivity and from our discussions with local leaders it has emerged as a key priority for them There are of course many approaches to improving productivity including technology and restructuring basic tasks to add greater value Undoubtedly reducing employment costs will always be a factor However it will be important to focus on making sure people feel more engaged by addressing issues of wellbeing and personal development as well as making the right investments in technology and processes Generally innovations will only succeed if people are equipped to make use of them

Improved internal communications effective sickness absence management and promotion of a proper worklife balance are the next most important contributors to productivity beyond the development of leadership and management4 Training and development of non-managers proper team-based working and improved recruitment and retention are also regarded as effective in boosting performance and productivity Good relationships with trade unions and robust inclusion and equality policies are also important

4 LGAProductivityPerformanceandImprovement2002

Great people for growing places | 7

Key themes

The LGA has identified five key areas which we believe will shape the development of the local government workforce for the foreseeable future

bull organisational development

bull leadership

bull skills development

bull recruitment and retention

bull pay and rewards

In this section we explore the current picture for these areas and different approaches that are being taken Our initial starting point is to identify actions for the LGA to support the sectorrsquos understanding of these issues and its ability to meet their challenges this will be followed at a later date with guidance and suggested approaches for councils

Organisational development

An approach to organisational change and development that is focused on people their wellbeing and resilience

The funding challenges already discussed together with wide-ranging public sector reform have prompted councils to undertake transformation programmes and in some cases radically shift how they approach delivering services

Councilsrsquo understanding of their role has evolved they are now collaborators and place leaders rather than simply providing services to residents in a two-way transaction Different models now being used include commissioning councils commercial councils and cooperative councils As with any organisation the workforce is at the heart of these changes

Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation However in conversations with councils the LGA regularly hears that OD capacity is lacking in their organisation Councils need to think about improving this capacity so they can take advantage of best practice

As individual councils look to predict the workforce roles or job types and structures they will need in the future depending on the structure and form that those individual councils decide to develop increasingly we are seeing and will continue to see changes in how they employ organise and manage their staff

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 4: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

4 | Great people for growing places

Councils in a changing world

Councils are at the heart of their local areas improving residentsrsquo lives on a daily basis They play a unique leadership role in promoting social mobility fairness and community cohesion With democratic responsibility for the communities they serve they are the only agency which can ensure everyone wherever they live has access to the opportunities they deserve and the public services they need

With the combined challenges of Brexit austerity and the drive to improve productivity there is a continued need to reshape and remodel the future of our nation and the future of our public services From Cornwall to Carlisle local government staff are working with their communities to deliver the services that matter to them The sector is already thinking differently about the provision of public services and the need to address the critical challenges to ensure public services are fit to secure the best possible future for the people of this country

Local government needs a system that works for people not people that work in a system The challenge is considerable with a workforce some 15 million strong 800 distinct occupations and a pay bill of around pound22 billion a year A modern enthused and engaged workforce is at the heart of bringing people together at a local level contributing to the stability they seek in an uncertain world delivering the core services they need helping people to help themselves and developing the thriving communities they want even at a time of great change for our nation

The importance of BrexitThe Brexit agenda serves in some ways to highlight longer term issues in our economy and society around skills and productivity The workforce must be robust and resilient enough to deal with this new climate Organisations have already been making profound cultural changes but even deeper change is needed to ensure that the workforce is excited and ready to meet future challenges

It is clear that Brexit will bring specific risks as well as opportunities to different localities and there must be continued work to understand the detail and impact of this the LGA continues to seek submissions from members to better understand what they expect the local impact to be1 In terms of the local government workforce one key concern emerging is the recruitment of key specialist staff such as social workers where there are already recruitment issues irrespective of Brexit2

1 wwwlocalgovukbrexit-impacts-call-information2 wwwlocalgovukparliamentbriefings-and-responsesresponse-

migration-advisory-committee-call-evidence-contribution

Great people for growing places | 5

What is the sector facing

Over the next ten years the sector is facing a funding gap of pound58 billion changes to the financing structure of local government and further uncertainty over social care funding as well as the impact ndash both the risks and opportunities ndash of Brexit on the labour market all of which make strategic planning and managing risks crucial There is also a sustained drive to bring in service integration and partnership working under various umbrella policies as well as the implications of devolution With all this pressure it is clear that public services will need to continue on its transformation journey

The world of work is changing as well Just a few of the things we are already seeing or expect to see in the near future are

bull demographic change and growing diversity

bull changes to the state pension age

bull evolving consumer needs including on demand services and gig economy models

bull a workforce that will contain multiple generations from Generation Z to those in their 60s with different needs and expectations

bull changing technologies digital services and automationrobotics

From these shifts we can anticipate

bull changing work environments

bull cross-disciplinary skills changing professional lives

bull a growing desire for a better worklife balance

bull income uncertainty

bull a more commercial income generating approach taken by councils

Direct and indirect workforcesAlthough our primary focus is on the directly-employed workforce due to the LGAlsquos role as an employer representative body it is very important to debate and share any vision for the public service workforce across local places as set out for example in the concept of the 21st Century Public Servant3

We recognise that many workers are engaged on an agency basis as well as through commissioning or located on a shared service basis the aim has to be that good practice developed for the directly employed workforce can be shared and further developed with partners

3 wwwlocalgovukour-supportworkforce-and-hr-supportworkforce-podcasts21st-century-public-servant

