The National Audit Office has entered the debate about public sector staffing levels and costs. They tell us the civil service actually cut its numbers by 1% in the last ten years, but put the real costs of employing people up by 10%. It was especially generous with promotions, creating many more senior positions. The public sector as a whole increased its wages costs by 40% more than prices over the last ten years, with an increase of 13.7% in the numbers employed .
The Office concluded that ” Organizations do not have comprehensive understanding of their own staff costs or skills in order to support this cost reduction activity adequately”. What’s stopping them gaining this understanding quickly?
They also conclude that there will need to be redundancies. It cannot, they say, all be done by natural turnover. It would still be a good idea to maximise the use of natural turnover, which is not currently happening.