1. © OECD
A joint initiative of the OECD and the European Union,
principally financed by the EU
CIVIL SERVICE PROFESSIONALISATION IN
THE EUROPEAN EASTERN
NEIGHBOURHOOD
Public Administration Reforms in the EU and OECD
In the context of financial constraints
Christoph Demmke, Advisor to the OECD
Tbilisi, 4-5 November 2014

2. A joint initiative of the OECD and the European Union,
principally financed by the EU
Introduction
• Report on Studies for the EU Presidency in
2011 – 2013 in the framework of the EUPAN
network (n = 25 EU countries)
• OECD Survey on the Impact of Budgetary
Constraints on HRM (2014)
 Discussed and adopted in OECD PEM network
 32 countries
 Survey in early stage, finalisation in 2015
1

3. A joint initiative of the OECD and the European Union,
principally financed by the EU
Is the Public Service reform resistant – a
myth !
• Reform of Organisational structures
• Debureaucratisation
• Abolishment of careers,
• Mobility policies
• Towards new Work systems
• Reform of Public Employment
• Reform of Working Conditions
• Changes as to the division of public and private tasks
(Outsourcing, Shared Services)
• Leadership reforms
• Value Changes
2

4. A joint initiative of the OECD and the European Union,
principally financed by the EU
Many changes but uncertainty
about reform outcoumes
• Many prevailing perceptions – not innovative,
private sector is better
• Reform fashions and broad concepts:
Sustainable PA, Agility, Resilient, Engagement
etc.
• Many hasty and ad-hoc approaches
• More reforms than evidence about outcomes
• People not assets but cost factors
• Increasing expectations, less capacities
3

5. 0
10
20
30
40
50
60
70
80
90
100
EL
LU
CY
IE
FR
PT
DE
BE
ES
RO
IT
HU
AT
LT
PL
BG
MT
SI
Mean
EE
LV
NL
SK
FI
UK
DK
CZ
SE
Debureaucratisation but no new universal model,
no convergence
0% = Bureaucracy, 100% = Post-Bureaucracy, Source: Demmke/Moilanen 2010)
A joint initiative of the OECD and the European Union,
principally financed by the EU

6. Variations of (perceived) reform
pressures in the EU (2007)
technological developments
citizen demands
p.a. top executives
p.a. employees
staff representatives / unions
political parties
public in general /media
private sector
other interest groups
supranational organisations
very strong
 Considerable variations between public administration traditions
 Little relevance of country size and HR system
very low
1 2 3 4
economic situation / budget
EU legislation / integration
national parliament / legislation
socio-demogr. developments
Scand.
Scand. Transition
Continental
Transition
Contin./Transition
Mediterr.
Mediterr.
Scand.
Anglo.
Anglo.
Anglo.
Mediterr.
Mediterr.
Contin.
Transition
Mediterr.
EC
EC

7. Context, fashions and pressures
determine reform priorities?
administrative decentralisation
political decentralisation
strengthening accountability
strengthening policy coherence
quality management
aligning public-private employm.
HR decentralisation
budget decentralisation
performance management
open government
customer orientation
ethics / codes of conduct
e-government
public-public partnerships
private sector involvement
relatively
very high influence
1 2 3 4 low influence
new public management
good governance
use of market-type mechanisms
austerity/saving programmes
Mediterr./Continental
Anglo./Scand.
Scand./Anglo.
Continental/Transition
Anglo. small
Scand. small
Continental small
Anglo.
Scand. Continental
Scand. small/Anglo.
Scand. small/Mediterr.
Scand. Continental
Continental
Anglo. Scand.
Scand.
Anglo. Continental
Anglo.
Mediterr.
Transition

8. A joint initiative of the OECD and the European Union,
principally financed by the EU
Since 2008 budgetary constraints as No 1
reform pressure but situation of countries
differ
 ….a widening gap as regards the
implementation of reform measures
(Germany, Sweden, Luxemburg vs. Portugal,
Greece, Spain, Japan etc)
 Evidence on impact of budgetary constraints
on HRM policies „thin“