6 | Great people for growing places

The 21st Century Public ServantThe concept of the 21st Century Public Servant has been developed over recent years by the University of Birmingham and has influenced a lot of the LGArsquos work Very distinctive language is used based directly on the thinking of people working in local government to describe the quite different roles that are needed now and in the future to work with local people Briefly the new breed of public servant

bull is a lsquomunicipal entrepreneurrsquo undertaking a wide range of roles

bull engages with citizens in a way that expresses their shared humanity and pooled expertise

bull is recruited and rewarded for generic skills as well as technical expertise

bull builds a career which is fluid across sectors and services

bull combines an ethos of publicness with an understanding of commerciality

bull is rethinking public services to enable them to survive an era of lsquoperma-austerityrsquo

bull needs organisations which are fluid and supportive rather than lsquosiloedrsquo and controlling

bull rejects heroic leadership in favour of distributed and collaborative models of leading

bull is rooted in a locality which frames a sense of loyalty and identity

bull reflects on practice and learns from that of others

People and improved productivity There is an urgent need to improve business efficiency and therefore productivity and from our discussions with local leaders it has emerged as a key priority for them There are of course many approaches to improving productivity including technology and restructuring basic tasks to add greater value Undoubtedly reducing employment costs will always be a factor However it will be important to focus on making sure people feel more engaged by addressing issues of wellbeing and personal development as well as making the right investments in technology and processes Generally innovations will only succeed if people are equipped to make use of them

Improved internal communications effective sickness absence management and promotion of a proper worklife balance are the next most important contributors to productivity beyond the development of leadership and management4 Training and development of non-managers proper team-based working and improved recruitment and retention are also regarded as effective in boosting performance and productivity Good relationships with trade unions and robust inclusion and equality policies are also important

4 LGAProductivityPerformanceandImprovement2002

Great people for growing places | 7

Key themes

The LGA has identified five key areas which we believe will shape the development of the local government workforce for the foreseeable future

bull organisational development

bull leadership

bull skills development

bull recruitment and retention

bull pay and rewards

In this section we explore the current picture for these areas and different approaches that are being taken Our initial starting point is to identify actions for the LGA to support the sectorrsquos understanding of these issues and its ability to meet their challenges this will be followed at a later date with guidance and suggested approaches for councils

Organisational development

An approach to organisational change and development that is focused on people their wellbeing and resilience

The funding challenges already discussed together with wide-ranging public sector reform have prompted councils to undertake transformation programmes and in some cases radically shift how they approach delivering services

Councilsrsquo understanding of their role has evolved they are now collaborators and place leaders rather than simply providing services to residents in a two-way transaction Different models now being used include commissioning councils commercial councils and cooperative councils As with any organisation the workforce is at the heart of these changes

Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation However in conversations with councils the LGA regularly hears that OD capacity is lacking in their organisation Councils need to think about improving this capacity so they can take advantage of best practice

As individual councils look to predict the workforce roles or job types and structures they will need in the future depending on the structure and form that those individual councils decide to develop increasingly we are seeing and will continue to see changes in how they employ organise and manage their staff

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 5: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 5

What is the sector facing

Over the next ten years the sector is facing a funding gap of pound58 billion changes to the financing structure of local government and further uncertainty over social care funding as well as the impact ndash both the risks and opportunities ndash of Brexit on the labour market all of which make strategic planning and managing risks crucial There is also a sustained drive to bring in service integration and partnership working under various umbrella policies as well as the implications of devolution With all this pressure it is clear that public services will need to continue on its transformation journey

The world of work is changing as well Just a few of the things we are already seeing or expect to see in the near future are

bull demographic change and growing diversity

bull changes to the state pension age

bull evolving consumer needs including on demand services and gig economy models

bull a workforce that will contain multiple generations from Generation Z to those in their 60s with different needs and expectations

bull changing technologies digital services and automationrobotics

From these shifts we can anticipate

bull changing work environments

bull cross-disciplinary skills changing professional lives

bull a growing desire for a better worklife balance

bull income uncertainty

bull a more commercial income generating approach taken by councils

Direct and indirect workforcesAlthough our primary focus is on the directly-employed workforce due to the LGAlsquos role as an employer representative body it is very important to debate and share any vision for the public service workforce across local places as set out for example in the concept of the 21st Century Public Servant3

We recognise that many workers are engaged on an agency basis as well as through commissioning or located on a shared service basis the aim has to be that good practice developed for the directly employed workforce can be shared and further developed with partners

3 wwwlocalgovukour-supportworkforce-and-hr-supportworkforce-podcasts21st-century-public-servant

6 | Great people for growing places

The 21st Century Public ServantThe concept of the 21st Century Public Servant has been developed over recent years by the University of Birmingham and has influenced a lot of the LGArsquos work Very distinctive language is used based directly on the thinking of people working in local government to describe the quite different roles that are needed now and in the future to work with local people Briefly the new breed of public servant

bull is a lsquomunicipal entrepreneurrsquo undertaking a wide range of roles

bull engages with citizens in a way that expresses their shared humanity and pooled expertise

bull is recruited and rewarded for generic skills as well as technical expertise

bull builds a career which is fluid across sectors and services

bull combines an ethos of publicness with an understanding of commerciality

bull is rethinking public services to enable them to survive an era of lsquoperma-austerityrsquo

bull needs organisations which are fluid and supportive rather than lsquosiloedrsquo and controlling

bull rejects heroic leadership in favour of distributed and collaborative models of leading

bull is rooted in a locality which frames a sense of loyalty and identity

bull reflects on practice and learns from that of others

People and improved productivity There is an urgent need to improve business efficiency and therefore productivity and from our discussions with local leaders it has emerged as a key priority for them There are of course many approaches to improving productivity including technology and restructuring basic tasks to add greater value Undoubtedly reducing employment costs will always be a factor However it will be important to focus on making sure people feel more engaged by addressing issues of wellbeing and personal development as well as making the right investments in technology and processes Generally innovations will only succeed if people are equipped to make use of them

