A report has revealed that changes to Lichfield District Council’s human resources department will bring improvements – including ensuring accurate payment of staff and councillors.
A report to a meeting of the local authority’s cabinet has outlined the proposals to move the HR function to Lichfield West Midlands Trading Services Limited (LWMTS).
The council currently outsources some parts of its HR function, such as payroll, to Stoke City Council.
But the report by Cllr Rob Strachan, cabinet member for finance and commissioning, said the service no longer aligned with the “ambitions” of the council.
“Despite payroll being outsourced, the HR function spend a considerable amount of time, every month checking and actioning payroll, meaning resources are diverted from other strategic HR priorities.
“Despite this, staff and councillors often report payment issues. Being able to accurately pay our staff and councillors is a minimum service standard that we currently don’t consistently meet.
“The HR function is currently heavily reliant on the knowledge and expertise of the Assistant Director for Operations, Regulation and Enforcement, who has a background in HR and currently line manages the service. This is not sustainable with the Assistant Director having a substantive role to deliver.
“There has been a lack of transformation within the function for a number of years. There is a need to review current ways of working to increase efficiency, improve self-service and rationalise systems. This will create additional capacity to focus on added value strategic priorities.
“The HR function has had limited capacity to deliver strategic activities, such as employee wellbeing and belonging, organisational development, learning and development, staff benefits and employee engagement. This work has been picked up by the chief executive and chief operating officer for the last two years, with very limited support from HR.”
Cllr Rob Strachan, Lichfield District Council
The report said that the council had struggled to fill vacancies in HR in recent times.
It added that moving the department to LWMTS would create efficiencies.
“LWMTS has already heavily invested in its own HR function to support the approximately 150 staff who now work for the council’s wholly owned company. As a growing company, the HR systems and processes are being designed now, fit for purpose for a modern organisation.
“There are significant efficiencies to be had from having a combined HR function that covers both Lichfield District Council and LWMTS.
“Having a shared resource, will also enable a smoother transition for any agreed future transfer of staff and functions, with ‘one team’ leading the process.
“It will also offer up flexibilities in terms of staffing and trading arrangements.
“By transferring the function to LWMTS there is an opportunity to realise economies of scale. Both organisations are currently outsourcing their payroll to two separate payroll providers.
“There are other differing HR systems and platforms currently in operation. While each organisation will have different offerings, there is an opportunity to rationalise system costs.”
Cllr Rob Strachan, Lichfield District Council
If the change is approved, the council said LWMTS would be asked to operate day-to-day HR functions as well as carrying out “key transformation objectives” such as improving the payroll function, revitalising processes and placing an increased focus on staff wellbeing, learning and development.
The proposals will be discussed by Lichfield District Council’s cabinet at a meeting on Tuesday (5th December).
