States Employment Board Follow-up

08 September 2022

jerseyauditoffice.je  R.152/2022

Contents

Summary   3

Introduction    3

Key Findings    4

Conclusions    6 Objectives and scope of the review  7 Detailed findings   9

Design of arrangements for appointment and employment of States of

Jersey employees  9 Effectiveness of the SEB in discharging its responsibilities 18 Compliance with Employment Codes of Practice and supporting policies 33

Arrangements for monitoring implementation of previous recommendations

on Human Resources management  36

Employment of the Chief Executive 41 Appendix One – Audit Approach  47 Appendix Two – Summary of Recommendations 50

Summary

Introduction

1. In 2019 the Comptroller and Auditor General (C&AG) undertook a review of the role and operation of the States Employment Board (SEB). The Employment of States of Jersey Employees (Jersey) Law 2005 established the SEB as the statutory employer of all States employees. The SEB has a pivotal strategic role, not least because staff costs make up over 30% of States expenditure. Effective oversight of human resources (HR) is a critical component of the operation of the States.
2. The 2019 C&AG review evaluated performance in four areas as shown in Exhibit 1. Exhibit 1: Structure of the 2019 report

Design of arrangements for

appointment and employment of  Effectiveneits resss of theponSEsibBilit inie dsischarging

States of Jersey employees

SEB

Compliance with employment codes of  Implementation of previous

practice and policies recommendations

Source: The Role and Operation of the States Employment Board, C&AG Report 2019

3. The C&AG concluded that the arrangements for the SEB were not fit for purpose. She found three main areas of weakness:

• the framework for the oversight of HR management relating to:

o the establishment and functions of the SEB

o the establishment and functions of the Jersey Appointments Commission (JAC); and

o ambiguities and gaps in the arrangements

• the arrangements to enable the SEB to discharge its functions, in particular:

o the SEB had not adopted an overarching People Strategy

• the SEB had focussed its work on some operational aspects of its responsibilities to the exclusion of some key strategic areas
• the SEB had not focussed sufficiently on securing improvements in key areas; and
• the SEB was insufficiently transparent about its work; and

• an insufficient focus by the SEB on monitoring of implementation, evidenced by:

• the absence of mechanisms to monitor compliance with employment codes of practice and supporting HR policies; and
• the absence of an active role in monitoring the implementation of C&AG recommendations, as well as those from other external sources, relevant to HR.

4. The Government accepted all 20 recommendations made and developed an action plan in response.
5. In addition to the 2019 C&AG review, both my predecessor and I have made several other recommendations in respect of both SEB and HR oversight and management, in the following reviews:

• Utilisation of Compromise Agreements – Follow Up (May 2016)

• Use of Consultants (October 2016)

• Financial Management and Internal Control (September 2019); and

• States Employment Board – follow up: Employment of the former Chief Executive (May 2021).

6. This review follows up on the status of the action taken to implement the recommendations made in the 2019 C&AG Report as well as other relevant recommendations made in the C&AG reports referred to above.

Key Findings

7. The key findings from my review are as follows:

• considerable progress has been made during 2021 and 2022 in implementing many of the recommendations made in the 2019 C&AG Report. In addition, most of the recommendations made in the other relevant C&AG reviews listed in paragraph 5 have been implemented

• however, the most significant recommendation in the 2019 C&AG Report relating to the need to fundamentally review the framework for the oversight of human resources of the States, involving both the SEB and the JAC, has not been implemented. The new Council of Ministers (CoM) and the new SEB should prioritise this review as recommended both by the C&AG and the Democratic Accountability and Governance Sub-Committee of the Privileges and Procedures Committee in its report in February 2022

• legislation to ensure the independence of the JAC in line with the C&AG recommendation is still in draft form. The new SEB should prioritise its review of this draft legislation and bring forward a proposition to the States

• a People Strategy was published in November 2021 and sets out the high-level objectives and a clear strategy for developing the public service. It is accompanied by a detailed action plan for 2022. The Be Heard' staff survey planned for 2023 should help to test the impact of the changes

• significant work has been put into organisational development, as well as into developing the Government of Jersey workforce through initiatives including the Team Jersey, World Class Manager, Capable Manager Expresso programme, Apprenticeship and Intern schemes

• effective workforce planning is still in its infancy and workforce plans are being developed. Currently separate records are held in Treasury and Exchequer (T&E) and People and Corporate Services (P&CS) on the funded establishment. The Integrated Technology Solution (ITS) currently being implemented should provide an opportunity to streamline records and ensure appropriate reconciliations are in place between key systems

• good progress has been made over the last year in respect of health and safety with regular reports presented to the SEB together with a risk register. However, there is more to be done. Compliance with health and safety requirements and the resources applied to the function are inconsistent across departments. One Ministerial department does not have any qualified resource to deliver the action necessary

• work has been on-going to update all the Employee Codes of Practice during 2022, along with a full suite of accompanying HR policies. A new People Policy Framework has also been developed

• a new HR dashboard is in place and is reported to the SEB. There are however significant concerns over the accuracy of data which is still being cleansed. Information on diversity and on compliance with HR policies is not yet included on the dashboard

• despite efforts to promote the performance management system My Conversation, My Goals', compliance is very inconsistent and poor in some departments; and

• the draft minutes for the SEB meetings have not always been presented to the SEB on time and there have been delays by the SEB in agreeing the content of the minutes for accuracy. At some SEB meetings, several sets of minutes, relating sometimes to as many as five previous meetings, were agreed. There is no decisions log nor an action log relating to decisions from each SEB meeting.

Conclusions

8. The publication of a People Strategy in November 2021 was an important milestone in setting out the high-level objectives and a clear strategy for developing the public service. The People Strategy now needs to be delivered in a systematic and prioritised manner ensuring that regular checks are made on its impact.
9. There is still work to be done to review and address the weaknesses in oversight of the management of the workforce, reported by the C&AG in 2019 and the Democratic Accountability and Governance Sub-Committee in 2022. Weaknesses remain relating to the establishment and functions of the SEB and the JAC. In addition, there are ambiguities and gaps in the current arrangements.

Objectives and scope of the review

10. The review has evaluated:

• the arrangements established to manage, monitor and report on implementation of agreed recommendations

• the progress made in implementing agreed recommendations

• the extent to which the changes made have been evaluated to ensure they address the improvement areas identified in the 2019 Report; and

• the adequacy of plans for the implementation of any outstanding recommendations.

11. The review has considered:

• the key functions, powers and duties, membership, scope and reporting lines of the SEB and the JAC

• the effectiveness of the SEB in discharging its functions in respect of:

o overall approach

o work management

o economy, efficiency, probity and effectiveness

o employment codes of practice and supporting policies

o health, safety and wellbeing

o senior staff remuneration; and

o transparency; and

• the effectiveness of arrangements for securing compliance with employment codes of practice and supporting policies.

12. This follow up review also assessed the progress made in implementing recommendations relating to HR oversight and management and to the SEB, from the following previous C&AG reports:

• Utilisation of Compromise Agreements – Follow Up (May 2016)

• Use of Consultants (October 2016)

• Financial Management and Internal Control (September 2019); and

• States Employment Board – follow up: Employment of the former Chief Executive (May 2021).

Detailed findings

Design of arrangements for appointment and employment of States of Jersey employees

13. In 2019 the C&AG found that there were several statutory provisions that may detract from the effectiveness of the SEB. The C&AG also noted concerns that, in many areas, the functions, powers and duties of the SEB do not promote good management of States employees. In respect of the JAC, the C&AG found that the statutory framework compromises the independence of the JAC. She also identified areas where the powers and duties of the JAC could be developed. Finally, the C&AG highlighted a number of gaps and ambiguities in respect of arrangements, including regarding the oversight of interim staff, oversight of the employment practices of States owned companies and arm's length organisations and independent oversight of termination of employment.
14. The C&AG made two significant recommendations in respect of the design of arrangements for the appointment and employment of States of Jersey employees. There has however been limited progress made in implementing these recommendations, as shown in Exhibit 2.

Exhibit 2: Summary of progress in design of arrangements

Recommendation Current Position  Evaluation

R1 In light of the  CoM commissioned a review of  Not implemented findings of my review,  legislation, planned to be

fundamentally review  completed by 2020. Whilst the  Twhas pe drafrepat leregidslat for tionhe that the framework for the  first phase of this review has  previous SEB has not been

oversight of human  been completed, the  proposed to the States resources of the  recommended legislative  Assembly. In addition, the States, including, in  changes have not been  remaining phase

respect of both SEB  proposed to the States  review has not be ofen the and the JAC:  Assembly. The remaining

• phase of the review is yet to be  comweaknpleteessde. s iFduenndtifamiede inntal

 scope   completed.  previous C&AG reports

• functions

Factors including the COVID-19  remain.

