2015 Report details for project: New Employment Model

Project name: New Employment Model - there are 5 reports for this project: 2013, 2014, 2015, 2016, 2017
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Organisation: MOD (D17) - see all reports for this organisation
Report year: 2015 (data is from Sept 2014)
Category: Transformation - see all reports for this category
Description: The overall NEM Objective - To design and deliver (Full Operating Capability FY 20/21) a New Employment Model for Regular and Reserve Service Personnel that supports Operational Capability through a competitive offer which: • is sufficiently Attractive to recruit and retain personnel of the right quality to the point of Service need, • is Affordable within planned resources and better addresses the key drivers of net, long-term cost growth, • enables Agility through improved organisational efficiency, flexibility and adaptability. The supporting projects operate within four work streams: Terms of Service (including career management and structure, and flexible working practices); Value and Reward (including Pay and Allowances; Future Accommodation (including both publicly provided accommodation and supporting the aspiration amongst many Service Personnel for home purchase); and Training and Education. The harmonisation of terms and conditions of service for Regular and Reserve personnel is also the responsibility of the NEM. Key outcomes of the NEM include: tackling the demand for greater stability (particularly for Service families); the ability to exercise choice in the way that Service personnel and their families live their lives; and the need for personnel to take greater responsibility in doing so.
DCA (RAG): Amber
DCA text: In response to the MPA Gateway Review of June 2014, NEM has continued to build a strong evidence base to support policy decision making. The result is that we have greater confidence in the benefits and costs of our major proposals, including Pay Reform and Accommodation Charging. The Strategic Outline Case for the programme has been approved, and the stakeholders are committed to deliver changes in 2015 and 2016.
Start date: 2011-05-02
End date: 2021-10-29
Schedule text: The NEM programme remains on track to deliver its agreed remit by 2021; the transition plans for pay reform and accommodation charging will have completed by then. Forces Help To Buy (FHTB) interest-free loan pilot was successfully launched in April 2014. The next milestone is harmonisation of Engagement Structures which will take effect from April 2015. Further change is anticipated in 2016 when a new pay model and accommodation charging system are planned to go-live.
Baseline: £12.29m
Forecast: £8.56m
Variance: -30.30%
Variance text: The variance is a result of the reprofiling of significant Joint Personnel Administration change programme costs from FY2014/15 into FY2015/16, alongside a reduction in forecast NEM manpower costs due to unfilled posts.
Whole Life Cost: £66.72m
WLCost text: The budgeted whole life cost equates to the NEM Annual Budgeted Cycle (ABC) 14 bid and can be broken-down as follows: Defence Business Services (DBS) Joint Personnel Administration (JPA) change programme costs £45m; Programme Office & Project Team costs £11.30m; DBS Implementation costs £6.42m & Technical support £4m. This figure is reduced by £19M from the previous year due to an administrative move from NEM into the DBS core budget of £19m of costs covering some Business As Usual requirements.
Sourcefile: IPA_2015.csv

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