Arlette Pedraglio
In the hot seat: IDB President Moreno (center) and Executive Vice President Daniel Zelikow (left) addressed some of the staff concerns raised by Staff Association President Mauricio Bertrand (right).

By Alexandra Russell-Bitting

International Bank staff with grades 2–13 and local staff with grades 10–1 received an email from management on April 12 with their preliminary assignments under the Bank’s new organizational structure, based on their area of specialization, duties and responsibilities, and work program. They were to respond by April 20 in an electronic survey, either accepting the assignment or requesting alternatives. At the same time, supervisors were to confirm the proposed assignments of their staff or suggest different ones.

According to a message from IDB President Luis Alberto Moreno, the responses of staff and supervisors would be reported back to them on an individual basis in early May. The final assignments should be confirmed once the new managers finish the departmental work plans and human resources plans later in May, although in some cases where decisions have not been made yet or adjustments are needed, the final decision could be made later. Moreno announced that the new structure is to be in place by July 1.

Huge turnout for Staff Association meeting

The regular Annual Meeting of the IDB Staff Association was scheduled for just days after staff received their emails. It drew an unusually large crowd, with people lining up along the walls of the Andrés Bello auditorium and spilling out into the hallway, anxious to hear what Moreno and Staff Association President Mauricio Bertrand had to say about the realignment.

Moreno acknowledged that any organizational change can cause anxiety among staff and their families, but it can be relieved if clear information is provided on a timely basis. He addressed some of the questions about the process raised by the Staff Association, explaining for instance that the purpose of the electronic survey is to allow staff and supervisors to provide feedback on the preliminary assignments. He urged people to freely express their opinions and indicate their preferences.

On the question of how staff members have been reassigned from units that might be outsourced if the outsourcing study has not yet been completed, Moreno said that no decision has yet been made on what, if any, functions will be outsourced. The option will be “carefully examined” before any decisions are made. According to the realignment website, certain units of the Information Technology and General Services Department, the Finance Department and Human Resources Department are under study for possible outsourcing.

As for assignments to Country Offices, Moreno stressed that in order to stay relevant the Bank needs to be closer to its clients and continue to have staff that are motivated and committed. In selecting supervisors, he assured staff that Bank professionals will be selected through open competitions that would be held as soon as possible.

Hundreds of questions

When Bertrand took the floor, the newly reelected Staff Association president decided to use the time allotted for his speech to discuss the realignment, which he knew from a recent survey was the top concern among staff: the Staff Association had received over 300 questions from Bank employees, he said, most of which were about the new organizational structure.

Bertrand emphasized that the association board has been trying to cooperate with management on the new structure for the Bank, which it agrees is necessary for the Bank to better align itself with needs in the region and remain relevant. The association has lobbied for staff participation in the design and implementation of the realignment and fair, equitable treatment for staff, which management has promised to ensure, he said.

Last fall, the association presented its concerns about the realignment process in writing to management, emphasizing four basic principles for human resources management, which the association still considered relevant: shared responsibility, fairness, order and transparency. First, management must accept responsibility for finding “acceptable, positive solutions” for staff, and staff must accept responsibility for carrying out Bank activities. Second, management must maintain the staff’s acquired rights and benefits equally, said Bertrand, and “offer training, promotion, career changes, workplace transfers or separation in such a way as to take maximum advantage of the experience, knowledge and potential of each employee.”

Third, the implementation plan must have realistic deadlines consistent with the procedures established under the human resources strategy, with proper consultations with the Staff Association. And fourth, all staff, both at headquarters and in the Country offices, must be duly informed of the realignment process and adjustment options available to staff (couseling, training and incentives).

High anxiety

According to Bertrand, the emails with the preliminary assignments had caused “more discontent, confusion and frustration than clarification” of the realignment process. He expressed concern that management was making “hasty unilateral decisions” that were causing “almost uncontrollable levels of anxiety.” Top among the concerns of operations staff was the impact of transfers to the Country Offices on their families and whether employees would have the option of selecting another assignment. 

Nonoperations staff were mainly worried about being outsourced, said Bertrand, even when “in our view there is no justification for it.” Without having seen the consultant studies on which such decisions are to be based, it was “very difficult” for the Staff Association to endorse a measure that would lead to involuntary separation of staff, said Bertrand.

Before any final decision is made on outsourcing and offshoring, the Staff Association wants management to disclose the studies conducted, along with a proposal for redeployment of the staff affected. In any event, the emphasis in the realignment should be on “insourcing,” said Bertrand, in other words working with the Bank’s people.

The Staff Association also said they wanted to see the realignment implementation plan recently distributed to the Board of Executive Directors and wanted management to extend the deadline for employees to respond to their assignments until the new managers, division chiefs and representatives have been appointed. Management did extend the deadline from April 20 to April 23, and has since posted the implementation plan on the realignment website.

More time needed

In response, newly appointed Vice President for Finance and Administration Carlos Hurtado said that no decision on outsourcing had yet been made and assured staff that management had no bias against “insourcing.” Executive Vice President Daniel Zelikow added that if outsourcing is decided, it will involve negotiations with firms. He urged staff subject to outsourcing to “map to one skill and put an option to another.” The outsourcing process would take 12–18 months, he said. Moreno stressed that it will take time for all the decisions to be made.

Bertrand suggested that the Bank take advantage of the assignment review process for all staff to complete the conversion of fixed-term contracts to indefinite-term contracts. “I can assure you that it would be a valuable incentive for staff, who ultimately want only to support you in your plan to make the Inter-American Development Bank relevant for the region,”  he said.