Advantages and Disadvantages of Staffing Models

Transcription

1 Advantages and Disadvantages of Staffing Models The following table sets out a comparison of the advantages and disadvantages of a model and a secondment model (following a opt out by the staff affected). These are the advantages/disadvantages to the City Council itself. It is acknowledged that there are considerable impacts and considerations for staff in considering the decision. However, the City Council must act in the best interests of the City Council and find an appropriate balance between staff and community considerations. Benefits: Cost Benefits 1. Employer liability transferred to the Partner. 2. Redundancy risk borne by the Partner. 3. Risk associated with pay increases over and above agreed indexation arrangements transferred to the Partner Pace of Change 1. Changes may be easier for the partner to implement as they will have greater freedom of approach. 2. The Partner will feel more confident in its ability to manage SECONDMENT (AFTER OPT OUT) Benefits: Cost Benefits 1. In their bids some bidders have priced the secondment option more cheaply than the option. This price differential appears to be because the employment risks and liabilities remain with the Council i.e. SSP employees remain on SCC terms & conditions 2. Employment and staff relations may be perceived to be easier if a secondment model is adopted. This may be illusory as in practice SCC may not be in the best position to affect relations between staff and Partner. Pace of Change 1. It may be an easier employment model to implement in respect of employment relations (but see Disadvantages). 2. Staff retention may be encouraged through secondment. 11 SSP Report - Appendix H September 06 - Appendix H Page 1 of 5

2 service delivery risk in a environment as it will employ the staff. SECONDMENT (AFTER OPT OUT) 3. The Partner will have responsibility for training, recruitment to replace staff who leave etc so they bear clear contractual responsibility for any deficit in service levels. Certainty of Impact 1. Potential staffing costs to SCC are known (i.e. no potential redundancy / redeployment costs from SSP). Certainty of Impact Staff are familiar with SCC s practices for proposing any changes to terms and conditions. 2. Defined staff group transfers under the same employment arrangement providing clarity on employer / employee relationship and management responsibilities at same point in time. Secondment leaves considerable scope for dispute as to where responsibility for deficits in service lie, e.g. SCC s delay in recruitment/slow disciplinary etc could be cited by Partner to avoid deductions or prolong the Dispute Resolution process. offers greater, though not complete, clarity. 3. Clarity of employment relations and ownership responsibilities facilitates a smaller client side on HR advisory and support issues Exit Responsibility for provision of information about the workforce on exit and liability for any omissions in such information would Exit Potentially easier staff relations and less anxiety about potential transfer. 11 SSP Report - Appendix H September 06 - Appendix H Page 2 of 5

3 fall on the Partner. SECONDMENT (AFTER OPT OUT) All Intellectual Property Rights (IPR) and knowledge remains with the Council. Risks/Disadvantages: Risks/Disadvantages: 1. It is possible there will be more Union and staff resistance to this model which may affect employment relations. 2. Potentially more difficulty in retaining staff during the transition period (subsequently bidders current contracts have noted increased attraction levels). 3. IPR may belong to the Partner not SCC, although this risk could be mitigated by the Partner granting SCC licences to use IPR, for example on exit. 1. SCC retain employment liability for the staff and are therefore ultimately responsible for issues such as disciplinary action, terminating employment, redundancy costs, re-deployment costs. SCC may be required to recruit to cover vacancies/maternity leave etc. 2. There will be a difference in identity between the body which employs a large number of the staff (i.e. SCC) and the body which is responsible for managing those staff (i.e. the Partner). This raises significant practical problems such as confusion over management responsibilities and no clear accountability. 3. Changes may need to be implemented more slowly as must be carried out in accordance with SCC Standing Orders, scheme of delegations etc. (SCC policies would apply anyway under but under secondment the present processes would apply). 4. The Bidder is likely to seek indemnities and other contractual protections from SCC during the negotiations so that it obtains appropriate relief if it is unable to achieve service standards due to staff action/default i.e. industrial 11 SSP Report - Appendix H September 06 - Appendix H Page 3 of 5

4 SECONDMENT (AFTER OPT OUT) action, persistent poor performance, absence, training deficit, delays in recruitment etc. The Bidder is likely to argue that as it is not the employer it is unable to manage these risks. By contrast under a model, this risk would be passed to the Partner. 5. Individuals could seek to terminate the secondment arrangement and return to SCC. As their substantive posts would no longer exist within SCC (but form part of the services being performed by the Partner) unless the individual could be re-deployed they would generally face redundancy. As stated above SCC would bear such redundancy risks and costs and could not predict or control when such situations would arise. 6. As SCC remains the employer, it would need to have a significant on-going HR resource and expertise to continue implementing employment termination, grievance, redeployment and other HR policies and procedures. SCC would also need to ensure as employer that its policies and procedures are being properly implemented by the Partner on a day-to-day basis. Any changes in policy which SCC wanted to introduce generally might have to be agreed with Partner or be introduced via Change Control, with any relevant financial adjustments. Under a model this would not be required as employer liability would be transferred. 7. On any re-let of the contract if SCC does not bring the service back in-house, it is difficult to assess whether 11 SSP Report - Appendix H September 06 - Appendix H Page 4 of 5

5 SECONDMENT (AFTER OPT OUT) potential successors to the Partner would view a seconded workforce as attractive or unattractive. Whereas a d workforce would be the norm in such circumstances and could be viewed as commercially neutral. 11 SSP Report - Appendix H September 06 - Appendix H Page 5 of 5