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Hewitson Walker Public Sector Division

Hewitson Walker Public Sector Division
 
Public Sector Staffing: Market Review
 
Hewitson Walker recently took a poll to assess public sector employer opinion on the government spending review and asked respondents to think about the impact on their staffing levels and the effect this would have on their recruitment activity in 2011.
 
Key Points
 
57% of public sector employers support the government in making immediate savings in spending.
 
29% feel it is too early to make cuts 57% feel that in the longer term the government must find alternate ways of reducing the deficit.
 
86% believe savings could be made by reducing the number of external consultants in addition 57% felt that procurement and executive posts could be an area of saving.
 
71% are expecting up to a ten percent reduction in departmental spending this year.
 
43% believe it will not be necessary to make permanent staff redundancies and would recruit further permanent staff in 2011.
 
86% said that having the flexibility to approach various agencies and agree rates on an ad hoc basis gives them the best value for money in terms of service and spend.
 
14% suggested it would be necessary to drive cost efficiencies through a review or the introduction of a preferred suppliers list.
Unavoidable Cuts?
 
57% of respondents saw the spending cuts as unavoidable and agreed with plans to make 6 billion of immediate savings in government spending throughout this year. 29% opposed the spending review and believe it is too early to make cuts as it would risk putting the country back into recession.
 
Although our survey suggests that the public sector has accepted the argument that cuts must be made this year. 57% felt that in the longer term the government must find alternate ways of reducing the deficit such as higher tax increases. Long term reductions in public spending it is felt would lead to a reduction in services and there is strong feeling that our public services are too high a price to pay in order to reduce the deficit.
 
71% of respondents are expecting up to a ten percent reduction in departmental spending in 2011, however 43% believe it will not be necessary to make any permanent staff redundancies this year.
Thinking of areas of departmental spending, our respondents believe some departments should be subject to larger cuts than other departments:

Areas of Departmental Spending

%

Front Line Services

0

Finance

14%

HR

14%

Procurement

57%

Executive

57%

External Consultants

86%
 
Recruitment Activity
 
Indications are that although the public sector jobs market has been affected only 29% of respondents are planning to introduce a recruitment freeze on vacancies in 2011. In contrast 43% would recruit further permanent staff should the workload be sufficient.
 
Thinking about the way public sector organisations conduct future recruitment activity, 86% said they like having the flexibility to approach various agencies and agree rates on an ad hoc basis as this gives them the best value for money in terms of service and spend. No respondents are looking to pursue an RPO/ Managed Recruitment model, possibly as staffing levels would not be sufficient to warrant a programme of this scale in the current year. Although 14% suggested it would be necessary to drive cost efficiencies through a review or the introduction of a preferred suppliers list.
 
We polled public sector employees within the following sectors: NHS, Local & Central Government, Housing Associations, Educational Bodies & the Not-For-Profit Sector. Responses where taken online between 1st to 28th February 2011.

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