Analysis of Potential Human Resource Cost Savings
in Kaduna State Public Service
June 2014
The opinions expressed in this report are those of the authors and do not necessarily
represent the views of the Department for International Development.
1
Contents
Abbreviations and acronyms ..................................................................................................... 3
Executive Summary.................................................................................................................... 4
Section 1: Background ............................................................................................................... 6
Introduction ........................................................................................................................... 6
Objective ................................................................................................................................ 6
Approach and methodology .................................................................................................. 6
Section 2: The analysis ............................................................................................................... 7
Bureau of Establishment, Management Services and Training ............................................. 7
Ministry of Economic Planning .............................................................................................. 7
Public Service Office............................................................................................................... 7
Section 3: Conclusions and Next Steps ...................................................................................... 9
Conclusions ............................................................................................................................ 9
Next steps .............................................................................................................................. 9
Annex 1a-c: Proposed establishment levels in BEMST, MoEP and PSO .................................. 10
Annex 2: Detailed calculation of potential savings in personnel costs ................................... 15
2
Abbreviations and acronyms
BEMST
GL
HoS
HR
MDAs
MoEP
OHoS
PSO
SPARC
Bureau of Establishments, Management Services and Training
Grade Level
Head of Service
Human Resource
Ministries Departments and Agencies
Ministry of Economic Planning
Office of the Head of Service
Public Service Office
State Partnership for Accountability, Responsiveness and Capability
3
Executive Summary
Short summary
An analysis of personnel cost in Kaduna State public service was carried out. The objective
was to assess possible savings in personnel cost with the implementation of revised
establishment levels in the states’ Ministries, Departments and Agencies. Projecting from
actuals in 3 pilot Ministries, Departments and Agencies – Bureau of Establishments,
Management Services and Training, Ministry of Economic Planning and the Public Service
Office – estimated saving on the 82 Ministries, Departments and Agencies was obtained as
N357.7 million which is 8.26% of current total personnel cost.
Full summary
An analysis of cost of personnel in three Ministries, Departments and Agencies (MDAs)
which have undergone workforce planning was carried out. These were Bureau of
Establishment, Management Services and Training (BEMST), Ministry of Economic Planning
(MoEP) and the Public Service Office (PSO).
Objective
Although cost saving is not the main reason for workforce planning, it has been found to be
a natural fallout, almost the second definition of efficient use of human resource. This
personnel cost analysis was undertaken to determine cost implications of revised
establishment levels, based on workforce planning, in all of its 82 MDAs, and whether
Kaduna State stands to make significant value-for money impact, such as cost savings.
Methodology
Making use of budget estimates for the state for the year 2014, personnel cost for the
BEMST, MoEP and PSO was calculated for year 2014 based on the State Partnership for
Accountability, Responsiveness and Capability (SPARC) recommended establishment levels.
The current actual cost was also extracted and a comparison was made. Projecting from
averages of the three MDAs, the estimated figures and percentages for the entire state
workforce was calculated.
Findings
Table 1 below presents a summary of the findings:
Costs/Savings
A. Current cost (2014)
B. Total Staff Cost p.a. (Recommended Staffing)
C. Estimated Savings ((A) - (B)
D. Estimated Savings as % of current Cost
Total of BEMST,
MoEP, PSO
(`000)
158,438.18
145,350.55
13,087.63
8.26
Estimated
overall cost
(`000)
4,330,643.49
3,972,915.04
357,728.45
8.26
As much as N357.7 million representing 8.26% of current total personnel cost will most
probably be saved if the state goes ahead with workforce planning and revision of its
establishment levels in all of its 82 MDAs.
4
Conclusion
From the analysis done, the potential Human Resource (HR) cost savings at 8.26% is
significant. This makes state-wide establishment and workforce planning a potential process
for achieving efficiency in public service management. However, it should be emphasized
that although an attempt was made to indicate potential HR cost savings by extrapolating
from the MDAs that have piloted establishment and workforce planning in the Kaduna State
public service, the real HR cost savings will result from effective and sustained
implementation of establishment and workforce plans.
5
Section 1: Background
Introduction
Workforce planning serves the purposes of determining the optimal staffing and
deployment in the organisation. Optimal staffing also is expected, as much as possible
present some cost implications which, although may not target cost savings, usually has its
value for money implications.
Objective
The overarching objective is to explore likely cost implications and possible savings with the
implementation of revised establishment levels for all of the 82 MDAs in the state.
Approach and methodology
The three pioneer MDAs for workforce planning, BEMST, MoEP and PSO were used as base
establishments for the analysis. The personnel costs for the three MDAs were extracted
from the budget estimates for the state for the year 2014. The personnel cost in the three
MDAs was calculated for year 2014 based on the SPARC recommended establishment levels.