9. Framework for recessionary bundles and reform trajectories
in the field of managing
budgetary constraints and impact on HRM
Source: Paul Teague et al. (adapted)
Soft employee focused
reform path
Responsible
restructuring
Tough efficiency
focused restructuring/
downsizing path
 No compulsory lay
offs
 Voluntary lay-offs
 High use of
communication/leader
ship to explain
rational for HR
bundles
 Focus on efficiency,
productivity,
innovation and
learning, skill
training, reallocation
and value
management
 Retention of staff
 Abolishing seniority
 Employees involved
in developing options
for responding to the
recession
 Further investments in
skill, learning and
innovation policies
 Focus on Leadership
 Introduced short-time
working while
maintaining pay
 Improved workforce
planning
 Relaxing Job Security
 Reform of Civil
Service Status
 Flexibilisation of
Working Time
 Longer Working hours
 Reform of Pension
systems
 Introduction of
voluntary departures
 Furloughs
 Reform of holiday
system
 Active new health
policies in order to
reduce sickness rates
 Reform of bonus
system (cuts)
 Dismissal for poor
performance
 Replacement of civil
servants by more
fixed-term employees
 Increasing training
efficiency
 Reform of promotions
 Professionalization of
recruitment system,
mobility policies
 Maintenance of skill,
learning and
innovation and
leadership policies
 Introduced
outsourcing after
careful evaluation of
added value
 Set up new shared
services after careful
evaluation of added
value
 Downsizing personal
 Cut wages, reform
pension system
 Enhanced job
security abolished
 Working longer,
reform of holiday
system
 Tightened discipline,
time keeping and
attendance
requirements
 Promotions and
recruitments frozen
 Reduction of civil
servants
 Abolishment of civil
servant status
 Enhanced
outsourcing and
introduction of new
shared services
 Staff performance
managed more
rigorously
A joint initiative of the OECD and the European Union,
principally financed by the EU

10. A joint initiative of the OECD and the European Union,
principally financed by the EU
No 2 Reform pressure
Demographic challenges/ Age management
 Measures in order to boost public employment
participation
• Increase participation rates of older employees
• female participation
 Enhancing greater immigration
 Attempts to increase fertility rates
 Increasing labor productivity and efficiency
Efficiency
 Fighting discrimination, enhancing inter-generational
fairness
9

11. A joint initiative of the OECD and the European Union,
principally financed by the EU
Still, all EU/OECD countries face a common
challenge
• Is it possible a) to do more with a smaller
workforce, enhance productivity while
increasing efficiency, b) remain an attractive
employer who can retain and attract
employees in a more competitive context?
• More uncertainties than evidence

12. A joint initiative of the OECD and the European Union,
principally financed by the EU
Some Trends
• EU
• OECD
11

13. A joint initiative of the OECD and the European Union,
principally financed by the EU
Current employment trends
• Public employment
• Composition of workforce
• Alignment of working conditions between
public and private sector
• Changes in employment conditions such as
pay, training, job security etc
• Reform outcomes: Impact of the crisis on
workplace behavior, trust, stress, positive
outcomes
12

14. A joint initiative of the OECD and the European Union,
principally financed by the EU
Size: General public employment
trend in the EU
• Trend is very clear: there is a strong decrease in
employment in central administrations of the EU
Member States (26 responses, overall score 4.241)
• Trend is very strong in those countries which are
subject to austerity measures (11 countries, score
4.45) but almost equally strong among non-austerity
countries (15 countries, score 4.07)
1 1=increase in employment, 5=decrease in employment
13

15. A joint initiative of the OECD and the European Union,
principally financed by the EU
EU: Public employment trends and
impact on employment groups
• Some countries cut employment as regards
different employment categories due to
financial constraints (e.g. ES, IT, PT, BG, EL etc)
 Overall, biggest reductions in civil service
employment (exceptions in DE, IT, PL, BG)
 Slight decrease in fixed-term employment but
also increase in some cases (DE, NL, EC)
• In some countries, fixed-term employees
almost do not exist (MT, PL*) on central
governmental level, in others strong group
(Sweden 18%, Portugal 16%)

16. General public employment trend on
central level by austerity and non-austerity
countries in EU-27
(1=increase in employment, 5=decrease in employment)
Public law
employees
Labour law
employees
Fixed-term
employment (*)
No austerity measures
Mean 3,36 3,15 2,92
N 14 13 12
Std. Dev. 1,008 ,987 1,165
Austerity countries
Mean 3,91 3,64 3,11
N 11 11 9
Std. Dev. ,944 1,120 ,928
Total
Mean 3,60 3,38 3,00
N 25 24 21
Std. Dev. 1,000 1,056 1,049
(*) flexible, limited and/or short-term contracts
A joint initiative of the OECD and the European Union,
principally financed by the EU

17. A joint initiative of the OECD and the European Union,
principally financed by the EU
OECD: Overall trend in central
public employment since 2008
High decrease: 17.9%
Moderate decrease: 46.4%
Moderate increase:
21.4%
No relevant
change: 10.7%
High increase: 3.6%

18. A joint initiative of the OECD and the European Union,
principally financed by the EU
OECD: Use of instruments in
reducing employment levels since
2008
0% 20% 40% 60% 80% 100%
17
Non or partial replacement of retiring staff
Recruitment freezes
Annual productivity targets (eg: 0.5% personnel
reductions)
Outsourcing
Dismissals
Decentralisation of employment to lower
government level agencies
Privatisation
Percentage of responding countries
Frequent use Moderate use No use

