The Acting Director of Law, HR and Asset Management submitted a report on the proposed restructure of Human Resources and Organisational Development (HR/OD) and sought approval for the departmental restructure to move the human resources functions (currently located in departments) to form one central unit. 

The Cabinet had received a report on 6 September 2012 (minute 81 refers) outlining restructuring proposals for Human Resources and Organisational Development to re-align staff, staffing budgets and training budgets to the Head of Human Resources and Organisational Development. Cabinet had resolved the following:

·  Re-structure of Human Resources and Organisational Development from their substantive departments to one centralised function. 

·  Alignment of 34.46 FTE of staffing and £1,144,900 budget from their substantive departments to the Head of Human Resources and Organisational Development.

·  £200,000 budget from the Corporate Efficiency fund for the additional resources necessary which will help the Department to meet the organisational challenges and business requirements to deliver the required budget savings.

·  Alignment of £476,400 Training budgets from their substantive departments to the Head of Human Resources and Organisational Development.

·  £50,000 budget from the Improvement fund for an additional OD management post to meet organisational development requirements of the Improvement plan.

Cabinet had recommended that the Employment and Appointments Committee approve the re-alignment of staff, and the establishment of the Management structure and the posts that were above spinal column point 49.

The report gave details of the proposed management structure and also comparator details for the HR function with other similar authorities. The breakdown of the 12 posts above spinal column point 49 was as follows:

• 4 were redesignations of existing posts
• 2 senior managers were currently acting up
• 4 new posts were on a fixed term basis of 2 years
• 2 new permanent posts

Two of these posts, Business Partners, had previously been approved by this Committee at its meeting on 11 August, 2011 (minute 15 refers).

The Council was facing unprecedented challenges in terms of both the financial challenge and the improvement agenda. Significant transformational change needed to be supported through HR and OD. The risk to the Council of an under resourced service at this time was significant. Given the change required it would be a risk for the council to continue with an HR/OD function that was under resourced in comparison with other organisations. The request for additional funding over the next two years sought to address this risk, but also gave flexibility within the function with a number of fixed term contracts proposed.

Responding to comments from Members the Head of HR and Organisational Development acknowledged the need to look at new service delivery models. HR and OD was one of the first services which needed to be in place to drive forward and support the changes taking place across the organisation. With the increased establishment, the HR and OD function would still be below the average of comparator authorities. In respect of the fixed term contract posts it was difficult to estimate any redundancy costs due at the end of the contracts as this was dependent on the previous employment history of those people recruited to the posts.

The Leader of the Council expressed support for the proposed changes which were needed to make the HR and OD section fit for purpose at this time of taking the improvement plan forward and addressing the £17m forecast in-year overspend and the £100m savings which needed to be made over the next three years. In looking at a shared service approach this structure would enhance the Council’s ability to sell its HR service outside, including to schools and academies.  He suggested that a regular report could be brought to the Committee on how the new structure is adding value to the HR and OD service being provided.

Resolved – That this Committee -

(1)  approves the re-structuring of the Human Resources and Organisational section from within their substantive departments to one centralised function, ensuring the creation of one team.

(2)  approves the re-alignment of 34.46 FTE of staff to the Head of Human Resources and Organisational Development

(3)  approves the establishment of posts above SCP 49 as outlined in the report:

• Human Resources Manager EPO 21
• Employee Relations (Case Work) Manager EPO6
• Workforce Change Manager EPO6 (2 year fixed term)
• Strategy and Policy Manager EPO6
• Organisational Improvement Manager EPO6
• HR Business Improvement Manager EPO6 (2 year fixed term)
• Business Partner EPO6 (2 year fixed term)

(4)  approves the re-designation of the posts above SCP 49 as outlined in the report:

• Senior Business Partner EPO21
• Business Partner EPO6
• Organisational Leadership Manager EPO6

(5)  Notes that all posts will be subject to job evaluation.