LegCo Panel on Public Service

Meeting on 5 August 1996
Directorate Wastage and Directorate Succession in the Civil Service

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Introduction
Current Situation
Future Prospects

(a) Pension Option and Age Profile
(b) HMOCS Officers

Directorate Succession Planning
Measures to Complement Directorate Succession Planning

(a) Training and Exposure
(b) Cross-stream Posting
(c) Open Directorate

Conclusion
Enquiries
Wastage in the Civil Service
Wastage in the Civil Service in 1995/96 by Reasons
Options exercised by eligible HMOCS Officers (as at 17 July 1996)

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Introduction

We last informed Members in February 1996 on the wastage situation in the civil service. This paper provides updated information on the wastage situation and a note on the mechanism for planning directorate staff succession in departments.

Current Situation

2. The overall wastage rates in respect of the civil service, and those for the directorate level and the senior professional level during the last five years are at Appendix I. Wastage at all levels registered a decline. Overall wastage of the civil service in 1995/96 is at its lowest in the last five years at 7974 or 4.4%. Wastage of directorate officers is low at 113 or 8.9%. Similarly, wastage of senior professional officers is also low at 211 or 7.5%. The position of senior professionals is significant as they are potential directorate staff in the future.

3. A breakdown by reason of the wastage in 1995/96 is at Appendix II. Retirement accounts for the majority of wastage at directorate and senior professional levels. The higher retirement rates at directorate and senior professional levels are normal given the age profile of these officers. It is common that officers in departments rise to the senior professional or directorate ranks when they are closer to the retirement age zone.

Future Prospects

4. Based on the notices received so far, the number of directorate and senior professional officers leaving in the next 12 months would be around 126 or 9.6% and 129 or 4.3% respectively. Some more departures are possible but the wastage should be in line with the historic trend of previous years. There might be an increase in number of retirements due to the departure of officers belonging to the Her Majesty’s Overseas Civil Servants (HMOCS) who have a right to retire between 1 July 1996 and 30 June 1997. More details are set out in paragraphs 8 to 10 below.

(a) Pension Option and Age Profile

5. Civil servants on permanent and pensionable terms have the right to retire with their accrued retirement benefits in accordance with the provisions of their pension schemes. The normal retirement age for officers on the Old Pension Scheme (OPS) is 55. The New Pension Scheme allows officers to serve up to the age of 60. Currently some 85% of the civil service are on the NPS. The proportions of directorate officers and senior professional officers on the NPS are 77% and 71% respectively which are broadly in line with the overall trend.

6. The age profile of directorate officers and senior professional officers shows that present, some 54% of directorate officers and some 81% of senior professional officers are below the age of 50.

7. The situation may vary in individual departments, most notably in Education Department (ED), Social Welfare Department (SWD) and Information Services Department (ISD) where there is a relatively larger proportion of directorate officers within the retirement age zone. At present, 15 out of 20 directorate officers in ED, 7 out of 10 in SWD and 4 out of 6 in ISD are within the retirement age zone. However, the age profile and experience level of senior professional officers in these departments and our staff succession planning reviews indicate that there are senior professional officers suitable to rise to the directorate ranks to fill the vacancies. The situation is manageable with good planning.

(b) HMOCS Officers

8. The retirement of HMOCS officers is an associated issue. The UK Government (UKG) has traditional constitutional obligations to these officers upon the transfer of sovereignty. Under the compensation scheme applicable to Hong Kong (the 43rd such scheme in British dependent territories), eligible HMOCS officers may opt to retire between 1 July 1996 and 30 June 1997 after giving six months’ notice and exhausting all their accrued leave. Alternatively, they may opt to remain in service with the successor government having been compensated for their loss of HMOCS status and/or ultimate career prospects. For retiring HMOCS officers, HKG is responsible for normal pension payments (i.e. pension lump sum and monthly pension) in respect of their service with HKG. UKG will be responsible for the compensation payable to both retiring officers and those who opt to remain in service after 1997.