19. A joint initiative of the OECD and the European Union,
principally financed by the EU
A changing workforce
• The changing composition of Public
Employment
• Towards a core civil service
• Changing Status and alignment
• Changing Working Conditions
18

20. A joint initiative of the OECD and the European Union,
principally financed by the EU
Government in the 21st century
19
• Structure • Size
From unified to
fragmented,
decentralisation of
HR, agencification,
shared services,
outsourcing etc.
Leaner, smaller but
shortages in some
sectors
Diversity (women,
ageing,
representativeness,
international)
"Hollowing out" of
status , reform of
WC (pay,
allowances etc.)
• Status, • Composition
Working
Conditions

21. Composition. Towards a new public
workforce
• Status exercised by nationals
• Discrimination
• Young age structure, early
retirement
• Dominance of male employment
• Dominance of public law status
• Dominance of experts, recruited on
the basis of qualification and
expertise
• “Stagnant”workforce
• Status exercised also by non-nationals
• Principle of non-discrimination,
Diversity, Representative Government
• Ageing of workforce, increase of
employment rates of older employees
• Increase in female employment
• Dominance of labour law status
• Continuous adaptation of skills,
competency management
• Mobile workforce, restructuring,
shifting
A joint initiative of the OECD and the European Union,
principally financed by the EU

22. A joint initiative of the OECD and the European Union,
principally financed by the EU
Towards a core central civil service?
0% 20% 40% 60% 80% 100%
Central government
Government
agencies
Diplomatic service
Judiciary
Police
Military
Education
University
Hospitals
Centra
l civil
service
Specifi
c civil
service
Not
part of
civil
service
(EU 25)

23. Alignment trends amongst public employees
and private sector employees
• Differences in working/employment conditions
decreasing amongst civil servants and
public/private sector employees
• Differences remain as regards pay, recruitment,
job security, career development
• However, also pay, job security, recruitment
policies etc. are being reformed and further
flexibilised etc.
A joint initiative of the OECD and the European Union,
principally financed by the EU

24. Differences between civil servant employment and
contract employment by issues (average)
(1=very much, 2=somewhat, 3=fairly little, 4=not at all)
3.4
3.1
3.2
2.8
2.6
2.7
2.4
2.5
2.2
2.0
1.0 1.5 2.0 2.5 3.0 3.5 4.0
recruitment procedures
job security
career development procedures
pay systems
right to strike
pension system
ethical obligations
holiday arrangements
working time arrangements
health insurance
similar different
A joint initiative of the OECD and the European Union,
principally financed by the EU

25. A joint initiative of the OECD and the European Union,
principally financed by the EU
Reforms of employment
conditions
• EXAMPLES:
 Job Security
 Pay
 Training
24

26. The end of life-time tenure? Termination of civil-servant
employment by
EU Member State (1=Yes, 2=No)
A B C D E F G H
Germany 1 0 0 0 0 0 0 1
Greece 1 0 0 0 0 0 0 1
Luxembourg 1 0 0 0 0 0 0 1
Belgium 1 1 0 0 0 0 0 2
Cyprus 1 0 0 0 0 0 1 2
Ireland 1 1 0 0 0 0 0 2
Italy 1 1 0 0 0 0 0 2
Portugal 1 1 0 0 0 0 0 2
Spain 1 1 0 0 0 0 0 2
Austria 1 1 0 0 0 0 1 3
Malta 1 0 1 1 0 0 0 3
Sweden 1 0 1 1 0 0 0 3
Czech Republic 1 0 1 1 1 0 0 4
Estonia 1 1 1 1 1 0 0 5
France 1 1 1 1 1 0 0 5
Hungary 1 0 1 1 1 1 0 5
Lithuania 1 1 1 1 1 0 0 5
United Kingdom 1 1 1 1 1 0 0 5
Bulgaria 1 1 1 1 1 0 1 6
Denmark 1 1 1 1 1 1 0 6
Finland 1 1 1 1 1 1 0 6
Latvia 1 1 1 1 1 1 0 6
Netherlands 1 1 1 1 1 1 0 6
Poland 1 1 1 1 1 1 0 6
Slovakia 1 1 1 1 1 0 1 6
Slovenia 1 1 1 1 1 1 0 6
Romania 1 1 1 1 1 1 1 7
Mean 1.00 0.71 0.61 0.61 0.54 0.29 0.18 3.93
A = Disciplinary reasons
B = Poor performance
C = Restructuring
D = Downsizing
E = Re-organisation
F = Economic difficulties
G = Other
H = Sum
A joint initiative of the OECD and the European Union,
principally financed by the EU

