PES need to carefully manage the(i)r resources and cons(i)der the (i)nputs and how they relate to the results ach(i)eved. Th(i)s encourages PES to th(i)nk cr(i)t(i)cally about the(i)r approach to all act(i)v(i)t(i)es and to cons(i)der what works, and why and what (i)s the (i)mpact of these act(i)v(i)t(i)es. It (i)s (i)mportant for PES to be able to al(i)gn the(i)r th(i)nk(i)ng around result-based cha(i)ns so that PES can (i)mprove the performance of the(i)r serv(i)ces, where needed, and contr(i)bute to a well-funct(i)on(i)ng labour market. In add(i)t(i)on, by be(i)ng aware of PES performance they can demonstrate the(i)r value for money and the(i)r added value. Th(i)s (i)s (i)ncreas(i)ngly (i)mportant w(i)th(i)n the context of shr(i)nk(i)ng publ(i)c funds and l(i)m(i)ted resources.

Th(i)s sect(i)on w(i)ll explore the bas(i)cs around effect(i)ve results-based management before prov(i)d(i)ng some (i)nformat(i)on on performance management and how PES can use data ava(i)lable to produce labour market (i)nformat(i)on and share th(i)s w(i)th partners.

6.1 What (i)s results-based management?

Results-based management allows PES to look at the (i)nputs, outputs and outcomes of a spec(i)f(i)c act(i)v(i)ty and to see what act(i)ons are contr(i)but(i)ng towards the des(i)red outcome, and thus help(i)ng the PES to ‘perform.’ Th(i)s type of approach can prov(i)de (i)nformat(i)on to sen(i)or managers on the use of resources, where eff(i)c(i)enc(i)es and (i)mprovements can be made to bus(i)ness processes. Th(i)s covers all types of resources – human resources, IT and f(i)nanc(i)al resources. The results of such act(i)v(i)t(i)es can be used by governments to look at overall performance, ev(i)dence-based pol(i)cy mak(i)ng and publ(i)c sector reforms.

Results-based management has seven stages, as outl(i)ned (i)n the f(i)gure below.

F(i)gure 6.1 Results-based management stages²

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The f(i)gure above demonstrates that data collect(i)on, and def(i)n(i)ng what data (i)s to be collected and why, (i)s an (i)mportant act(i)v(i)ty for results-based management as th(i)s prov(i)des a bas(i)s for many steps outl(i)ned above. Def(i)n(i)ng what data to collect and what aspects of PES performance are to be measured should be d(i)scussed and agreed at sen(i)or management level w(i)th(i)n a PES and the same approach should be taken across PES off(i)ces (i)n a reg(i)onal or nat(i)onal context to allow for comparab(i)l(i)ty. Importantly, collat(i)ng data w(i)ll help to demonstrate the ach(i)evement of key performance (i)nd(i)cators (th(i)s (i)s refl ected further (i)n Sect(i)on 6.3).

When def(i)n(i)ng object(i)ves, (i)t (i)s (i)mportant for them to be clear, conc(i)se and cons(i)stent. A useful acronym (i)s SMART:³

Spec(i)f(i)c – (i)dent(i)fy(i)ng a spec(i)f(i)c area for the object(i)ve;

Measurable – the object(i)ve can be measured;

Ass(i)gnable – a person can be (i)dent(i)f(i)ed to take forward th(i)s object(i)ve;

Real(i)st(i)c – the object(i)ve measures real(i)st(i)c and relevant content;

T(i)me-spec(i)f(i)c – (i)dent(i)fy(i)ng a spec(i)f(i)c t(i)me frame for when the object(i)ve w(i)ll be measured.

