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.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news