Select Committee on Foreign Affairs Eighth Report


PERSONNEL

Workforce reductions

124. A key plank of achieving the efficiency savings outlined by the Chancellor in the Spending Review 2004 will be a net reduction in civil service posts across central government of 70,600.[184] As part of this total, the Foreign and Commonwealth Office will be expected to cut a total of 310 full-time equivalent posts.[185]

125. In its memorandum to the Committee on the outcome of the Spending Review, the Foreign Office stated that:

    This [reduction] follows a period in which the FCO's headcount has risen, and accompanies a movement of positions away from our support functions, notably personnel and finance, towards our frontline activities. We are confident that the net result will be a more effective organisation with more people working directly towards the fulfilment of the FCO's strategic priorities.[186]

While recognising this, such reductions in the workforce can create very difficult times for the individuals concerned.

126. We recommend that, in its response to this Report, the Foreign Office set out in detail how it intends to achieve the reduction in civil service posts outlined in the Spending Review 2004, and what measures it has in place to support those employees who will be losing their jobs.

Diversity targets

127. The UK International Priorities White Paper, published by the FCO in December last year and discussed above (para 35), stated that, in order to achieve its objectives, the Foreign Office will, "need to draw on a more diverse group of people, with a wider range of backgrounds and experience".[187] It gave specific diversity targets to be achieved within its Senior Management Service (SMS) by 2005: 20% women; 2% minority ethnic; and 3% disabled.

128. During the course of this inquiry we reviewed the Office's current diversity figures.[188] These are set out below, along with the targets for 2005 (figures 10 and 11). As can be seen, the targets are challenging, requiring the Office to more than double the number of minority ethnic staff it has in the SMS, and increase significantly the number of disabled and female employees at those grades.

Figure 10: % female staff in the FCO's senior management service


Source: FCO

Figure 11: % minority ethnic and disabled staff in FCO's senior management service


Source: FCO

129. When we questioned the FCO about these targets, it stated candidly that the Office was beginning from a low starting point, and that the targets were challenging.[189] It believed that it was unlikely to meet the target for the number of women in the SMS. However, the Office highlighted several positive signs in this field: there were now 20 female Heads of Post; the first two minority ethnic ambassadors took up their posts in 2004;[190] and 14% of all staff recruited in 2003 were from a minority ethnic background.[191]

130. We conclude that the Foreign Office's commitment to employing a more diverse workforce is very welcome. We also agree with its assertion that such diversity is essential for the FCO to become more effective and to serve better the British people. We further conclude, though, that the FCO still has a considerable way to go in order to meet its challenging diversity targets, especially in its Senior Management Service. We recommend that the FCO continue to make every effort to ensure that it recruits and promotes the best possible people from the widest range of backgrounds.

Locally-engaged staff

131. Of the Foreign Office's 16,000 staff approximately 10,000 are locally-engaged, as opposed to being recruited directly in the United Kingdom.[192] A number of the FCO's smaller posts around the world are staffed entirely by locally-engaged employees, and these staff perform vital roles within the Office.

132. In our Report last year, we highlighted one issue, related to the employment of locally-engaged staff, which had been drawn to our attention:

    Increasingly, overseas posts are not solely staffed by members of the Foreign Office. In a number of missions, several other Government departments are also represented—the Home Office, the DfID, or the Ministry of Defence (MOD), for example—and consequently employ local staff in the same way the FCO does (for example, as interpreters). We have received reports of some difficulties at posts resulting from this co-location, when locally engaged staff performing the same function for different departments, receive different rates of remuneration.[193]

This was confirmed by the FCO, who reported that some departments, "with greater budgetary flexibility," had been able to offer better pay and conditions than the FCO in order to recruit and retain the staff they needed. We recommended that the FCO keep us informed of its attempts to prevent other departments from 'going it alone' in this manner.[194]

133. In its reply to our Report, the FCO told us that:

    Where another government department has an autonomous presence in a country, it is at liberty to recruit and appoint its own local staff. In doing so, it is constrained by the same Treasury delegated authority as our posts: namely to match pay and conditions to the 'generality' of local practice and otherwise offer the minimum necessary to recruit, retain and motivate. There have been some differences of opinion between the FCO and other departments as to the interpretation of this authority, which we have sought to address through negotiation between officials at a senior level. Notwithstanding much goodwill, it remains evident that other departments, while acknowledging the desirability of a common approach, on occasion regard the employment package offered by our posts as inadequate to recruit the personnel they require, and can afford. They have in consequence offered more attractive terms.[195]

134. During this year's inquiry, we returned to this issue. The FCO very helpfully provided us with sample salary comparisons for India and Lesotho, where the DfID has a separate presence.[196] These are set out in the table below and, as can be seen, the differences are not inconsequential (figure 12).