Improved internal communications effective sickness absence management and promotion of a proper worklife balance are the next most important contributors to productivity beyond the development of leadership and management4 Training and development of non-managers proper team-based working and improved recruitment and retention are also regarded as effective in boosting performance and productivity Good relationships with trade unions and robust inclusion and equality policies are also important

4 LGAProductivityPerformanceandImprovement2002

Great people for growing places | 7

Key themes

The LGA has identified five key areas which we believe will shape the development of the local government workforce for the foreseeable future

bull organisational development

bull leadership

bull skills development

bull recruitment and retention

bull pay and rewards

In this section we explore the current picture for these areas and different approaches that are being taken Our initial starting point is to identify actions for the LGA to support the sectorrsquos understanding of these issues and its ability to meet their challenges this will be followed at a later date with guidance and suggested approaches for councils

Organisational development

An approach to organisational change and development that is focused on people their wellbeing and resilience

The funding challenges already discussed together with wide-ranging public sector reform have prompted councils to undertake transformation programmes and in some cases radically shift how they approach delivering services

Councilsrsquo understanding of their role has evolved they are now collaborators and place leaders rather than simply providing services to residents in a two-way transaction Different models now being used include commissioning councils commercial councils and cooperative councils As with any organisation the workforce is at the heart of these changes

Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation However in conversations with councils the LGA regularly hears that OD capacity is lacking in their organisation Councils need to think about improving this capacity so they can take advantage of best practice

As individual councils look to predict the workforce roles or job types and structures they will need in the future depending on the structure and form that those individual councils decide to develop increasingly we are seeing and will continue to see changes in how they employ organise and manage their staff

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 6: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

6 | Great people for growing places

The 21st Century Public ServantThe concept of the 21st Century Public Servant has been developed over recent years by the University of Birmingham and has influenced a lot of the LGArsquos work Very distinctive language is used based directly on the thinking of people working in local government to describe the quite different roles that are needed now and in the future to work with local people Briefly the new breed of public servant

bull is a lsquomunicipal entrepreneurrsquo undertaking a wide range of roles

bull engages with citizens in a way that expresses their shared humanity and pooled expertise

bull is recruited and rewarded for generic skills as well as technical expertise

bull builds a career which is fluid across sectors and services

bull combines an ethos of publicness with an understanding of commerciality

bull is rethinking public services to enable them to survive an era of lsquoperma-austerityrsquo

bull needs organisations which are fluid and supportive rather than lsquosiloedrsquo and controlling

bull rejects heroic leadership in favour of distributed and collaborative models of leading

bull is rooted in a locality which frames a sense of loyalty and identity

bull reflects on practice and learns from that of others

People and improved productivity There is an urgent need to improve business efficiency and therefore productivity and from our discussions with local leaders it has emerged as a key priority for them There are of course many approaches to improving productivity including technology and restructuring basic tasks to add greater value Undoubtedly reducing employment costs will always be a factor However it will be important to focus on making sure people feel more engaged by addressing issues of wellbeing and personal development as well as making the right investments in technology and processes Generally innovations will only succeed if people are equipped to make use of them

Improved internal communications effective sickness absence management and promotion of a proper worklife balance are the next most important contributors to productivity beyond the development of leadership and management4 Training and development of non-managers proper team-based working and improved recruitment and retention are also regarded as effective in boosting performance and productivity Good relationships with trade unions and robust inclusion and equality policies are also important

4 LGAProductivityPerformanceandImprovement2002

Great people for growing places | 7

Key themes

The LGA has identified five key areas which we believe will shape the development of the local government workforce for the foreseeable future

bull organisational development

bull leadership

bull skills development

bull recruitment and retention

bull pay and rewards

In this section we explore the current picture for these areas and different approaches that are being taken Our initial starting point is to identify actions for the LGA to support the sectorrsquos understanding of these issues and its ability to meet their challenges this will be followed at a later date with guidance and suggested approaches for councils

Organisational development

An approach to organisational change and development that is focused on people their wellbeing and resilience

The funding challenges already discussed together with wide-ranging public sector reform have prompted councils to undertake transformation programmes and in some cases radically shift how they approach delivering services

Councilsrsquo understanding of their role has evolved they are now collaborators and place leaders rather than simply providing services to residents in a two-way transaction Different models now being used include commissioning councils commercial councils and cooperative councils As with any organisation the workforce is at the heart of these changes

Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation However in conversations with councils the LGA regularly hears that OD capacity is lacking in their organisation Councils need to think about improving this capacity so they can take advantage of best practice

As individual councils look to predict the workforce roles or job types and structures they will need in the future depending on the structure and form that those individual councils decide to develop increasingly we are seeing and will continue to see changes in how they employ organise and manage their staff

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 7: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 7

Key themes

The LGA has identified five key areas which we believe will shape the development of the local government workforce for the foreseeable future

bull organisational development

bull leadership

bull skills development

bull recruitment and retention

bull pay and rewards

In this section we explore the current picture for these areas and different approaches that are being taken Our initial starting point is to identify actions for the LGA to support the sectorrsquos understanding of these issues and its ability to meet their challenges this will be followed at a later date with guidance and suggested approaches for councils

Organisational development

An approach to organisational change and development that is focused on people their wellbeing and resilience

The funding challenges already discussed together with wide-ranging public sector reform have prompted councils to undertake transformation programmes and in some cases radically shift how they approach delivering services

Councilsrsquo understanding of their role has evolved they are now collaborators and place leaders rather than simply providing services to residents in a two-way transaction Different models now being used include commissioning councils commercial councils and cooperative councils As with any organisation the workforce is at the heart of these changes

