Modeling Pay and Employment

Bank support for civil service reform (CSR) in developing countries used to focus mainly on improving government pay, and employment practices. In recent years, CSR programs have sought a broader set of management improvements. But getting public pay and employment right is still fundamental: establishing appropriate civil service employment dimensions, and providing rewarding-but affordable-remuneration for public servants remains a formidable challenge for many countries. Pay policies need to be fiscally responsible, but also attractive enough to draw the best talent into the public sector. In addition, such policies must be politically feasible; governments need to support difficult reforms that can survive implementation without being undermined or derailed. The Civil Service Pay and Employment Model (CSPEM) was created to help governments develop realistic civil service pay and employment strategies, and to enhance policy discussions within government, and between government and donors on these important reforms. This note describes early lessons of experience with civil service pay and employment modeling tools.