The public sector touches everyone’s lives; providing a range of essential services, and employing one in five of the UK workforce. In 2010, as the UK emerges from recession and with the public deficit expected to reach £178bn, the public sector as a whole will be challenged to reduce costs while maintaining quality of service.
At a time when public sector managers face considerable challenges, ILM set out to gauge their opinions on key issues. We surveyed 1,554 managers at different levels of seniority from across the public sector.
The research dispels many of the myths about the public sector and its managers, including, crucially, the belief that it has remained untouched by the economic downturn.
Without doubt, the research shows that fallout from the recession has already affected budgets and resourcing levels across the public sector.
Nearly two thirds of the respondents had experienced budget cuts in the past 18 months, and there was widespread concern that further sweeping cuts could only come at the expense of key public services.
The three key challenges managers currently face are high workload (44%), budget constraints (41%) and resourcing constraints (31%). And these are only going to get worse, with three quarters of respondents reporting that their team is working at a high level of efficiency with minimal room for cost reductions.
But looking forward, nine out of ten managers believe that further budget cuts are likely. And, if these cuts are managed poorly, they anticipate staff and customers will suffer.
Over half of managers are concerned that cuts will harm the quality of services they provide, while two thirds expect a drop in staff morale and wellbeing.
The months ahead present a major challenge for public sector managers. They expect renewed pressure as cost cutting impacts on day to day operations, with increased concerns about personal job security, the threat of redundancies and headcount reductions.
This pressure will only intensify the issues around workload, budgets and resources. When we asked respondents to anticipate the challenges of the next 18 months, we saw the same three issues. Concern over budget constraints rose 13% to replace workload (up 5%) as their number one challenge. Resourcing constraints rose by 6% and remained the third most pressing challenge.
But while budgets are under scrutiny and the future outlook is uncertain, it is clear that, on the whole, public sector managers are up for the challenge. Our research shows a committed, experienced and talented cadre of management professionals who are highly motivated to make a difference in their roles.
Job satisfaction is high, with 70% of managers either satisfied or very satisfied at work. Of the two thirds of respondents who had previously worked in the private sector, 61% were more satisfied or much more satisfied in their current role.
This highly positive approach to working in the public sector is put down to working with good colleagues, the value of teamwork, the rewarding nature of the work, and the opportunity to influence change.
To maintain the current high levels of motivation, the research highlights the importance of retaining the many talented managers working in the public sector, enabling those managers to do their job effectively, and, most importantly, maintaining the level and quality of public services.
Talent retention will be a major issue, with over a third of respondents anticipating that they might leave the public sector over the next 12–18 months for a combination of reasons, including the likelihood of redundancy.
Of the relatively few managers (17%) who were dissatisfied in their role, most blamed poor or unsupportive management or leadership, and a lack of understanding of the frontline by senior management.
Almost half of all respondents agreed there was not effective two-way interaction with the senior management team. Over half the managers believed the senior management team did not understand the functions and responsibilities of other teams.
The use of targets is also a hot topic – it is clear from the research that targets are an important tool for managers to use in dealing with the challenges they face. But while there is considerable support for targets, managers need to be empowered to set realistic localised targets for their team, rather than having uniform targets imposed without consultation.
Despite the challenges, the research identified a strong sense of optimism and opportunity. Nearly half the managers had a positive outlook for the next 12–18 months. The majority identified opportunities to improve performance at work, to innovate and introduce new business processes, develop creative solutions, improve teamwork and communication, and improve staff morale and motivation.
To capitalise on this spirit of optimism and opportunity, policymakers and senior managers need to support and empower public sector managers to make decisions that are appropriate to the circumstances. Managers should be empowered to develop innovative responses to budget cuts that improve efficiency, introduce more effective back office services and improve frontline delivery.
One area likely to be hard hit by the pending cuts is training and development budgets. Yet this is an essential tool to support the kind of radical change needed, equipping managers and their teams with the skills to make it happen. At a time when the public sector needs to maintain the highest levels of performance, the provision of ongoing support and development for managers will be critical.
The calibre and commitment of its managers is a major asset for the public sector. If it is to meet the challenges of reforming services and delivering efficiencies without harming the quality of service, it will be essential to ensure they remain engaged and empowered to use this opportunity to innovate.