Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Public servants lagging private sector productivity

Public servants lagging private sector productivity, outsourcing criticised

By Olivia Bascand

Feb 5 (BusinessDesk) - Lower quality and higher costs have been experienced as a result of outsourcing, 44 percent of public service workers say in the latest New Zealand Productivity Pulse from accounting firm Ernst & Young.

The survey suggests the gap between productivity levels in the public sector compared to the private sector totals around $280 million a year.

EY also found public servants strongly doubted the effectiveness of outsourcing, which 44 percent of those surveyed said actively reduced productivity, while only a quarter of private sector employees surveyed took that view.

The report says public servants see outsourcing growing and ultimately leading to higher costs.

“Policymakers often assume that government service delivery inherently will be more efficient under the superior management practices of private operators,” said EY government and public sector practice leader Alan Judge said in a statement. But outsourcing often failed to consider the complexities of many government services.

There was evidence that poor planning and management, and challenges in managing resources were holding back workers who could be highly productive, he said.

Some 52 percent of public sector workers are sitting below the national productivity average, compared to 39 percent of private sector workers, according the survey of 750 public and private sector workers.

“With nearly 30 percent of public servants experiencing some form of outsourcing, the productivity of the public sector will continue to reduce,” said Judge.

However, overall productivity levels across both the public and private sectors improved in the latest release of the bi-annual survey. Based on a 10-point scale, New Zealand’s productivity increased from 7.49 to 7.54 in the past year, up from 7.3 in February 2012, the Pulse survey found.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news