Fishburn Hedges

24.05.2010

The CBI has today called on public sector employers to learn lessons from the private sector and avoid a “bloodbath in change”. Strong stuff - but a call with real urgency and relevance, given that today could mark the start of a new age of austerity across the sector.

The spectre of spending cuts to tackle the budget deficit loomed large throughout the election campaign. Various rumours have been circulating during in the coalition’s first weeks, but today is the day that the Chancellor will finally announce exactly where the axe will fall. He will, presumably, spell out what doing ‘more for less’ will mean for bodies financed by the public purse. But are those organisations really prepared for it? And how can the bodies that remain, but need to change, do so whilst keeping their people on track? 

I do feel there are some important lessons that public sector employers can learn from the way their private sector counterparts handled employee engagement during the recession. This was characterised, in my view, by a real sense of shared understanding and co-operation between employers and employees: a commitment to work together to help the enterprise weather the storm. It was this sense of shared purpose, a commitment to fight through whatever the circumstances might throw at them, that helped firms introduce and embed changes like shorter working weeks, or more flexible working arrangements. Such steps were introduced as safety vales to release short-term pressure, but could only have been developed and delivered as effectively as they were on the basis of strong, effective engagement between employers and employees.

But to make that step, many leaders had to re-think their approach. They had to open up, to admit they did not have all the answers and to invite employee ideas and suggestions on how to navigate the challenging circumstances. In other words, they had to move from a more traditional, ‘command and control’ style of management to a more engaging, involving approach: steering rather than imposing on their staff. The result was a stronger sense of common purpose and more engaged, committed and energised employees than might otherwise have been the case. I am sure this will help private sector employers accelerate away from recession now the storm clouds have started to part.

So the first challenge awaiting public sector leaders, despite the implications and uncertainties of change, will be to move onto the front foot and engage employees regarding the road ahead. There’s no pretending that it will be easy, but a proactive, engaging approach will give leaders a greater chance of maintaining employee focus and galvanising the required sense of common purpose. They have to recognise the need, and act now, to help avoid the “bloodbath” of which the CBI is warning.

Posted by Paul Sweetman