Could arbitrary ratios of public servants, contractors or consultancies harm outcomes? Photo: AnVr.
In the ongoing debate over public sector spending, much of the focus has fallen onto reducing reliance on contractors and consultants.
State and federal governments have moved to cap their use, with success often measured by how many roles are filled by permanent public servants rather than external hires.
But Whizdom managing director John McCluskey argues these headcounts are the wrong measure – and might ultimately shortchange taxpayers.
“Setting a KPI (key performance indicator) on public service numbers may not provide the best outcome for delivery,” he says. “Taxpayer money should be spent based on the best and cost-effective delivery of a project/outcomes for the country.”
Savings from contractor cuts are often widely reported by the APS as an effective cost-saving measure.
However, industry has called into question the logic of using full-time employees to meet short-term surges in workload or specialist skills needs.
“When you consider the actual cost of employing permanent staff to lift capability for a specific project temporarily, you have to factor in the significant expense of upskilling and training a workforce for specialist jobs,” John says.
One weak point in many internally managed projects is continuity, he says.
Unlike contractors, public servants are not always obliged to see a project through to completion.
Frequent changes in management and oversight can leave project budgets and timelines drifting, ultimately costing taxpayers more.
“A good outcome for public servants managing and accountable for projects is to incentivise the successful delivery of milestones, which are externally audited,” John says.
“Remember, no-one wins from a failed project, and it’s the last thing industry wants to be associated with. But the APS must be part of the KPIs and deliverables – accountability has to be shared. It’s time to move away from the blame game.”
Take a solutions-oriented approach – one where every project involves the best resources available from all sectors, each equally accountable.
John says contractors should be engaged to scale up a workforce for short periods, with defined deliverables. Once a project moves into sustainment mode, contractors can transfer skills to in-house staff to maintain it.
“It’s about getting the right blend of resources for the cost-effective delivery of projects using taxpayers’ money,” he says.
“When the blend is wrong, projects tend to run overtime and over budget. When that happens, it’s easy to blame consultants or contractors, but the APS should also have an equal stake in both the successes and the failures.”
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