Rail (UK)

Analysis

The Department for Transport loses one in five key staff a year, significan­tly damaging expertise. PAUL CLIFTON examines a new study into how high staff turnover is hurting the industry

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High staff turnover at the DfT.

STAFF turnover among senior civil servants at the Department for Transport is much higher than in the private sector.

People who stay in the same job for more than one or two years are regarded as being “in the slow lane”.

And the employment structure encourages staff to move rapidly from one Government department to another, allowing no time to build up profession­al expertise in any sector.

The result is that individual rail programmes overseen by the Department can turn over half a dozen leaders, with none staying to see a project through.

These are the findings of a new report by the Institute for Government. In 2017-18 alone, the report discovers that the DfT lost 17% of its most senior personnel, and had the fourth highest staff turnover of all Whitehall department­s.

It concludes: “In just three years, multibilli­on-pound projects can cycle through five project directors and whole policy teams turn over almost entirely. Most affected is the Treasury, where one in five key staff leave every year. Staff turnover is not healthy but debilitati­ng.”

Permanent Secretarie­s - the heads of department - survive in post only a year longer than English football managers. Senior civil servants typically stay less than two years in post, a figure that excludes those who move within the same department. By contrast, the average chief executive of a UK company stays for five years (down from eight years in 2010).

One in three DfT senior staff have either left within the last year or have been in post for less than one year, according to Cabinet Office data.

Seven out of ten senior DfT staff intend to leave in the next two years, and only one in three intend to stay for at least three years.

The cost of recruiting and training replacemen­ts, and covering lost productivi­ty, runs into tens of millions of pounds each year. The National Audit Office (NAO) found that one Government department alone was paying recruitmen­t agencies over £1 million a year for Whitehall posts. The report quotes a figure of £6,500 to recruit and train a replacemen­t for someone earning £25,000 or more, which excludes the cost of lower productivi­ty.

For more complex knowledgeb­ased roles, it can take profession­als two years to reach full productivi­ty. And when managers change frequently, it reduces the productivi­ty of a whole team or organisati­on.

Staff turnover getting worse

Around a quarter of the Treasury’s staff leave every year. That figure does not include those who change roles within the Department.

Report authors Tom Sasse and Emma Norris say the problem of high staff turnover has worsened since 2010, because of two changes: ■ An open internal jobs market was introduced across Whitehall. ■ The inability of managers to reward those who stay in post. If staff desire to earn more, they must change job.

The result is a culture which prizes rapid movement over those who acquire specialist expertise and see projects through to completion.

With 450,000 staff, the civil service is the UK’s second largest employer, behind the NHS and ahead of Tesco.

“While some people will always leave for roles outside, an increasing proportion of staff turnover is due to staff switching department­s. Anyone can apply for any job at any time, and managers have little means to encourage them to stay,” the report authors found.

“Pay restraint has meant that civil servants no longer move up through the ‘spines’ in pay bands automatica­lly, as the large majority did before. Their pay remains the same, apart from a small belowinfla­tion increase, unless they move roles.

“As a result, a wide gap develops between the pay of officials who move jobs frequently and those who stay in post.”

One senior civil servant told the authors: “You are always on the lookout for a move.”

Another said: “I’d been in the department six months, so it was time to start looking for something else.”

Sasse and Norris add: “Staying within one team for more than two or three years is the equivalent of being stuck in the slow lane while your peers overtake you.

“Mid-ranking policy officials told us they are strongly encouraged to move on after 18 months. Staying in one policy area is not encouraged. Managers consider officials who have stayed for more than two or three years to be ‘duds’.

“Several London based department­s consistent­ly lose 20% to 25% of staff each year. A new Minister will find four in ten of their senior officials have been in post less than a year.

“Whitehall struggles to retain knowledge and expertise. Ministers, who themselves often move around quickly, frequently complain that they know more about a policy area than the officials who advise them.”

The report quotes Cabinet Office Minister Oliver Letwin, who said that when discussing policy: “People just didn’t know what they were talking about or have any evidence behind it.”

And now… Brexit

The challenges of Brexit are further increasing staff turnover, as it has created a lot of opportunit­ies for staff to move jobs. Some 160 DfT officials are currently working full-time on the consequenc­es of a no-deal Brexit, with the possibilit­y that this number will be increased dramatical­ly in the next few weeks.

Institute for Government analysis found that 10,000 Brexit roles have been created since the EU referendum. And the NAO found that while some people have been recruited to these posts from outside the civil service, most have been filled by internal transfers, loans or “fast streamers” - highperfor­ming staff.

This creates significan­t capability gaps that people transferri­ng leave behind, says the Institute for Government. Shifting effort to focus on Brexit has already contribute­d to delays in other areas.

And to compound the problem, the data reveals that many recruits are also not staying long in the Brexit roles. Within the Department for Exiting the EU, 16.9% of staff have already moved on, with 44% planning to leave within the next year.

Tackling turnover

The report concludes that reforming Whitehall pay is the first step to reducing staff turnover, so that people who perform well or acquire extra skills are able to increase their pay while staying in post. This is standard practice in the private sector.

Beyond that, a career progressio­n system needs to reward “the right mix of specialist skills, policy knowledge and generalist capabiliti­es; and creates a culture that encourages some officials to move through a wide range of roles, while ensuring others to stay in post longer, build deeper expertise and complete key projects”.

 ??  ?? Source: Institute for Government analysis of Office for National Statistics, Annual Civil Service Statistics, 2010-2018 Percentage of staff moving department­s as a percentage of overall leavers, 2010-18
Source: Institute for Government analysis of Office for National Statistics, Annual Civil Service Statistics, 2010-2018 Percentage of staff moving department­s as a percentage of overall leavers, 2010-18
 ?? ALAMY. ?? In 2017-18, the Department for Transport lost 17% of its most senior personnel, and had the fourth highest staff turnover of all Whitehall department­s.
ALAMY. In 2017-18, the Department for Transport lost 17% of its most senior personnel, and had the fourth highest staff turnover of all Whitehall department­s.

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