• membership; and  pandemic have contributed to a

• operation.  delay in the completion of this

work.

Recommendation Current Position  Evaluation

R2 Pending any  Working practices for the SEB  Partially implemented legislative changes,  and the JAC have been  The SEB has made progress adopt working  developed since 2019. They  on the way in which it practices for SEB and  have not however developed to  discharges some of the

the JAC that, in so far  address the specific weaknesses  functions conferred upon it.

as possible, address  noted in the 2019 Report.

the weaknesses in the  The JAC has enhanced its framework identified  influence and has built a

in my report.  strong reputation.

There are however further developments in working practices that should be adopted to address weaknesses in the overall framework.

Source: Jersey Audit Office analysis

The legislative framework

15. The Employment of States of Jersey Employees (Jersey) Law 2005 is one of the core pieces of legislation underpinning the public sector but it has never been subject to a full review.
16. The Employment of States of Jersey Employees (Jersey) Law 2005 establishes:

• the meaning of a States employee

• the role of the Chief Executive Officer and makes limited provision for the Chief Executive Officer's functions, including leading Directors General in administration and general management of the public service plus implementation of corporate and strategic policies

• the SEB as the legal employer, providing for its membership and functions

• the JAC, providing for its membership and functions including oversight of recruitment and audits of recruitment practice; and

• parameters relating to political eligibility of SEB employees.

17. In March 2019, CoM commissioned a review of the Employment of States of Jersey Employees (Jersey) Law 2005 which was due to be completed in three phases and concluded in 2020. However in July 2020, the Chief Minister set out the intention to progress legislative reform in two phases:

• Phase One: Amendments to the Employment of States of Jersey Employees (Jersey) Law 2005 to:

• establish the JAC as an independent public services commission
• clarify the functions of the JAC as an independent public services commission including oversight of employment
• clarify oversight of performance management and the disciplinary process relating to office holders including the Chief Executive
• clarify oversight of compliance with standards in public life; and
• clarify the functions of the Chief Executive, including in relationship to stewardship of the public sector with delegation down to Directors General; and

• Phase Two: Amendments to the Employment of States of Jersey Employees (Jersey) Law 2005 to clarify how the SEB, or an equivalent body, should be constituted and what its essential functions should be. This includes consideration of:

• the requirement to focus on and monitor impact of an overarching people strategy, as opposed to operational matters
• the requirement to secure improvements in key areas such as staff development and health and safety; and
• whether to retain the SEB as the employer, or as the body which provides strategic oversight and challenge.

18. Work progressed on Phase One to the point of draft legislation. This draft legislation was not however proposed to the States Assembly prior to the election. It will therefore be the responsibility of the new SEB to consider how to take this forward.
19. The draft legislation goes some way to addressing the weaknesses set out in the 2019 C&AG Report. Under the draft legislation the JAC, as established under the Employment of States of Jersey Employees (Jersey) Law 2005, will be replaced by a new body corporate which will be known as the Jersey Public Appointments Commission. Under the draft legislation this body is planned have formal status over the wider Jersey public sector including arm's length organisations, but it is not planned to include the judicial bodies of Jersey. In other jurisdictions, a Judicial Appointments Commission performs this role.

20. In February 2022, the Democratic Accountability and Governance Sub-Committee (DAG) of the Privileges and Procedures Committee (PPC) published a report (R.23/2022) that included comments in respect of the SEB. The DAG report included the following key findings in respect of the SEB:

'16. Many Members of the States consider that the role of the States Employment Board is unclear.

17. The governance arrangements for the States Employment Board are lacking, despite recent recommendations from the Comptroller and Auditor General to address various deficiencies.
18. Record keeping within the Executive sometimes lacks rigour, causing a lack of transparency and accountability.'

21. The DAG report contained the following commentary on how the findings it identified should be addressed:

The budgetary arrangements for the SEB need to be addressed. As the Board does not currently have its own budget, any issues are picked up by Ministerial government in terms of liabilities and risk.

The legislative arrangements around the SEB need to be more refined. The recommendations made by the C&AG need to be implemented as a matter of priority.

The SEB should set their policy and their strategy at the beginning of their term. The Head of the Public Service and officers should then demonstrate how they are complying with and meeting the requirements set by the Board.

Joint working between the SEB and the Unions requires some attention, particularly as there appears to be issues with the level of engagement between the two parties. Consideration should be given as to whether a consultative committee should be established which would constitute members of the SEB and representatives from each Union.

In considering the role of the SEB, the Government should consider how it would best fit into the creation of a new Cabinet Office in order to oversee the enabling/supporting functions such as Communications, HR and IT, which are functions currently in the Chief Operating Office and Office of the Chief Executive.

Consideration should be given as to whether the SEB should be established as a committee of the States of Jersey and whether it should include a mixture of executive and non-executive members as is the case presently. In this new scenario, the Head of the Public Service would be answerable and accountable to the Committee and it would not be appropriate to appoint the Chief Minister (or any executive member) as the chair.

The Chief Executive has a number of different roles including the CEO/Head of the public service, advisor to the Council of Ministers and executive support to the SEB (although the Group Director of People and Corporate Services has since taken an active part in providing the executive support function to SEB). Consideration should be given to the role of the Chief Executive and whether there are too many powers invested in only one individual. If a Cabinet Office is established, the Head of the Cabinet Office could be responsible for providing advice to the Council of Ministers, and the Chief Executive to account to them for delivery of policy initiatives.

The appointment of the CEO should go through SEB and the Jersey Appointments Commission should play a regulatory role only.

The SEB should implement more formal rules around record keeping within the civil service.'

22. The SEB in its Annual Report for 2021 noted that recommendations one and two of the 2019 C&AG Report had not been implemented and would require action by the new SEB and the States Assembly. The SEB did not however respond formally to the DAG 2022 report.
23. In the absence of any new legislation, some progress has been made in how the SEB and the JAC function and interact in practice. However, the respective roles and responsibilities of the SEB, the Principal Accountable Officer and CoM remain blurred.
24. The SEB must be assured that officers providing advice are able to do so independently. Currently, Law Officers and the Treasurer have protection, but the principal adviser, the Group Director for People and Corporate Services, does not. Those providing advice to the SEB, in the interest of the SEB, should have a duty to the SEB primarily.

SEB functions

25. Until the whole of the review commissioned by CoM is completed and changes implemented, SEB remains the employer of States employees in Jersey and the functions of the SEB remain the same as they were at the time of the 2019 C&AG Report. These functions are summarised as:

• ensuring that the public service conducts itself with economy, efficiency, probity and effectiveness

• being accountable for the health, safety and wellbeing of States employees

• issuing Codes of Practice (strategic policy documents) with which Accountable Officers (including those for Ministerial and Non-Ministerial Departments) have a duty to comply

• approving the engagement of senior employees, interims and contractors under the requirements of P.59/2011

• oversight of the JAC including recommending appointments to the Commission; and

• preparing an Annual Report to the States Assembly.

SEB membership

26. The constituted membership of the SEB has not changed since the 2019 C&AG Report. By statute the SEB comprises only members of the States Assembly. The election cycle means that there is a risk that many of the five members will cease to serve on the SEB at the same time, threatening important elements of knowledge and continuity in the activities of the SEB. This risk materialised in 2018 when, following the election, the entire membership of the SEB changed. The same issue has arisen in 2022 following the election.
27. Making provision for independent lay members with relevant skills and experience to serve on executive boards is not unusual. Doing so in the context of the SEB might strengthen its capacity and also reduce the impact of substantial changes in membership at the same time.
28. The SEB is able to appoint up to two independent advisors but has only appointed one advisor who has been in post since 2015. A new role profile has now been developed, clearly setting out the qualities and experience needed to fulfil the role. The new SEB will need to consider its requirements for independent advisors and commence the process of recruitment.

SEB operations and practices

29. The SEB agendas and papers are now clearly divided into a strategic part and an operational part, to enable members to focus on the strategic elements. Annual Reports are produced and laid before the States Assembly.
30. Progress has also been made in the reporting of health and safety matters. The SEB now receives quarterly reports on the situation across the Government of Jersey. An operational health and safety dashboard is also reported as part of the report to SEB covering all the main Government of Jersey health and safety risks and monthly accident reporting. However, more needs to be done in respect of health and safety training and compliance as well as on reporting in respect of the Non-Ministerial departments. There also remains a conflict in terms of

accountability. Ultimately the responsibility for progressing compliance and best practice in the area of health and safety lies with the Chief Executive and Accountable Officers, but accountability lies with the SEB.

