Strategic HR in the Netherlands:HR Strategy 2020 for central PA
Herma KuperusBZK/DGOBR/OPR
EUPAN/HRWG Dublin, 5 April 2013
The Dutch case
•Organisation of HR within central public administration (PA)
•Challenge to develop a shared HR strategy 2020
•How we did it: the process
•What came out: the content
•Lessons learned
•How to become a (better) strategic partner
BZK/OPR/HKU/March 20132
Overview
• App. 117.000 employees (civil servants)
• 10 Ministries (excl. Ministry of Defence) with > 40 Agencies
• 1 collective labour agreement (Ministry of Interior coordinates)
• Ministries are responsible for own ICT, HRM & operational management
• Ministry of Interior responsible for interdepartmental coordination and harmonisation, general policies for PA
Central PA in NL
BZK/OPR/HKU/March 2013
Ministers
SG
DG BK
Director
Director
Director
DG OBR
Director OPR
Director IR
Director FHIR
SSC HR
P-Direkt
Logius
DG ABD
Director
Director
Director
DG DG DG
Ministry of the Interior and Kingdom Relations (BZK)
Min 1
DG DG DG
Dir HR
Min 2
DG DG DG
Dir HR
Min 3
DG DG DG
Dir HR
Min 9
DG DG DG
Dir HR
- Minister for Interior and Kingdom relations- Minister for Housing and Central PA (since Nov. 2012)
Organisation of HR
BZK/OPR/HKU/March 2013
5
Innovation- centre
HRM-executive tasks (Hire-to-retire)
Supporting HRM-tasks (Expertise)
HRM-basic administrations Salary payment, holidays, sick leaves, working time (arrangements)
HRM-Strategy, Policy & Advice
Recruitment & Selection
Development & (re) placement
Rewarding
HRM
Mana-gement
Infor-mation
Health
ControlCommu-nication Legal
Labour relation
Contract management
HRMCusto-
mer service
ESSMSS
= SSC HRM/ Expertise Centres (EC O&P) + 3
= SSC HRM/ P-direkt
= HR units of Ministries/Agencies + central PA
Backoffice 1
Backoffice 2
Competence centre
Fron
t offi
ce
HR function
BZK/OPR/HKU/March 2013
• Economic downturn and restructuring; unclear and unsecure future• Increasing general unemployment (7,5 %; 15 % for youth)• Flexible, but dual labour market
• Good performing central PA (OECD and SCP studies)• Continues reform process in central PA since decades• Continues financial cuts reduction of employees in central PA• New cabinet: reform, new cuts and other ambitions until end of 2018/20 (more positions
on lower level, more handicapped employees, more women in high positions)
Challenge:- How to solve current problems and at the same time prevent future ones- How to invest in sustainability, quality and flexibility in times of budget cuts - How to combine short term restrictions with long term needs
6
The challenge
BZK/OPR/HKU/March 2013
7
STRATEGIC HR
Scenarios of external trends
àConsequences fortasks, role and positionof central PA
à
VISION
Organisation & Personnel
Werving, opleiding,doorstroom, flexpool
Policies Actions
Strategic Agenda HR & OrganisationSTRATEGY 2020
IT, BPR In- & external labour market
Existing Current
Needed
ScenariosDynamicsIn/through/out
:Forecasted Gaps
Surplus of people, vacancies
Workforceplanning
Positions Employees
Analysis oflabour market
+ development in NL & EU
VISION
• Ageing• Diversity• Mobility• School leavers• Salary levels• Flexibility
Strategic HR: HR Strategy
BZK/OPR/HKU/March 2013
To do workforce planning (WP)
• Formulated as two year project
• Started end of 2010
• Central project leader/chair
• With HR/WP experts of ministries
• External expert for a common model
• Exchange of experiences
• Ways of doing the work (technical) and putting on the agenda
• Regular meetings over the year
To develop a HR Strategy 2020
• Designed as process of interaction
• Started end of 2011
• Facilitated by programme manager under Director HR central PA
• Together with HR Directors of Ministries and big executive organisations
• Involving Secretaries-General
• With strategic units of ministries
• With HR experts of ministries
• With labour experts, ministry social affairs
• Using external (acad.) experts on theme’s
8
Process
BZK/OPR/HKU/March 2013
How to develop a shared HR strategy 2020?
kick-off meeting Oktober 2011: with HR director (private sector) analysis of external trends forecasting of in- and external labour market trends
Shared vision on general trends and challenges; defining specific theme’s/shifts
5 theme sessions during 6 month (2012):
with internal and external guests specific analysis/research for theme different ways of working during the sessions (has to be inspiring! !)