Organisational development (OD) is a critical tool to help councils identify how they can respond to forthcoming challenges and then guide them through the process of transformation However in conversations with councils the LGA regularly hears that OD capacity is lacking in their organisation Councils need to think about improving this capacity so they can take advantage of best practice

As individual councils look to predict the workforce roles or job types and structures they will need in the future depending on the structure and form that those individual councils decide to develop increasingly we are seeing and will continue to see changes in how they employ organise and manage their staff

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 8: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

8 | Great people for growing places

OD principles are critical to helping councils go through those changes and ensure that when they are rolled out the workforce is managed in a way that allows them to deliver optimal results for example through the development of self-managed teams

Good quality OD helps to improve employee wellbeing Local government has key responsibilities for the mental health of their local populations5 and this extends to councils as employers

Using OD to address mental health issues in the workforce can reduce prolonged absences and as employers it is important councils develop approaches that help employees deal with problems in a non-stigmatising way

OD will be a key driver for culture change capacity building and performance improvement in councils to build adaptable leaner 21st century organisations that deliver good value services

Incorporating OD into transformation and change programmes can deliver

bull a systematic approach for creating an organisation that is fit for purpose and prepared for the future

bull effective transformation programmes that deliver real and lasting change

bull organisational capacity and adaptability

bull cost effective joined-up systems and improved customer satisfaction

bull empowered leaders

bull a good place for people to work

5 wwwlocalgovuksitesdefaultfilesdocuments226_Being20mindful20of20mental20health_08_revised_webpdf

Actions for the LGA and partners

bull support councils to explore new ways of working that continue to modernise the working culture of local government

bull help councils engage better with residents and partners as well as learn from other organisations thereby attracting and engaging people with the skills and attitude that enable partnerships to flourish

bull help council leaders and HR professionals understand and implement good practice from all sectors to develop high performance learning cultures in their organisations

bull work with government departments to align workforce priorities across sectors and work together to build on existing synergies to overcome challenges

bull provide a range of tools to support councils in ensuring their workforce policies and processes and employment practices robustly manage the skills attitudes and contributions of their workforce

bull work with government departments and unions to promote ways of maintaining the quality of local governmentrsquos workforce in terms of skills qualifications engagement and motivation and staff turnover

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 9: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 9

Leadership

Building visionary ambitious and effective senior leadership with a focus on skills and capacity gaps diversity talent management and effective use of apprenticeships as well as encouraging leadership behaviours at all levels

Managerial leadershipA rapidly changing workforce the rise of digital economies and technological advances together with continued funding pressures on public services pose a whole new set of challenges for 21st century leaders and managers It is estimated 10 per cent of the local government workforce (over 100000 people) are employed in some form of supervisory role or in a management capacity6 The LGA intends to carry out further analysis of the capability and capacity gap across the sector

Management practices and development models need to keep pace with the changes identified With an ageing and declining workforce which is still working towards being representative at all levels local government faces renewed challenges in supporting the next generation of leaders and managers to create the right conditions and culture to succeed

6 wwwlocalgovuklocal-government-workforce-survey-201516

The skills values and behaviors required of leaders and managers now and in the future need to focus on

bull personal resilience and wellbeing

bull systems thinking (taking a holistic approach that focuses on outcomes not process)

bull relational agility (how we engage with other perspectives and networks and use them to understand and solve complex issues)

bull sociopolitical understanding of place

bull commercialisation

bull digitisation of services

bull coaching for results7

Local government provides the key democratic leadership for communities To do this successfully leaders and managers have to translate national policies to a local level working in partnership collaborating and co-designing and investing across organisational boundaries to deliver local results and priorities within tight financial constraints Local government leadership is uniquely placed and indeed tasked with making this agenda a reality The sector must ensure that there is the leadership and management talent to do this

Working across organisational boundaries in flatter structures with fewer resources has prompted the development of lsquogeneralistrsquo leadership roles supported by technical specialists to focus on delivery Further development needs a cultural shift towards more self-managed teams and a more empowered and flexible frontline workforce moving away from hierarchical procedure and working towards decision-making that is as close to the customer as possible

7 wwwsolaceorgukknowledgereports_guideskey-leadership-actions-for-innovation-final-report

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 10: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

10 | Great people for growing places

The focus has to be on driving productivity and increasing efficiency in a more commercial environment to deliver better services for the community

The research carried out by Birmingham University in partnership with Birmingham City Council in 20128 established a blue print ndash looking at the skills values and identities of the future public service workforce 21st Century Public Servant research findings provide a helpful framework to assess needs and build talent for the future9

There has been growing focus on how to create the future leaders and managers of local government including ensuring the right talent management is in place Councils have

bull recognised the need to ensure they have the right talent lsquopipelinersquo

bull reduced their reliance on external recruitment as the main way to solve their management capacity problems

bull ensured they use values and behaviours-based recruitment practices to bridge their skills and knowledge gap rather than relying on length of service or experience as a measure of success

As a result councils have developed in-house learning and development approaches to ensure that they have well trained and competent managers with good talent planning in place

The sector needs to ensure that it draws leadership talent from as diverse a pool as it can otherwise it risks failing to represent local communities and missing out on the best people

8 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutside theBoxthecouncilworkforceofTomorrowrsquoNLGN

9 wwwbirminghamacukschoolspublic-service-academynews201421st-century-public-servantaspx

While there has already been some research into barriers for women in local government10 this has focused particularly on elected councillors we intend to do further work that focuses on the female and black Asian and minority ethnic (BAME) workforce to understand in more detail what the barriers to progress are as well as draw on best practice from across other sectors We also need to monitor the situation through rigorous regular research