31. The function of the SEB that is perhaps the most difficult to evidence any progress on is ensuring that the public service conducts itself with economy, efficiency, probity and effectiveness. The SEB minutes and deliberations do not make it clear how this function is specifically discharged. There is no evidence that this function is specifically reviewed, although many of the agenda papers will contribute to that function.
32. The SEB has close links with the JAC and, in particular, the Chair. The JAC Chair attends the SEB periodically to brief members. The SEB continues to make recommendations for appointments to the JAC.
33. As noted by DAG, the SEB still does not have its own budget. Liabilities and risk that the SEB is responsible for are covered by budgets held by one or more Government department.
34. In summary, I remain concerned that, as currently set out, the functions, powers and duties of the SEB hinder its ability to promote good management of States employees. In particular:

• the SEB is given a task that it is not realistically in a position to perform. Ensuring that the public service conducts itself with economy, efficiency, probity and effectiveness' goes substantially beyond HR oversight. In any event, the responsibility substantially overlaps with the statutory duties of the Chief Executive as Principal Accountable Officer to secure economic administration and efficient and effective use of resources. In practice there is no evidence of the SEB identifying how to discharge this function or reporting on how it has done so

• there is a duty to issue Employment Codes of Practice in specified areas and a discretion in other areas. However, this duty does not require the SEB to issue a comprehensive set of Codes of Practice that reflects evolving best practice

• the duty on the SEB ends at the point of issuing Employment Codes of Practice. There is no duty to monitor or learn from their implementation

• the SEB's role in relation to senior staff remuneration focusses on individual appointments rather than on development of overall principles for the remuneration of senior staff and their consistent application

• there are no specific requirements relating to the content of the SEB Annual Report. It is therefore possible for an Annual Report to be prepared that does

not focus on demonstrating how the SEB has discharged its responsibilities; and

• the legislation does not address the mechanism for meeting the costs of the SEB nor impose a duty to ensure that adequate resources are available for the SEB to discharge its responsibilities.

JAC functions and operations

35. The JAC has built a strong reputation in terms of its role in recruitment. It has developed excellent good practice guides which have been adopted, voluntarily in some cases. The JAC has also been invited to participate in a number of recruitment panels in situations where the organisation is not required to include the JAC.
36. The legal framework still does not guarantee the independence of the JAC in the discharge of its functions, despite the C&AG 2019 recommendations. In addition, much of its extended work and adoption of its policies have been achieved through influence.
37. The JAC has produced an Annual Report for 2021 which outlines how it has worked with bodies throughout the year. There are many positives noted in the Annual Report with the JAC's guidance and work becoming embedded in processes and arrangements within the States of Jersey. However, there is still progress to be made in a number of areas. The JAC has made several recommendations, including:

• the recommendation in 2021 for flexibility in the appointment of at least one additional commissioner to support the JAC when workload fluctuates. This remains a recommendation for 2022

• that the JAC guidelines should be consistently applied across arm's length organisations and States funded bodies

• that greater review is required of interim roles to ensure that duration is minimised  

• a requirement for panellists to attend appropriate interview selection training following the comments made in the Diversity and Inclusion section of the Annual Report

• that the JAC should be involved as soon as a new job statement is being formulated; and

• that more work collectively is needed to focus on how to attract a greater diversity of candidates to roles.

R1 Publish a timescale for the completion of the review commissioned by CoM in

2019. Finalise all phases of the review and bring forward both an action plan and draft legislation to address the weaknesses in the SEB arrangements identified in the 2019 C&AG Report.

R2 Having implemented R1 in this report, undertake a formal review to determine

whether:

• a specific revenue head of expenditure should be allocated to the SEB

• a specific revenue head of expenditure should be allocated to the JAC; and

• statutory protection should be provided to any specific officer, for example the Director of People and Corporate Services.

R3  Ensure effective arrangements are in place to monitor compliance with mandatory

health and safety training requirements including providing regular reports to the SEB on the extent of compliance.

R4 Publish a formal Executive Response to the six recommendations made by the JAC

in its 2021 Annual Report.

Current work planned that should be prioritised

P1  Determine the requirement for independent advisors to the SEB and commence

the process of recruitment.

Effectiveness of the SEB in discharging its responsibilities

38. In 2019, the C&AG considered seven aspects when evaluating the effectiveness of the SEB in discharging its responsibilities, as shown in Exhibit 3.

Exhibit 3: C&AG consideration of effectiveness of the SEB

Source: The Role and Operation of the States Employment Board, C&AG Report 2019

Overall approach

39. The C&AG made one recommendation in respect of the overall approach. The progress made against this recommendation is shown in Exhibit 4.

Exhibit 4: Summary of progress in effective discharge of SEB responsibilities

Recommendation Current Position  Evaluation

R3 Develop an overarching People  The People Strategy  Implemented

Strategy that includes the States'  was published in  The Strategy sets out an future workforce requirements; the  November 2021 and  ambitious timeline for assumptions, values, beliefs and  sets out the high-level  2022 including

aspirations which guide SEB as an  objectives and a  workforce planning and employer; how SEB plans to  strategy for  consolidating many of discharge its statutory duties;  developing the public  the developmental linkages to key strategic HR  service.  activities.

policies; and the respective roles of

SEB, the Principal Accounting

Officer and the Council of Ministers.

Source: Jersey Audit Office analysis

40. The People Strategy was issued in November 2021 following a presentation to the SEB. The People Strategy sets out the high-level objectives and a clear strategy for developing the public service. It covers a wide range of areas including its purpose, accompanied by strategic priorities and values. The development of the public service is planned to be achieved through investing in skills, opportunities for growth and progression, collective culture and preparing for the future.
41. The People Strategy also sets out commitments, target performance measures and the more detailed plan for 2022. The 2022 Plan is ambitious and is a real step forward in bringing together the key deliverables for the effective management of the public service workforce and to provide the workforce for the future.
42. While good progress is being made on many of the development activities, the timetable for the workforce planning is tight and some departments are falling behind the target dates.  Workforce planning with a full understanding of the establishment and gap analysis is crucial for future strategies and priority will need to be given to ensuring that this is delivered.
43. The SEB oversees the People Strategy and receives reports on aspects of the workplan. The detailed plan and progress against targets are however not yet being reported to the SEB.

Work management

44. The C&AG made five recommendations in respect of work management by the SEB. Progress against these recommendations is summarised in Exhibit 5.

Exhibit 5: Summary of progress by the SEB in work management

Recommendation Current Position  Evaluation

R4 Refocus the balance  In the last two years,  Partially implemented

of SEB's work to ensure  detailed work has been on- While there have been that sufficient attention is  going to re-focus on the SEB  significant improvements in given to all its statutory  responsibilities.  the way the papers are responsibilities.  The agendas and associated  structured and the

papers are now clearly split  associated discussions, the into a strategic section or  papers are still around 200 substantive items, an  pages per meeting and organisational change  present a challenge for SEB section and standing items  members to read and

section.  absorb. There are further

opportunities to reduce the size of the agenda pack and to use executive summaries where possible.

Recommendation Current Position  Evaluation

R5 Ensure that SEB  New Target Operating  Implemented

receives and considers a  Models require clear  Proposed significant statement of the benefits  rationale and business case  changes are brought to

of each proposed  before work commences, to  SEB.  the significant organisation  identify benefits of change

change initiative.  initiatives. Departments are

also required to complete a

start and end consultation

report.

R6 Actively involve SEB in  The risk register is generally  Partially implemented the risk management  presented to the SEB on a

process, including by  quarterly basis, but due to  Tthehe reSE are opB to enp gagortuen moitiesre for review of the HR risks  the elections has not been  actively in challenging the

included in the corporate  presented yet in 2022. escalation of risks and the risk register, the  resources required to adequacy of mitigation of  deliver mitigating actions. those risks and the

categorisation of those

risks.

R7 Consider the  No standing sub-committees  Area for future development of sub- of the SEB have been  consideration

committees of SEB to  established as they were not  Consideration should be allow it to discharge its  deemed necessary. given by the new SEB as to functions more  Ad hoc sub-committees are  whether the workload effectively.  established for matters that  currently required from the

require consultation outside  SEB is desirable and

of the main SEB meeting,  effective. Sub-committees such as for hearings.  could be one way of

spreading the workload either on a permanent or ad hoc basis.

R8 Develop and  An induction and training Implemented implement a training  programme has now been  Development of this programme for SEB  developed for the new SEB. training package was members, including  This outlines the role of the  delayed but it is now in induction training.  SEB, responsibilities of  place.

members of SEB and how it

discharges its functions.

