Public Sector Pays to Tecruit Top Talent

Chief executives of public sector organisations receive an average total remuneration package of $165,355, according to detailed study of public sector remuneration practices conducted by Deloitte Touche Tohmatsu.
The finding suggests that public sector organisations are having to pay competitive salaries to attract the best people from the private sector.
Deloitte HR’s Public Sector Remuneration Report 2001, shows that CEOs of public sector organisations such as crown entities, core agencies and parliamentary offices received an average base salary of $142,692. The balance comprises “at risk pay” such as performance bonuses, transport allowances and contributed superannuation.
Managers of smaller public sector organisations (comprising under 25 employees) receive an average total remuneration package of $128,555.
Other average total remuneration packages for senior management positions in the public sector included regional managers of larger entities earning $87,750, communication or public relations managers earning $90,295 per annum, finance managers earning $90,569 and HR managers earning an average total package of $91,385.
Deloitte HR surveyed 28 public sector organisations and lists average remuneration packages for 46 different positions, including specialist public sector policy and adviser roles. It is the most comprehensive survey of its kind conducted in New Zealand.
According to survey manager Blair Hawthorne the survey provides some interesting insights into public sector remuneration strategies and practices.
“To begin with, it’s obvious that public sector organisations are having to compete with traditionally higher paying private sector companies for the top talent. The public sector is no longer operating on ?glide time’ principles. The focus over the last 20 years has been towards operating as efficiently as possible.
“Nevertheless, the public sector can learn some valuable lessons from their private sector counterparts, particularly in the areas of linking remuneration practices to strategic organisational objectives.”
The Deloitte HR survey also reveals that less than half of the respondent public sector organisations used at risk pay for positions below chief executive.