How public sector HR is coping with public spending cuts

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The impact of public spending cuts will inevitably dominate the public sector HR agenda for 2011. Latest XpertHR Benchmarking research looks in detail at the measures taken by public sector employers to reduce their wage bills in response to austerity measures. 

Subscribers to XpertHR Benchmarking can drill down into the complete benchmarking data from the 2011 survey on cuts in the public sector. The survey is based on data from 92 organisations with a combined workforce of more than 500,000 employees. 

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Managing underperformance in 2011 

The vast majority of public sector organisations surveyed by XpertHR expect to have to make cuts to their wage bill in 2011. 

Voluntary redundancies are main method used to reduce wage bills

For public sector employers, the most common expected course of action to cut the organisational wage bill in 2011 is through voluntary redundancies. The next most common planned actions are cessation of services and compulsory redundancies. 

At public sector organisations surveyed by XpertHR, the median number of employees that left the organisation in 2010 as a result of voluntary redundancy was more than double the median number of those made compulsorily redundant

But employers' expectations as to the median number of voluntary redundancies they anticipate having to make in 2011 and the median number of expected compulsory redundancies are much more evenly matched. 

Morale is a concern for public sector organisations

Public spending cuts are having a direct and negative impact on both employee morale and the public sector industrial relations climate:

It remains to be seen whether or not the public sector industrial relations climate will continue to deteriorate over the coming months. 

You can also access XpertHR's detailed written analysis of the survey findings: Cuts in the public sector: the 2011 survey

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Michael Carty, benchmarking editor

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