Recommendation 8

Some functions, such as the Commercial function, have introduced pay flexibility in order to try and increase recruitment of specialists. The Cabinet Office told us that the use of flexibilities in the Government Commercial Organisation had been an effective way to bring in external talent and to consolidate internal talent. It said the turnover rate within the Commercial function had fallen from 25% to 7%, a figure that is lower than the average rate of turnover within the civil service. The Cabinet Office believes this marks a dramatic improvement in the rate of retention and that the pay arrangements introduced have successfully encouraged staff to remain in the civil service.17