(See annex 1a-c).
For the purposes of this analysis, the word cost or salary implies total personal emolument
of each established staff. This is made up of (generally and as applicable):







Basic pay;
Rent;
Transport;
Meal;
Utility;
Domestic;
Entertainment.
Current establishment levels in the BEMST and MoEP were obtained from the Office of the
Head of Service (OHoS) while the list for the PSO was extracted from the list of staff in the
Office of the (HoS).
Current staff costs were obtained from the 2014 budget estimates while the cost for
proposed establishment levels were worked from the state salary structure using the
median of the Grade Level (GL) steps.
Each of the three MDAs was analysed for:
A.
B.
C.
D.
Current Personnel cost (for 2014);
Total Staff cost per annum (by recommended establishment level);
Estimated savings ((A) - (B);
Estimated savings as % of current cost (c)/(A)*100.
6
Section 2: The analysis
Bureau of Establishment, Management Services and Training
The current establishment level is 75 while total recommended establishment level is 61.
(See annex 1a: Recommended Establishments level for BEMST).
A summary of the personnel cost is as follows:
Current personnel cost (2014)
Total staff cost per annum (By recommended staffing)
Estimated savings ((A) - (B))
Estimated savings as % of current cost [(C)/(A)*100
48,728,378.00
35,858,613.81
12,869,764.19
26.41%
Ministry of Economic Planning
Current establishment level is 133 while the total recommended establishment level is 149,
(See annex 1b: Recommended Establishments level for MoEP).
A summary of the personnel cost is as follows:
Current personnel cost (2014)
Total staff cost per annum (By recommended staffing)
Estimated savings ((A) - (B)
Estimated Savings as % of current cost [(C)/(A)*100
69,812,789.68
85,430,596.16
(15,617,806.49)
(22.37%)
In the case of the MoEP, there is an increase in staff cost because the establishment level
has been increased from 133 (current) to 149 (recommended).
Public Service Office
Current establishment level is 59 while total recommended establishment level is 35. (See
annex 1c: Recommended Establishments level for PSO).
A summary of the personnel cost is as follows:
Current personnel cost (2014)
Total staff cost per. annum (By recommended staffing)
Estimated savings ((A) - (B)
Estimated savings as % of current cost [(C)/(A)*100
39,897,008.80
24,061,340.41
15,835,668.39
39.69%
To calculate the potential savings in all the MDAs, the following steps were taken:



The figures obtained for the three MDAs above were added;
The resultant figures were then multiplied by 82 (Number of MDAs in the state);
Then divided by three.
7
The summary is as shown in table 2 below
Table 2: Calculations of cost/savings in Personnel cost in Kaduna state MDAs
Total of BEMST,
(I)x 82
MoEP, PSO
(No of MDAs)
(I)
(II)
(II)/3
Current Personnel cost
(2014)
(A)
158,438,176.48 12,991,930,471.07 4,330,643,490.36
Total Staff cost per annum
(By recommended staffing)
(B)
145,350,550.39 11,918,745,131.58 3,972,915,043.86
Estimated savings ((A) - (B)
(C)
13,087,626.09 1,073,185,339.50
357,728,446.50
Estimated savings as % of current
cost [(C)/(A)*100]
8.26
8.26
8.26
(See annex 2 for more details).
8
Section 3: Conclusions and Next Steps
Conclusions
From the findings of the analysis, the following conclusions could be made:



The potentials for saving in personnel cost are significant at N 357.7 million
representing 8.26% of estimated total. These are savings in direct personnel cost;
The savings for the state could be much higher because of attendant administrative
overhead such as office space, tools, service costs etc.;
The state therefore stands to benefit from revised establishment levels in all of its
MDAs.
From the analysis done, the HR cost savings at 8.26% is significant. This makes state-wide
establishment and workforce planning a potential process for achieving efficiency in public
service management.
Next steps
S/No Activity
1
Review of this report by the OHoS and an adoption as a state
document
2
The state should set up necessary machinery for undertaking
workforce planning/revision of establishment levels in all
MDAs
Responsibility
OHoS
OHoS
It should be emphasized that although an attempt was made to indicate potential HR cost
savings by extrapolating from the MDAs that have piloted establishment and workforce
planning in the Kaduna State public service, the real HR cost savings will result from
effective and sustained implementation of establishment and workforce plans.
9
Annex 1a-c: Proposed establishment levels in BEMST,
MoEP and PSO
1a: Proposed establishment levels of the BEMST with estimated cost
Job Title/Position Title
GL
Cost P.A.
