Issue - meetings

To consider a report by the Managing Director (Resources).

Authorised the Managing Director (Resources), after consultation with the Executive Leader and the Executive Councillor for Resources to enter into a shared service arrangement with LGSS to provide a full HR service to the Council including the TUPE transfer of the current Council staff.

(Mr C Davidson and Mrs G Smith, representatives of ELAG Staff Side, were in attendance and spoke on this item).

Consideration was given to a report by the Managing Director (Resources) (a copy of which is appended in the Annex to the Minute Book) summarising a range of options for the future management and potential out-sourcing of the District Council’s Human Resource and Payroll Service. The report had been considered by the Overview and Scrutiny Panel (Economic Well-Being) whose comments were relayed to the Cabinet.

In discussing the options put forward, the Cabinet were advised of the concerns of ELAG Staff Side regarding the value and effect on the authority of outsourcing the service.  Particular attention was drawn to the workload of the team since the departure of key members of staff and the likely savings arising from the options presented.  The ELAG representatives drew Members’ attention to the success of Resourcelink, the Council’s H R and Payroll Self Service system and the likelihood that this would need to be replaced by an alternative system in the event that the service was outsourced.

Having stressed the need for strategic HR leadership, ELAG representatives concluded that an in-house onsite strategic HR management team with both the operational and strategic experience to lead organisational development and change together with the implementation of web recruitment would be ELAG’s preferred option.

Whilst considering ELAG’s concerns, the Cabinet acknowledged the need to develop shared services to safeguard the Council’s financial viability.  Mention was made also of the benefits of entering into a shared service arrangement for the HR and Payrole service which would offer the ability to access broader specialist HR advice, scope for further savings, potential for better training, a reduction in workforce costs and the possibility of savings in other areas in the future.

Having recognised the difficulties and challenges any change would have for employees and the need to manage this process effectively, the Cabinet

RESOLVED

that the Managing Director (Resources) be authorised, after consultation with the Executive Leader and the Executive Councillor for Resources, to enter into a shared service arrangement with Local Government Shared Services to provide a full HR service to the Council including the TUPE transfer of the current Council staff.

To consider a report by the Managing Director, Resources.

(Councillor J A Gray, Executive Councillor, Resources, and Councillor J D Ablewhite, Executive Leader, were in attendance for this item).

With the assistance of a report by the Managing Director, Resources (a copy of which is appended in the Annex to the Minute Book) the Panel considered a range of options for the future provision of the Council’s Human Resources (HR) and Payroll Service. Following a brief introduction by the Executive Councillor for Resources, the Managing Director, Resources provided an overview of the options that had been identified and suggested a series of criteria against which they might be assessed.

Having been acquainted with the anticipated timescales for the implementation of the options, Members were advised that there was some urgency to reach a decision as this would obviate the requirement to meet the current cost associated with managing the service.

During their deliberations on the report, the Panel discussed the advantages of having in-house expertise, the need for strategic leadership to deliver a high quality HR Service for the authority, the current operating costs, the type of service the Council wished to provide, the potential to generate income from the payroll system and the need to identify and protect the Council’s Core Values. Members also discussed the Council’s financial viability.

Members were reminded that previous investigations with other local authorities had not resulted in shared services being established. It was argued that the options offered the Council the opportunity to demonstrate commitment to shared services and could lead to savings in other areas in the future. The Panel reviewed the strengths and weaknesses of each of the options and acknowledged that a shared service might improve the resilience of the service and could provide affected employees with career opportunities.

Some Members expressed the view that the current cost of the service might be too high and that the Council ought to benchmark it to ensure that its cost was in-line with the market. In addition, Members suggested that when the terms of any potential agreement were analysed, the Council should take into account the cost of and practical arrangements for contract management and monitoring and ensuring the terms of the agreement were complied with.

If the Council decided to proceed with a shared service, there would be considerable difficulties and challenges for employees. Members recommended that efforts should be put into managing the impact of the changes on Council employees. Having agreed that it was important for the Council to demonstrate its commitment to the principle of shared services and that employees’ comments should be considered as part of the deliberations on this matter, it was

RESOLVED

  that the Cabinet be recommended to:

a)  pursue a shared service agreement with LGSS to provide a full HR service to the Council including the TUPE transfer of the current Council staff;

b)  benchmark the agreement with the private sector to ensure it represents good value for money;

c)  include the cost of contract management and monitoring and ensuring the terms  ...  view the full minutes text for item 117