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,