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Local government executives expect headcount reduction

25 June 2009

Interim management teams in the local government sector may be required to cut their workforce over the next five years.

According to research by the Local Government Chronicle, more than half of chief executives and senior managers believe their staff numbers will go down between now and 2014.

Alan Downey, head of public sector at consultancy firm KPMG, said the findings show that local government executives are largely "facing up to reality".

However, Gillian Hibberd, president of the Public Sector People Managers Association, stated that the reduction in workforce size does not automatically equate to job losses.

She told the Local Government Chronicle that the drop in headcount would be partly due to internal restructuring and efficiency drives, which would lead to some tasks being outsourced and many employees moving to public-service partnerships.

"Organisations are going to be looking at questions of what services they provide, and there will be some difficult choices," Ms Hibberd added.

Many of these decisions are likely to be undertaken by interim managers, as recently revealed that turnaround directors are being used more widely in the local government sector.

Categories: Local Government


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