Source: Jersey Audit Office analysis

45. Significant work has been undertaken with the SEB to give greater attention to the discharge of its strategic functions. The agenda is clearly set out in different sections to enhance that clarity for members.

46. New Target Operating Models require clear rationale and a business case before work commences, to identify benefits of change initiatives. Departments are also required to complete a start and end consultation report.
47. The information presented and made available to the SEB has improved over the last two years. A corporate workforce risk register has been developed and is part of the business-as-usual' papers for the SEB to review. A Health and Safety report is presented quarterly as part of the regular updates to the SEB and a People dashboard is also presented monthly. The data collection and accuracy of the data are still on-going issues and are part of the project plan for ITS. Priority needs to be given to cleansing the data and compliance with any feeder systems.
48. Key risks are included on the register and each has a detailed and comprehensive narrative. In some areas it is clear that the resources required for the recorded mitigating actions are not in place. It can therefore be difficult to assess how effective the proposed mitigating action is in some instances.
49. The workforce risk register is reviewed by both the Executive Leadership Team (ELT) and the SEB. However, there are no corresponding departmental risk registers on workforce issues and the process for escalation to the corporate workforce risk register is not clear. As a result, it is hard to see how the risks flow both from departments and back to departments and where responsibility and actions are held.
50. Training and access to expertise and advice remain critical areas for the SEB in terms of ensuring that politicians are able to participate fully in the SEB discussions, are well briefed and have a full understanding of the consequences of decisions. Training has been limited since the previous C&AG Report but a package is now prepared for the new SEB which should be undertaken swiftly.
51. Members of the SEB rely on officers for briefing and expertise and the SEB has the ability to have up to two independent advisors. The SEB is also supported by the Law Officers' Department for legal issues and the Treasurer for financial matters.
52. Under the current arrangements, the Chief Executive does not have a full oversight of the SEB agendas and papers that are relevant to the Government of Jersey. Officer support to the SEB is led by the Director of P&CS. The agendas and papers relevant to the Government of Jersey are not discussed at ELT prior to the SEB meeting or indeed afterwards. This could lead to items relevant to the Government of Jersey going to the SEB that have not necessarily been agreed by ELT and, at worst, could conflict with any strategic decisions made by the senior team as a whole.

Economy, efficiency, probity and effectiveness

53. The C&AG made one recommendation in 2019 in respect of economy, efficiency, probity and effectiveness. Summary of progress made in implementing this recommendation is shown in Exhibit 6.

Exhibit 6: Summary of progress in efficiency, probity and effectiveness

Recommendation  Current Position  Evaluation

R9 Introduce a  There is currently a Workforce Expenditure  Partially structured  Approval Request (WEAR) process in place which  implemented approach to  requires sign off from a Finance Business Partner,  The SEB will oversight by SEB  Accountable Officer and by a Resourcing Panel. not be able to of the adoption  The SEB reviews all P.59/2011 requests for roles  provide an

and  effective implementation of  ofmee £1tin00gs,0. 0 In0 an add d aboveition, a as psummart ary of  itsP.5mo9/2n0thly 11 oversight role

establishment

controls and staff  report is developed on a half yearly basis which is  udnetilpart them ental training and  presented to the SEB. and corporate

development.  In addition, a People Dashboard is presented to  workforce

SEupBd onate a qs on u kartey e prl ey  opbasisle metrics to providsuech regu as thla er   plans and

establishment nTreasumbeurer of tr of empheloStatyeees as nnow attd abs ee nn dces SEdat Ba. T for anhe y  gap analysis'

financial items such as discussions on pay  are complete. negotiations and compromise agreements.

Work is on-going on workforce planning as part of the People Strategy and it is expected that by the end of 2022 work to develop a fully funded establishment will be completed.

Source: Jersey Audit Office analysis

54. The SEB now has a better understanding and system in place to monitor workforce controls using the Workforce Expenditure Approval Request (WEAR) process. This process requires sign off from a Finance Business Partner, Accountable Officer and a Resourcing Panel. However, T&E has one system to measure the establishment and P&CS has a separate system and these are not currently reconciled.  The ITS programme may address this when it is implemented.
55. The action plan supporting the People Strategy has an ambitious target for departments to complete workforce plans by the end of 2022. ELT and the SEB do not currently have the data on which to develop an overall workforce plan and this ambitious target needs to be prioritised within departments.
56. By the end of 2022 it is also anticipated that a full gap analysis' will have been completed for each department showing the current establishment, future

establishment requirements and the gap. This will need to take into account the changes needed for the workforce, in terms of different types of jobs, digitalisation and other requirements, to ensure sustainability of the future workforce.

57. Until workforce plans and the gap analysis' are complete, while there is control over replacement and new senior posts through the SEB, the data remains incomplete and is not accurate enough to support key decisions.
58. In 2016, the C&AG reported on the Utilisation of Compromise Agreements: Follow Up. The report made recommendations that included two that related to reporting to the SEB. As shown in Exhibit 7, both of these recommendations have been implemented.

Exhibit 7: Summary of progress in recommendations from 2016 relating to reporting to the SEB

Recommendation Current Position  Evaluation R4 Routinely report all  The SEB deals with all compromise  Implemented

compromise  agreements for staff at Tier One

agreements to the  and Two. The Scheme of

States Employment  Delegation allows the Director of

Board.  P&CS to agree permission to enter

into discussions below those tiers.

R7 Ensure that reports  This has now been completed. Implemented to and minutes of the

States Employment

Board include a clear

rationale for exit terms

proposed and

agreed.

Source: Jersey Audit Office analysis

Employment Codes of Practice and Supporting Policies

59. The C&AG made six recommendations in respect of Employment Codes of Practice and supporting policies. A summary of progress made against these recommendations is contained in Exhibit 8.

Exhibit 8: Progress on Employment Codes of Practice and supporting policies Recommendation  Current Position  Evaluation

R10 Establish a  A new People Policy Framework has  Partially implemented clear framework  been developed.  Work to complete the for the  The timetable for delivery of the People  updates to the development,  Policy Framework was the beginning of  Employment Codes of approval,  Practice and

communication,  July 2022. However, this has slipped  supporting policies review and  andocud it menis now ants will bticipe reatadedy for that th ELTe in su ite of  should be prioritised a revision of  September 2022 and the SEB in  planned.  s

Employment  October 2022.

Codes of Practice

and supporting HR  The Employment Codes of Practice had

policies and  not been updated since 2008 – 2010

guidance.  and were out of date. All Codes of

Practice have however now been

reviewed as part of the new People

Policy Framework. The first Code, on

Standards in public service, has been

issued with a further five planned to

follow in the autumn of 2022.

A full programme of work to review and update the associated policies that support the Codes of Practice is also in place.

R11 Prioritise  In order to assist in delivering  Partially implemented completion of the  compliance with the Codes of Practice  Work to complete the work to rationalise  information and material is being  implementation of the and map existing  developed within the People Policy  new Employment Employment  Framework. This includes policies,  Codes of Practice and Codes of Practice  procedures, guidance, toolkits and  supporting policies and to supporting HR  training.  procedures should be policies and  prioritised as planned. guidance,

ensuring that

ambiguities are

addressed.

R12 Establish  All employee policies and guidance  Partially implemented arrangements for  content are the responsibility of the Work to deliver the effective corporate  Director of P&CS through the SEB  People Policy

oversight of the  Scheme of Delegation. There is a clear  Framework should be need for and the  programme of work being undertaken  completed.

content of  by P&CS to review the content of all

supplementary  people policy documents and

departmental HR  accompanying guidance and toolkits for

policies and  departments.

guidance.

Recommendation  Current Position  Evaluation

R13 Ensure that a  There is a protocol in place for the  Not implemented clear role  People Hub, but it has not been  The protocol for the description for the  updated for three years and is now out  People Hub should be People Hub' is in  of date. The protocol does not reflect  updated.

place.  current practice.

R14 Monitor  Dashboards are in place to monitor the  Partially implemented action to improve  effectiveness of the operation of the  The performance of the the effectiveness  People Hub. The performance of the  People Hub is being

of the operation of  People Hub against the indicators  monitored, primarily the People Hub'  identified shows that all but one target is  focussed on customer taking into  being met. Steps are in place to  feedback. However, account the  measure and improve the area not  monitoring does not finrevdieinwgs of. this  place to seek to ensure no customer  refleindustry stanct the fulld ranard ge  of

being met and quality controls are in

impact.  metrics. Action is

required to ensure all targets are met.

