CIPFA regional conference NW

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CIPFA regional conference (NW Wales)
Recruitment and retention in the public sector

• Prepared by Mark Robinson
• Hays Public Services

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Agenda

• Can you trust me?
• The current situation
• How did we end up here?
• The BIG question
• Cipfa students and members, North West and
  Wales focus
• The future?
• Recruitment methods, trends, feedback
• There is another way
• Retention public sector markets
• Questions and discussion

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Can you trust me?

• Over 11 years recruitment experience with Hays,
  the last 7 solely in the public sector
• 6 years experience within local government in the
  West Midlands
• Have been invited to present to national and
  regional forums, ie. Society of County
  Treasurers, Society of District Treasurers,
  Midland Counties and Midland Districts Chief
  Internal Auditors, CIPFA in the Midlands, CETC

Source Hays analysis of direct advertisements
2005-2006
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The current situation

• Finance recruitment is getting more difficult!
• High failure rates for advertised positions (all
  levels from 30k to over 100k)
• Reduction in advert responses
• Qualification levels dropped to attract
  candidates
• Increasing number of market supplements
• High age profile of staff within the public
  sector
• Development of shared service centres

Source Hays analysis of press advertisements
2005 to date
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How did we end up here?

• Major reduction in training in the mid 1990s
• Cipfa new members peaked at 551 in 1997
• An annual average of only 234 new members
  (2001-2005) (improved to 318 in 2006)
• Career progression limited by finance department
  streamlining. Is the gap now too big to cross?
• Constant drive for efficiency within support
  services
• Shared service centres

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The BIG question

• Is there really a shortage of accountants?
• OR
• Are you too specific in your search?
• Are you failing to reach the potential audience?

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CipfaStudents

• AVERAGE AGE OF NEWLY QUALIFIED CIPFA IS 36
• 44 of registered Cipfa students are 35 years of
  age or over
• Are the right people studying?
• Only 11 of CIPFA members under the age of 35

Source CIPFA membership statistics 2006
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CipfaCurrent members

• 4,154 members work in local government (39.3)
• CCAB comparison
• 50 of CIPFA members under 45 years of age
• 58 of ICAEW / ICAS / ICAI members
• 62 of CIMA members
• 74 of ACCA members

Source CIPFA membership statistics
2006 Source Professional Oversight Board for
Accountancy (PRC) 2005 report
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CipfaNew members

• Exam results June 06, Dec 07 and June 07
• 491 passed final test of professional competence
• Local government 260 (53)
• National audit bodies 69 (14)
• Private practice 56 (11)
• NHS 39 (8) CIMA is predominant qualification
• Other public sector organisations 50 (10)
• Commercial sector - 2
• Unknown 15

Source CIPFA published exam pass lists
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CipfaNorth West and Wales

• North West LGA the 44 councils (22 districts, 4
  unitaries, 3
• counties and 15 metropolitan boroughs) produced
  24 CIPFAs 2DC, 2U, 4C, 16M
• Wales 22 councils produced 16 CIPFAs
• National concern only 30 CIPFAs created by 238
  District or
• Borough councils

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The future?If things dont change

• The pay bill increases through market supplements
  but not the talent pool
• Blocking layer created by non-qualified staff,
  resulting in less incentive to train
• Jobs too far apart to allow career progression
• Trainees struggling to compete against
  experienced, non-qualified staff when they
  qualify
• More pressure on CIPFA as other CCAB members join
  and encourage their own qualification
• CIPFA becomes a local government qualification

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RecruitmentWhat are you really looking for?

• How much thought goes into recruitment?
• Is like for like replacement always the best
  option?
• Advanced communication and relationship building
  skills
• Organisation awareness and understanding
• Influencing and negotiating skills
• Long term approach and financial planning
• These are not specific to the public sector so
  why restrict your
• choice?

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Recruitment What are you selling?

• What image do people have of the public sector
  and CIPFA?
• Can they relate to your organisation?
• Where are you advertising?
• Are you selling the sector in a way that will
  appeal to them?
• Do you know what accountants want?
• What benefits are you focussing on?
• Are you encouraging people to apply?
• Is the application process simple?

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Recruitment What are you selling?

• Case Study
• A recent campaign for a Head of Finance at a
  District Council
• PopulationBME population of only 1.67, ageing
  population, high level of economic inactivity
  amongst working age, high level of acute social
  problems, life expectancy lower than national
  average and high pregnancy rate, 24 of
  population suffering from long term illness
• DeprivationHigh but trend of improvement, jobs
  are largely unskilled and wages are low
• EducationAttainment is low, 20 have no
  qualifications
• CrimeReported levels are high
• Would you want to move there?

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RecruitmentAre you a good representation?

• How far do you currently commute to work?
• How far would you travel?
• Would you relocate?
• What age were you when you qualified

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RecruitmentCareer drivers for accountants

• Personal circumstances (partner / children etc)
• Location
• Career progression
• Job content
• Work / life balance
• Financial reward

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RecruitmentMethods used by your customers

• When looking for a new role
• 40 would look in the national press -
  reducing age
• 36 in trade media - reducing age
• 78 would use job websites and/or e-bulletins -
  increasing age
• 90 would use a recruitment consultancy -
  increasing age
• Have your methods changed?

Source Hays accounting staff survey
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RecruitmentCurrent methods
Accountancy Age Circulation 66,000
Public Finance Circulation 24,357
LGC Circulation 7,876
Total CCAB members working in the UK215,000
Source Professional Oversight Board for
Accountancy (PRC) 2005 report Source
Accountancy Age, Public Finance, LGC September
2006
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Recruitment Is there really a national audience?

• Only c1 of jobs in the last 16 months in the
  Midlands were filled with a relocating candidate
  (c400 jobs)
• Reasons
• 2 income households
• children at school
• house prices
• family

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RecruitmentLocal candidates
Organisations candidates could work for 50 mile
radius
Residential area of commutable candidates 25
mile radius
You
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RecruitmentLocal press can it help?
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RecruitmentCustomer feedback

• Adverts are for equal opportunities purposes only
• Public sector experience is always needed?
• Where do you advertise?
• Why application forms?
• Adverts are often incomplete / misleading

Source Private and public sector candidates
registered with Hays
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Where do accountants work?Employment sectors
Source Professional Oversight Board for
Accountancy (PRC) 2005 report
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Accessing candidatesHays methods - Database
Direct access to approximately 79 of CCAB
members via the Hays databases
Total CCAB members in the UK 250,000 Total
CCAB members working in the UK215,000
Remainder approached through Internet
advertising and networking
Source Professional Oversight Board for
Accountancy (PRC) 2005 report Source Hays
database audit January 2006
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Accessing candidatesHays Methods - Mailshots
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Accessing candidatesHays Methods internet
microsite
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Accessing candidatesHays Methods internet
advertisements
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RetentionCurrent public sector markets

• NHS sudden surge in activity but recruitment
  proving difficult
• Education Higher increased commercial desire
• Education Further mergers still on the agenda
• Housing mergers and joint working
• Internal audit diminishing market

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Blueprint for successful recruitment

• Market research
• Develop an effective strategy
• Focus on your target audience
• Have pride in your organisation
• .and a little good fortune might help you over
  the line

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Questions and discussion