Performance measurement as a tool to improve the effectiveness of labour inspection A Handbook for Labour Inspectorates
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1 Performance measurement as a tool to improve the effectiveness of labour inspection A Handbook for Labour Inspectorates Helle Tosine Nils-Petter Wedege
2 Setting the context for the presentation The IALI ACTION PLAN FOR THE FUTURE: AND BEYOND an important objective: to provide a framework for measuring performance and comparative benchmarking. The purpose of this presentation is to: explain why performance measurement is important 2
3 A few definitions Efficiency is expressed as input compared to output Effectiveness is expressed as the impact of a labour inspectorate s activities; Performance relates to the progress measured against pre-defined goals or objectives. It is used as a synonymous with Effectiveness 3
4 Why is performance measurement important? Activity reporting is not enough Is the work of labour inspectorates aimed in the right direction? Is there an improvement in the lives of workers? To what extent does OSH improve as a result of Labour inspectorate s activities? Without monitoring and measuring the effectiveness it is not possible to answer these 4
5 Examples of Intended Impacts of LI Outcomes for Workers Participation Increased motivation Ensuring decent work Outcomes for enterprises Cooperative workforce Increased productivity Reduced injuries and illnesses Societal outcomes Better products and services Sustainable growth and development Increased standard of living 5
6 Is the impact of LI on these achievements measurable? Outcome for workers: Can the extent to which OSH and the workers condition improve as a result of a Labour Inspectorate s (LI) activities be measured? Outcome for enterprises: Can LI activities be shown to benefit the enterprise? Outcome for society: Will this in the end increase the standard of 6
7 Measurement of OSH improvement is complex Difficult to define what to measure Difficult to connect an OSH result to a specific activity Long time lag between intervention and results Access to appropriate data can be difficult 7
8 The Handbook provides a practical approach on how to measure the OSH function... The Handbook: proposes how to use a model for measuring LI s effectiveness includes definitions, explains concepts of measurement includes real-life case studies from 10 IALI countries The Handbook is not: a tool for auditing labour inspectorates a tool for managing staff performance 8
9 Different international measuring tools Method Scoreboard (Nordic/EU) ILO 2008, LI Audit - a Methodology SLIC 2004, Common Principles. Purpose To provide an overview of the development of the national LI systems To assess if the national OSH systems is adequate and functioning. To provide a basis for evaluation of national inspection systems. 9
10 The six-step model for measuring LI s performance: Stage I Stage II Stage III Stage IV Analyse the OSH situation Define goals to be achieved Inputs. Allocate Resources Undertake Activities Effectiveness Efficiency Feedback Measure Outcomes Measure Outputs Stage VI Stage V 10
11 How to use the Handbook: Applying the six-step model... Stage I Analyse the OSH situation Define the problem(s): What issue does the labour inspectorate need to address? What has to change to improve OSH? Establish a baseline: What data will serve as a starting point for measurement and comparison? 11
12 Applying the model... Stage I Analyse the OSH situation Stage II Define goals to be achieved Develop a clear, analytical understanding of goals Question that should be asked: Who do you want to reach? What results do you want? Is the goal relevant to the mission of LI? Is the goal measurable? Can the outcomes be measured in a reasonable timeframe? Goal statements shouldbe: Specific and sensitive to changes Quantitatively Measureable Parameters vs Indicators 12
13 Quantitative Parameters Quantitative parameters is measured in numerical terms: No. of Workplace accidents No. of Work-related illnesses Absenteeism Noise level Exposure to chemicals 13
14 Quantitative Indicators Quantitative indicators are signs of change: Application of OSH-MS Rates of sick leave Level of OSH knowledge OSH attitudes 14
15 Applying the model... Stage I Analyse the OSH situation Stage II Define goals to be achieved Stage III Allocate Resources LI needs to allocate resources or inputs, for example: staff, budget and equipment This step can be done together with Stage IV 15
16 Applying the model... Stage I Analyse the OSH situation Stage II Define goals to be achieved Stage III Allocate Resources Stage IV Undertake Activities Activities must be developed to fulfill the LI s obligations & to achieve its goals Typical examples of activities for a labour inspectorate include: Conducting inspections Building partnerships Running surveillance programs 16
17 Applying the model... Stage I Stage II Stage III Stage IV Analyse the OSH situation Define goals to be achieved Allocate Resources Undertake Activities Stage V Measure Outputs Outputs are the amount of activities undertaken by the LI Examples: Number of inspections annually Number of campaigns Number of charges laid Number of prosecutions Number of publications issued 17
18 Applying the model... Stage I Stage II Stage III Stage IV The OSH situation has been analysed and a baseline established Goals and objectives for the LI have been established Resources have been assigned (inspectors, budget) Activities and strategies for the LI have been developed After completing Stage V, the LI can : assess whether this process has been efficient, whether resources have been used efficiently However, after completing Stage V, the LI cannot: state whether the OSH goals have been achieved Efficiency The number of LI activities are recorded (output) Stage V 18
19 Applying the model... Stage I Stage II Stage III Stage IV Analyse the OSH situation Define goals to be achieved Inputs. Allocate Resources Undertake Activities Effectiveness Measure Outcomes Measure Outputs Stage VI Stage V Stage VI: Measuring Outcome: Outcome is the result of the labour inspectorate s effort against the goal -- it expresses the effectiveness of the labour inspectorate. To measure Outcome means to reiterate the OSH analyses 19 19
20 Using the model, a summary... Stage I Stage II Stage III Stage IV Analyse OSH situation Define goals to be achieved Inputs Allocate Resources Undertake Activities The six-step model provides a logical chain of connections to show what the LI and its programs are trying to accomplish what we invest, what we do, what are the results and what is the value added Effectiveness Measure Outcomes Stage VI Efficiency Measure Outputs Stage V Helle Tosine Nils-P. Wedege 20
21 Using the Handbook, a summary... The Handbook Is a tool for LI to refine or improve its effectiveness LI will see progress towards reducing injuries in workplaces directly related to their activities The LI management can see where to put their resources to increase these positive results The public sees good use of their tax money The 10 case studies illustrate many of the concepts explained in the Handbook. The methods used depend on the OSH situation, culture and available statistics 21
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