R15 Ensure that  A new Whistleblowing Policy is being  Partially implemented the  drafted and is currently at an advanced  The new Whistleblowing  stage of consultation.  Whistleblowing Policy Policy fully reflects  Work to ensure that any departmental  needs to be finalised and references  policies are referenced is being  and implemented. supplementary  addressed as part of this consultation.

departmental

policies.

Source: Jersey Audit Office analysis

60. The Employment Codes of Practice are issued by the SEB and apply to all employees of the States of Jersey who are employed under the provisions of the Employment of States of Jersey Employees (Jersey) Law 2005 and Regulations made under it and to officers of the States of Jersey Police Force, who are engaged under the provisions of the States of Jersey Police Force Law 2012. Accountable Officers are responsible for ensuring compliance with the Codes in their departments.
61. There are six main Employment Codes of Practice:

• Standards in public service

• Employee rights at work

• Engagement

• Performance and accountability

• Reward and benefits; and

• Talent management.

62. Work has been on-going to update all the Codes of Practice during 2022, along with a full suite of accompanying HR policies. A new People Policy Framework has been developed and is now in place. In order to assist in delivering compliance with the Codes of Practice, information and material is being developed within the People Policy Framework including policies, procedures, guidance, toolkits and training.
63. All employee policies and guidance content are the responsibility of the Director of P&CS through the SEB Scheme of Delegation. There is an ongoing policy review being undertaken by P&CS to review the content of all People Policy Framework documents.  
64. The SEB has recently issued the first in the suite of updated Employment Codes of Practice – Standards in public service. The other Codes are being drafted and are planned to go to the ELT in September 2022 and to the SEB in October 2022.
65. Whilst Accountable Officers are required to produce a policy statement setting out how they and their delegates comply with the directions set in the relevant Code,this has not been possible for many years as the Codes are out of date. When the work to complete the updates to Codes of Practice and policies is complete Accountable Offices should be required to make a clear statement of compliance in their Annual Governance Statements.
66. A revised Whistleblowing Policy is being drafted and is currently at an advanced stage of consultation. I have reviewed the contents of the draft Whistleblowing Policy and have no observations to make on it.

Health, safety and wellbeing

67. In 2019 the C&AG made one recommendation in respect of the health, safety and wellbeing of employees. Progress against this recommendation is summarised in Exhibit 9.

Exhibit 9: Summary of progress with health, safety and wellbeing

Recommendation  Current Position  Evaluation

R16  A new operating model for health  Partially implemented Fundamentally  and safety has been put in place

review corporate  with revised governance and  Signbeenifican mad t pe onrogress the has arrangements for  operational framework.  recommendation relating to

health, safety and  the SEB's role in terms of wellbeing in light  Tabouhe SEt t Bh e h liaas b remailitie ins ariedsi cn ong f cero rnm  ed  discharging its

of the findings of  health and safety duties across a  responsibility for health and this review and the  complex organisation with  safety.

independent

review that  significant public facing services but  However, there are huge reported in  has not made any decisions that  inconsistencies in the October 2018.  would improve the situation.  resources and application

A lot of progress has been made to  of policies across

create a health and safety function;  Government departments. however, there are not sufficient  This is a situation that is resources to take remedial action  difficult to address while across the estate as the estate  departments have

remains fragmented across  responsibility for delivery departments. Sometimes lines of  but the SEB is accountable. responsibility between departments  More needs to be done to are unclear.  ensure consistent

application of resources, policies and procedures.

Additionally, work needs to be undertaken to assess the resources required to deliver minimum standards across the estate and to demonstrate what mitigating actions are being put in place in the meantime to minimise exposure to risk.

Source: Jersey Audit Office analysis

68. Health, safety and wellbeing of employees remain key responsibilities for the SEB with the SEB ultimately accountable for any breaches on health and safety. A new operating model for health and safety has been put in place with revised governance and operational framework.  A Health and Safety Board was established in 2020 which is Chaired by the Chief Operating Officer and has representation from departments across the Government. Training has been rolled out for all line managers and reporting now takes place on a regular basis. Quarterly updates are presented to the SEB to demonstrate progress and to

highlight the on-going risks. However, further work needs to be done in terms of assessing the risk appetite in this key area to prioritise and progress actions.

69. Whilst there is a small central health and safety team, Accountable Officers are able to decide on the resources they deem appropriate to commit to health and safety within their departments. This results in an inconsistent approach and significant risks exist in departments where limited resources have been applied to the function, for example Justice and Home Affairs and Children, Young People, Education and Skills.  

70. Significant work has been done to promote the wellbeing of employees, particularly throughout the COVID-19 pandemic. An occupational health contract is in place but needs some improvements in order for it to function effectively. Sickness absence levels are currently running at over 8 days per employee per annum (4.5% of available working days lost). The management of attendance is inconsistent with current procedures being operated in different ways across departments.

71. Initiatives to motivate and give staff a sense of wellbeing include:

• Team Jersey

• World Class Manager programme

• Capable Manager Expresso programme

• a mentoring programme

• shadowing opportunities; and

• the actions taken in response to the Be Heard' staff survey.

72. The next Be Heard' staff survey in May 2023 will start to gauge the outcome and impact from these initiatives, along with further work through individual performance appraisal and corresponding development programmes.

Senior staff remuneration

73. The C&AG made one recommendation in respect of senior staff remuneration. Progress against this recommendation is summarised in Exhibit 10.

Exhibit 10: Summary of progress on senior staff remuneration

Recommendation Current Position  Evaluation

R17 Ensure that the  The SEB review all P.59'  Implemented information requirement set  requests for roles of  There are however

out in the proforma for  £100,000 and above. In  opportunities to

senior pay proposals is  addition, a P.59/2011 report  streamline the Scheme of consistently available to SEB. is produced on a half yearly  Delegation for the P.59'

basis and is presented to the  process.

SEB.

Source: Jersey Audit Office analysis

74. All appointments whether new, replacement or interim, including consultants, with remuneration of over £100,000, are subject to scrutiny by the SEB through what is known as a P.59' form. While there is a certain amount of rigour in this process, the volume and the involvement of the SEB in operational decisions takes up a disproportionate amount of time at meetings. I also note that, whilst the rigour associated with the process for approval of P.59 forms has been significantly improved, to date these have always been approved by the SEB.
75. The Chief Executive and the ELT have limited involvement in the P.59 process for the Government of Jersey proposals (other than individual Directors General proposing P.59s for their areas to the SEB for approval). In order to facilitate managing the Chief Executive's accountabilities for delivering the functions of Government as the Principal Accountable Officer (PAO), there should be more effective engagement of the PAO and ELT in the P.59 process for Government of Jersey proposals. This could be achieved by reviewing and amending the Scheme of Delegation.

Transparency

76. In her 2019 Report the C&AG made one recommendation in respect of transparency. Progress against this recommendation is summarised in Exhibit 11.

Exhibit 11: Summary of progress on transparency

Recommendation Current Position  Evaluation

R18 Enhance the  The Annual Report  Partially implemented transparency of SEB's  produced by the SEB has  The SEB should consider activities, including:  improved over the last  whether some issues

• through an enhanced  couple of years and now sets  could be placed in open Annual Report  out the main activities of the  session or summarised in Board for the year.  communications for

• by placing more

There are still opportunities  wider audiences. information in the public

to place more information

domain about the

about the work of the SEB in

matters that SEB has

the public domain.

considered; and

• proactively disclosing the key terms and conditions for senior staff appointments.

Source: Jersey Audit Office analysis

77. The Annual Report produced by the SEB has improved over the last couple of years and now sets out the main activities of the Board for the year. This is a welcome step in making the work of the SEB more accessible and transparent. As the process matures, the Annual Report would benefit from a clearer narrative on:

• whether the SEB has delivered the plan it sets itself at the beginning of the year; and

• what needs to be done' going forward and the key issues to be addressed in the following year.

78. The Annual Report narrative should also be reconciled to the targets set out in the Government Plan.
79. Outside of the Annual Report, limited formal feedback from the SEB is given to staff, the States Assembly or to the public during the year.
80. Whilst there has been some improvement in transparency through the Annual Report, in contrast there are never any items in the Part A' (public) section of the agenda and all the items of business are included in the closed Part B' of the agenda. This leads to a lack of visibility in the papers and the minutes which needs addressing.  
81. The agendas and papers for the SEB are not available to the majority of staff in the States. The agendas and papers that are relevant to the Government of Jersey are not discussed at ELT prior to the meeting or indeed afterwards. This could lead to

items going to the SEB that are relevant to the Government of Jersey that have not necessarily been agreed by ELT, and at worst, could conflict with any strategic decisions made by the senior team as a whole.

Recommendations

R5  Produce a consolidated report on progress against the People Strategy for

consideration by the SEB on a regular basis.

