ENTITIES AND PUBLIC POLICIES
MANAGEMENT
OF THE NATIONAL
EMPLOYMENT
AGENCY,
TEN YEARS AFTER
IT WAS CREATED
Thematic public report
Summary
July 2020
2
Summary of the Thematic Public Report of the Cour des comptes
g
DISCLAIMER
This summary report is intended to facilitate the reading and use
of the Audit Office report.
The Cour des comptes [Audit Office] is only accountable for the
report.
The responses from the administrative bodies and ministries
concerned appear in the follow-up to the report
.
3
Summary of the Thematic Public Report of the Cour des comptes
Summary
Introduction
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
1
An accelerated transformation strategy for a highly
autonomous institution
7
2
Financial management facilitated by dynamic resources
9
3
Excesses that need to be remedied in human resources
management
11
4
A performance approach hat has its limits
13
Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5
Summary of the Thematic Public Report of the Cour des comptes
Introduction
In 2019 the Cour des comptes audited the management of the National
Employment Agency for the 2012-2018 period . This public administrative
establishment, created at the end of 2008 through the merger of the ANPE
and Assédic, is responsible for receiving, informing, guiding, supporting and
compensating job seekers . The enquiries were completed in November 2019
and focused on strategy and governance, management of human and financial
resources, and the institution’s performance approach .
The Cour des comptes’ work therefore does not take into account the measures
implemented by the public authorities under Emergency Act No . 2020-290 of
23 March 2020 to handle the Covid-19 epidemic, including those provided for by
Order No . 2020-324 of 25 March 2020 on emergency measures for replacement
income mentioned in Article L . 5421-2 of the Labour Code .
7
Summary of the Thematic Public Report of the Cour des comptes
1
An accelerated transformation
strategy for a highly
autonomous institution
Since 2012, the National Employment
Agency’s strategy has aimed to tackle
two major
challenges: handling the
general public, on the one hand, and
personalising the
service
provided,
on the other . These objectives should
be seen in the light of the significant
increase in the number of jobseekers
over the period (the average number
of jobseekers registered in categories
A, B and C
1
rose from 4 .2 million in
2012 to 5 .6 million in 2018) and the
great diversity of the public supported
(both
jobseekers
and
employers) .
This strategy has led to the National
Employment
Agency
becoming
profoundly different .
Digital development
is one of the main
pillars . The objective of differentiating
the
support
and
services
made
available has significantly modified its
position vis-à-vis its public . This strategy
has led to there being significant
internal adjustments, such as changes
in the procedure for receiving clients
in branches, a reduction in the number
of specialised compensation advisors
and an overall increase in the general
competence of the advisor profession .
The
tripartite
agreement
between
the State, Unédic and the National
Employment Agency for the 2019-2022
period was drawn up in line with the
previous agreements and in a context
marked by falling unemployment and
growing tensions on the labour market .
The scale of the consequences of the
Covid-19 epidemic on the economy and
employment will probably require the
strategic priorities to be reassessed in
the short term .
Governance
of
the
National
Employment
Agency,
as
a
public
establishment
with
a
sui
generis
administrative
nature,
is
unusual
in several respects and gives the
operator a great deal of autonomy,
both when defining its strategy and in
its internal operation .
1
Jobseekers registered with the National Employment Agency are required to seek employment,
whether or not they are engaged in a reduced activity and whether or not they are paid .
8
Summary of the Thematic Public Report of the Cour des comptes
An accelerated transformation strategy
for a highly autonomous institution
National Employment Agency governance and financing in 2019
Source: Cour des comptes
Its management is marked by an
imbalance between the weight of the
State and that of
Unédic
, although
State representatives are in the minority
on the board of directors . While the
unemployment insurance management
body is by far the largest funder of
the National Employment Agency, its
place in the decision-making process
remains secondary to that of the State .
Moreover, it is not a member of the board
of directors: it is the social partners
who sit on it .
However, Unédic does
play a real role in defining the National
Employment Agency’s strategy, which
is formalised within the framework
of
multi-year
tripartite
agreements
concluded between the operator and its
two main financers .
