Finance talent leaving local government over pay
0Local government faces losing finance staff due to inadequate pay levels, according to the chief executive of the Chartered Institute of Public Finance and Accountancy.
Rob Whiteman spoke to Room151 on the issue of remuneration in the wake of a report calling for councils to take a more commercial approach to raising finance.
He said stemming a brain drain from local government finance departments would require a change of attitude from those at the top of organisations.
He said: “I think public sector pay is a problem. Organisations have got to be more confident in saying they will only succeed if we have the best possible people.
“I think that managerial and professional pay in the public sector, particularly in councils, has dropped too low.”
Whiteman added that councils are not only struggling to attract good quality finance staff but are losing them to other sectors.
“We are seeing people from local government lost to charities and health as well as the private sector. I think we are going to have to pay finance staff more,” he said.
Stephen Fitzgerald, director of consultancy Tamar Consulting, said that attempting to save money on senior officer pay was often a false economy.
“I don’t think it is right that a local authority director should be paid the equivalent of one working for Goldman Sachs.
“However, I do see that skimping around the margins on salary levels when recruiting senior professionals can present challenges to attracting staff at director level.
“I always advise organisations, where possible, to recruit quickly and pay a reasonable salary in reflection of the professional demands of the role.
“If they don’t do that, and are unable to recruit, they end up having to access the interim market and pay significantly higher rates, which ultimately does not help the organisation or the taxpayer.”
In 2014, unions criticised Brighton and Hove City Council for appointing an interim executive director for finance and resources at a rate of £999 per day.