Leadership at all levelsAs part of their approach to developing skills and capacity across the whole workforce employers need to ensure that staff at all levels can develop and demonstrate the necessary qualities of leadership

The role of apprenticeships The Governmentrsquos apprenticeship policy in 2017 provides a significant opportunity for growth in leadership and management training and talent management Putting employers at the helm of shaping vocational pathways in their sector through a levy means that sectors like local government have a guaranteed level of potential funding for the first time Notwithstanding specific barriers and challenges within the new system it will result in an estimated pound207 million per year being invested in the levy across councils in England so represents one of the biggest opportunities in development terms in decades11

Leadership and management development can benefit from an approach based on apprenticeships and many organisations including councils are shifting their management recruitment and development programmes to reflect the new apprenticeship system

10 wwwfawcettsocietyorgukdoes-local-government-work-for-women-final-report-of-the-local-government-commission

11 httpresearchbriefingsfilesparliamentukdocumentsSN03052SN03052pdf

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 11: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 11

Working across the public sector leadership cohort in this way will help to align existing development programmes saving further money and creating greater cohesion between local government and its partners Coming together to shape this new way of thinking about apprenticeships ndash which now means anyone who requires upskilling or new skills ndash gives local public service employers a real chance to widen access to and increase capability in leadership and management more than ever before

Actions for the LGA and partners

bull continue to offer a cohesive and joined-up solution on leadership and managerial development so that councils are best placed to choose effective development solutions

bull work with others to share practice across the public sector on talent management and leadership development approaches

bull assist councils using new and existing apprenticeship standards in leadership and management to maximise the return on investment of the levy

bull commission research to improve understanding about the barriers to women and people from BAME backgrounds progressing through management

bull provide thought leadership on potential solutions to support councils to re-establish leadership and managerial pathways for employees and develop effective talent management strategies so that internal pipelines are better managed and properly balanced with external recruitment

bull provide research into leadership and management practices across public sector to evidence and help shape the above

Skills development

An approach to skills development that is truly innovative and focused on combining organisational and individual needs

Despite many challenges councils have consistently prioritised learning and development to ensure the needs of their service users customers and clients are met Councils have ensured also that statutory training was maintained

The financial challenge meant that many councils had to focus skills development spending on statutory training only and other forms of development like continuing professional development were stopped Councils have however identified key areas where skills development is required and invested in the development of the workforce on an issue-by-issue basis This is seen when there is specific need to lsquogrowrsquo the existing workforce into skill shortage areas or when new technology or a new business need is identified

Over the past twenty years the LGA Workforce Survey and previous surveys have shown that councils have remained fairly consistent in the skills gaps they have identified

There have been some marginal changes due to shifts in workforce practices and as a result of challenges in particular to increase productivity

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 12: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

12 | Great people for growing places

In the most recent survey in 201612 the generic skills gap identified commercial skills (or how staff can be more innovative efficient and commercially focused in their jobservice) and digital skills (use of digital solutionsservicestechnologies) as top priorities across local government along with managers ability to manage change and manage performance

Occupational skill shortages continue to be seen in the professional areas of local government such as education childrenrsquos and adult social work and the regulatory services such as town planning as well as corporate areas such IT and finance

By making the most of skills to address the challenge of lsquodoing more for lessrsquo councils are able to offer enhanced roles creating better job fulfillment aid retention and reduce turnover Any skills investment strategy should focus on both capability and capacity

As referenced above the biggest opportunity for skills development is the advent of the Governmentrsquos apprenticeship policy in 2017 The apprenticeship challenge and opportunity for local government involves being agile and flexible enough to be able to work in partnership with others locally regionally and nationally to assess development needs identify the right apprenticeship standards and find the right training delivery partner to succeed

Councils are identifying skills development and skills capacity as a key part of their apprenticeship strategy

12 wwwlocalgovuksitesdefaultfilesdocumentslocal-government-workforc-98apdf

By working across organisational boundaries with health and social care partners skills development can be rationalised and afforded through the apprenticeship levy system

Frontline staff development access to the professions and higher skill levels can benefit the most from the apprenticeship levy Areas such as adultrsquos and childrenrsquos social work regulatory professions and any graduate entry profession can all benefit in the long term

It is also important to do more work in understanding the reality of digital service transformation and the skills gap related to that The LGA will continue to examine this area

Actions for the LGA and partners

bull continue to share innovative approaches in design development and evaluation of skills programmes

bull continue to support councils in maximising the return on investment of the apprenticeship levy

bull work with partners to develop coordinated approaches to workforce issues in social care (including outsourced provision)

bull continue to work with national health organisations on workforce issues in health and care integration

bull support regional and national approaches to skills development practice particular in developing apprenticeship pathways and graduate apprenticeship schemes including converting our National Graduate Development Programme (NGDP) to an apprenticeship programme by 2018

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 13: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 13

Recruitment and retention

Taking action to recruit and retain the right workforce address key future occupational skill shortages promote jobs and careers identify develop and motivate talent and address diversity issues

Perhaps the most important challenge in local government at the moment is the clear recruitment and retention difficulties in a variety of professional and specialist roles in all types of council with the most pressing issues in social work Data shows that 71 per cent of councils experienced recruitment and retention difficulties in 201516 compared with 52 per cent in 20091013 which clearly demonstrates the growing need for action

The LGA will be talking to the sector about how to improve recruitment including through the potential expansion of the lsquoReturn to Social Workrsquo campaign and similar campaigns in other problem occupations Regional recruitment and retention programmes are helping to attract experienced social workers to return to the profession as well as new entrants Councils should therefore look to strengthen regional partnerships and where appropriate sign up to the Return to Social Work campaign

