Recruiters have a key role to play in helping public sector clients share knowledge to develop labour strategies, according to David Morgan, partner at Morgan Law.

Morgan’s comments follow publication of data from the New Local Government Network think tank, which says use of shared service for back office administration may only save 3.6% of local authorities costs.

Morgan told Recruiterthat sharing knowledge in the sector is key to developing informed future labour strategies: “If the shared services are being put in place to achieve costs savings - what cost savings can they hope to make?

“These processes are very labour intensive. If you are processing housing or benefits, that is a very heavy workload. The issue is what is the optimum level of staffing to perform the processing. That is often where things come unstuck.

“Also if councils are using shared services, who takes responsibility for one council’s accounts if there are problems? There are obvious benefits to a call centre approach and having big processing centres, but the actual benefits in terms of cost savings can often be outweighed by the lack of direct control.

“We have been organising networking events and seminars bringing people in to discuss ideas, thoughts and strategies. These are unprecedented times and I think a lot of people are feeling isolated in their roles because they are not 100% certain of what the right course of action is.

“We have been working with a range of councils including Barking, Camden and Buckingham County Council. The key thing is to share ideas and work strategies through.

“We are seeing a lot of uncertainty and reticence in the market from a candidate perspective. People are fearful for their jobs. They do see an end to their employment very soon.

“We are seeing movement in the market. We have had a very good February. It is not just about placing people — it’s about long-term relationships.”