International Personnel Management Association Twenty-Fifth International Symposium on Public Personnel Management

INTERNATIONAL PERSONNEL MANAGEMENT ASSOCIATION

TWENTY-FIFTH INTERNATIONAL SYMPOSIUM ON PUBLIC PERSONNEL MANAGEMENT

Paris, France April 9 - 13, 2000

Presiding Officer Sharon Morris IPMA President

Summary Report

Contents

I. Introduction ...... 1 II. Discussion Summaries ...... 1 A. Rewards and Recognition Strategies ...... 1 Desired Outcomes ...... 2 Types of Programs ...... 3 Individual vs. Team Rewards ...... 4 Measuring the Effectiveness ...... 5 Conclusion ...... 5 B. Workforce Planning ...... 6 Workforce Planning Initiatives and Considerations ...... 7 Methods for Implementing Workforce Planning ...... 8 Measuring the Effectiveness ...... 9 Conclusion ...... 9 III. Attachments ...... 11 A. Janice Lachance Presentation: "Overview of Rewards and Recognition Strategies Used in the United States” ...... 11 B. Les Pickett Presentation: “Workforce Planning Exercise that the Delegates were Encouraged to Reviewed” ...... 20 C. Discussion Paper: "Rewards and Recognition Strategies" ...... 21 D. Discussion Paper: "Workforce Planning" ...... 27 E. Symposium Roster of Participants ...... 33

I. INTRODUCTION

Delegates to the 25th International Symposium on Public Personnel Management met in Paris, France, from April 9 through 13, 2000, to participate in discussions on human resource management. The following countries and international organizations were represented:

Australia Organization for Economic Asian and Pacific Development Centre Cooperation and Development Bahrain Philippines Canada Saudi Arabia Germany Taiwan Great Britain Thailand Japan United Nations Jordan United States Korea World Bank Malta Zimbabwe

The principal discussion topics were “Rewards and Recognition Strategies” and “Workforce Planning.” Background discussion papers on these two topics are appended to this summary report of the discussions.

II. DISCUSSION SUMMARIES

A. Rewards and Recognition Strategies

Ms. Janice Lachance, Director of the United States Office of Personnel Management, the U.S. federal agency charged with oversight of all U.S. federal level human resource policy, provided delegates with an overview of rewards and recognition strategies used in the United States (see Attachment A). She indicated that the United States is moving toward relying more on ‘situational rewards’ rather than a system of exclusively tying monetary rewards to annual performance appraisals. Further, she noted that the key to a successful rewards and recognition strategy was linking the reasons for giving the reward to the goal and mission of the organization.

The general discussion on the specifics of various countries’ rewards and

1 recognition systems also included comments from Symposium delegates on the importance of establishing clear criteria for rewards programs.

Questions posed to Symposium delegates focused on the desired outcomes of rewards and recognition programs; different reward strategies in use; the differences between individual and team rewards and measuring the effectiveness of rewards programs.

Desired Outcomes Symposium delegates agreed that the usual purpose of rewards and recognition programs is 1) to motivate employees, and 2) to stimulate good performance; and that this is most often achievable by linking the goals and objectives of the organization to the reward system. However, there was also general agreement that this can be a difficult process to manage, as many organizations’ goals and priorities are frequently adjusted, according to political changes.

In discussing the desired outcomes, it became clear that reward programs serve to increase the types of behaviors rewarded. The delegates engaged in lively discussions regarding the types of behavior, and the importance of linking those behaviors to the goals of the organization. It was agreed that ‘positive behavior’ is whatever is good for the ‘positive results’ of the organization.

Among the types of behavior that may be positively linked to an organization’s mission are:

• special achievement; • length of service; • innovative or exceptional service; • compliance with code of conduct; • creating client satisfaction.

In some situations, reward programs were established to reward specific behaviors that:

• save money; • enhance organizational efficiency; • discourage corruption; • achieve organizational results.

The delegates also discussed the importance of rewarding behaviors that support the workplace and the work environment, as well as the strategic goals of the

2 organization. The qualities of being supportive; respect for others; and other positive social behaviors such as heroism, are included in the criteria for establishing non-monetary reward programs in the Philippines and Canada, as well as other countries.