R6  Ensure that establishment data held by Treasury and Exchequer and by People

and Corporate Services is reconciled on a regular basis.

R7  Update the protocol for the operation of the People Hub and monitor

performance against the agreed protocol.

R8  Fully document decisions made and actions agreed by the SEB to mitigate the

risks on the corporate workforce register and follow up at subsequent SEB meetings.

R9  Enhance the reporting of health and safety mitigating actions to SEB to include:

• an assessment of the resources required to deliver minimum standards across the estate; and

• demonstration of the mitigating actions being put in place in the meantime to minimise exposure to risk.

R10 Review the Scheme of Delegation in respect of P.59 forms.

R11 Consider how to make the SEB more transparent and visible to staff, the States

Assembly and the public by:

• reviewing the Part A' and Part B' meeting content to consider whether any more could go into a public agenda

• considering the flow of documentation both to the SEB and from the SEB and ensure that the senior team is fully sighted of both the agenda and the decisions made

• publishing a summary for staff, the States Assembly and the public on the business and key issues discussed at each SEB; and

• improving further the content of the SEB Annual Report to include a clear narrative as to whether the SEB has met its plan for the year and what actions are required in the following year.

Current work planned that should be prioritised

P2 Give priority to ensuring that workforce planning is delivered consistently and

accurately across departments by the end of 2022.

P3 Ensure that, as part of the migration to ITS, the people data is fully cleansed and

that data is accurate, is recorded on a timely basis and is monitored, including sickness absence data and return to work data.

P4 Work to complete the updates to the Employment Codes of Practice and

supporting policies as planned. This should include completion and implementation of the revised Whistleblowing Policy.

Areas for consideration

A1 Review how the SEB agenda papers could be reduced in size to a manageable

workload by using executive summaries and tighter reporting, acknowledging that, in certain instances, full documentation may be necessary.

A2 Consider whether sub-committees, either on a permanent basis or ad-hoc, could

assist in spreading the workload of SEB.

Compliance with Employment Codes of Practice and supporting policies

82. In 2019, the C&AG made one recommendation in respect of compliance with Employment Codes of Practice and supporting policies. Progress against this recommendation is summarised in Exhibit 12.

Exhibit 12: Summary of progress in compliance with Employment Codes of Practice and supporting policies

Recommendation Current Position  Evaluation

R19 Give priority to  A significant amount of work is in  Not implemented finalising and  progress to develop new Codes of

implementing  Practice and the suite of policies  TCohed dese anvelod ppmenoliciet osf new arrangements for  that support them.  progressing.  is

monitoring  Compliance has not been

requirements of  mobasisnito. Tredhe d b ay tshh be oa SErd B oth nat a is routine  Aderramongemenstratnints fog  r compliance with the

Employment Codes of  reported to the SEB does not  compliance with the new Practice and  contain any performance measures  Codes and policies supporting HR  that reflect compliance with the  should be enhanced. policies and guidance  requirements.

and routinely

reporting the results  Accountable Officers are required

of monitoring,  to ensure compliant application of

including relevant  Codes and policies in their

KPIs, to SEB.  departments.

Source: Jersey Audit Office analysis

83. In 2016, the C&AG reported on the Utilisation of Compromise Agreements: Follow Up. The report made recommendations that included one that related to Codes of Conduct within the States of Jersey. Exhibit 13 summarises progress made against this recommendation.

Exhibit 13: Summary of progress in recommendations from 2016 relating to Codes of Conduct

Recommendation Current Position  Evaluation R2 Take steps to  Supplementary guidance has been  Implemented

embed the Code of  developed to complement the

Conduct for Ministers,  Code of Conduct and Practice for

including through  Ministers and Assistant Ministers.

arrangements for

formal mediation

between officers and

Ministers

Source: Jersey Audit Office analysis

84. In 2019, the C&AG reported on Financial Management and Internal Control. The report made recommendations that included one that related to compliance with corporate standards in areas other than finance. Exhibit 14 summarises progress made against this recommendation.

Exhibit 14: Summary of progress in recommendation from 2019 relating to compliance with corporate standards

Recommendation Current Position  Evaluation

R15 Develop and  A process has been developed for  Partially implemented implement an  submitting requests for  Accountable Officers overarching  exemptions and reporting  should be required to framework for  breaches of HR policies. The  report non-compliance establishing,  Annual Governance Statement

communicating and  questionnaire for Accountable  wrequith iremeappraisalnts insys thtee m ir monitoring  Officers includes non-financial  Annual Governance

compliance with  policies and standards.  Statements.

corporate standards

in areas other than  Howenot repover,rt Ainccoug on n ntaonble Officers are

finance.  with appraisal requirem-coe mpnts inlian  ce

their Annual Governance

Statements.

Source: Jersey Audit Office analysis

R12  Review the content of the Annual Governance Statements required from

Accountable Officers to ensure that compliance with all aspects of Employment Codes of Practice and supporting policies is confirmed. This should include a requirement to report on compliance with the appraisal system.

Arrangements for monitoring implementation of previous recommendations on HR management

85. In 2019, the C&AG made one recommendation in respect of arrangements for monitoring implementation of previous recommendations on HR management. Progress against this recommendation is summarised in Exhibit 15.

Exhibit 15: Summary of progress in arrangements for monitoring the implementation of previous recommendations on HR management

Recommendation Current Position  Evaluation R20 Routinely report  There is a tracker for the Chief  Implemented

external  Operating Officer's department

recommendations  which monitors progress against

relating to HR  all recommendations.

management, agreed  The tracker has also been provided

actions and progress  to the SEB.

on their

implementation to

SEB.

Source: Jersey Audit Office analysis

86. In 2016, the C&AG reported on the Utilisation of Compromise Agreements: Follow Up. The report made recommendations that included a number that related to HR management within the States of Jersey. Exhibit 16 summarises progress made against these HR management recommendations.

Exhibit 16: Summary of progress in recommendations from 2016 relating to HR management

Recommendation Current Position  Evaluation

R3 Adopt a clear  The roll out of the Performance  Implemented timetable for the roll-out  Management system, My

of revised performance  Conversation, My Goals' has been

management  completed.

arrangements across the  Guidance and instructions on how

States.  to complete and when are also

available.

Recommendation Current Position  Evaluation R6 Ensure that the  There is a compromise agreement  Implemented

documentation standards  policy now in place.

for cases leading to

compromise agreements

include communications

with employees or their

representative, legal

advice, checking of

calculations and a clear

rationale for the

proposed terms of an

agreement.

R8 Review the scope of  CMB has been replaced by ELT.  Not implemented matters explicitly covered  All ELT and individual contracts

in the contracts for  are in the process of being

Corporate Management  reviewed. These are planned to

Board (CMB) members  be consulted on in October 2022

against best practice. and agreement and

implementation is expected by

the end of 2022.

R9 Introduce a formal  This recommendation has not  Not implemented input from Ministers into  been implemented. Work is

performance  planned for Quarter Four of 2022

management for all CMB  in respect of this

members  recommendation.

R10 Strengthen  Significant work has been  Partially performance  undertaken on the performance  implemented management through:  management system to embed a

inclusion of corporate  culture of measuring performance

targets for all Chief  and in developing staff.

Officers, linked to

strategic objectives, the  Aevalu stanatdionard anised d d apocupromeacn hta totio n of

Corporate Plan (when  performance of Directors General

available) and the Public  has not however yet been

Sector Reform  implemented.

Programme; cascade of

corporate targets to other  There is an opportunity to review

staff as appropriate; and  and refine the corporate

adoption of a  objectives and associated targets

standardised approach to  and cascade those through the

evaluation and  organisation when the new

documentation of  Government Plan is approved in

performance of Chief  December 2022.

Officers

Source: Jersey Audit Office analysis

87. Significant work has been undertaken on the performance management system to embed a culture of measuring performance and in developing staff. All departments have business plans linked to the Government Plan and the targets and objectives are expected to be cascaded down to all staff. How this has worked in practice is however inconsistent. The performance management system and cascading of objectives have been implemented far better in some departments than others.
88. In 2019, the C&AG made a recommendation in respect of staff appraisals in the report Financial Management and Internal Control. This recommendation was to monitor the completion of staff appraisals and take prompt corrective action where necessary. Exhibit 17 shows compliance with the My Conversation, My Goals' appraisal system requirements at the time of my fieldwork.

Exhibit 17: Compliance with the appraisal system

Source: Government of Jersey

89. The figures in Exhibit 17 illustrate that more than half of the workforce has not got formal objectives in place and is not getting proper feedback on performance. The deadline for Stage 2 (mid-year review) was 30 June and Exhibit 17 shows a poor performance. In addition, the system is not yet linked to development or to professional requirements for individual professional groups. Accountable

Officers need to have accountability for delivery of performance management and the SEB needs to regularly review progress.

