Agenda Item No. 6
THE VALE OF GLAMORGAN COUNCIL
SCRUTINY COMMITTEE (LIFELONG LEARNING): 22nd SEPTEMBER, 2014
REFERENCE FROM SCRUTINY COMMITTEE (CORPORATE RESOURCES): 24TH JUNE, 2014
'122 ANNUAL TURNOVER REPORT – APRIL 2013 TO MARCH 2014 (MD) –
The report had been submitted in response to a request from the Committee for an analysis of employee turnover in the Council for consideration alongside the Council’s Workforce Plan.
In 2013/14 the overall turnover rate within the Council was 8.64%. This compared favourably with the turnover rate of 10.28% in 2012/13. The Head of Human Resources referred to the Corporate turnover which had reduced from 13.98% of the corporate headcount in 2012/13 to 9.30% in 2013/14. Turnover in Schools had increased however from 6.66% of the schools’ headcount to 8.00% in 2013/14.
The report set out in paragraph 8 a table of information which set out the comparison of employee turnover rate for 2012/13 and 2013/14.
In referring to the report the Head of Human Resources referred to the reasons for turnover and admitted that the main difference between 2012/13 and 2013/14 was the transfer of Leisure Centre staff to Parkwood Leisure Ltd in August 2012. The transfer of employees out of the Council through a TUPE arrangement was not featured in 2013/14 which explained the overall difference in turnover rates between the two years. However, he indicated that excluding TUPE, the overall turnover of employees in the Council had remained relatively constant over the two year period, with only a small increase of 7% from 435 leavers in 2012/13 to 468 leavers in 2013/14. Resignations from the Council had increased from 4.77% to 5.26% since 2012/13. This was an area where exit interviews would continue to play a part in determining the reasons why people chose to leave employment with the Council. Further work on exit interviews would be developed and presented in a report to future meetings.
As for the number of redundancies, this had reduced from 0.65% to 0.26% of the overall Council headcount. He informed Members that the Council’s positive approach to managing change, which helped to mitigate, avoid and reduce the incidents of compulsory redundancies, was an important tool to the Council. In regard to dismissals, these had increased from 0.79% to 1.29% (from 43 to 70 employees) with the dismissal reasons being conduct / performance, ill health and end of temporary contracts. End of temporary contracts had accounted for 44 of the 70 dismissals.
Paragraph 14 set out more detailed breakdown of reasons for leaving the Council’s employment.
Further information was also provided in regard to turnover by occupational groups. In regard to senior managers, the number had remained consistent in 2013/14 with the number of leavers from the Professional occupational group reducing slightly from 35 people in 2012/13 to 27 in 2013/14. The difference between the number of Technicians and Support Staff leaving in 2012/13 and 2013/14 leaving the Council may be explained by the number of employees transferring out under TUPE arrangements as referred to above. In reference to Schools, the number of Teachers leaving employment had increased from 5.19% to 8.49% (of all teachers) and the number of Support Staff leaving had increased from 8.82% to 9.69% (of all Support Staff). A breakdown was also provided of the number of employees leaving and their occupational profile which was set out in paragraph 19 table of information.
The Head of Human Resources also referred to turnover by Directorate which he indicated had increased (including Schools) except in Learning and Skills, Social Services and Development Services where the number of leavers had decreased from 2012/13 to 2013/14. A table showing the turnover rate of each Directorate was set out in paragraph 23 of the report. He also referred to turnover in 'hotspot' areas and one of the main reasons identified were in Theme V of the Workforce Plan 2013-2017 was the recruitment and retention of employees in key occupational groups. Overall the turnover in areas that had been identified as 'hotspots' had been relatively slow in comparison with 2012/13. He considered this to be an obvious consequence of the economic recession, it was also the case that salaries for many of the 'hotspot' positions was improved as a result of the job evaluation exercise. He also reminded Members to be aware of the need to be attentive to recruitment and retention issues in these key areas, which would continue to be monitored on an ongoing basis and he felt that the situation may change as the economic outlook improved. As for turnover by age profile, the Head of Human Resources indicated that over both reporting periods the highest proportion of leavers were aged 60-65 years which was expected as employees neared retirement ages. The second highest number of leavers were those aged 20-24 years (19.6% overall 20-24 years employed in the Council), followed by those 16-19 year olds (16.3% of all 16-19 year olds), and 25-29 year olds (14.9% of all 25-29 year olds) which represented a reduction in the number of leavers from the previous reporting period. However, he reminded the Committee that an important theme within the Workforce Plan was the need to ensure effective responses to recruitment issues and Members would be aware of the Council’s challenge to increase the numbers of younger workers relative to the wider workforce. This included the Council’s approach to graduate and apprenticeship recruitment and an increased focus on succession planning and staff engagement strategies. Paragraph 31 of the report set out the breakdown of employees by age profile.
In summing up, the Head of Human Resources then referred to the turnover of employees in a wider comparison and indicated to compare the turnover rates of the Council in context, the CIPD Resourcing and talent Planning Survey (2013) reported that the overall turnover rate across all sectors in the UK was 11.9%, while the turnover rate for the public sector was 9.4%. Similarly, XpertHR Labour Turnover Rates survey (2013) reported that their survey suggested that the overall turnover rate within the UK was 8.9%. He also referred to workforce planning feedback ('Measuring Up – Workforce 2012-13' published by the Local Government Data Unit and Welsh Local Government Association), the average turnover rate in local authorities in Wales was 9.11% in 2012/13. The turnover rate for the Council was below all of these comparisons with an overall turnover of 8.64%.
Also for the Committee’s information the Head of Human Resources tabled a number of graphs in relation to the report agendaed.
The Committee expressed their thanks to the Head of Human Resources for his very comprehensive report. The Committee considered it would be useful in future reports if further information could be ascertained in regard to the reasons why employees left the employment of the Council which would require further analysis of exit interviews. The Committee also requested that short term temporary contracts should be removed from the data as this was likely to skew turnover information. The Chairman, in thanking the Head of Service for his report, suggested that the information in relation to school employees’ turnover would be of interest to the Scrutiny Committee (Lifelong Learning) and it was suggested that the report be forwarded on this particular aspect to that Committee for consideration.
Having regard to the above, it was
(1) T H A T the position in relation to Council employee turnover be noted.
(2) T H A T the report be referred to the Scrutiny Committee (Lifelong Learning) drawing their attention to employee turnover information in relation to School staff.
Reasons for recommendations
(1) To monitor the turnover of employees engaged by the Council.
(2) To ensure that the Scrutiny Committee was aware of employee turnover rates within Schools.'
Attached as Appendix – Report to Scrutiny Committee (Corporate Resources): 24th June, 2014