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Pay cuts hit employee motivation in the health service

Posted on December 10, 2009 by Gerald Flynn

OUR public service faces new challenges of retaining professionalism and motivation after the series of income cuts from the 7% pension levy last March and 2009 income tax levy to this month’s Budget pay-cuts of generally between 5% and 8%.

In particular the health sector has come through many challenges over the past five years with successes in community care, cancer treatment and primary health services.  A new challenge is the personal one of retaining individual motivation on lower net incomes.

Employment specialists see widespread reduced earnings as damaging the ‘psychological contract’ which lies at the basis of most employment relations. In many employments people would respond by taking whatever opportunities open to them to find an alternative job either here of abroad.

The health service is slightly different in that most of the 105,000 people working in the service also have a commitment to patient services which is often much stronger than mere ‘customer focus’ in the private sector. There is frequently more of a team focus which knits the capabilities of different people in ensuring patient services than among those who operate in individualist roles.

In these challenging times, the call for effective people management has never been louder. HR managers are amongst those on the frontline when it comes to maintaining that delicate employer/employee relationship – the so-called ‘psychological contract’ – and delivering high performance in a period where  reduced incomes, potential redundancies and other belt-tightening measures may become fairly common, even in the public service.

Across the public and private sector graduated reductions, with the higher paid taking a larger percentage cut, has been a common feature so that all HSE people share a common concern. In addition the extensive negotiations on modernising and improving efficiencies in the public service – from education and justice to health and local authority sectors – late last year may provide a basis for rebuilding public services in tandem with improved exchequer finances.

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