3 Make sure staff are fully involved in reform

People are central to public service performance - citizens' experiences are shaped by the caring nurse, the inspiring teacher and the friendly support worker. Their needs will be met by employees who are well trained, well managed and properly rewarded. So good employment practice is vital for delivering improvements in public services.

If reforms are to be a success, staff must also be fully behind them. Informing and involving employees is vital to reduce uncertainty and unease about change that is often inevitable. Staff should be shown the development opportunities that will be open to them as a result of change. Involving staff in changes to services motivates them and focuses minds on the question: 'what can I do to improve things?' Good providers recognise:

Better training and development boosts productivity and the wellbeing of staff. It is crucial for improving quality. The London Borough of Barking and Dagenham's private partner delivers council housing repairs across the borough. In the first year of the contract, most key performance indicators were consistently surpassed - with some targets for the fourth year achieved within the first two years. The success of the partnership can be attributed to the process of choosing a contractor which maintained employment terms and conditions. According to one employee under the new management, the "doors have been opened for promotion". The firm has enhanced workforce skills through education, training and an apprenticeship scheme, which have improved employee relations and lowered absence levels.

Change gives staff more opportunities to transform how services are run. A private firm runs housing management in Shoreditch. Since taking over it has made changes that have seen major service improvements - vacant properties are reoccupied in fewer than five weeks, rent collection is at 100%, telephone answering is above 90% and correspondence is always answered within target timescales. Previously, only 75% of correspondence was turned around in time and only 35% of telephone calls were answered. These results are supported by the improved attitude the firm has fostered among staff, through restructuring teams to focus more on customers. New performance appraisals, individual development plans, and improved communications with staff are simple strategies that deliver positive results.

Managing absence more effectively ensures better services. CBI research shows that public sector absence is 30% higher than in the private sector,⁹ costing the public sector £1.1bn more than if it reached the lower absence levels of the private sector. £1.1bn equates to the entire budget for the probation service.¹⁰ One private provider delivering call centre services in Birmingham gives team managers extra training to help manage absence. It has implemented policies such as return-to-work interviews, systematic reporting, attendance bonuses and effective communication between management and staff - plus good performance management systems - all of which are important to motivate employees and prevent unauthorised absences. This has helped reduce sickness absence of staff from 10% to 6% and significantly reduced annual staff turnover from 45% to below 30%.