No.
Cadre Cost P.A.
Permanent Secretary
17
1,590,243.89
1
1,590,243.89
Chief Confidential Secretary
14
793,423.91
1
793,423.91
Principal Confidential Secretary 1
12
663,208.56
1
663,208.56
Head Messenger
4
300,172.31
1
300,172.31
Director, Admin. & Finance
16
1,420,005.64
1
1,420,005.64
Deputy Director (Finance)
15
1,087,828.60
1
1,087,828.60
Assistant Chief Executive Officer
13
735,328.78
1
735,328.78
Principal Admin Officer
12
663,208.56
1
663,208.56
Principal Executive Officer II(Registry)
10
581,544.78
1
581,544.78
Senior Executive Officer
9
502,400.70
1
502,400.70
Executive Officer
7
420,120.96
1
420,120.96
Chief Driver
7
420,120.96
3
1,260,362.88
Assistant Executive Officer (Registry)
6
360,162.29
3
1,080,486.88
Clerical Officer (Registry)
5
326,413.07
1
326,413.07
Driver
6
360,162.29
8
2,881,298.34
Messenger
2
256,839.34
1
256,839.34
Cleaner
1
240,915.38
4
963,661.52
Principal Executive Officer(Accounts)
12
663,208.56
1
663,208.56
Principal Assistant Stores Officer I
12
663,208.56
1
663,208.56
Senior Assistant Stores Officer
10
581,544.78
1
581,544.78
Executive Officer (Accounts)
7
420,120.96
1
420,120.96
Assistant Executive Officer
6
360,162.29
1
360,162.29
Assistant Stores Officer
6
360,162.29
2
720,324.58
Director
16
1,420,005.64
1
1,420,005.64
Deputy Director
15
1,087,828.60
1
1,087,828.60
Chief Executive Officer
14
793,423.91
1
793,423.91
Assistant Chief Executive Officer
13
735,328.78
1
735,328.78
Principal Admin. Officer
12
663,208.56
1
663,208.56
Principal Executive Officer I
12
663,208.56
1
663,208.56
Principal Executive Officer II
10
581,544.78
1
581,544.78
Assistant Executive Officer
6
360,162.29
1
360,162.29
Director
16
1,420,005.64
1
1,420,005.64
Assistant Director
14
793,423.91
1
793,423.91
Chief Executive Officer
14
793,423.91
1
793,423.91
Chief Administrative Officer
13
735,328.78
1
735,328.78
Principal Executive Officer II
10
581,544.78
1
581,544.78
Confidential Secretary I
8
445,447.88
1
445,447.88
Head Messenger
4
300,172.31
1
300,172.31
Director
16
1,420,005.64
1
1,420,005.64
10
Job Title/Position Title
GL
Cost P.A.
No.
Cadre Cost P.A.
Assistant Director
14
793,423.91
1
793,423.91
Chief Executive Officer
13
735,328.78
1
735,328.78
Assistant Chief Executive Officer
12
663,208.56
1
663,208.56
Principal Executive Officer I
12
663,208.56
1
663,208.56
Senior Confidential Secretary
9
502,400.70
1
502,400.70
Higher Executive Officer
8
445,447.88
1
445,447.88
Clerical Officer
5
326,413.07
1
326,413.07
61
35,858,613.81
Estimated Staff Cost for BEMST p.a.
Current personnel cost 2014 (BEMST)
48,728,378.00
Savings
12,869,764.19
1b. Proposed establishment levels of the MoEP with estimated cost
Job Title/Position Title
GL
Cost p.a.
Permanent Secretary
17
1,590,243.89
1
1,590,243.89
Chief Confidential Secretary
14
793,423.91
1
793,423.91
Principal Confidential Secretary 1
12
663,208.56
1
663,208.56
Head Messenger
4
300,172.31
1
300,172.31
Director, Admin. & Finance
16
1,420,005.64
1
1,420,005.64
Deputy Director (Admin.)
