Employee engagement precedes reward restructuring at CLG

In this case study we examine how the Department for Communities and Local Government (CLG), a relatively new organisation, set up in May 2006, has dealt with the legacy issues arising from the transfer into CLG of individuals from a wide range of other government departments. These include low morale and “antiquated” pay arrangements.

The Department has chosen to prioritise the improvement of behaviours and performance through an extensive employee engagement programme, although steps are also being taken to bring pay and reward up to date.

CLG’s 1,900 employees have been transferred to the department from many other parts of the civil service. But pay in government departments has diverged markedly since the 1990s, when pay setting was devolved to departments. This means that when work done by one government department, such as the Home Office, is transferred to another, such as CLG, people on different terms and conditions are brought together, often to work side by side. Harmonising terms and conditions, not to mention bringing together disparate cultures, can be a time-consuming and challenging (and often unsuccessful) process, as many participants in mergers and acquisitions know.

Our case study looks at:

  • the results of CLG’s employee attitudes research

  • how CLG looked first to secure employee engagement and then support it with a total reward package

  • the creation of a set of organisation values

  • the business change programme

  • CLG’s new approach to reward and progress to date.




The brief
Employee engagement
Box 1: Employee engagement in the civil service
Document 1: Department for Communities and Local Government - Core values
Suggestion and recognition schemes
Reshaping the Department
Changes to reward
Reward principles
Progress to date
A final word