If the
Board of Directors
was more
involved in human resources issues,
which
is
a
prerequisite
for
the
success of the institution’s strategy,
the decision-making body’s position
would
be
strengthened,
whose
powers are limited in relation to
the
prerogatives
of
the
Director
General . In addition to his or her own
powers, the Director General holds a
prominent position in the institutional
functioning of employment actors,
which makes it more difficult for the
General Delegation for Employment
and Vocational Training (DGEFP) to
effectively supervise the institution .
The State
Multi-year
tripartite
agreement
Unédic
Board of directors
Chairmanship: CFDT
Vice-chair: Medef
25
employee
representatives
25
employer
representatives
Operating
subsidy:
€1,362 M
Operating subsidy:
€3,521 M
Solidarity allowances:
€2,055 M
Unemployment insurance
allowances: €34,800 M
28%
of operating
funding*
and
6%
of funding for
allowances paid
72% of operating
funding
*
and 94% of funding
for allowances paid
* including intervention expenditure
National Employment Agency
Board of directors
Chairmanship: qualified official
25
employer
representatives
5
State
representatives
2
rep. from
regional authorities
1
qualified
official
5
employee
representatives
9
Summary of the Thematic Public Report of the Cour des comptes
During the period under review, the
National
Employment
Agency’s
financial situation improved, buoyed by
dynamic resources
(+12 .4% between
2012 and 2018) from the State (+3 .3%)
and especially from Unédic (+13%),
which reached €5 .5bn in 2018
2
The
outcomes were positive for all years
except 2012 and 2016 (taking into
account the launch of the «500,000
additional training courses» plan in
2016) . Cash flow from operations before
changes in working capital amounted
to more than €1 billion over the period .
However,the institution’s net accounting
position remained negative due to the
deteriorated initial situation, which was
linked to resuming social commitments
at the time of the institution’s creation .
Operating expenses
increased by 11%
over the period to reach €5 .5 billion
in 2018 . Operating expenses, which
accounted for 79% of expenditure in
2018, rose by 7%, while intervention
expenses,
which
increased
significantly between 2012 and 2018
(+29 .6%), were more irregular given
the succession of government plans
over the period . For this reason, the
institution’s budgetary management
appears to be well under control
for operating expenses and more
difficult for intervention expenses .
The National Employment Agency
has implemented a plan to control
its
operating
expenses,
excluding
staff expenses, with, in particular,
for several years now, a comparative
monitoring of the expenses of its
regional
directorates .
Non-staff
operating expenses, after rising fairly
sharply until 2016, fell until 2018,
decreasing over the entire period
by 1 .8% (- €16 .4 million), while staff
numbers increased by 5 .3%, as did
activity (training plans, etc .) .
The
payroll
increased by €291 million
between 2012 and 2018, i .e . an increase
of 9 .9%, reaching €3 .2 billion in 2018
and 73 .6% of operating expenses . Its
variations are mainly linked to the
increase in the number of employees .
Nevertheless, the value of the point on
the National Employment Agency pay
scale has been increased twice, in 2014
and 2017, and the implementation of
the new classification has generated
additional costs, estimated at €28 .5
million over a full year . In total,
between 2012 and 2018, the average
cost of an ETPT
3
increased by 4 .9% .
Finally, the total amount of social
commitments, booked as provisions or
off-balance sheet, amounted to more
than €1 .4 billion at the end of 2018,
Financial management
facilitated by dynamic resources
2
2
Excluding resources which finance the benefit expenditure .
3
Full-time equivalent worked .
10
Summary of the Thematic Public Report of the Cour des comptess
Financial management facilitated
by dynamic resources
due to retirement indemnities, long-
service awards and a closed pension
fund; it is not covered by the amount
of the institution’s equity capital .
The operator’s cost accounting system
has only been delivering truly usable
outcomes for a few years . These are a
good illustration of the transformation
of the National Employment Agency,
marked by a fall in the cost of
managing unemployment payments
and an increase in the cost of providing
support for job seekers .
A
review
of
the
awarding
and
execution of public contracts shows
that there is still room for progress in
this area, particularly in anticipating
the deadlines for contracts from the
Information
Systems
Directorate
(DSI) and in the ability to put service
providers and suppliers out to tender
more regularly and systematically .
