Strategic Context
During the past year, a number of influential factors compelled the Agency to step back and carefully re-examine its stewardship of human resource management within the BC public service. The following agents of change are helping the government to revitalize 30 years of institutionalized, rules-based practices so that it can attract, recruit, develop, and retain the talent needed now and over the next 10 years:
Internal Factors:
- Thirty-five per cent of all senior executives in the BC public service will be eligible to retire by 2010. Thirty-two per cent of middle managers (Management Level 6 to 8) will be positioned to retire within the same timeframe. Consistent with other employers, the BC public service is facing an aging workforce.
- Between 2001 and 2005, the average age at retirement was 58. Only three per cent of public service employees in British Columbia are 60 years of age or older. Many people are choosing to retire at a relatively early age.
- Projected skills for the future are shifting and the number of public servants employed in more senior positions is increasing. Between 1996 and 2005, for example, the percentage of jobs in the executive cadre rose while the number of junior and mid level managers decreased.
- Succession to senior levels in government has historically been hierarchical, drawing from the middle management pool. Most people identified as ready or near ready for Deputy Minister and Assistant Deputy Minister positions in the first phase of the corporate succession planning process are already placed at these levels. As a result, the public service needs to become more externally focused in replenishing its ranks.
- Hiring practices and policies must be continually reviewed for competitiveness and flexibility to ensure that the public service is able to attract sufficient high-potential external candidates.
- Since adopting a shared services model in 2003, the Agency has reduced organizational costs by approximately 44 per cent. Based on a benchmark study of BC's HR processes and systems, conducted by the Hackett Group in 2004, the province was rated in the first quartile with regard to cost.
External Factors:
- Research conducted by the Human Capital Institute in Washington, D.C. shows that "the market for talent may already be the world's most competitive and it is intensifying daily in the face of aging workforces, lower unemployment rates and an inexorable demand for more skills, knowledge, experience and education." At 5.9 per cent, the annual unemployment rate in 2005 was BC's lowest in 30 years and lower than the national average of 6.8 per cent. With low unemployment rates, shortages of skilled employees are becoming more frequent.
- Based on the demand for skilled resources, candidates can afford to be more selective and will choose organizations that provide an engaging work environment, good opportunities, and competitive salaries and benefits.
To address these factors, the Public Service Agency is pursuing initiatives to:
1) Increase our competitiveness in the marketplace, such that the public service is able to attract the talent it needs. To help achieve this result, activity is focused on a number of key deliverables, including for example, a corporate marketing and branding strategy, targeted compensation strategies, and strategic recruitment partnerships;
2) Enhance human resource capacity that facilitates effective working relationships with Aboriginal agencies and communities and supplies a sufficient number of candidates for leadership critical positions and emerging priorities. Targeted learning and development opportunities, succession plans for critical roles and positions, and targeted deployment and retention strategies for senior executives are some of the tools being employed; and,
3) Better manage for results. Further efforts to optimize organizational and individual performance, and create an innovative and supportive work environment that results in improved employee engagement and commitment. In support of this outcome, the Agency will promote an employee performance management system and performance-based incentives and rewards.