15
1,087,828.60
1
1,087,828.60
Deputy Director (Finance & Supplies)
15
1,087,828.60
1
1,087,828.60
Chief Executive Officer (Admin)
14
793,423.91
1
793,423.91
Senior Admin Officer
10
581,544.78
1
581,544.78
Principal Executive Officer (Admin)
10
581,544.78
1
581,544.78
Senior Executive Officer (Admin)
9
502,400.70
1
502,400.70
Chief Typist
9
502,400.70
1
502,400.70
Higher Executive Officer (Admin)
8
445,447.88
1
445,447.88
Executive Officer (Admin)
7
420,120.96
1
420,120.96
Asst. Executive Officer (Admin.) I
6
360,162.29
1
360,162.29
Confidential Secretary III
6
360,162.29
2
720,324.58
Senior Driver/Mechanic I
6
360,162.29
3
1,080,486.88
Senior Clerical Officer (Admin)
5
326,413.07
2
652,826.15
Senior Driver/Mechanic II
5
326,413.07
4
1,305,652.30
Motor Driver
4
300,172.31
3
900,516.92
Head Messenger
4
300,172.31
1
300,172.31
Security Guard
3
276,962.79
3
830,888.37
Cleaner
2
256,839.34
2
513,678.68
Messenger
2
256,839.34
2
513,678.68
Night Watchman
1
240,915.38
3
722,746.14
Principal Accountant
12
663,208.56
1
663,208.56
Principal Stores Officer
12
663,208.56
1
663,208.56
Principal Executive Officer (Accts)
10
581,544.78
1
581,544.78
Senior Stores Officer
10
581,544.78
1
581,544.78
Senior Executive Officer (Accts)
9
502,400.70
1
502,400.70
Higher Executive Officer (Accts)
8
445,447.88
1
445,447.88
11
No.
Cadre Cost P.A.
Job Title/Position Title
GL
Cost p.a.
No.
Cadre Cost P.A.
Executive Officer (Accts)
7
420,120.96
1
420,120.96
Asst. Executive Officer (Accts)
6
360,162.29
1
360,162.29
Asst. Stores Officer
6
360,162.29
1
360,162.29
Senior Clerical Officer (Accts)
5
326,413.07
2
652,826.15
Director
16
1,420,005.64
1
1,420,005.64
Deputy Director
15
1,087,828.60
1
1,087,828.60
Assistant Director
14
793,423.91
1
793,423.91
Chief Planning Officer
13
735,328.78
1
735,328.78
Principal Planning Officer
12
663,208.56
1
663,208.56
Senior Planning Officer
10
581,544.78
2
1,163,089.56
Planning Officer I
9
502,400.70
2
1,004,801.39
Planning Officer II
8
445,447.88
1
445,447.88
Director
16
1,420,005.64
1
1,420,005.64
Deputy Director
15
1,087,828.60
1
1,087,828.60
Chief Planning Officer
13
735,328.78
1
735,328.78
Principal Planning Officer
12
663,208.56
1
663,208.56
Senior Planning Officer
10
581,544.78
1
581,544.78
Planning Officer I
9
502,400.70
1
502,400.70
Planning Officer II
8
445,447.88
1
445,447.88
Director
16
1,420,005.64
1
1,420,005.64
Deputy Director
15
1,087,828.60
1
1,087,828.60
Chief Budget Officer
13
735,328.78
1
735,328.78
Senior Budget Officer
10
581,544.78
1
581,544.78
Budget Officer I
9
502,400.70
2
1,004,801.39
Budget Officer II
8
445,447.88
1
445,447.88
Director
16
1,420,005.64
1
1,420,005.64
Assistant Director
15
1,087,828.60
1
1,087,828.60
Chief Planning Officer
13
735,328.78
1
735,328.78
Senior Planning Officer
10
581,544.78
1
581,544.78
Planning Officer I
9
502,400.70
1
502,400.70
Planning Officer II
8
445,447.88
1
445,447.88
Director
16
1,420,005.64
1
1,420,005.64
Deputy Director
15
1,087,828.60
1
1,087,828.60
Assistant Director
14
793,423.91
2
1,586,847.81
Chief Planning Officer
13
735,328.78
2
1,470,657.56
Principal Planning Officer
12
663,208.56
2
1,326,417.11
Senior Planning Officer
10
581,544.78
2
1,163,089.56
Planning Officer I
9
502,400.70
2
1,004,801.39
Planning Officer II
8
445,447.88
2
890,895.76
Planning Assistant
4
300,172.31
2
600,344.61
Director
16
1,420,005.64
1
1,420,005.64
Deputy Director
15
1,087,828.60
2
2,175,657.20
Assistant Director
14
793,423.91
2
1,586,847.81
12
Job Title/Position Title
GL
Cost p.a.