Decree no . 2019-797 of July 26, 2019
relating to the unemployment insurance
scheme provided for an increase in
Unédic’s contribution
to the financing
of the National Employment Agency,this
went from 10% to 11% of contributions
to financing unemployment insurance
as of 1 January 2020 . This method
of financing is largely linked to the
dynamics of the wage bill for private
sector employees
4
and leads to an
automatic increase in the National
Employment Agency’s financing during
periods of economic growth . Conversely,
it will lead to a reduction in the National
Employment
Agency’s
resources
in
2022 in view of the foreseeable drop
in the scheme’s income due to the
Covid-19 epidemic in 2020 .
Defining a multi-year financial trajectory
for the establishment would make it
possible to better adapt the conditions
of
its
financing
to
the
economic
context and to maintain a demanding
management of its expenditure .
4
L’intrThe introduction of a share of the general social contribution (CSG) in the financing of the
National Employment Agency does not alter this finding .
11
Summary of the Thematic Public Report of the Cour des comptes
The
period
since
2012
has
been
intense as far as human resources are
concerned . The National Employment
Agency
experienced
two
major
recruitment waves in 2013 and 2014,
before stabilising and then reducing
its workforce in 2018 . The resources
allocated to the regional divisions have
been gradually rebalanced, even if
the historical distribution of staff still
weighs heavily when deciding whether
to open or close positions .
The regional
directorates were reorganised in 2016,
in line with the territorial reform .
The National Employment Agency has
gradually implemented a
specialisation
approach
for its advisers: support
and
monitoring,
companies,
rights
management, job search monitoring .
The «rights management trajectory»,
i .e . the reduction in human resources
devoted to payment management, was
a major reform which implemented
a number of professional transitions
towards the monitoring and support
activity .
The
National
Employment Agency
has
adapted
its
internal
career
management
tools
The
new
classification of contract agents under
private law, which was severely delayed,
finally came into force on 1
st
July 2018 .
Recruitment
processes
have
been
standardised and a significant effort
has been made to provide professional
training for staff . On the other hand,
little progress has been made on the
sensitive subject of their evaluation .
Their pay is yet to be properly linked
to their performance . Unlike the pay of
regional managers, the pay of branch
managers, who are responsible for
the day-to-day organisation of the
business, does not take into account
the operating outcomes of their entity .
A
number
of
human
resources
difficulties are linked to the collective
bargaining
agreement
that
was
negotiated when the ANPE and Assédic
merged, as the Government has stated
its desire to retain the best of the two
schemes .
The
management of senior executives
still involves certain practices that are
not acceptable in the context of the
savings imposed on the public sector
as a whole over the 2012-2019 period .
The
National
Employment
Agency
must
reform
the
mobility
support
system for senior managers, put an
end to the systematic allocation of
company cars and very strongly limit
contractual terminations at the end of
a career In addition, the very significant
pay increases granted to certain senior
executives call for better information to
be provided to supervisory authorities
and
that
compensation
checks
be
performed .
Excesses that need to be
remedied in human resources
management
3
12
Summary of the Thematic Public Report of the Cour des comptes
Finally,
the
National
Employment
Agency’s
human
resources
have
significant
untapped
working
time
potential
Employees’ working hours
are 2 .5% below the legal limit of 1,607
hours, due to the five additional days
of leave provided for in the agreement
on the organisation and adjustment of
working hours . Absences from work,
on all grounds, are steadily increasing
and have reached a very high level (an
average of one month’s absence per
employee per year) .
The resources
taken up by social dialogue, which have
been steadily increasing since 2012,
represented 2 .5% of ETPT in 2017: the
application of the April 2019 agreement,
as well as the implementation of the
new social dialogue bodies, should be
able to contain them .
In the summer of 2019, the Government
announced a further increase of 1,000
jobs, which were to be allocated to
supporting businesses . The allocation
of these additional resources is to be
re-assessed as part of the analysis of
the means to be implemented to deal
with the future increase in the number
of job-seekers caused by the Covid-19
epidemic .
This analysis should take into
account all of the National Employment
Agency’s
resources,
including
the
potential for untapped working time .
