The issue
In 2002, the Benefit Fraud Inspectorate criticised the poor performance of Salford City Council in processing benefits claims, and advised the Council to centralise the service by merging ten area offices. This resulted in accommodation pressures which were further exacerbated by the continued expansion of the Council’s contact centre. In 2002 the centre employed five people; by 2007 this had increased to 120.
At the same time the Council was facing intense competition for staff from the local revenues and benefits contracts market. For example, eight staff left the Council at one time to join a local private sector company.
Furthermore, there were pressures from government to improve efficiency and productivity.
Action taken
In response to these pressures, between 2002 and 2005, the Council implemented a flexible working scheme in the revenue and benefits department, allowing 80 staff to work from home. This scheme was also expanded to include the customer contact centre, for those staff expressing an interest in working in this way.
Resources
The scheme has involved a significant upfront investment in technology. It can cost up to £2,000 to set up a home worker, including the installation of new PCs and broadband. Because of the high numbers of staff wanting to work from home, a dedicated out-stationed IT resource was also introduced. Set up was even more costly and time-consuming for call centre workers, due to greater demands on technology.
However, this investment compares favourably: it costs over £2,000 per annum to run a desk at the Council. Savings through home working can thus be made over a short period of time.
A dedicated project manager has overseen the implementation and policy development of the process. HR and IT representatives have also been involved in the planning and delivery of the corporate roll out.
Initially the scheme was funded through the Department of Work and Pensions at £150,000. Now, due to its success, costs are being mainstreamed in the Council within existing accommodation and equipment budget allocations.
Outcomes
Over the past three years, not one person has left the revenues and benefits service to work in the private sector, a trend not reflected in other local councils. The workforce has stabilised and retention rates have improved.
Productivity in the benefits service has increased by 15 per cent. Sickness absence of home workers are now on average 35 per cent less than that of office-based workers in the department. Flexible working has greatly improved work-life balance for staff and contributed to the service gaining an Ambassador for Investors in People award in 2005, one of only two councils to receive this award.
Service users have also benefited. The benefits service has improved from a zero star to four star rated service since 2002, with the majority of best value performance indicators falling in the top quartile for all councils. New flexibility in the customer contact centre has led to extended office opening hours, thereby improving customer access and experience.
As a result of the scheme, the department has made substantial efficiency savings: between 2002 and 2005, the net cost of running the benefits service reduced by £250,000.
With the planned introduction of flexible working across the Council – called the Agile Working programme – the Council hopes to make further significant savings. British Telecom has been contracted to set out a clear business case and strategy for the corporate roll out of flexible working over the next five years. This will be based on four working styles:
- Fixed (office based)
- Flexible (using hot desks)
- Mobile (outreach/in the field operations)
- Home-based
Details on the required enabling and technical support, as well as costs, have been provided for each work style. Each directorate has also started mapping its workforce against these styles. An initial pilot of 200 staff is being developed which will include environmental health inspectors, social care administrative staff and internal auditors.
Learning
- There can be risks around isolation of staff that need to be prepared for and managed appropriately.
- It takes time for staff and managers to get used to working differently and being managed or managing remotely. Management training needs to address this.
- Using an experienced organisation which promotes flexible working well within its own company to plan and deliver the programme has been extremely beneficial.
- Marketing the positive benefits of flexible working to staff is important; it needs to be communicated clearly that flexible working is more than a cost saving exercise.