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Arras People Press Releases

Arras People Study Concludes Public Sector Needs Serious Changes in PPM Talent Attraction & Retention Approach

Having delved into their own research to find out more the need to find, attract and retain top project and programme management talent, project management consultancy firm Arras People have determined that the public sector will need to pay the market rate for permanent project & programme managers.

The study cites data from the Arras People 2009 Project Management Benchmark Report that shows significant efforts in the public sector to pay the going rates for contractors at the higher levels of project management seniority, but a significant drop off in similar commitment to long term permanent seniority hires.

The hits the project management industry could take for these discrepancies are significant. Arras People have concluded from the data that;

The Public sector will continue to have serious issues in attracting and retaining permanent programme and project management talent unless they take a serious look at the pay structures that they can offer in order to be competitive with the Private sector.

The Public sector will continue to have to pay a premium over market rate to attract interim and contract senior programme and project management professionals to work in their sector.

Senior programme and project management professionals will continue to leave the civil service and return as premium rate contractors if it is perceived as the only way to bridge the pay gap.

The Public sector’s inability to ensure sustainable long-term, permanent Senior Project professionals could significantly affect the knowledge-transfer back into the Public sector department of the projects left behind by the departing contractors following the successful completion of projects by said contractors.

After reviewing data compiled for contractors and interims supplied through the survey (see figure below), a very clear picture emerged in terms of the spread when measured by average day rate attained. For contractors, the first point of convergence between public and private day wages occurs at around the 325 per day rate, where typically senior support / project managers are operating. To the left of this mean, higher levels of Public sector contractors are working at the lower levels of pay than Private counterparts, whilst after this convergence point the Private sector kicks in to open a wide differential to the 450/day mark.

But the most interesting point of convergence occurs around the 600/day point, after which the Public sector begins to pay more than the market rate. This point remains interesting because, as future data will show, senior permanent employees in the Public sector are simply not rewarded nearly as handsomely as those senior employees in the Private sector. Considering one side (Public) could be perceived to be merely a feeder system for the larger scale opportunities on the other side, permanent project management professionals cannot be blamed for looking at whats available to them in the real world.


Again using key data from the Arras People 2009 Project Management Benchmark Report, it was discovered that the data for the salary scale for permanent project management showed a noticeable pattern when cut by Public / Private sector respondents (see image below).

While there is a very neat convergence in the project manager area around 42,000, which is recognised as a current median for project manager pay, the scales tip on either side of the convergence. To the left of the convergence, there are more respondents in the Public sector in the lower pay levels bracket than those working in the Private sector. On the right of the median, the opposite happens between the elevated pay levels from 42,000 to 90,000 range, as the numbers in the Public sector fall significantly below both the mean and the pay levels achieved in the Private sector.

Arras People concluded:

Public sector project management professionals that successfully deliver high-profile public projects are later jumping ship to the private sector to reap the rewards.

There are plenty of lower paid roles in the Public sector which remain competitive (if not advantageous when the benefits packages are added) through to the market median for a project manager.

For more senior roles, the Public sector is unable or unwilling to match the rates that the Private sector will pay for the more experienced PPM professionals.

The Public sector appears willing to eat the short-term senior level wages and the complications of handover instead taking on long term, senior level personnel that can manage long-term sustainability in an effective manner.

Whilst Arras People recognise that in the modern world pay is not the only element which drives talent recruitment and retention, it is still a big part of any decision-making process. Coupled with pay, PPM professionals are also looking for a career path and commitment to training and advancement in their chosen careers. As such, Arras believes that the Public sector needs to overhaul its approach to PPM professionals and conduct a root and branch review of where it sees this crucial talent pool.

Most, if not all, government departments are in the business of delivering projects and need to firstly recognise this fact. They then need to restructure their approach to PPM. By building PPM communities across the whole of the civil service and putting in place career structures, development paths and market matching salary levels, the Public sector can build PPM Centres of Excellence (CoE) that people will want to be a part of and, more crucially, remain within. These CoEs should drive the quality and standards associated with delivery and, in the longer term, provide an excellent return on investment, whilst reducing the amount of spend on contractors who ultimately take away their knowledge and experience.

The PPM Council, under the sponsorship of the OGC (Office of Government Commerce) and headed by Nigel Smith, would appear to have recognised some of these issues; but given that its broad area of interest and lack of ability to mandate, individual departments will need to address these challenges if they are not to be left behind in the PPM stakes.

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