Regardless of the hue of the next government, organisations the length and breadth of the public sector are bracing themselves for cuts. Maintaining service quality with less resource is likely to be the biggest challenge facing the sector in the coming years.
Services like the NHS are unlikely to be cut into drastically at the front line, although some have suggested that significant savings could be made in what has been coined the "corporate overhead."
Developing better management and leadership skills can help rationalise the service away from the coal face, without leading to a decline in service. It's an approach already being done well by some foundation trusts, and one many believe can be effectively replicated throughout the rest of the NHS.
Outside essential services, most recognise that quangos and regional development agencies are under the spotlight. David Cameron has been adamant in his belief that this area of the public sector harbours a significant degree of waste, and Gordon Brown has stated that 129 quangos could be either abolished or merged without significant impact on service.
Pensions have been suggested as another target for cuts, with some feeling they are the "sacred cow" of the public sector. Reducing public sector pensions could indeed help to cut deficits and save capital, but there's a real fear that it would also significantly harm organisations' ability to attract and retain the talent needed to maintain and improve service levels.
One interesting idea that we've seen gain some support among the senior managers to whom we have spoken with is the concept of zero-ased budgeting. Distinct from incremental budgeting, this involves all parts of the public sector needing their entire budget approved every year rather than simply any increases.
Even if done on a three-yearly basis, many have said they feel it would help to target inefficiencies in all areas of the public sector, going a long way to dealing with spending cuts.
A common theme running through many of the conversations we've had has been getting the right people into the right places. Recruitment has never been a more important issue - it will be vital to find inquisitive people who are unafraid to ask the right procurement questions and develop answers to deliver services with fewer resources. That means looking seriously at how you attract people, getting as much advice as you can on where to look for the best talent and how to recruit them.
There one unavoidable fact – spending cuts are coming to the public sector. Understanding how to manage them and continue to deliver the services that are needed is the big question facing the entire sector. Informed debate will help us arrive at answers, as will ensuring the public sector remains home to intelligent, motivated professionals.
To see some of the conversations we held earlier this year with public
sector figures about this issue, visit Market Talk.
Nicola Linkleter is public sector executive director at recruitment consultancy Badenoch & Clark
