Agenda item

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 of the agreement are compiled with in the appraisal of the agreement;

d)  make clear to LGSS that the Council will withdraw from the agreement if it does not receive the level of service it expects; and

e)  authorise the Managing Director, Resources to deliver the agreement after consultation with the appropriate Executive Member and Executive Leader.