Types of Programs The Symposium delegates were eager to share their practices concerning reward systems, performance ratings, promotions, bonuses, and merit increases. In many countries, it appears that the old systems of rewards and recognitions have been recently reformed (within the last two years), because either the old system did not work, or because of economic problems such as budget constraints.

Although there appeared to be significant differences because of cultural and historical backgrounds and economic differences, there are also many similarities in the practices which were reported. Some countries’ systems, such as the case in Taiwan, are centralized, with some local flexibility in developing rewards systems, while others are managed wholly through one infrastructure. Some countries, such as Thailand, have recently decentralized their reward systems.

In most countries, information on who receives rewards is widely published, and information on bonuses is also acknowledged. In some countries, notably Japan, such information is highly confidential.

Most countries offer both monetary and non-monetary rewards, however Germany only offers monetary rewards, and is developing a system of reward pay. In Saudi Arabia, the only rewards are non-monetary, although there exists a well developed performance evaluation system that takes into account the receipt of non-monetary rewards when determining annual salary increases. Several countries reward employees with performance-based salary increases. Korea introduced a system in 1999 that provides a 10% increase for 10% of the employees (top level managers only); a 7% increase for 15% of the employees; and a 3% increase for 25% of the employees.

Most countries offer monetary rewards for exemplary performance – typically between 10% and 15% of civil servants are eligible for bonuses each year. In some countries, there exists an instant or ‘spot reward’ which is given for a specific event or job well done. Spot rewards are usually not large amounts of money, and are made immediately after the act, and given by an immediate supervisor. Some countries, such as Jordan, have only a few, but outstanding, rewards –

3 instead of giving many small rewards, these organizations recognize a few individuals with large rewards.

Many countries also offer non-monetary rewards such as plaques, certificates, attendance at conferences and seminars, statues and medallions. These honor rewards are typically given by government officials at a special ceremony, or at a revered location. In Japan, these ceremonies are conducted at the Palace, and in Saudi Arabia, rewarded employees are recognized with a trip to Mecca.

Thailand has established a ‘Sparkling Diamond’ reward for exemplary service. This award is in the form of a diamond pin, which the recipient wears for a period of time. After several months, the original pin is replaced with a replica, which the recipient keeps.

Other types of non-monetary rewards mentioned include: membership in a prestigious organization; extra time off from work; special books or mementos; and access to a car or other benefits.

The Symposium delegates agreed that systems for determining who is to be considered for a reward are as important as establishing clear criteria for granting the reward.

Most often a committee makes nominations and recommends reward recipients. In the United States, the federal government has encouraged ‘self-nominations’ for some rewards, though most suggestions are generated by supervisors and awarded by committees. In most countries, nominations are suggested by supervisors, and evaluated by a committee of supervisors and employees. The delegates agreed that it was helpful to include employees on the committees to nominate potential reward recipients, as well as on the committees to establish the criteria. In some countries such as Thailand, employees are recommended for rewards anonymously, by ‘scouts’ whose identity is unknown to the general civil servant population.

In some situations, the senior-most manager is solely responsible for dividing up a set amount of bonus money. In Canada, it was noted that good management practices are required for an effective reward system that supports the recognition of exemplary employees.

Individual vs. Team Rewards The Symposium delegates agreed that the types of rewards given to individuals can also be given to teams. There was agreement that teams did not need to be located in the same office, and that organizations as a whole can receive rewards, as well as team sub-groups. In the United Kingdom, team rewards are generally non-monetary, and may take

4 the form of professional development, such as enhanced training opportunities. It was agreed that there are certain situations, such as school settings, where because of the way success is measured, it is difficult to reward a specific individual. In Taiwan, at times, one person within the team is recognized for special achievement.

Measuring the Effectiveness The Symposium delegates agreed that measuring the effectiveness of reward programs was difficult. In some situations, the goals of the organization, to which the programs should be linked, change frequently. In other organizations, the specific behaviors, other than ‘hard work’ for example, to be rewarded have not been identified. In general, participants agreed that measuring the effectiveness of these programs was an area that could use improvement.