Shared vision on main directions for future HR policies
9 BZK/OPR/HKU/March 2013
10
Summer 2012 working groups: HR experts of ministries and central PA discussing proposed main direction for HR policies define specific elements/activities for each HR policy area
Support for the vision, HR policies for future and specific topics
Interactive ppt-Presentation of the HR Strategy 2020 (Oktober2012) headlines in 20 slides click system to specific analysis or information on theme’s can be used by all for own ministry or organisation (flexible, combinable)
Shared ‘document’ of all ministries and the ministry for central PA with commitment of SG’s
Consultation within whole central PA using (social) media
Letter from Minister for central PA to Cabinet and Parliament
In between: - meetings with (group of) SG’s for guidance and commitment
- informing the ‘coordinating’ works council for central PABZK/OPR/HKU/March 2013
11
Content: Impression of HR Strategy 2020
Variation
Selection(Specialisation)
Security Freedom
Variation
Selection Specialisation)
Security Freedom
Organisation Employees
BZK/OPR/HKU/March 2013
12
Big changes with massive impact.. .. demands a prepared and pro-acting PA
Is this needed?
Complexity & plurality of society
Tension between short - long time
IT and e-Gov
Internationalisation
Blurring boarders between organisations, sectors & countries
Changing SD & ‘Poldermodel’
Ageing workforce
Dynamics in workforce
Composition and size of labour force will change
Decrease central PA
Qualitative shortages
BZK/OPR/HKU/March 2013
13
Is this needed?
The only security is no security at all and permanent change
Increasing importance of knowledge and
relationship
We have to (anti cyclical) anticipate & invest in the adaptability, flexibility and quality of the central PA
BZK/OPR/HKU/March 2013
14
How are we going to do so?
Organisation
Employees
Steering & Leadership
Labour market
Labour relations and -conditions
See slides in hand-out !
BZK/OPR/HKU/March 2013
15
To be an attractive and societal responsible employer investment in people is crucial.
Influence on top level makes knowledge most important in content and in relationships.
To secure a competent & divers workforce in the future, anti cyclic recruitment is needed
Lifelong learning & development is obligatory for management and employees.
Sustainable employability on the labour market will increase adaptability & flexibility
Regular mobility within networks and chains is a start to make it normal for everybody
Modernisation of labour contracts, -relations and –conditions is needed for future
Harmonisation if possible and differentiation (e.g. types of work) where needed
Needs other way of steering and leadership on all management levels
Summary HR Strategy 2020
From job security to work security
Towards a sustainable central public administration in NL
BZK/OPR/HKU/March 2013
Involve from the beginning the top level /SG’s for guidance and commitment
Use strategic experts in the core business of the ministries
Bring senior management HR, top management and strategic experts together and help them understand each others language and point of view
Be very clear where and when you need a process or a project: workforce planning, started as a project with HR experts, failed to formulate a HR strategy. A broaden process was needed to do so and to raise urgency for workforce planning
Don’t put effort in making nice books with scenario’s, visions and dreams but invest in a flexible, adaptable presentation as a living document to be used by everybody and easily adjusted to new situations
Make a shared strategic agenda for short and long term, formulate projects/programmes to implement and let different stakeholders take over responsibility for common results
HR strategy should be linked to the core business and other parts of operational management (integrated approach)
16
Lessons learned
BZK/OPR/HKU/March 2013