90. In 2016, the C&AG reported on the Use of Consultants. The report made recommendations that included a number that related to HR management within the States of Jersey. Exhibit 18 summarises progress made against these HR management recommendations.

Exhibit 18: Summary of progress in recommendations from 2016 relating to HR management

Recommendation  Current Position  Evaluation

R1 Implement a  A Strategic Workforce Planning Toolkit has  Partially corporate  been developed that provides detailed  implemented framework for  guidance on how to capture and record  Completion of recording current  current skill/experience levels as well as  workforce plans skills within the  identifying gaps in the current workforce, both  by the end of

States' workforce  in the immediate as well as longer term  2022 is

and those skills  timeframes.  ambitious. identified as

needed as the  Awareness and training sessions have been  Ronegu prolagressr upd atweills organisation  delivered to all Senior Leadership teams across  be necessary. changes.  tsuhep orporgantedisatio throun. Wgh thorek  wPe illop conle  tin anu de Cu to lt b ue re

plans developed by all departments with the  Wcomork hmenas ced assistance of Team Jersey. with professional This information is intended to be better stored  staff groups to

and utilised through the implementation of ITS  look at future Release Two at the end of 2022. roles and the

skills needed.

R2 Use the  In addition to the Strategic Workforce Planning  Partially corporate skills  Toolkit a focussed piece of work has been  implemented framework to drive  undertaken to establish how Government can

training,  best attract, develop and grow internal talent

recruitment and  with particular focus on areas with known skills

skills transfer.  gaps. This has led to the creation of an

"Apprenticeships First" strategy where all roles

up to Civil Service Grade 6 and equivalent

should be considered for the Government

wide Apprenticeship scheme. This was

launched in Spring 2022.

Work is ongoing towards the creation of a new "Employee Value Proposition" which is intended to be available in 2022 to attract more individuals to a career in the Government of Jersey.

Source: Jersey Audit Office analysis

91. The P.59/2019 report (Consultants: Reporting on their use by the Government of Jersey) presented to the States Assembly on 20 December 2021 (covering January to June 2021), showed that the cost of consultants in the six month period was £47 million (an increase of £7 million, 17.5% on the previous six month period). Departments still do not maintain a departmental record of procurement information and it is not clear as to whether consultants were procured through a tender or quotes selection process. The ITS system is planned to collate and verify this type of information and is due to be implemented in 2023.
92. Significant work is on-going to attract, retain and improve the wish to work in both Jersey and in the public service. This should help to reduce the reliance on short term, inevitably more expensive resource. Specific programmes, including Team Jersey, the World Class Manager programme, the Capable Manager Expresso programme, other leadership programmes, apprenticeship and intern schemes, should contribute to a better developed, more motivated workforce. All these schemes are however bedding in and are not yet fully adopted. It is therefore difficult to evaluate results at this stage.
93. A repeat of the Be Heard' staff survey planned for 2023 should give a good barometer of the value of these programmes and gauge feedback from both managers and staff.

Recommendations

R13 Introduce a standardised approach to evaluation and documentation of

performance of Directors General, including formal input from Ministers.

R14  Update the documentation requirements of appraisals to ensure that they

encompass relevant professional standards where appropriate.

R15 Put in place arrangements that ensure compliance with the requirements of the

performance appraisal system. Provide regular reports to the SEB on compliance.

Current work planned that should be prioritised

P5 Review the scope of matters explicitly covered in the contracts for ELT members

against best practice.

Employment of the Chief Executive

94. In 2021, I made 11 recommendations in respect of arrangements for the employment of the former Chief Executive. The progress made in respect of these recommendations is shown in Exhibit 19.

Exhibit 19: Summary of progress in arrangements for the employment of the Chief Executive

Recommendation Current Position  Evaluation R1 Change the  A new section on the States  Implemented

requirements of the  Employment Board within the

Public Finances Manual  Public Finances Manual has been

to require consultation  developed. This section has not yet

with the Treasurer and  been published.

the relevant

Accountable Officer

prior to entering into an

employment contract

with non-standard

clauses that could

expose the States of

Jersey to liabilities.

R2 Develop a suitable  A formal employment procedure  Implemented disciplinary policy and  has been developed and was

supporting process  approved in September 2021 by

specific to the post of  the SEB.

Chief Executive.

R3 Document formally a  The Scheme of Delegation has  Implemented policy in respect of the  been specifically updated to

line management of the  formally document a policy in

Chief Executive as an  respect of the line management of

employee including any  the Chief Executive. The

specific delegations of  management of the Chief Executive

responsibilities from the  is delegated to the Chief Minister.

SEB.

R4 Update policies and  The new Code of Practice for  Implemented procedures for dealing  Standards in public service issued

with perceived and  by the SEB in 2022 enhances the

actual conflicts of  provisions within the Public

interest of senior  Finances Manual to mandate

employees including  declaration of any conflicts of

the Chief Executive.  interest. This system is now on-line.

Additionally, all Accountable

Officers need to refer to this in their

Annual Governance Statements at

the year end and make a further

declaration.

R5 Ensure that all  A Standard Operating Procedure is  Implemented decisions to enter into  in place which gives detailed

compromise  guidance on compromise

agreements are  settlement agreements.

supported by:  

• a clear written rationale as to the decision taken, including alternatives considered and the proposed key terms of the agreement; and

• clear calculations supporting any payments to be made, with a secondary check performed on such calculations.

R6 Undertake the  A review has been undertaken and  Implemented proposed review of the  has been reported to the SEB.

original appointment

process for the former

Chief Executive as soon

as practicable and

implement the findings

from the review in the

recruitment and

appointment process for

the new permanent

Chief Executive.

R7 Ensure that all SEB  I have observed several matters in  Partially minutes are prepared  respect of the SEB minutes,  implemented promptly and are  detailed below.

approved at the next

meeting where possible.

R8 To enhance  This recommendation was not  Not accountability, include  accepted for action by  implemented in the Government Plan  Government.

a short description of

the scope of revenue

income and expenditure

budget lines.

R9 To promote clarity of  The Public Finances Manual has  Not accountability for  been updated recently, but the  implemented decisions and  wider piece of work to

associated expenditure,  fundamentally review the

undertake a  interaction has not commenced.

fundamental review of

the interaction between

key constitutional pieces

of legislation, in

particular the Public

Finances (Jersey) Law

2019 and the

Employment of States of

Jersey Employees

(Jersey) Law 2005.

R10 Ensure that there is  The Executive Response to the  Partially

clear documentation of  report indicated that a wholesale  implemented the nature and role of all  review of all independent advisors

advisors to the  would be carried out by September

Government, including  2021 to ensure the nature and role

those who are unpaid. of all advisors to the Government,

including those who are unpaid, are

documented.

A review has been carried out in respect of the documentation of the role of the independent HR advisor to the SEB. However the wider review outlined in the Executive Response has not been undertaken.

R11 Ensure that the  The SEB agreed in principle that the  Implemented post of Chief Executive  post of Chief Executive should be

(and therefore the roles  assigned clearly in writing during

of Principal Accountable  any future handover period

Officer and Head of Paid  between two Chief Executives. This

Service) is assigned  was the case in respect of the

clearly in writing during  handover period between the

any future handover  previous Interim Chief Executive

period between two  and the current Chief Executive.

chief executives.

Source: Jersey Audit Office analysis

95. Good progress has been made against the recommendations in the report on the employment of the former Chief Executive.
96. One of the key recommendations was to review and amend the Public Finances Manual. A new section on the SEB within the Public Finances Manual has been developed. This section has not yet been published.
97. The main changes are:

• when the Treasurer must be consulted and when he should attend SEB

• if any potential expenditure is likely to exceed a revenue head of expenditure in the Government Plan or non-standard clauses are being proposed for employment contracts then the Treasurer's attendance at SEB is required; and

• a requirement for Accountable Officers to ensure that all documentation relating to the filling, establishment or extension of any post(s) within their department where remuneration is expected to exceed £100,000 is properly completed and submitted to the SEB in line with any deadlines set, in advance of finalising any decision (the P.59' form process).

98. A formal employment procedure for the Chief Executive position has been developed and was approved in September 2021 by the SEB. This is a comprehensive procedure and includes the ability to arrange sub-committees of the SEB to handle any formal disciplinary process. Additionally, the Scheme of Delegation has been reviewed and specifically updated to formally document a policy in respect of the line management of the Chief Executive. The management of the Chief Executive is delegated to the Chief Minister.
99. Another of my recommendations related to compromise agreements and how those are processed from start to finish.  A Standard Operating Procedure is now in place which gives detailed guidance on compromise settlement agreements.

