Reform Agenda

Improved Human Resource Management and Staff Incentives

Well qualified, motivated staff are fundamental to the success of reform initiatives. ADB’s human resource strategy, introduced in 2004, commits ADB to improving the effectiveness of its human capital, to introducing a new performance management and rewards system, and to improving leadership throughout ADB.

Measures undertaken to address ADB’s skills mix issues and skill gaps include realignment, sequestration, and an enhanced separation program. ADB has taken stock of available skills and redeployed staff based on work programs, thereby rebalancing the workload among regional departments. It also has aligned ADB’s skills mix more closely with the priorities of the second medium-term strategy 2006-2008.

The new performance development plan [ PDF ], introduced in 2005, provides for more rigorous differentiation of staff performance, which was not part of the previous performance assessment systems. On the basis of consultations with and feedback from staff, refinements were made to improve, streamline, and automate the performance development plan. ADB also introduced a performance bonus in 2005 to reward exceptional performance.

Recruitment and promotion are now more transparent and efficient. All vacancies for local staff and professional staff levels 1 to 7 are advertised internally and externally. ADB uses selection panels for promotion for staff levels 1 to 7, and separate technical and employment panels for recruitment. Both panels include an independent member in addition to a representative from the user department. ADB continues to seek higher representation of women staff overall and at senior levels through the implementation of the gender action program.

To improve its training program, ADB created a Learning and Development Unit within the Human Resources Division of the Budget, Personnel and Management Systems Department, with an increased budget allocation. The unit now offers a curriculum approach to learning further developed for four key learning tracks: leadership, managing for development results, operational and business processes, and financial management.

ADB established a systematic talent management process to identify and develop staff with leadership potential. The first two sessions of the assessment and development center were completed and three more sessions are scheduled for 2008.

Implementation of the human resource strategy has resulted in a more transparent, merit-based, and efficient human resource management system compared to 3 years ago. Today, ADB’s skills mix is better aligned with organizational priorities, individual work planning is stronger, and the organization is better equipped to develop staff skills. Staff evaluations are based more clearly on performance. ADB has almost doubled the share of women staff in senior positions from 7% in 2002 to 13% in 2007.

A staff engagement survey was completed during the first quarter of 2008. About 82% of staff participated, almost double the 42% response rate of the last staff engagement survey in 2003. The preliminary results of the survey were shared with the Board and staff.

In April 2008, ADB adopted Strategy 2020, its new long-term strategic framework for 2008-2020. Under Strategy 2020, the direction and extent of change in the skills mix will vary by specialized area, but significant capacity building will be necessary over a range of fields. In this context, Management will consider alternative approaches for cost-effective mobilization, deployment, and retention of its technical staff at headquarters and elsewhere across the region.

In addition, based on the results of the periodic staff engagement surveys, Management will take appropriate actions to foster its staff’s continued commitment to ADB’s mission as a development bank and to optimize its staff’s knowledge and passion for development. ADB will conduct a comprehensive review of ADB’s human resources strategy in 2008. The review will take into account the findings of the staff engagement survey and the views expressed in the Informal Board Seminar in April 2008.

See also:

Website

• Strategy 2020

Report

• Report on the Implementation of the New Human Resources Strategy (ADF IX Midterm Review Meeting, Frankfurt, 4-5 December 2006) [ PDF: 391kb | 29 pages ]