Figure 12: comparative pay rates for FCO and DfID locally-engaged staff in Lesotho and India (in local currency)
   GradeFCO rate DfID rate (equivalent grade)
Lesotho (Maloti)LEIII Senior Clerical M 3,957—6,914M 6,835—9,618
  LEIV Junior Clerical M 3,651—5,978M 4,446—6,256
  LEVA Driver M 2,922—5,489M 4,446—6,256
India (Rupees)LEVA Driver R 8,553—15,357R 15,187—23,955
  LEVB Guard R 7,129—13,667R 11,869—23,036

Source: FCO[197]

135. The FCO stated that:

    The variables arise from the different methodologies employed in determining appropriate rates e.g. use of consultants (DfID) compared with FCO 'marker' reviews, and the selection of analogous employers and grade comparators.[198]

This seems to us to put the FCO at a disadvantage when recruiting and retaining staff, and to risk engendering ill feeling between staff doing the same job but working for different departments. It also seems to us to be contrary to the spirit of HM Treasury's guidelines in this matter and to run the risk of departments operating overseas competing on unequal terms for the same staff.

136. We conclude that the continuing practice of different Government departments offering different pay rates to locally-engaged staff doing the same jobs is undeniably detrimental to the work of HM Government as a whole. We recommend that the Foreign Office raise this matter direct with the Treasury in order to seek a Government-wide solution to this problem. We further recommend that, in its response to this Report, the FCO set out how it intends to take this matter forward.

Specialists versus generalists

137. In the past, an oft-made criticism of the civil service, including the Foreign Office, has been that it was largely comprised of generalists, rather than specialists; what was once described as, "the apotheosis of the dilettante".[199] When we were taking oral evidence from Sir Michael Jay, we discussed with him this issue of specialists versus generalists in relation to wider employment policy. He stated that:

    I do not recognise the cult of the dilettante when I travel and see our overseas posts; I see people who are extraordinarily professional, who have extraordinary language skills and who are trained in two or three core competences during their career ... However, I do believe that as the business of managing large complex organisations like ours gets even more difficult we do have to have more professional expertise, more HR expertise, more IT expertise, more estate expertise.[200]

138. We would agree with the latter sentiments. As the incidents of the Dublin and New York residences, discussed above, and the problems associated with the implementation of the FCO's IT strategy have shown, organisations like the Foreign Office increasingly need staff with specialist knowledge in such key areas in order to succeed. It is undeniable that there have been great strides forward in the training and professionalism of FCO staff over the past decades. However, it is surely part of the 'old thinking' to consider that the gifted generalist can, in an ever more specialised world, glide effortlessly from one area of competence to another.

139. We recommend that, in its response to this Report, the Foreign Office set out its policy on the recruitment and employment of specialists to carry out roles requiring more detailed subject knowledge, such as in the fields of finance, property and information technology.


184   2004 Spending Review, p 17 Back

185   Ibid., p 20 Back

186   Ev 70 Back

187   UK International Priorities, p 59 Back

188   Ev 49, para 39, and HC Deb, 23 April, col 710W Back

189   Ev 59 Back

190   Mr Anwar Choudhury, High Commissioner to Bangladesh, and Mr Alp Mehmet MVO, Ambassador to Iceland, both appointed in April 2004. Back

191   Ev 59 Back

192   Departmental Report 2003-04, p 14 Back

193   Foreign Affairs Committee, Twelfth Report of Session 2002-03, Foreign and Commonwealth Office Annual Report 2003, HC 859, para 82 Back

194   Ibid., para 83 Back

195   FCO, Twelfth Report of the Foreign Affairs Committee, Session 2002-03, Foreign and Commonwealth Office Annual Report 2003: Response of the Secretary of State for Foreign and Commonwealth Affairs, Cm 6107, February 2004, para 21 Back

196   Ev 47, para 35 Back

197   Ibid. Back

198   Ibid. Back

199   Thomas Balogh, "The Apotheosis of the Dilettante", Hugh Thomas (ed.), The Establishment (London, 1959), p 83 ff.  Back

200   Q 163 Back


 
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Prepared 23 September 2004