Archives for May 14th, 2004

WARNING ON STAFF RECRUITMENT AND RETENTION

Headlines, PublicNet: 14 May, 2004

Wage inflation and a buoyant economy will impact severely on an already tight labour market, leading to increasing pressures on organizations. The warning comes from the Chartered Institute of Personnel and Development and is based on a survey of public and private sectors organizations. These conclusions are supported by the latest labour market statistics for unemployment, vacancies and average earnings which show average earnings, including bonuses, are now increasing at an annual rate of 5.2%.Findings from the Recruitment and Retention survey show that 36.5% of people management professionals responding to the survey indicated that they had increased starting salaries or benefits packages during 2003 in direct response to recruitment difficulties – compared to 23% in the previous year. Skills shortages are fuelling wage inflation and 32.4% of employers believe this issue is of greatest concern. The survey also found that almost a third of employers had increased pay during 2003 specifically to try and hang on to existing staff, as competition to recruit makes retention a greater problem.

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NEW CHAIRMAN TO LEAD MERGER OF REVENUE DEPARTMENTS

Headlines, PublicNet: 14 May, 2004

David Varney, outgoing chairman of MMO2 and chairman of Business in the Community, will become the executive chairman of the new department to be known as Her Majesty’s Revenue and Customs. His appointment follows an open recruitment process The merger of the Inland Revenue and Customs and Excise was announced by Chancellor Gordon Brown in his last Budget Statement. The new department will employ about one fifth of the civil service.Mr Varney, 58, will step down as chairman of MM02, the leading mobile telecommunications company, after its AGM on 28 July. He has been chairman of the company since its creation in May 2001. . Prior to MM02, he was Chief Executive Officer of BG Group (formerly British Gas) from 1996 to 2000. Before joining BG Group, he held a variety of senior roles in Shell including the position of Managing Director of AB Svenska Shell in Sweden and Director of Shell International with responsibility for Shell’s Oil Products business in Europe.

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REFORMING PERFORMANCE TARGETS: LESSONS FROM EXECUTIVE AGENCIES

Features, PublicNet: 14 May, 2004

By Dr Oliver James Reproduced by permission of the Public Management and Policy Association. The undesirable effects of performance targets on public services and the failure of many organizations to measure what is really important are areas of concern. At the extreme this has led to a call to abolish centrally set targets. The author describes the difficulties of target setting and the limitations on their use in relation to Executive Agencies. He also explores the way thinking about targets is changing and the direction it is moving.

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