The UK Experience by Malcolm Morley *
The recruitment of staff has become a major issue in the English public sector. Central Government is investing record amounts of money in the National Health Service, in education, in the police and in Local Government. This investment, however, is being inhibited by the inability of public sector organisations to recruit suitably qualified and experienced staff in some areas of the country.
There are a number of causes of this problem. The first is that the public service is not seen as attractive, particularly when the economy is buoyant. The second is that the demands in the public sector are not seen to be reflected in the rewards on offer. The third is the growing professional skills shortage, creating great competition for those with appropriate skills. The fourth is the cost of housing in certain parts of the country.
These problems are most acute in the south east of England, where house prices are very high. This applies to both urban and rural areas. A two bedroom Victorian terrace house in Henley-on-Thames, for example, is around £200,000. An average salary of circa £25,000 doesn’t provide the ability to buy even the most modest of houses!
A number of schemes have been developed to try to address this issue. In London higher salaries and a special allowance have long been in place. These have proved to be inadequate compared to the increase in house prices. They have also led to Councils around London increasing salaries and introducing such allowances to try to prevent their existing staff from commuting into London. This has led to further pressure on house prices.
The most recent initiative is the introduction of the Starter Home Initiative (SHI) for Key Workers. Categories of public sector workers including teachers, fire fighters, police and health workers have been prioritised to receive government help with buying a house. The SHI is helping around 10,000 Key Workers to buy homes in urban and rural areas where high prices would otherwise prevent them from living in or near to the communities they serve. The SHI is administered in partnership with Councils and operated through registered social landlords.
Central Government has made £250 million available over the years 2001 to 2004 for the SHI. Equity loans, interest free loans and shared ownership opportunities have been made available to help with house purchase for Key Worker first time buyers. All applicants have to demonstrate that they cannot afford to buy a home without SHI assistance and that they would be able to sustain home ownership. Conditions are attached should a Key Worker change career.
The recruitment difficulties in the English public sector have shone a bright light on Human Resource Management (HRM) and given it an opportunity to make a real contribution to the future success and performance of Councils. HRM has moved from being a discrete activity associated with the administration of personnel issues to being a key strategic issue for Councils.
Recruitment is but one side of the coin. Retention is yet another matter in which HRM has an equally important role to play.
* Malcolm Morley is a Strategic Director of South Oxfordshire District Council. This is one of a series of articles he is writing covering trends in the United Kingdom. He may be contacted by email at Malcolm.Morley @southoxon.gov.uk
The views expressed in this article are not necessarily those of his employer.