9. There are currently a total of 540 HMOCS officers. Details of options exercised as at 17 July 1996 are at Appendix III. Of the 540 officers, 200 (37%) have opted to leave before 30 June 1997, 259 (48%) have opted to continue in service and the remaining 81 (15%) have yet to opt. In view of the requirement to give six months notice and to exhaust all leave entitlement before 30 June 1997, the remaining officers are expected to exercise their options in the next few months. The impact of the departures of HMOCS officers is more apparent in the Administrative Service and the Police, where 29 and 128 officers respectively (out of total strengths of some 500 and 2800) will be leaving in the run up to 30 June 1997. However, the situation in the Administrative Service and the Police is manageable as they have many young officers capable of filling the vacancies.

10. The departure dates of HMOCS officers are staggered because of different leave balances. This helps to facilitate a smooth succession

Directorate Succession Planning

11. The Administration has made continued improvements to the long-established mechanism for monitoring senior staff wastage and planning directorate succession in each department. The overall objective is to ensure smooth directorate succession in individual departments and to identify and groom younger officers in departments for higher responsibilities. Directorate succession planning is dealt with at very senior levels. The Secretary for the Civil Service meets with individual Heads of Department and their respective Policy Secretaries personally to review the staff succession plans, to identify possible and suitable successors to directorate posts, to discuss long-term staff succession issues and to identify training and other career development needs for senior officers. Directorate succession plans are reviewed and updated at half-yearly intervals. In addition, information is updated as and when it is known.

12. Our emphasis on staff succession planning has the full support of Policy Secretaries and Heads of Departments. A major achievement of these staff planning efforts is that we have been able to identify and groom officers with directorate potential at an early stage. Over the years, we have worked together with Heads of Departments and developed a large pool of candidates in departments for directorate positions.

Measures to Complement Directorate Succession Planning

13. Apart from the established mechanism for staff succession planning, various other measures have also been deployed as necessary to help ensure smooth succession at senior management level. These are described briefly below.

(a) Training and Exposure

14. As stated above, we seek to ensure continuity in staff succession by identifying officers with potential for advancement and their needs for training and exposure. Abundant training opportunities are provided to departmental officers, including the Senior Staff Courses organised by the Civil Service Training and Development Institute, overseas management courses and Tsinghua courses. We also second departmental officers to policy branches to broaden their exposure and to provide them with working experience in policy work.

(b) Cross-stream Posting

15. In various departments with multi-discipline staff, cross-stream posting have been successfully carried out whereby officers in different streams are cross-posted to equip them with the necessary exposure and skills for taking up senior management positions. Examples include Marine Department and Fire Services Department. Many posts in the Lands and Works Group of departments are designated as multi-disciplinary posts which are open for application to officers in different streams of profession.

(c) Open Directorate

16. Open directorate is not limited to the Lands and Works Group of departments where promotion to senior directorate posts are open to junior directorate officers in all these departments. In the past few years, we have successfully extended the practice to some other senior directorate positions such as the posts of Director of General Grades, Postmaster General and Head of Efficiency Unit, where the positions are open to applications from eligible serving officers. The purpose is to select the most suitable candidate for the post.

Conclusion

17. The Administration attaches great importance to maintaining the stability and continuity of the civil service. We are committed to closely monitor wastage in the civil service and review staff succession plans together with departments. Other measures to groom departmental staff or to draw on a wider pool of talents are deployed wherever necessary to ensure smooth directorate succession. With all these in place, the indications so far suggest that the wastage situation in the next 12 months follows the historical trend and is manageable.

Enquiries

18. Mrs Kathryn Wong, Principal Assistant Secretary (Civil Service) Appointments is responsible for this subject matter. She can be contacted on telephone number 2810 3063.

Appointments Division
Civil Service Branch
30 July 1996

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Appendix I

Wastage in the Civil Service

1 -- Including 425 staff who transferred to the Vocational Training Council and 5350 staff who transferred to the Hospital Authority.
2 -- Including 2044 staff who transferred to the Hospital Authority.
3 -- Including 1413 staff who transferred to the Hospital Authority.
4 -- Including 1227 staff who transferred to the Hospital Authority.

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Appendix II

Wastage in the Civil Service in 1995/96 by Reasons

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5 -- Include mutual resolution of agreements.

Appendix III

Options exercised by eligible HMOCS Officers (as at 17 July 1996)

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