Chief Statistical Officer
13
735,328.78
4
2,941,315.12
Assist Chief Statistical Officer
12
663,208.56
4
2,652,834.22
Principal Statistical Officer
10
581,544.78
4
2,326,179.11
Statistician 1
9
502,400.70
1
502,400.70
Higher Statistical Officer
8
445,447.88
1
445,447.88
Statistician II
8
445,447.88
2
890,895.76
Chief Field Officer/Statistical Officer
7
420,120.96
2
840,241.92
Field Officers
6
360,162.29
9
3,241,460.63
Enumerator 1
5
326,413.07
7
2,284,891.52
Enumerator 1I
4
300,172.31
7
2,101,206.14
Director
16
1,420,005.64
1
1,420,005.64
Deputy Director
15
1,087,828.60
1
1,087,828.60
Chief Planning Officer
13
735,328.78
1
735,328.78
Senior Planning Officer
10
581,544.78
1
581,544.78
Planning Officer 1
9
502,400.70
1
502,400.70
Planning Officer II
8
445,447.88
1
445,447.88
Estimated Staff Cost for MoEP p.a.
No.
Cadre Cost P.A.
149
85,430,596.16
Current personnel cost 2014 (MoEP)
69,812,789.68
Savings
- 15,617,806.49
1c: Proposed establishment levels of the PSO with estimated cost
Job Title/Position Title
Permanent Secretary
G/L
Cost p.a
Consolidated
No.
Cadre Cost P.A.
4,367,538.00
1
4,367,538.00
Chief Confidential Secretary
14
793,423.91
1
793,423.91
Principal Confidential Secretary 1
12
663,208.56
1
663,208.56
Head Messenger
4
300,172.31
1
300,172.31
Director
16
1,420,005.64
1
1,420,005.64
Chief Administrative Officer
13
735,328.78
1
735,328.78
Principal Administrative Officer I
12
663,208.56
1
663,208.56
Typist
6
360,162.29
2
720,324.58
Messenger
4
300,172.31
1
300,172.31
Director
16
1,420,005.64
1
1,420,005.64
Chief Administrative Officer
Principal Executive Officer I
(Admin.)
13
735,328.78
1
735,328.78
12
663,208.56
1
663,208.56
Administrative Officer I
9
502,400.70
1
502,400.70
Administrative Officer II
8
445,447.88
1
445,447.88
Assistant Executive Officer
6
360,162.29
1
360,162.29
Director of Admin. & Finance
16
1,420,005.64
1
1,420,005.64
Chief Executive Officer (Admin)
14
793,423.91
1
793,423.91
Senior Confidential Secretary 1
10
581,544.78
1
581,544.78
Senior Admin Officer
Senior Executive Officer (Admin) :
Registries
10
581,544.78
1
581,544.78
9
502,400.70
2
1,004,801.39
13
Job Title/Position Title
G/L
Cost p.a
No.
Cadre Cost P.A.
Chief Typist
9
502,400.70
1
502,400.70
Executive Officer (Admin)
7
420,120.96
1
420,120.96
Asst. Executive Officer (Admin.) I
6
360,162.29
1
360,162.29
Senior Driver/Mechanic I
6
360,162.29
2
720,324.58
Senior Clerical Officer (Admin)
5
326,413.07
1
326,413.07
Head Messenger
4
300,172.31
1
300,172.31
Principal Accountant
12
663,208.56
1
663,208.56
Principal Executive Officer (Accts)
10
581,544.78
1
581,544.78
Senior Assistant Stores Officer
9
502,400.70
1
502,400.70
Higher Executive Officer (Accts)
8
445,447.88
1
445,447.88
Executive Officer (Accts)
7
420,120.96
1
420,120.96
Senior Clerical Officer (Accts)
5
326,413.07
1
326,413.07
35
24,061,340.41
Estimated Staff Cost for PSO p.a.
Current personnel cost 2014 (PSO)
39,897,008.80
Savings
15,835,668.39
14
Annex 2: Detailed calculation of potential savings in
personnel costs
BEMST
(`000)
Current
Personnel
cost (2014) (A)
Total staff
cost P.A.
(By
recommen
ded
staffing)
(B)
Estimated
savings ((A)
- (B)
(C)
Estimated Savings
as % of current
Cost [(c)/(A)*100
MoEP
(`000)
PSO
(`000)
Total of
BEMST,
MoEP, PSO
(`000)
(4) X 82 (No of
MDAs)
(`000)
Estimated
Average overall
cost (5)/3
(`000)
48,728.38
69,812.79
39,897.01
158,438.18
12,991,930.47
4,330,643.49
35,858.61
85,430.60
24,061.34
145,350.55
11,918,745.13
3,972,915.04
12,869.76
15,617.81
15,835.67
13,087.63
1,073,185.34
357,728.45
26.41
22.37
39.69
8.26
8.26
8.26
15
16
www.sparc-nigeria.com
State Partnership for Accountability,
Responsiveness and Capability (SPARC)
For more information
email: [email protected]