Government Departments Lack Clarity on the Number of Underperforming Staff

Eleven out of sixteen government departments lack knowledge on the number of underperforming employees and most cannot specify hiring costs, according to the National Audit Office.

Additionally, these departments struggle to provide the duration required for recruits to clear security vetting, a situation exacerbated by civil service cuts, Brexit, the pandemic aftermath, and economic challenges.

NAO Chief Gareth Davies highlighted the need for the Cabinet Office and departments to collaborate on driving efficiency amidst civil service challenges. The NAO report scrutinized staff recruitment, compensation, and performance management, noting morale decline and industrial action as hurdles to staff retention.

Civil service pay costs have risen from £11.4 billion in 2013 to £16.6 billion in 2022, with generally lower median salaries. Staff expenses, the largest departmental outlay, are of particular concern during a push for savings.

Key findings include that three departments don't know their number of underperformers and most lack clarity on subsequent actions for such staff. The NAO recommends that the Cabinet Office help departments to improve their performance management strategies and recruitment data accuracy—for which 14 departments were deficient, with the Ministry of Defence not knowing its recruitment expenses.

From the five departments providing data, developed vetting, the highest level, averaged 171 days. The report suggests that while variance in departmental organization is natural, there is room to boost efficiency in recruitment and management of underperformance. It urges the Cabinet Office to enforce consistent HR data collection and to prevent interservice staff competition.

Parliament's Public Accounts Committee’s Dame Meg Hillier stressed the necessity for departments to enhance their HR practices and for the Cabinet Office to foster interdepartmental efficiency.

In response, a Government spokesperson asserted their commitment to making the civil service more productive and cost-effective, with plans to cap headcounts for potential billion-pound savings. A new central recruitment strategy aims to expedite hiring, having already reduced time taken by 12%, with a target for December 2023.