100.  A review of the original appointment process for the former Chief Executive was

undertaken and a report including detailed findings and lessons for the future was presented to the SEB in September 2021. The SEB was asked to consider specific clauses and arrangements relating to:

• exit / termination arrangements

• pensions security; and

• residency status.

101.  There were also nine key lessons learnt for the future.

102.  With regard to the minutes of SEB meetings, problems have persisted. The States

Greffe prepare the minutes from each SEB meeting. However, I note that the draft minutes have not always been presented to the SEB on time and I have observed delays by the SEB in agreeing the content of the minutes for accuracy.

103.  Minutes are circulated with papers but not always the minutes relating to the

previous meeting. At some SEB meetings, a number of minutes, relating sometimes to as many as five previous meetings, were agreed.

104.  There also does not appear to be a decisions log nor an action log with the

minutes detailing the decisions from the previous meeting and action taken or due to be taken with key dates for completion. I believe that this discipline would help the SEB to track whether it is delivering on its decisions and to monitor progress.

105.  During the course of this follow up work, I have seen a draft Service Level

Agreement (SLA) between the States Greffe and the Government regarding SEB minutes, which aims to address these deficiencies and put the service on a more formal footing.

Recommendations

R16  Undertake a review to ensure the nature and role of all advisors to the

Government, including those who are unpaid, are documented.

R17  Ensure that the minutes from the previous SEB meeting are circulated with the

papers and signed off at the next meeting.

R18 Introduce a decisions and action log for all decisions from the minutes and ensure

that this is placed on the agenda and progress formally monitored.

Current work planned that should be prioritised

P6  Implement the planned system for storing key SEB documents and ensure that the

relevant minutes are kept with the papers in an accessible form.

P7  Finalise the Service Level Agreement in respect of minute taking.

Areas for consideration

A3  Consider recording meetings to assist with the accuracy of minute taking.

Audit Approach

The review included the following key elements:

• review of relevant documentation provided by the Government of Jersey; and

• interviews with key officers within the States of Jersey.

The documentation review included:

• Accountable Officers Governance Assurance statements

• Be Heard' staff survey and results

• Breaches and exemptions report

• C&AG recommendations tracker extract

• Corporate induction framework

• Corporate risk register

• DAG report February 2022

• Departmental operational business plans

• Diversity, Equality and Inclusion Strategy

• Draft HR Policy Framework

• Draft legislation

• Employee Value Proposition Report

• Employment Codes of Practice

• Enterprise Risk Management system documentation

• Framework and system for My Conversation, My Goals'

• Health and safety risk registers

• Interim behaviours framework

• ITS objectives and plans for HR modules

• Operating Committee report – manager capability

• Our People Strategy

• Mentoring scheme documents

• P59 documentation

• People dashboard

• People hub operating procedure

• P&CS end of consultation report

• Procurement of consultants procedure

• Records management report

• Relevant documentation of people programmes including Team Jersey, World Class Manager, Capable Manager Expresso Programme

• Relevant Standard Operating procedures

• SEB agendas, minutes and papers 2020-2022

• SEB Annual Reports

• SEB draft legacy report

• SEB health and safety quarterly reports

• SEB independent advisor role report

• SEB induction and training report and materials

• SEB scheme of delegation

• Senior level compromise agreements

• Shadowing scheme documents

• Various HR policies

• Workforce Expenditure Approval Request template

• Workforce risk registers

• Workforce planning strategy and toolkits

The following officers and stakeholders were interviewed or provided written assistance as part of the review:

• Deputy Chair of the former SEB

• Chair of the JAC

• Advisor to the SEB

• Chief Executive

• Chief Operating Officer

• Chief of Staff

• Director General, Strategic Policy, Planning and Performance

• Group Director, People and Corporate Services

• Business Partner, Governance and Strategy, People and Corporate Services

• Head of Resources, People and Corporate Services

• Senior Legal Advisor, Law Officers' Department

• Associate Director and Head of Organisation Development, People and Corporate Services

• Workforce Planning and Intelligence Business Partner, People and Corporate Services

• Business Partner, People Services

• Head of Employee Relations, Reward and Experience

• Consultant, Governance and Strategy

• ITS Programme Director

• Head of Shared Service Centre ITS

• Head of Corporate Services

• Group Director of Customer Services

The fieldwork was carried out by affiliates working for the Comptroller and Auditor General.

Summary of Recommendations

Recommendations

R1 Publish a timescale for the completion of the review commissioned by CoM in

2019. Finalise all phases of the review and bring forward both an action plan and draft legislation to address the weaknesses in the SEB arrangements identified in the 2019 C&AG Report.

R2 Having implemented R1 in this report, undertake a formal review to determine

whether:

• a specific revenue head of expenditure should be allocated to the SEB

• a specific revenue head of expenditure should be allocated to the JAC; and

• statutory protection should be provided to any specific officer, for example the Director of People and Corporate Services.

R3  Ensure effective arrangements are in place to monitor compliance with mandatory

health and safety training requirements including providing regular reports to the SEB on the extent of compliance.

R4 Publish a formal Executive Response to the six recommendations made by the JAC

in its 2021 Annual Report.

R5  Produce a consolidated report on progress against the People Strategy for

consideration by the SEB on a regular basis.

R6  Ensure that establishment data held by Treasury and Exchequer and by People

and Corporate Services is reconciled on a regular basis.

R7  Update the protocol for the operation of the People Hub and monitor

performance against the agreed protocol.

R8  Fully document decisions made and actions agreed by the SEB to mitigate the

risks on the corporate workforce register and follow up at subsequent SEB meetings.

R9  Enhance the reporting of health and safety mitigating actions to SEB to include:

• an assessment of the resources required to deliver minimum standards across the estate; and

• demonstration of the mitigating actions being put in place in the meantime to minimise exposure to risk.

R10 Review the Scheme of Delegation in respect of P.59 forms.

R11 Consider how to make the SEB more transparent and visible to staff, the States

Assembly and the public by:

• reviewing the Part A' and Part B' meeting content to consider whether any more could go into a public agenda

• considering the flow of documentation both to the SEB and from the SEB and ensure that the senior team is fully sighted of both the agenda and the decisions made

• publishing a summary for staff, the States Assembly and the public on the business and key issues discussed at each SEB; and

• improving further the content of the SEB Annual Report to include a clear narrative as to whether the SEB has met its plan for the year and what actions are required in the following year.

R12  Review the content of the Annual Governance Statements required from

Accountable Officers to ensure that compliance with all aspects of Employment Codes of Practice and supporting policies is confirmed. This should include a requirement to report on compliance with the appraisal system.

R13 Introduce a standardised approach to evaluation and documentation of

performance of Directors General, including formal input from Ministers.

R14  Update the documentation requirements of appraisals to ensure that they

encompass relevant professional standards where appropriate.

R15 Put in place arrangements that ensure compliance with the requirements of the

performance appraisal system. Provide regular reports to the SEB on compliance. R16  Undertake a review to ensure the nature and role of all advisors to the

Government, including those who are unpaid, are documented.

R17  Ensure that the minutes from the previous SEB meeting are circulated with the

papers and signed off at the next meeting.

R18 Introduce a decisions and action log for all decisions from the minutes and ensure

that this is placed on the agenda and progress formally monitored.

Current work planned that should be prioritised

P1  Determine the requirement for independent advisors to the SEB and commence

the process of recruitment.

P2 Give priority to ensuring that workforce planning is delivered consistently and

accurately across departments by the end of 2022.

P3 Ensure that, as part of the migration to ITS, the people data is fully cleansed and

that data is accurate, is recorded on a timely basis and is monitored, including sickness absence data and return to work data.

P4 Work to complete the updates to the Employment Codes of Practice and

supporting policies as planned. This should include completion and implementation of the revised Whistleblowing Policy.

P5 Review the scope of matters explicitly covered in the contracts for ELT members

against best practice.

P6  Implement the planned system for storing key SEB documents and ensure that the

relevant minutes are kept with the papers in an accessible form.

P7  Finalise the Service Level Agreement in respect of minute taking.

Areas for consideration

A1 Review how the SEB agenda papers could be reduced in size to a manageable

workload by using executive summaries and tighter reporting, acknowledging that, in certain instances, full documentation may be necessary.

A2 Consider whether sub-committees, either on a permanent basis or ad-hoc, could

assist in spreading the workload of SEB.

A3  Consider recording meetings to assist with the accuracy of minute taking.

53 | States Employment Board – Follow Up