Select Committee on Public Accounts Thirty-Fourth Report


2   Measures to improve recruitment and retention

9. Most of the Department's measures to improve recruitment and retention have been based on financial incentives. These incentives have been generally successful in the short term but have not addressed some of the key reasons for leaving, such as Service personnel's inability to plan ahead in life outside work, and the impact of operations on family life. The financial incentives were targeted at particular groups as this approach provided better value for money than paying increases to everyone. The Department believes that incentives have made a difference and has ceased payment after a few years to those trades where manning has improved, although the Department has not been able to avoid paying out some money to people who would probably have stayed anyway.[19]

10. In October 2006 the Department introduced a £2,240 tax-free allowance for everyone deployed to Iraq, Afghanistan and Bosnia in recognition of the challenging circumstances and pressures they face, and is confident this will have a positive effect on retention, as well as recruitment. The allowance needs to be seen alongside other financial measures but many personnel returning from operations have welcomed the payment. However, financial incentives alone may not keep people in the Forces given the strains on personnel and other key reasons for leaving. Measures to enable people to plan ahead and improve their family life and work/life balance, such as longer advance notice of deployments, are needed to improve retention.[20]

11. Although many people were concerned about the impact of operations on their work/life balance and planning ahead, deployments are a positive factor for some. 9% of former personnel, or those who intended to leave, surveyed by the National Audit Office either left or were thinking of leaving because they were not deployed enough.[21] The Department endeavours to take individual preferences on deployments into account but preferences must be balanced against the needs of the Service, the requirements for the particular operation and the need for individuals to complete their specialist training and gain the required experience to progress in their careers. Non-commissioned officers, officers and warrant officers undertake an increasing degree of participation in the management of their careers.[22]

12. The Department has lacked information about the cost of incentive schemes when compared to the benefits and has not always carried out investment appraisals. The Department accepts that decisions might have been better with improved information, and that it should have carried out investment appraisals before the introduction of new financial incentives schemes. It intends to introduce them from now on.[23]

13. In assessing the costs of incentive schemes the Department has been hampered by the poor quality of financial information and inadequate IT systems. Information has not been easily accessible or disseminated to those people responsible for managing recruitment and retention. The Department believes the quality of information will improve with the implementation of its new Joint Personnel Administration system from 2007 onwards.[24]

14. The Department has not maintained a consistent long term approach to recruitment and retention activity. Recruitment drives, for example, have been cut back by pressures to downsize or to make funding cuts.[25] Cutbacks can have significant consequences. The Royal Navy is currently affected by cutbacks to recruitment activity made in the 1990s because manning shortages which started in the lower ranks are working their way up to Petty Officer Rank.[26] The Army cancelled some Infantry training courses as recently as 2004-05, and consequently deferred recruits, in order to stay within its funded manpower limit, at a time when the Infantry were heavily committed to operations in Iraq.[27] The Department accepts that it made mistakes in the approach that was taken in the 1990s and is applying the lessons learnt in the current downsizing of the Royal Air Force, where the fall in strength of 8,000 personnel is being managed through a mix of reduced recruitment and voluntary departures. [28]

15. The Department sets annual targets for recruitment but they do not take account of the need to fill in some of the gaps resulting from previous recruiting shortfalls. The Department explained that it had to live within its budget and there were a limited number of training places available which restricted the number of new recruits in any one year.[29] The Department, however, conceded that there was some training capacity available as a result of the Armed Forces reducing in size.

16. The Department faces a number of challenges to meeting its recruitment targets, such as an ageing population, changing attitudes to careers and increasing levels of obesity among young people.[30] The Department has not dropped its overall standards of entry to the Armed Forces;[31] the standard of fitness required, for example, has remained unchanged. However, the Army has increased the maximum Body Mass Index limit for new male recruits from 28 to 32 and plans to increase the length of initial training from 12 to 14 weeks, partly to allow more time for recruits to reach the required fitness levels.[32]

17. Many pinch points are in highly specialised trades such as medics, linguists and nuclear watchkeepers. The Armed Forces traditionally "grow their own" recruits which means that it takes a long time for them to acquire the high degree of skill, training and experience needed for these trades. If they leave they are very difficult to replace so the Department needs a coherent long-term strategy for retaining them. The Department is looking at ways to encourage junior ranks to progress to the higher levels and providing incentives to encourage them to train and ultimately to stay in the Forces for a longer career.[33]

18. In recognition of the strong pull from the external job market, medical and dental officers and professional aircrew benefit from separate pay arrangements. The arrangements are outside the main Armed Forces pay structure which is linked to rank. The Department's Strategic Service Personnel Plan contains a number of strands of work,[34] one of which is examining whether to extend this arrangement to other types of personnel. Nurses, where there are shortfalls of up to 70% in some specialisms,[35] could be one of the first groups to benefit, alongside the financial incentives which are already in place for this trade. The Department would consider looking at other groups if their work identified a need to adopt a more flexible, market-based approach to pay in order to retain highly skilled staff.[36]


19   Q 11 Back

20   Q 57, Q 11 Back

21   C&AG's Report, para 2.22 Back

22   Qq 58-60 Back

23   Qq 12-23 Back

24   Ibid. Back

25   Q 24 Back

26   Q 10 Back

27   C&AG's Report para 3.13 Back

28   Q 10 Back

29   Qq 105-106, Q 10 Back

30   C&AG's Report, Appendix Five Back

31   Q 34 Back

32   C&AG's Report, Appendix Five Back

33   C&AG's Report, para 1.17, Q 61 Back

34   C&AG's Report, para 2.41-2.42, Appendix Four Back

35   C&AG's Report, Figure 3, Volume 2, Case Study 11 Back

36   Q 61 Back


 
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