There are increasing problems in planning and building control also where competitive well-paid careers in the private sector are available Councils will need to examine the incentives and career opportunities as well as flexible working and quality of job design offered to these and other specialists and work with the LGA to co-design and co-create regional solutions

13 wwwlocalgovuksitesdefaultfilesdocumentsWorkforce20Survey202015-1620report20final2020171216pdf

The development of the so-called gig economy highlighted by the recent Taylor report14 is an important factor in general recruitment Many people in the workforce value the ability to work flexibly without full-time ties but at the same time councils need to be able to retain people with scarce skills balancing supply and demand in these circumstances will become increasingly tricky The LGA continues to work with Timewise to develop a programme around flexible working and flexible hiring in order to recruit and retain talent15

Recruitment and retention strategies are most successful when frontline workers are involved in their development and delivery and this is an area which councils can develop to improve performance

It is important to think about how a progressive employer can encourage support and nurture employees so that they feel engaged and motivated to do their best work People have different needs at different stages of their lives and careers For example in many areas the shortage of housing for key workers is an issue to address in encouraging recruitment in other places subsidised public transport may be important The key is to involve people closely in identifying their needs find realistic ways to address them and create a frame of learning opportunities for employees to develop and follow their passion

Tackling these problems will require an evaluation of supply issues in education and training recruitment policies job design career structures rewards and quality of management and leadership All of this requires a proper methodical approach to workforce planning16

14 wwwgovukgovernmentgroupsemployment-practices-in-the-modern-economy

15 wwwlocalgovuktimewise-councils-initiative16 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-

workforc-7fbpdf

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 14: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

14 | Great people for growing places

A focus on employee wellbeing resilience and inclusion will also be important to existing and potential employees Adopting recruitment and retention strategies which help to encourage people from all walks of life to work and progress in councils will in turn make a real difference to the residents they support

Actions for the LGA and partners

bull encourage the development of a major national recruitment campaign in social work and to take forward the next phase of the Return to Social Work programme as well as other returner schemes

bull enhance approaches to recruitment in other key specialisms such as planning and building control

bull explore returner and apprenticeship programmes in areas such as IT and legal services

Pay and rewards

Implementing approaches to rewarding the workforce that truly motivate and help people throughout their careers and address productivity while helping to manage employment costs

The LGA Workforce Survey for 201516 shows that seven out of 10 councils use annual increments as the system of individual pay progression for the majority of staff17

This figure has hardly changed since 2009 suggesting that most councils do not regard the potential extra costs and equal pay risks of more complex reward systems as being effective in terms of driving productivity18 or that they do not have the skills and capacity to introduce and manage systems For many councils therefore the focus at least at first needs to be on performance management as well as career development and other non-monetary rewards to ensure they are getting the best value from their staff Exploration of more complex systems may come later

The development of modern reward systems is of course closely linked to successful recruitment and retention policies It is clear from the Outside the Box report19 that existing employment benefits including current leave training and career development are not having a very significant impact on motivation Turnover rates have increased so these issues will need to be examined as part of a critical appraisal of the overall reward package

17 wwwlocalgovuksitesdefaultfilesdocumentsthree-dimensions-workforc-7fbpdf

18 wwwlocalgovuksitesdefaultfilesdocumentsresearch-report-pay-progr-827pdf

19 lsquoTheLeadershipampManagementtalentpipelinersquoILMlsquoOutsidetheBoxthecouncilworkforceofTomorrowrsquoNLGN

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 15: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 15

A key consideration is that employees want to be provided with good help and support throughout their working lives Councils should look at their whole rewards and benefits package from the major items like the pension entitlement to smaller offers such as retail vouchers as part of an effort to reward people in targeted way that can help them feel more valued

One major development in a number of councils is to offer access to credit union facilities to help with housing costs this growing initiative is worth exploring

A number of councils have begun the development of workplace charters to provide clarity for employees on what they can expect

In some cases these charters are focused specifically on the lowest paid The LGA will be examining the development of charters with the aim of identifying best practice The charter approach is one way to put into practice a more focused approach to employee wellbeing as part of an overall reward system This can form part of an approach to reducing sickness absence where there are persistent problems The LGA will continue to encourage best practice in approaches to sickness absence across the sector

Dialogue with staff is very important in managing this sort of development Surveys and conversations that help identify the things that make people feel properly rewarded can be very useful Councils should also consider providing total benefit statements as part of a communications effort

Future pay growthThere is now a great deal of discussion about the future growth of public sector pay Careful thought is needed across the sector about how to plan for future pay changes If shortages continue to develop in specialist roles such as planning and building control reward packages may be needed that focus on these professional roles as well as the lowest paid The key will be designing jobs and career paths that provide attractive opportunities20 Employers will also need to refresh their approach to job evaluation21 so that new jobs are properly valued and can attract appropriate rewards

Rewarding new skillsAs has been discussed in the section on skills councils and their partners are consistently concerned about the lack of commercial skills in the workforce As well as a need for skills development there is a need for career structures and opportunities which give proper incentives for people with in-demand skills to come into and remain in the workforce Performance related elements to rewards are often costly and difficult to manage in local government and market supplements can only be a partial solution The key is well-designed jobs and career structures as well as perhaps non-pay benefits and help with personal development Rewarding skills is an issue that needs further exploration and focus

20 wwwlocalgovukour-supportour-improvement-offercare-and-health-improvementintegration-and-better-care-fundbetter-care-fundintegration-resource-libraryworkforce-redesign

21 wwwlocalgovukour-supportworkforce-and-hr-supportjob-evaluation-pay-and-reward

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 16: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

