NHS and council workers concerned about a weakening of the ‘public service ethos’

Press release

03/11/2016

A new research report by public service reform think tank Localis shows that NHS and council workers believe private sector involvement in public services has affected the quality of public services and the core values that make up the public service ethos.

The report, A New Public Service Ethos, supported by Grant Thornton UK LLP, surveyed 1415 NHS and local government senior managers and executives from across the UK and considers the values that make up the public service ethos.

The report suggests there is a perceived cultural misalignment between public and private sector organisations, which has created a concerning level of suspicion of the private sector within the public sector. For example, it found that every region considers the impact of the private sector to have had a net negative impact on the values workers commonly attribute to public service work (or as it commonly referred to the public service ethos). Most surprisingly the largely Conservative South East region is most hostile to private sector involvement.

Average effect of the private sector on the qualities associated with public services we tested for according to public sector workers (by region)

-3 is a strong negative effect; 3 is a strongly positive effect

Qualities we tested for: accountability, career advancement, community responsibility, creativity, customer service, efficiency, entrepreneurialism, integrity, pay and benefits, and social justice.

The report also found that, despite the perception of public sector workers, the public has not noticed a decline. While private sector involvement in the delivery of public services has increased, the public feels that the quality of public services has remained broadly static.

The report also found that NHS senior managers and executives, unlike their counterparts in local government, feel private sector involvement has helped to improve customer service in the NHS. Younger workers are generally less hostile to private sector involvement. In addition, public sector workers felt the private sector displayed creativity, entrepreneurialism and efficiency, all key characteristics needed for future public service reform efforts.

The report goes on to note that whilst public sector workers are concerned that the public service ethos is being corroded, these fears need to be tempered by the fact that private sector organisations have for some time been slowly aligning themselves culturally with the public sector organisations they contract with, either through contracting arrangements or directly hiring/importing public sector staff. The report refers to this as a silent victory for public services, but one that has left public sector workers feeling that their previously assumed unique values have been undermined.

Report author and Localis Chief Executive Liam Booth-Smith said;

“This report suggests there’s still such a thing as the public service ethos, it’s just not the same thing as the public sector. Private sector companies have been working in public services for decades and over that time have proven pretty successful at assimilating social justice values. Public sector workers, however, have seen this assimilation as a hostile takeover and as our survey work shows, reacted against it.

“More generally, the report shows that what was once considered a uniform, national set of values is actually starting to fragment along regional and organisational lines. Funding crises in the NHS, adult social care and children’s services will put public service reform back on the agenda and if government doesn’t understand how the perceptions and motivations of public sector workers are changing they’re setting themselves up for failure.”

Paul Dossett, Partner at Grant Thornton said:

“There are some excellent examples of how private sector involvement in delivering public services can achieve positive outcomes. Much of the public sector recognises that working with experienced commercial partners can bring cost effective solutions, and there is a growing trend for public sector organisations to develop commercial strategies that reflect a more private sector approach and culture. Many local authorities are looking to introduce a more commercial culture, taking on board a more private sector approach.

“Creating a vibrant economy relies upon collaboration between the public, private and third sectors. However, for this type of collaboration to be a success, both organisations need to consider how they work together, and in particular how to address issues around cultural “fit”. While there are clear opportunities with this kind of collaboration, this report shows that the cost of getting it wrong can be high.”

ENDS

Press enquiries:

Liam Booth-Smith, Chief Executive, Localis
0870 448 1530 / 07452 960753 / liam.booth-smith@localis.org.uk

Notes to Editors:

1. A New Public Service Ethos report was launched on the evening of Wednesday 2nd November 2016. Speakers at the launch event included former Health Minister Dr Dan Poulter MP.
2. Between 22^nd August and 2^nd September 2016 Localis surveyed 1415 senior managers and executives working in the public sector covering the entire United Kingdom. The public sector workers surveyed were primarily from local government (60 percent of respondents) and the NHS (22 percent of respondents), with the remaining 18 percent working in higher education, further education, the police service and the fire service.
3. The survey found half of public sector workers believed accountability, community responsibility, customer service and integrity were key aspects of public sector work. These characteristics are commonly seen to be part of the public service ethos. Only 16.9 percent of the public sector workers surveyed saw efficiency as a very important part of public sector work.

4. Private sector involvement in public services is seen by public sector workers to have had a corrosive effect on qualities associated with the public service ethos. However, the private sector has had a positive impact on creativity, efficiency and entrepreneurialism.
5. Opinion about the effect of the private sector on public services is not uniform across the public sector. Contrary to local government, senior NHS managers and executives think the private sector has improved customer service in the NHS.

6. Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism. Since our formation we have produced influential research on a variety of issues including housing, local government finance and health and social care. We carry out innovative research, hold a calendar of events and facilitate an ever growing network of members to stimulate and challenge the current orthodoxy of the governance of the UK.
7. About Grant Thornton: At Grant Thornton our purpose is to build a vibrant economy. A core part in achieving this will be creating places where people and businesses can flourish. We want to play our part in building a healthy and equitable society by helping those responsible for public services to make better-informed, longer-term decisions; decisions that drive reform and deliver economic growth and social value.
8. Grant Thornton has a well-established market in the public sector and has been working with local authorities for over 30 years. We are the largest supplier of assurance to local authorities and the NHS. Our expert advisory teams work across the local authority landscape, supporting councils with financial and strategic transformation plans.
9. Grant Thornton UK LLP provides independent assurance, tax and advisory services to over 40,000 public interest entities, privately owned and publicly listed businesses and individuals. Proactive teams, led by approachable partners, help our clients to find solutions, by using insights, experience and instinct to provide meaningful, forward-thinking advice.

Find out more at http://www.grantthornton.co.uk/en/industries/public-sector/