Public Sector Salary System in Slovenia.

Slovenia’s macro fiscal contextEconomic contextAn economy which has, overall, developed successfullyA small and open economy which is especially exposed to global developments and crisesUnemployment, which was below the OECD average, has increased considerablyPublic finances, which were under control, are now showing signs of relative strainInflation has always been higher than the euro area averageFiscal consolidationThe increase in Slovenian public debt is worrying and must be addressedMost OECD member countries have earmarked operational expenditure for savingsSavings can be achieved by cutting compensation costs and/or by reducing the workforceAdministrative re-organisations can also yield savingsImplementation of Slovenia’s strategy for fiscal consolidation requires decreasing the cost of the public sector workforceSlovenia’s public sector salary systemBackgroundInitial development of the public sector salary system and first reformsThe present public sector salary system4Scope of the public sector salary systemEmployment arrangementsSalary system arrangementsMain challenges in the existing systemThe existing system is a foundation on which to buildBut the reforms have left a number of rigidities and insufficienciesKey considerations for a more effective public sector salary systemNew paradigms for public managementAbility to govern and manageAbility to attract, motivate and retainAbility to adapt and evolveAbility to performComparable countriesNotesFindings - determining a way forwardIncremental implementation, while generating forward momentumNecessary contextual changesChanging perspectives, assumptions and valuesExcessive reliance on legislationA challenging constitutional contextLiberating the human resource managersBalancing coherence with adaptabilityThe experience of other OECD member countriesBelgiumFranceDenmarkNew ZealandEstoniaGermanySupporting coherence with a central employer officeEstablishing a viable evolutionary pathwaySetting up an effective job classification frameworkJob classification, a core element of human resource management systemsWeaknesses of the current Slovenian systemBelgiumSwedenThe issue of wage relativitiesThe function of salariesDetermining the appropriate level of compensationAppropriate method of determining wage increasesDenmarkFinlandSwedenUnited KingdomAdapting the wage negotiation frameworkCash supplementsPerformance incentivesUnited StatesNetherlandsRenewing the social dialogueFinlandIrelandThe important role played by unionsThe Slovenian industrial relations systemNotesBibliography
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