New Year Thoughts!

Posted on | December 23, 2009 | Author: | jont | 1 Comment

Since the start of the current economic downturn we have spoken to and placed many people who were looking for a “safe port in the storm” or as we know it, the public sector! The perception has been that whilst the private sector was suffering, money was still being spent in the public sector hence it became an attractive place to be. As we move into 2010 it would appear that this is set to continue to a degree, but anecdotal evidence and other indicators suggest that things are going to get a lot tougher in 2010, 2011 and 2012.

For contractors we have already seen the belt tightening begin with some public sector bodies pulling in day rates, whilst others are converting what would have traditionally been contractor roles, in to short / medium term fixed PAYE contracts. All indications are that this belt tightening will continue and indeed get worse from the view point of day rate contractors for the foreseeable future. Government departments are under severe pressure to reduce the amount spent on “consultants” and spend is being monitored and reported. The latest PBR (Pre Budget Report) included “cutting consultancy spend by 50 per cent” as part of the push for £11 billion of savings by 2012-13 through smarter government.

For employees , salary increases may have been agreed for 2010-11 but again the outlook also looks uncertain on two fronts;

Firstly the PBR confirms that services (back office jobs?) will be reviewed as part of the push for £11 billion of savings by 2012-13 through smarter government, with Arms Length Bodies being rationalised and greater use of online systems for providing advice and information to the public.

Secondly there are plans for £4.4 billions of savings to be made between 2011-13 on employee costs in the public sector through the application of a “one per cent cap on public sector pay settlements” in 2011-12 and 2012-13 and “reforms to public service pensions”.

Many commentators were asking “where is the pain” when the PBR was released recently, looking at the longer term implications we can probably say IT IS ON ITS WAY!

Related posts:

1. PBR 2009 into PMBR 2010
2. Q: What is the Project Manager’s New Year’s Resolution?
3. Looking to 2010 for Project Management Recruitment
4. The Survey For Project Managers To Close Wednesday
5. Survey Shows Underuse of Social Media Amongst Job Seekers

Comments

One Response to “New Year Thoughts!”

1. Mark O'Brien
   December 24th, 2009 @ 1:45 am

   I hear what you’re saying, but I do wonder how quickly the pendulum will swing back when projects and initiatives fail because internal resources are not capable of managing them to successful completion, and the cry goes up to get properly qualified people in to get the job done. When huge amounts of resources are seen to have been mismanaged by poorly qualified public servants (we have a couple of current examples here in Australia), it seems common sense kicks back in and skilled people are sought because the investment is suddenly seen to be worth it.

   But, no doubt you are right… 2010 will be a very interesting year.

Leave a Reply

Name (required)

Email Address(required)

Website

Comments

You can add a link to follow you on twitter if you put your username in this box.
Only needs to be added once (unless you change your username). No http or @
Twitter