The group also agreed that for programs such as these to be effective, the system should be as transparent as possible – ensuring that employees are aware of the criteria, process, and outcomes of reward programs. This is especially difficult in systems with monetary reward programs, and with performance bonuses. Employees, particularly those not selected for rewards, must perceive the program as being equitable.

It was agreed that surveys offer perhaps the best method for collecting data on the success of reward programs. For rewards based on positive social behavior, Zimbabwe conducted a survey of the public, with positive results.

It is clear from data collected in the United States and other countries, that employees who feel that they are rewarded for good work are happier, and more inclined to be loyal to the organization.

Conclusion There was consensus among the group that it was important to make clear the link between organizational goals and the rewarded performance. In both developing reward and recognition strategies, and in measuring their effectiveness, it is also important to be aware of cultural differences. In some cultures such as Thailand, long term and public recognition is preferred, while in other cultures such as Japan, it is preferable to receive a more private recognition.

In some organizations, especially where the ability to make rewards is limited, performance appraisal schemes are well suited as alternate ways to show employees that they are valued. In this case, a ‘spot reward’ can recognize a good week; a bonus can recognize a good year; and a raise and promotion can

5 make a career!

In general, it was agreed that positive employee rewards and recognition schemes, in whatever form, were very important to creating a positive workplace, and to fostering positive employee morale. The ‘human’ assets of an organization are perhaps the most valuable – and employees deserve respect and recognition.

B. Workforce Planning

Mr. Les Pickett of the Asian Regional Training and Development Organization gave a presentation on the importance of workforce planning, and raised several challenges that may be encountered when developing and implementing a workforce planning strategy. Mr. Pickett also provided a workforce planning exercise that the delegates were encouraged to review (see Attachment B). In addition, he stressed the importance of adequately researching the costs and benefits of implementing a workforce planning scheme, and noted the importance of providing visual materials to highlight cost savings when presenting information on the importance of workforce planning.

In order to assist in the group discussions of workforce planning, several delegates reviewed the definition of workforce planning, and its relevance to the Symposium proceedings. It was agreed that the discussions should focus on issues involved with a systematic approach to managing the organization’s workforce by identifying future workforce requirements and developing strategies to support the development and maintenance of such a workforce.

Among the factors to be considered when developing a workforce plan are:

• political factors, • economically significant factors, • promotion rates, • hiring rates, • types of work and job specifications, • employee information availability, • demographic data.

Questions posed to Symposium delegates focused on the current need for workforce planning and demographic challenges driving that need; implementing workforce planning, and methods to attract and develop employees; and methods to measure the success of workforce planning

6 initiatives.

Workforce Planning Initiatives and Considerations The Symposium delegates have had different experiences with workforce planning, depending upon specific economic and employment situations. In addition, a clear distinction must be drawn between ‘succession planning’ and nepotism or favoritism. This can be accomplished by identifying a clear workforce planning strategy. In the past, a government job was perceived as a ‘job for life’ and while it remains a choice for many, public/private flexibilities such as pension portability, have created greater movement in and out of the public sector.

It was agreed that an important question to raise in discussing the issues surrounding workforce planning is “Are we anticipating or reacting to changes in the workplace?” and that only organizations that attempt to anticipate change should be characterized as participating in workforce planning.

The Symposium delegates agreed on the importance of being proactive in identifying workforce needs, and all countries represented were involved in workforce planning initiatives, to different degrees, and in different areas.

In Jordan, for example, there exists a well developed workforce planning initiative that allows for the individual career paths of civil servants to be mapped out.

In Malta, the focus of strategic workforce planning is on “multi-skilling’ which assists in the retention of younger employees. Gender issues are also considered.

Several countries, such as Taiwan and Saudi Arabia, have established multi-year strategic plans, which address the future workforce, including staffing needs. In public sector situations, it is not easy to terminate the employment of civil servants whose skills are no longer needed, and in order to manage the workforce, many countries with long term strategic plans review them annually to gauge success. Taiwan’s plan shifts the focus of such review groups, so that individual agencies are scrutinized at different times.