Excesses that need to be remedied
in human resources management
13
Summary of the Thematic Public Report of the Cour des comptes
A performance approach
that has its limits
4
The National Employment Agency
has opted for a tighter performance
approach
based
on
14
strategic
indicators
focused
on
measuring
outcomes on the one hand, and public
satisfaction (4 indicators out of 14)
on the other . The implementation
of this approach, whose structure
has
remained
relatively
constant
since 2012, has had several positive
effects . It has been implemented
and monitored at all levels of the
institution’s
operations
and
is
a
major steering tool that has made
it possible to support the profound
transformation of the institution since
its creation .
Within
the
network,
performance
indicator monitoring is supplemented
by other reference systems, which
differ from one territory to another .
The variety of indicators monitored
at the local level makes it impossible
to manage the network on the basis
of outcome indicators alone . Indeed,
these
indicators
do
not
make
it
possible to highlight any significant
imbalances
in
the
functioning
of
the network and the distribution of
resources .
The
central
role
of
satisfaction
indicators
also
raises
questions .
Despite numerous biases in their
construction
and
interpretation,
they tend to be integrated within the
network, as in the way the National
Employment Agency highlights them
at the national level, like indicators
that would in themselves attest to
the effectiveness of its action . The
focus on these indicators, in particular
the job-seekers’ satisfaction rate with
the follow-up they receive, has taken
precedence over examining indicators
relating to the return to employment
(number of returns to employment
and number of returns to sustainable
employment) .
While there has been some progress
in the latest tripartite agreement
2019-2022, it does not resolve some
of the fundamental difficulties in the
performance approach . In particular, it
does not make it possible to measure
the intensification of
support for the
most
disadvantaged
jobseekers
,
a
major
focus
of
the
National
Employment Agency strategy .
The
data sent to the Cour des comptes
on this point alone do not make
it possible to conclude that these
applicants receive more support than
the National Employment Agency
public as a whole .
Generally speaking, and for all the
groups concerned, this performance
approach does not take sufficient
account of the issues relating to
the time taken to access services,
14
Summary of the Thematic Public Report of the Cour des comptes
A performance approach that has its limits
such
as
the
differentiation
of
outcomes according to the support
arrangements put in place and the
categories of group concerned .
Finally,
the
management
of
the
agreement needs to be improved by
giving more impetus to
qualitative
evaluations
The scale of the Covid-19
epidemic also calls for the steering
mechanism
of
the
performance
approach to be strengthened in order
to measure as closely as possible the
impact of the actions that will be
undertaken .
Therefore,
the
outcomes
of
the
strategic indicators of the tripartite
agreement,
which
have
regularly
improved over the period, do not make
it possible to assess the effectiveness
of all the institution’s activities .
15
Summary of the Thematic Public Report of the Cour des comptes
Recommendations
On governance
1.
Improve the Board of Directors’
information arrangements .
On internal management
2.
Secure the renewal of ISD contracts
by anticipating the time needed to
conclude contracts or amendments .
3.
Renegotiate the national agreement
on the organisation and adjustment of
working time in order to respect the
legal duration of annual working time .
4.
Intensify
actions
to
combat
absenteeism .
5.
Better
manage
the
resources
allocated to social dialogu
e
6.
Streamline the support system for
executive mobility to reduce the cost .
7.
Set up executive compensation
checks by creating a compensation
committee
and
submit
this
compensation to the opinion of the
financial controller above a certain
threshold .
8.
Put an end to the systematic
allocation of company cars to senior
executives .
9.
Limit the use of contractual
terminations at the end of the
career of senior executives and
submit
contractual
termination
agreements
to
the
financial
controller for approval .
On the performance approach
10.
Add a strategic indicator to
assess the intensity of support for
the job-seekers most in difficulty
and the outcomes of this strategy in
terms of a return to employment .
11.
Differentiate
the
indicators
according
to
the
support
arrangements
put
in
place
for
jobseekers and the level of service
for employers, particularly for VSEs/
SMEs .
12.
Take better account of the
time
taken
to
access
National
Employment Agency services .
13.
Strengthen the qualitative aspect
by developing a monitoring system
for cohorts and consolidating the
role of lighting indicators .