16 | Great people for growing places

Low payThe future trajectory of pay is closely tied to the introduction of the National Living Wage and the target rate of 60 per cent of median earnings by 2020 The National Joint Council (which brings together employers and unions to negotiate national pay and conditions) is leading efforts to introduce a new pay spine by 2020 which is the best way to ensure legal compliance with the National Living Wage

Actions for the LGA and partners

bull explore and encourage good practice in supporting staff through better career planning and supportive reward structures

bull support councils in developing fair and flexible pay structures

bull identify best practice in the development of workplace charters that provide employees with a clear sense of what they have a right to expect from their employer

bull promote best practice in job design and evaluation

bull work with others in promoting local government as an employer of choice through initiatives such as Return to Social Work as well as general promotion of the image of local government

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 17: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 17

Areas for councils to consider

In this document the LGA has set out the current climate and developing challenges for the local government workforce and identified actions for us and our partners to take to help the sector be ready for the future

The LGA will be developing an approach to help councils focus on actions in priority areas over coming months and years and will be coordinating dialogue and shared learning across the sector We will also examine what further research is needed to enhance workforce statistics

In the interim there are a variety of actions that councils can take to assess how ready their workforce is for the future and meet likely challenges

bull revisit and refresh their local workforce strategy working with partners based on the shared visions set out in this document

bull focus on joint workforce planning with partners

bull participate in our discussions to help ensure we are focusing on the right priorities for action as set out in the section on assessment of strategic priorities

bull continue to be alert to external pressures such as the developing legislative framework challenges in the local labour market and the changing demands of resident expectations

bull assess the current profile and opinions of the workforce

bull develop scenarios for resource prioritisation using the five key themes

bull understand share and learn from best practice

Councils also need to think about

bull how best to ensure the indirect workforce in outsourced services is able to fulfil its potential

bull helping local providers and partner organisations in understanding how to engage their workforces and how the five themes can help in this

The next ten years present a unique series of challenges and the sector must work collaboratively to achieve real workforce transformation Together local government and its partners can ensure that they stand ready to meet the challenges of a changing world

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 18: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

18 | Great people for growing places

There are some key national workforce statistics which can to help define where the sector is and can help define the issues for local and regional action For a number of years the LGA has conducted two regular surveys which have provided a snapshot of the workforce the workforce survey22 and the earnings survey23 We also make use of key national statistics such as the quarterly public employment survey

In some cases we have similar data available from 200910 (or close to that date) when the last version of a national workforce strategy was produced We are therefore able to make basic comparisons with the most recent surveys to see what change if any has taken place over the years this is helpful in assessing where the big challenges lie and what has been achieved in the period since 2010 This section looks in some detail at various key statistics including

bull workforce numbers

bull the profile of the workforce in pay bands

bull sickness absence levels

bull labour turnover and vacancies

bull recruitment and retention difficulties

bull training spend and off-the-job provision

bull leadership diversity

bull pay bill

bull pay rates

bull workforce attitudes

22 wwwlocalgovuklocal-government-workforce-survey-20151623 wwwlocalgovuklocal-government-earnings-survey-201415

Continuing researchThe data used in this summary give a useful national picture of the overall character of the workforce It is of course extremely important for councils and their partners to look in detail at what their own statistics tell them about the local workforce and to carry out further research if necessary The LGA will assess the priorities for further national research and look at how this might best be managed

Workforce numbers (ONS quarterly employment survey)Broadly the figures show that

bull the number of people employed reduced by close to a fifth

bull women continue to make up three-quarters of the workforce

bull part-time workers make up over fifty per cent of the people employed

bull temporary and casual employment reduced by a quarter

AnnexWhat do we know about the workforce

The number of people employed reduced by close to a Fifth

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 19: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 19

The table shows the latest data for 2016 the earliest available comparable data (2012) and the percentage change

Q3 2012 Q3 2016 change

Headcount 1903000 1570600 -175

Full-timeequivalent(FTE) 1343300 1123700 -163

Male 459900(241) 379200(241) -175

Female 1443100(759) 1191400(759) -174

Full-time 867400(456) 721400(459) -168

Part-time 1035600(544) 849200(541) -180

Permanent 1644600(864) 1377100(877) -162

Temporarycasual 258400(136) 193500(123) -251

as a percentage of headcount

Source Office for National Statistics quarterly data on local government workforce numbers in England and Wales which includes non-teaching staff in schools

Women continue to make up three-quarters of the workforce

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 20: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

20 | Great people for growing places

Between 2012 and 2016 the basic makeup of the workforce in terms of gender and full and part-time employees has remained pretty constant Some of the reduction in numbers is accounted for by outsourcing and academisation

Workforce ProFIle (LGA Earnings Survey)One of the most important basic characteristics of the workforce is the way in which it is stratified While a discussion on workforce should not be approached in hierarchical terms there needs to be a clear sense of the proportions of staff with different skills and capabilities The charts below show the distribution of staff in broad informal pay bands (defined nationally)

The numbers illustrated in the charts are as follows

bull 330010 staff (equivalent to 108800 full-time employees (FTEs)) earn below pound15000 basic per annum approximately 26 per cent of the total mainstream local government workforce (or 13 per cent of the total FTE workforce)

bull 470540 staff (equivalent to 321100 FTE) earn between pound15000 and pound21000 basic per annum approximately 37 per cent of the total mainstream local government workforce (or 37 per cent of the total FTE workforce)

bull 440060 staff (equivalent to 389600 FTE) earn between pound21000 per annum and pound42050 approximately 34 per cent of the total mainstream local government workforce (or 45 per cent of the total FTE workforce)

bull 48360 staff (equivalent to 43060 FTE) earn over pound42050 approximately 5 per cent of the total mainstream local government workforce (or 5 per cent of the total FTE workforce)