The reasons behind the need for workforce planning vary. In many countries, large numbers of employees will become eligible for retirement in the near future. In Canada, for example, it is anticipated that within the next five years, 70% of current employees will be leaving the public sector through retirement or attrition. In Australia, workforce challenges resulted from a lack of communication

7 between agencies, with skills being over-developed in one organization, but under-utilized in another.

In the United States, where 50% of the federal workforce will be eligible to retire in 2004, there exists a well-coordinated effort to develop workforce planning models that can be used to identify workforce needs. This effort was begun, in part, in response to recent efforts to make the federal government more efficient, and includes strategies to assist workers with obsolete skills to become valuable employees.

Workforce planning efforts in the United Kingdom include ‘positive action’ initiatives which target groups that are under-represented in the workforce.

Methods for Implementing Workforce Planning While most countries offered that their efforts were not as strategic as they would like, there were examples in each of the countries of areas where the strategic process was well developed. The specific labor requirements of individual countries varied, depending on what areas have been the target of past efforts, and what areas have been identified for continuing and future focus.

For example, Jordan, Saudi Arabia and Bahrain each maintain complete databases of employees’ demographic data, which assists in identifying sources of future skills. Jordan has developed an Institute of Management Development which motivates employees. A component of Jordan’s workforce planning strategy has mandated, as policy, that 6% of total vacancies must be filled by disabled workers.

Saudi Arabia’s 15 year administrative plan concentrates on ‘managing up’ or ensuring the successful operations of workers at the lowest levels, such as plumbers, laborers, and builders. A special Institute was created to address these skills, and a cadre of employees skilled in these trades was created. In addition, the Saudi Arabian government also works with colleges and universities to develop higher level skills, such as nursing and teaching.

In Thailand, retirement age is 60 years, however, the average life expectancy is 72 years. There exists a great need in Thailand, as well as other countries such as Canada, to compete in the information technology marketplace, however older workers are often not well-skilled in this area. To address this in Thailand, each department is required to identify a high level employee as the Chief Information Officer.

The Philippines has identified a need for professional employees, particularly in

8 rural areas of the country.

In the United States and Australia, the current focus in workforce planning is in developing executive level employees. A Presidential Management Intern program in the United States attracts the ‘best and brightest’ to the public sector.

Colleges and universities are seen, in Canada and many other countries, as potential partners for developing both executive and technical skills workers. These institutions can be privately operated, or supported by the government.

In Taiwan, the greatest need, generally speaking, is for technical skills. Nurses, social workers and information technology workers are among the types of workers in the greatest demand in the United Kingdom.

In many countries, the greatest need exists in the area which has not been the focus of past skills training or executive development programs. Other issues that are considered in workforce planning include the fact that while managing the workforce to fill existing vacancies, other issues, such as the need to provide child care and other services, often arise.

Measuring the Effectiveness It was agreed that perhaps the best way to measure the effectiveness of past workforce planning strategies is to look at the current workforce composition, and whether the current needs are different than they were in the past.

Several specific development tools were suggested as critical to the overall measurement effort, including the development of special leadership programs. Mentoring was mentioned by many as critical to any workforce planning effort.

In the United Kingdom a special program to assist women in reaching leadership positions was determined to be successful by virtue of the increase in the number of women in high level positions. In Thailand, specific training and development programs are measured through the use of evaluations and assessments.

Conclusion In discussing challenges to managing the public sector workforces, it is clear that the countries represented at the Symposium are faced with workforce planning challenges at many different experience and skill levels. It is also clear that political changes can result in modifications to workforce planning.

The following challenges were common to all participants:

• the importance of finding and retaining qualified employees; • the need to focus more on strategic staffing; and • the need to improve the utilization of human resources.

It was agreed that workforce planning is critical to organizational effectiveness. To be successful, any workforce planning initiative must consider situational demographics, organizational needs; and succession planning, all in the context of the organizational environment and strategic planning climate.