When it comes to job security in the public sector, the media have got it completely wrong, in the view of Gillian Hibberd. Nothing surprising in that, perhaps; friction between journalists and public officials is to be expected. What is more unusual is the detail of her complaint: that the media is making things look much too rosy.

Ms Hibberd, incoming president of the Public Sector People Managers’ Association, says: “There are a lot of myths suggesting that the public sector is a haven, protected from the recession, but we certainly are not. In the last three months we have seen a host of public sector organisations announce job cuts, so I am amused when I read about it being immune. The only difference is that there is a slightly longer lead time before cuts happen in the public sector because of the time that we have to take with consultations. But we are feeling the hit.”

The pain might continue after things in the private sector have bounced back as politicians grapple with the consequences of financial decisions being made today. “There will be significant cuts in the next few years,” Ms Hibberd says. “The level of public debt will mean that, whichever party is in government, it will have no choice but to look at how to reduce public sector spending.”

Given the inevitability of cuts, it is up to HR directors to start preparing now so that they can avoid panicking in the future. With enough notice, organisations can cut job numbers through natural wastage rather than by making people redundant. Ms Hibberd’s employer, Buckinghamshire council, will reduce its staff by 400 over the next three years using this technique. “This is a 10 per cent cut in our workforce, which is exactly the same as the private sector is seeing.”

There are two other big factors to consider when trying to balance budgets and people: pay and pensions. Both of these need to change – and soon. Defined benefit pension arrangements are simply unsustainable, she says. “They are just not affordable as they are at the moment. There has to be radical change. It’s inevitable and it will be painful.” Options could include increasing employee contributions; reducing some of the extras, such as widow’s benefit or death in service benefit; closing defined benefit schemes to new entrants and moving to a defined contribution approach.

Then there’s pay. Ms Hibberd was disappointed by the arbitrator’s decision to award a national 2.75 per cent rise after unions rejected an offer of 2.45 per cent. “It goes against the grain. It’s contrary to the economic environment and it is unsustainable.”

She hopes that this year’s negotiations will be more pragmatic. “As employers we have to be firm and put it all on the table,” she says. This means making it clear to unions that councils can afford to raise base pay across the board only if they cut jobs.

While most councils still rely on the national pay process, a number, particularly in the South East, have opted out and negotiate their own settlements. This allows them to decide, for example, to base rises on performance. Ms Hibberd expects opting out to become more popular as a result of the arbitrator’s last decision, although trade unions are likely to resist it.

She is also keen for councils to adopt a “total reward” approach to salary negotiation. Public sector employment usually comes with a number of significant nonsalary benefits, from pensions to flexible working. These need to be made clear to employees so that they understand the true value of packages rather than looking only at the headline cash figure, she says.

“In the public sector we have sometimes lagged behind [the private sector] in base pay, but if you take account of the value of the packages we are very much in line with it.”

The lowdown

Who: Gillian Hibberd, the corporate director of people and policy at Buckinghamshire County Council

What: Ms Hibberd, 44, is the incoming president of the Public Sector People Managers’ Association (PPMA)

When: she will take up the post at the PPMA’s conference in Manchester at the end of April

Why: the public sector must radically rethink the way it handles pay and pensions; trade unions must realise that across-the-board pay rises will be possible only if they accept job cuts, Ms Hibberd says

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