How To Manage Government Sector Remuneration And Staffing In Small States
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How to Manage Government-Sector Remuneration and Staffing in Small States
Author: Nick Carroll
language: en
Publisher: International Monetary Fund
Release Date: 2025-05-15
The management of government spending on employee compensation is crucial for small developing states (SDS), where such spending constitutes a large portion of government expenses. These states often face unique challenges, such as disproportionately high government employment levels and the issue of "brain drain"—the latter complicates staffing for skilled positions. This note summarizes the unique challenges these states face, underscoring the importance of tailored strategies for small states in managing government compensation and employment effectively.
Managing Government Compensation and Employment - Institutions, Policies, and Reform Challenges
Author: International Monetary Fund. Fiscal Affairs Dept.
language: en
Publisher: International Monetary Fund
Release Date: 2016-08-04
Government compensation and employment policies are important for the efficient delivery of public services which are crucial for the functioning of economies and the general prosperity of societies. On average, spending on the wage bill absorbs around one-fifth of total spending. Cross-country variation in wage spending reflects, in part, national choices about the government’s role in priority sectors, as well as variations in the level of economic development and resource constraints.
Case Studies on Managing Government Compensation and Employment - Institutions, Policies, and Reform Challenges
Author: International Monetary Fund
language: en
Publisher: International Monetary Fund
Release Date: 2016-12-04
This supplement presents country case studies reviewing country experiences with managing wage bill pressures, which are the basis for the compensation and employment reform lessons identified in the main paper. The selection of countries for the case studies reflects past studies carried out by either the IMF or the World Bank in the context of technical assistance or bilateral surveillance (Table 1). These studies provide important insights into the different sources of wage bill pressures as well as the reform challenges governments have faced when addressing these pressures over the short and medium term. The studies cover 20 countries, including five advanced economies, six countries from sub-Saharan Africa, two countries in developing Asia, one country in the Middle East and North Africa, three countries in Latin America and the Caribbean, and three countries in Central and Eastern Europe and the CIS. The structure of each case study is similar, with each study starting with a presentation of the institutional coverage and framework for setting and managing the wage bill; a description of employment and compensation levels, including their comparison with the private sector; and a discussion of the challenges that motivated the need for reforms and, when applicable, the reforms implemented and lessons derived from these.