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CHAPTER 3 UNDERSTANDING EMPLOYEE ENGAGEMENT IN THE PUBLIC SECTOR
Introduction
3.1 The objective of this Chapter is to review the extent to which employee engagement varies between the public and private sectors. This was examined on two levels:
- Are there any fundamental differences in how employee engagement operates between the public and private sectors that would impact on interpretative models? In particular, do the drivers of employee engagement vary between the two sectors? And
- What evidence, if any, is there on the effectiveness of employee engagement between the public and private sectors? Are there any marked differences between the sectors in terms of how engaged staff are?
Variations in employee engagement process
3.2 From our analysis of the models presented in Chapter 4, the differences between the public and private sectors have no impact whatsoever on how employee engagement works. This reflects the fact that the positive factors impacting on employee engagement apply with equal weight to the public and private sectors. In particular this includes:
- The importance of providing high quality management, especially at supervisory and immediate line management level
- The importance of having a strong organisational vision and clarity in goals that are clearly articulated and communicated to staff at all levels
- The importance of engaging in effective two-way communication between the organisation and its staff
3.3 No interpretative model (see Chapter 4 for details) of the employee engagement process assessed as part of the literature review has drawn any sectoral distinction: they are generic across all organisational types in the public and private sectors. This is a key finding of the literature review.
3.4 However, the employee engagement outcomes do vary according to a range of factors reflecting organisational and employee characteristics. The aspiration to find a 'one size fits all' model does not apply, either to all individual employees or to all organisations. These variations are discussed below.
Variations in employee engagement outcomes
3.5 There is a surprisingly limited amount of research commenting on variances in employee engagement between the public and private sectors. This may relate to the fact that there is more in common between the sectors than there is variation and the principles of engagement tend to be generic across both sectors. The literature reviewed tends to highlight the relatively strong performance of the public sector in terms of job specific parameters ( i.e. public sector workers are more likely to receive compensation for working extra hours, and find their work more worthwhile and personally meaningful) but its weaker performance in the critical employee engagement drivers such as strategic vision and management. For example, CIPD (2006c) in a national survey of 2,000 UK employees found the following:
- Hours worked - there are no differences between the public and private sectors in terms of hours worked. However, public sector workers are more likely to receive some compensation for working extra hours than those in the private sector;
- Work-life balance - one would have expected that public sector workers would be receiving more help from their employer to achieve a good work-life balance, but actually there is no difference;
- Employer negatives - public sector employees are more negative about their employers than their private sector counterparts, reporting that:
- They experience more bullying and harassment than those in the private sector
- They are less satisfied with the opportunities they have to use their abilities
- They are more stressed and under more pressure
- They are more critical of their organisation
- They are less likely to feel their senior managers have a clear vision for the organisation
- They have less trust and confidence in their senior managers; and
- They are also less likely to believe organisational communication.
- Job positives - however, the public sector ethos is reflected in the fact that more public sector workers find their work worthwhile and personally meaningful. This is an important finding, as it is discussed later in Chapter 4, that Penna (2007) presents a model whereby 'meaning at work' is at the apex of the model, and one of the most important factors in driving engagement.
- Individual/employee performance outcomes - public sector workers rate their own performance lower than private sector employees and are more likely to have taken more sick leave in the last year.
3.6 Ipsos MORI (2006) has highlighted the need for public sector organisations to improve the way in which they manage change and develop leadership capability. It is discussed later how engagement can help organisations manage change (see the Cambridgeshire County Council case study which highlights how engagement was brought in to assist a large and difficult change in the Council). Drawing upon research data from over 200 of the UK's leading organisations, an analysis by sector shows that in many areas there is typically little difference in employee attitudes. However, in core aspects of working life (ref. 'job positives' above), public sector staff tend to be happier with:
- Job security
- Being paid fairly and their pay reflecting level of performance
- Training and development opportunities
- The feedback they receive from line managers
- Working hours.
3.7 As a result of the research, Ipsos MORI (2006) conclude that public sector employees are more likely to feel that the work they do is interesting and, in general, perceive a greater feeling of morale where they work.
3.8 In contrast, the public sector usually trails the private sector in two key areas: change management and leadership capability (this is despite the fact that public sector employees report a greater level of contact with senior management). The Ipsos MORI (2006) research found that whilst around three-quarters of employees in both sectors understand the need for change, there is a large disparity in terms of those who support the need for change - with 75 per cent of employees in the private sector supporting the need for change, compared to 65 per cent in the public sector. Moreover, public sector employees are significantly more likely to feel that some of the changes being implemented are unnecessary: they believe that " there is too much change for change's sake". Thus it is imperative that managers fully engage staff in understanding the rationale for change, rather than just communicating the change to them, and support employees through the change process.
3.9 In terms of the more practical aspects of change management, again public sector employees are more critical. A quarter of private sector employees, compared to just 15 per cent of public sector employees, believe that change is well managed in their organisation: see Figure 3.1.
Figure 3.1 Perceptions of Change Management by Sector
Source: Ipsos MORI (2006)
3.10 The Ipsos MORI (2006) research highlights other areas in which public sector staff are usually more critical than their private sector counterparts:
- Receiving recognition for good performance and providing opportunities for employees to let the organisation know how they feel about things that affect them in their work
- Having adequate /sufficient facilities or resources to do their work effectively
- The belief that their organisation puts customers first
- Confidence that they are working for a successful organisation.
3.11 As a consequence, the public sector tends to trail the private sector in core areas that can lead to enhanced employee engagement, such as clarity of direction, effective communication and management. The conclusion of this research is that the public sector needs to concentrate more on how it manages change and develops leadership capability, to contribute to delivering the Public Sector Reform Agenda effectively.
3.12 These findings in the UK are supported by research in Canada conducted by the Auditor General of British Columbia (Office of the Auditor General of British Columbia, April 2002). The British Columbia public service received an engagement rating of 59 per cent compared to 79 per cent for the top 50 companies to work for in Canada (Hewitt Associates: The 50 Best Companies to Work for in Canada, as cited in Office of the Auditor General of British Columbia 2002). In comparison to the leading private sector companies, British Columbia's public service employees are relatively happy with their work, are just as committed to staying with their employer, but due to a climate of distrust, a lack of confidence in their managers, and a feeling that the public hold a negative view of them as workers, they are not as proud of where they work. Only 43 per cent would highly recommend their department to a friend seeking employment, compared to 86 per cent in the comparison group. Again the public sector compares favourably in job content, but is weak in terms of organisational identity and advocacy amongst staff.
Summary and key findings
- No interpretative model (detailed in Chapter 4) of the employee engagement process that has been reviewed has drawn any sectoral distinction: they are generic across the public and private sectors.
- However, the employee engagement outcomes do vary according to a range of factors reflecting organisational and employee characteristics. The aspiration to find a 'one size fits all' model does not apply.
- In general, public sector employees are more satisfied with their job characteristics, but are significantly less satisfied with key drivers of employee engagement compared to the private sector.
- These weaknesses include lack of orientation to organisational objectives and lack of advocacy.
- However, variations in employee engagement within sectors are far more significant and important than any reported variations between the public and private sectors. The challenge is for employers to understand the importance of employee engagement within their own organisation and to address it effectively. These issues are addressed in more detail in Chapter 4.
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