• Know and understand the core business + critical performance indicators
• Be able to analyse quantitative and qualitative information in order to forecast and point out risks, problems, alternatives for short and long term (evidence based)
• Indicate the consequences for core business and organisation, also in financial terms
• Translate changes in the environment of the organisation, specifically in the field of core business and labour market: for example the impact of technology development on numbers of employees, skills, competences needed or on organisational structures & BPR
• Be able to work in interdisciplinary settings with other stakeholders (e.g. business process, financials, IT, housing, general strategy units)
• Speak and understand the - more economic - ‘language’ of general Top managers
• Be pro-active, creative and able to show the added value of the HR and Organisational expertise
17
To become a (better)strategic partner
BZK/OPR/HKU/March 2013
• The centralisation of HR administration and HR expertise in shared services
• Exchange of employees between HR and primary process of the ministries
• Skills and knowledge of the HR unit, especially of the senior HR managers, that enables them to discuss and design strategic issues on board level and to develop organisational and HR strategy in relation to the core business of the organisation
• The strategic and HR abilities of the general top managers (DG’s and directors) in the ministries
• Competence profiles and recruitment in line with above mentioned skills; promote exchanges
• Urgency/pressure to be creative, innovate and develop strategies in difficult times
18
Important enablers
BZK/OPR/HKU/March 2013
19
Thank you for your attention!
Questions?
For further information please contact: [email protected]
BZK/OPR/HKU/March 2013
20
Attachments
20 BZK/OPR/HKU/March 2013
2121
-
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
2012 2013 2014 2015 2016 2017 2018 2019 2020
pensioenakkoord lenteakkoord herfstakkoord
bron: BZK
Exit to pension between 2011 and 2020: • based on pension agreement 19.419 = 16,3%• based on spring agreement 18.418 = 15,5%• based on autumn agreement 16.886 = 14,2%
More older civil servants will retire
BZK/OPR/HKU/March 2013
22
Less young civil servants
222222
12,0%
13,0%
14,0%
15,0%
16,0%
17,0%
18,0%scen. C scen. C + 390
scen. C 16,6% 15,4% 14,4% 13,6% 13,1% 12,8% 12,9% 13,0% 13,2% 14,7% 16,5%
scen. C + 390 16,6% 15,4% 14,7% 13,9% 13,3% 13,1% 13,1% 13,2% 13,4% 14,8% 16,6%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Vergelijking effecten op aandeel jongeren: Scenario C. en Scenario C met extra inzet 390 jongeren in 2013
Scenario: in 2013 extra recruitment of 390 employees between 19 - 30 years, with the pattern of 2011. Effect: 0,2 %-punt more
BZK/OPR/HKU/March 2013
23
Age of civil servants 2001 - 2020leeftijdsverdeling 2001 t/m 2020scenario: 4 x 2,5%, vervolgens 5 x 1,5%; instroom cf. patroon 2011
25,5%16,6% 13,1% 15,7%
33,9%
26,4%23,6% 20,2%
29,9%
34,3%
33,6%29,8%
10,7%
22,7%29,7%
34,4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 2011 2015 2020
55 enouder
45-54
35-44
tot 35
bron: BZK
BZK/OPR/HKU/March 2013
24242424
• Targets for reduction defined until 2018: less positions in central PA
• Age related exit is slowly increasing • Other exit restricted because of labour market situation
Less space for new recruitment Qualitative mismatches and shortages
Dynamics in workforce
Exit in total
Exit to Pension
BZK/OPR/HKU/March 2013
25
Composition of labour force changes
25
33%
17%
36%
16%
27%
26%
23%
20%
26%
34%
26%
30%
14%23%
15%
34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Ned. Rijk Ned. Rijk
2010/2011 2020
55 tot 65
45 tot 55
35 tot 45
tot 35
bron: BZK
Comparison of NL and central PA in 2010 en 2020 BZK/OPR/HKU/March 2013
2626
more ‘ not-western immigrants’ . . . . . and more women
Composition of NL labour force changes
BZK/OPR/HKU/March 2013
27
Decreasing labour force
27 BZK/OPR/HKU/March 2013