Looming Challenge: Loyalty of Public Servants and Flexibility of Public Service
I am highlighting a specific brewing systemic strategic problem for public service capability.
Public service is today a career-based public service. Historically, public servants have joined and worked through its ranks and retired. These people have loyalty and passion for service to the nation. The public servants had an assured benefit superannuation in PSS or CSS. Career public servants were able to sleep well at night and not worry about their post retirement life.
The return loyalty and longevity of public servants provided APS number of benefits. A loyal group of highly qualified, experienced public servants providing the capability. Also, when flexibility was required, many public servants were able to leave the workforce on voluntary redundancy, as the future financial situation was assured.
The government has changed the defined super benefits scheme in 2005. All new APS staff do not have the benefit of defined super. This means that the profile of APS staff with new arrangements is fast increasing and the number of people in the old schemes declining.
This poses particular challenges to the ‘career-based’ nature of public service and also the ability of PS to flexibility manage the workforce.
As newer public servants do not have an assured retirement income, they may be much more willing to move out of APS to private service, leaving skills/capability gaps in the PS. For instance, mass exodus of staff to private sector, when the economy is booming some areas. This will pose a risk to PS. Further, during times of restructuring of PS staff may be reluctant to take a redundancy package, as they may not have an assured retirement. This is a significant capability risk that requires to be addressed.
While I agree with the broader public sentiment that Public Servants need to be treated similar to rest of the society, I feel that there is a broader overarching need to manage the overall PS capability to deliver value-based reliable services to Australian public. Public service is different to private sector employment. In Public service, the focus is on better services and upholding values, whereas in private sector it is largely the improvements to bottom line that counts. Lack of loyal public servants potentially poses a risk to the ‘services’ nature of APS.
I am not an expert to identify and recommend ways to address this issue. I am sure there will be people with expertise who can advise the review on appropriate ways to address this challenge.
I am recommending that APS review consider this issue and identify ways to manage the skills capability and also encourage staff towards a career-based service.