27. A joint initiative of the OECD and the European Union,
principally financed by the EU
But limited changes in employment
protection since 2008
0% 20% 40% 60% 80% 100%
It has become easier to dismiss public
employees
It has become easier to dismiss civil servants
Notice periods have been shortened
Other
Percentage of respondent countries
Yes No Cannot say

28. A joint initiative of the OECD and the European Union,
principally financed by the EU
Focus is on remuneration reforms in central
public administration since 2008
75% of surveyed countries implemented remuneration reforms since 2008
Outcome of Remuneration Reforms
0% 20% 40% 60% 80%
Pay freeze
Reduction or abolishment of allowances
(e.g., Christmas allowance, 13th salary)
Reduction of performance-related-pay/bonuses
Reduction of remuneration for all staff
Reduction of remuneration specifically for
top-level
Percentage of responding countries

29. A joint initiative of the OECD and the European Union,
principally financed by the EU
and on….Training policies in central public
administration since 2008
Implementation of reforms in training policies:
0% 20% 40% 60% 80% 100%
Training budgets
Training days
Percentage of responding countries

30. A joint initiative of the OECD and the European Union,
principally financed by the EU
Reform outcomes
• Workplace behaviour
• Trust
• Stress, Job Intensity
• Attractiveness of Public Sector Employment
29

31. A joint initiative of the OECD and the European Union,
principally financed by the EU
Critical challenges
• And in your country? Do you agree…..
30

32. Impact of austerity measures on workplace
level (N=25) (Demmke/Moilanen, 2013)
0% 20% 40% 60% 80% 100%
lowering of job satisfaction
decrease of trust in leadership
decrease in workplace commitment
increase in anger
decrease of trust in the organisation
perceived unfairness (colleagues)
decrease in loyalty
perceived unfairness (private sector)
decline of ethical values
greater tendency towards corruption
higher stress levels and job intensity
inappropriate use of resources
Effect
No effect
Hard to say
Missing
A joint initiative of the OECD and the European Union,
principally financed by the EU

33. A joint initiative of the OECD and the European Union,
principally financed by the EU
Effects of reforms on workplace
behaviour (OECD)
0% 20% 40% 60% 80% 100%
Decrease of trust in leadership
Lowering of job satisfaction
Decrease in workplace commitment
Perception of unfairness compared to how…
Increase in anger
Decline of ethical values
Decrease in loyalty
Perception of unfairness compared to how private…
Unethical behaviour arising from higher stress…
Increase in inappropriate use of resources, e.g.,…
Greater tendency towards corruption
Percentage of responding countries
Effect No effect Cannot say

34. A joint initiative of the OECD and the European Union,
principally financed by the EU
Impact of current reform trends on work intensity
and stress in central public administration
0% 20% 40% 60% 80% 100%
Work/job intensity
Work related stress
Percentage of responding countries
High increase Moderate increase No change
Moderate decrease High decrease Cannot say

35. A joint initiative of the OECD and the European Union,
principally financed by the EU
Attractiveness of Public Service
Employment
• Decreasing
• Challenge in times of demographic pressures
and more competitiveness in the „war for
talent“
34

36. A joint initiative of the OECD and the European Union,
principally financed by the EU
Positive challenges
• And in your country? Do you agree…..
35

37. A joint initiative of the OECD and the European Union,
principally financed by the EU
Relation better Workplace
Quality/Work Organisation
Change in overall organisation of work and workplace
quality since 2008
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
36
Moderately improved
No change
Moderately deteriorated
Strongly improved
Not available
Strongly deteriorated
Percentage of respondent countries

38. A joint initiative of the OECD and the European Union,
principally financed by the EU
Other positive challenges
• Trend also brings many opportunities
 Reform of civil services, increase efficiency
 Placing emphasis on Innovative HRM policies
 Discussion on need for specific civil services and as
relationship between civil servants and private
sector employees
 Age management and anti-discrimination Bringing
generations together

39. A joint initiative of the OECD and the European Union,
principally financed by the EU
Positive challenges
0% 20% 40% 60% 80% 100%
The current situation will force public
administrations to improve and professionalise
workforce planning and improve data management
because of the need to reallocate HR resources
across sectors resulting from additional demands…
The need to downsize public employment makes
it easier to anticipate future demographic changes
and pressures and forces to think more
strategically on the structure, composition and size
of the future workforce
The current situation opens the possibility to
rethink the need for having differences (or not) in
employment and working conditions between civil
servants, other public employees and private
sector employees
The current situation opens the possibility to
rethink the division of labour between the public
and the private sector
Percentage of responding countries
Totally agree Rather agree Rather not agree Does not agree

40. A joint initiative of the OECD and the European Union,
principally financed by the EU
Future HRM challenges
• Organisational Fairness and Trust
• Towards a more refined Leadership theory
(transformational, transactional, ethical
leadership etc.)