Sharing the Civil Service cake

Memory Nguwi
The salary challenges currently plaguing the civil service could be an indication of a lack of proper workforce planning. There is no doubt that read against the current level of economic activity, most civil service departments are overstaffed. This is the reality and Government must deal with. With proper evidence-based analysis, streamlining Government’s workforcecan be done efficiently.

This article proposes some measures that can be considered in restructuring the civil service. It has previously been stated that Zimbabwe’s wage system is unsustainable. Government has learnt the hard way, and I am sure many other organisations are in a similar situation with high wage bills that cannot be met when salaries are due.

Why are we in this situation?

The first problem with our wage system is that it is 100 percent fixed and guaranteed, meaning that whether an employee performs or not, they still get their salary. Whether the employee reports for work or not, they are still paid. Whether they are productive or nothing, they will be paid.

That is simply not sustainable.

Other countries have moved towards a wage system that is 60 percent guaranteed and 40 percent variable.

Government should consider adopting that.

A few private organisations have already started on this journey. The second problem is that the salaries are grade based. One needs to get into a higher grade to earn more, and this has forced most employees to focus on getting into higher grades at the expense of productivity.

The assumption with grading systems is that the higher you go, the more value you add to the business.

This is not always the case.

You might have noticed that there are people in the same grade who are not contributing the same, but are earning the same salary and enjoy the same benefits. Progressive countries have built pay structures with wider ranges so that they can accommodate the different levels of performances of employees in the same grade.

The third problem is that we pay people on the basis that they need to maintain a certain lifestyle. Regardless of the organisation’s or department’s size, most organisations give their executives top-of-the-range luxury vehicles over and above basic salaries and benefits.

In some instances, you get organisations replacing the same vehicles after three to four years at a huge expense to the company.

Why should Government spend over US$1 million buying vehicles for executives?

These misplaced priorities when it comes to remuneration must be dealt with once and for all.

Executives should lead by example. Take for instance, if there are any problems meeting the wage bill, lower level employees must always be paid first.

The fourth problem are the per diums. A number of organisations pay their employees for going on training or strategy sessions out of town.

The same employees receive salaries from the same organisation for the same days they are away on training.

As a result, some managers propose these workshops outside town or outside the country to earn the per diums.

People are also paid when they have not created value. We need to start paying people for value created.

I strongly believe that certain Government departments are accommodating some people who are not adding any value.

These should be removed from the system.

Take the agricultural sector for example, very few extension officers are visible in rural areas to assist farmers; but the Agriculture, Mechanisation and Irrigation Development Ministry is staffed with people who spend more time in offices when the ministry needs people on the ground.

There should be evidence-based workforce planning for every Government department.

The workforce plan must cover the number of people needed in each department today and in the future.

The key drivers of headcount in Government departments should be economic activity and specific roles.

Government should also deal with inefficient structures. There is need to restructure how work is done in most departments.

In addition, computerising most Government departments will also help in reducing the civil service workforce.

We need to remember that salaries and wages grow exponentially over time (because of Zimbabwe’s wage system) while revenue follows cycle over time.

At times, revenues are depressed while staff costs remain constant.

Let’s restore Zimbabwe’s competitiveness by paying people for the value they create.

◆ Mr Memory Nguwi is a management and human resources consultant based in Harare, and wrote this article for The Sunday Mail.