Local government provides a huge range of services reflected in the around 800 distinct occupations in the sector There is a complex picture with large numbers of employees in lower-skilled and unskilled jobs as well as a significant number of medium to higher-skilled jobs quite different approaches are needed for each group and any strategy must reflect this

13 lt15K

37 15-21K

45 21-42K

5 gt42K

26 lt15K

37 15-21K

34 21-42K

5 gt42K

of workforce in pay bands (headcount)

of workforce in pay bands (FTE)

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 21: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 21

Nevertheless it can be seen for example that it is important to get unskilled staff involved in proper career development and to enhance the skills and capabilities of those with low-medium skill sets if people at all levels are to fulfil their potential

This directly links with one of the key objectives of Matthew Taylorrsquos 2017 report24 on modern working practices which argued that all staff including the lower paid should have the opportunity to progress

One area of progress for local government however is equal pay The LGA Earnings Survey shows that the local government gender pay gap (based on full-time median basic pay) was zero in 201415 It is important to keep monitoring this indicator especially with statutory reporting requirements now in place

Sickness absence (LGA workforce survey)On average 49 per cent of days were lost due to sickness 88 days per FTE employee in 201516

The earliest available comparable figures are for 201112 when on average 42 per cent of days were lost 84 days per FTE employee This suggests that the situation remains fairly constant The most common cause of sickness absence in 201516 was lsquostress depression anxiety mental health and fatiguersquo (223 per cent of days lost)

24 wwwthersaorgdiscoverpublications-and-articlesmatthew-taylor-blog201707the-taylor-reviewgclid=EAIaIQobChMIz7qasICv1gIVhbztCh3xmAAPEAAYASAAEgL4o_D_BwE

Labour turnover and vacancies (LGA workforce survey)There was a median average labour turnover rate of 132 per cent and a median average vacancy rate of 54 per cent in 201516

Comparable figures are available for 200910 which show a turnover rate of 10 percent and a vacancy rate of 8 per cent

There may be a number of reasons for a change in turnover rates and this rise needs to be looked at in more detail to see whether it is indicating a problem or reflects in-year redundancies for example employers could make more use of exit interviews or find ways to improve the information gathered through them

Recruitment and retention difficulties (LGA workforce survey)71 per cent of councils said that they were experiencing recruitment and retention difficulties in 201516 compared with 52 per cent in 200910

This change probably masks peaks and troughs over recent years during which many councils have had temporary recruitment freezes Long-term recruitment and retention difficulties mean that many key skills may be lacking in organisations

The main challenges have historically been in childrenrsquos social work and this continues 74 per cent of councils have difficulties in 201516 and 72 per cent reported difficulties in 200910 recruiting in this area

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 22: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

22 | Great people for growing places

55 per cent of shire districts especially report recent difficulties for planning officers so it can be argued that some longstanding and some fairly new issues combine to demonstrate that much more work is needed on stable long-term recruitment and retention policies

Apprenticeships (LGA workforce survey)In 201516 there was a median of 11 apprentices 10 work experience placements and one graduate placement per council

In 2009 the average number of apprentices was 10 so the intervening years have not brought much net change as yet

Training spend per head and level of off-the-job training (LGA workforce survey)The average spend per head on training in 200809 was pound273 in 201516 it was pound159 which is a considerable real-term cut

The figure represents a potential spend of pound175 million in 201516

On average 095 days were spent on off-the-job training per employee a potential of 1 million training days across local government in 201516

Leadership diversity (LGA workforce survey)In 201516 on average 454 per cent of the top five per cent of earners were women 42 per cent were from BAME groups and 31 per cent had a disability

In 2009 the figures showed an average of 40 per cent of the top five per cent of earners in councils were women an average of 3 per cent had a disability and an average of 2 per cent came from BAME groups a marginal improvement

By way of a quick comparison with the general population based on 2011 census 21 per cent of the working age population identified with an ethnic group other than white British

Pay bill (LGA earnings survey)The total gross pay bill in England and Wales which comprises the basic pay bill plus all additional pay elements (which for example includes overtime shift premium pay bonus and incentive payments) was pound222 billion in 201415

Pay rates (LGA earnings survey)The median FTE gross pay rate for full-time staff was pound25520 and for part-time staff was pound17280 in 201415

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 23: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Great people for growing places | 23

Workforce attitudesTo improve engagement and performance we need to understand the views and attitudes of the workforce All councils need to ensure that they make strong efforts to have a dialogue with the workforce and tools are available to help them do this

Across the workforce as a whole in 2016 the LGA working with the PPMA commissioned the New Local Government Network (NLGN) to carry out a major piece of research called Outside the Box25

One of the questions asked of a sample of employees in the report was about their motivations for working in local government

The answers are shown in the chart below We can see not just the continued importance of ethos worklife balance pensions and even job security (despite recent redundancy programmes) but also the lower importance attached to terms and conditions and career development

It is arguable that this is because expectations are low to begin with and there is therefore a challenge to improve this picture and to deliver long term sustainability both in the current workforce and in attracting the workforce of the future

25 wwwlocalgovuksitesdefaultfilesdocumentsoutside-box-ab0pdf

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018

Page 24: Great people for growing places - aspirehrbp.org.ukaspirehrbp.org.uk/wp-content/uploads/sites/51/2019/05/Great-peopl… · the local government workforce. 2 | Great people for growing

Local Government Association 18 Smith Square London SW1P 3HZ

Telephone 020 7664 3000 Fax 020 7664 3030 Email infolocalgovuk wwwlocalgovuk

For a copy in Braille larger print or audio please contact us on 020 7664 3000 We consider requests on an individual basis REF 1186

copy Local Government Association February 2018