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Tra(i)n(i)ng and (i)nvest(i)ng (i)n PES staff are (i)mportant to ensure that they have the r(i)ght sk(i)lls, knowledge and competences to analyse and draw out key conclus(i)ons (at management level) as well as recogn(i)s(i)ng the (i)mportance of results-based management (at all levels). By (i)nvest(i)ng (i)n sk(i)lls and ra(i)s(i)ng awareness of results-based management act(i)v(i)t(i)es, PES can create conduc(i)ve env(i)ronments for these act(i)v(i)t(i)es to take place and, (i)n t(i)me create the cond(i)t(i)ons for cont(i)nuous learn(i)ng and (i)mprovement w(i)th(i)n PES.
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It (i)s (i)mportant to note that good IT and data support systems are (i)mportant for the collect(i)on of data. A su(i)table IT (i)nfrastructure for collect(i)ng key performance (i)nd(i)cators can (i)nclude:

• A data storage platform
• Analyt(i)cs appl(i)cat(i)on to create metr(i)cs
• Dashboard, or other appl(i)cat(i)ons to d(i)splay key performance (i)nd(i)cators
• Access created for those who need (i)t.⁴

Such systems can take some resources to establ(i)sh but they can pay d(i)v(i)dends (i)n the longer term as (i)t (i)s eas(i)er to see how the PES (i)s perform(i)ng, and wh(i)ch areas need further attent(i)on.

6.2 What are results-based cha(i)ns?

Results-based cha(i)ns are a valuable start(i)ng po(i)nt for PES to move towards results-based management approaches. They (i)nvolve look(i)ng carefully at (i)nputs, outputs and outcomes (i)nvolved (i)n a process and they can help PES to th(i)nk about the d(i)fferences that the(i)r act(i)v(i)t(i)es have and the potent(i)al (i)mpact of the(i)r act(i)v(i)t(i)es and processes (i)nternally ((i).e., on PES staff, f(i)nanc(i)al resources and IT resources) as well as externally (on other organ(i)sat(i)ons, jobseekers and enterpr(i)ses). Th(i)s can be an (i)n(i)t(i)al start(i)ng po(i)nt to look at the labour market outcomes for (i)nd(i)v(i)duals and thus help to establ(i)sh what effect the PES has on the overall eff(i)c(i)ency of the labour market.

The f(i)gure below outl(i)nes an example of a bas(i)c results-based cha(i)n for PES for the act(i)v(i)ty of prov(i)d(i)ng job search ass(i)stance – note that th(i)s would cover all aspects of job search ass(i)stance from counsell(i)ng sess(i)ons to onl(i)ne (i)nformat(i)on that could be accessed by an (i)nd(i)v(i)dual w(i)thout close support from the PES.

The example demonstrates how the results-based cha(i)n approach can encourage PES to th(i)nk about spec(i)f(i)c (i)nputs (i)nto a process, what the potent(i)al outcomes w(i)ll be for PES (and (i)n th(i)s case, jobseekers) and what the potent(i)al (i)mpact w(i)ll be on labour market outcomes ((i)n th(i)s case, (i)ncreased numbers of jobseekers (i)nto employment).

F(i)gure 6.2 Example of PES results-based cha(i)n
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6.3 What are key performance (i)nd(i)cators?

Key performance (i)nd(i)cators can be a useful tool to start to develop and (i)mplement once PES have establ(i)shed and worked w(i)th results-based cha(i)ns for some t(i)me. Key performance (i)nd(i)cators help PES to make an extra step away from look(i)ng at (i)nputs, outputs and outcomes. In add(i)t(i)on, they can encourage PES to move away from undertak(i)ng rout(i)ne mon(i)tor(i)ng act(i)v(i)t(i)es to look(i)ng more strateg(i)cally at what they are do(i)ng, and why, and the general d(i)rect(i)on of progress.

Key performance (i)nd(i)cators are d(i)fferent to mon(i)tor(i)ng (i)nd(i)cators as they look at the h(i)gher-level performance and mon(i)tor(i)ng act(i)v(i)t(i)es collect (i)nformat(i)on on an ongo(i)ng process to look at performance aga(i)nst results. Whereas, key performance (i)nd(i)cators (i)s the process of sett(i)ng h(i)gh-level (i)nd(i)cators that determ(i)ne what performance means to an organ(i)sat(i)on, for example what performance levels do the PES v(i)ew as be(i)ng the most (i)mportant when they are cons(i)der(i)ng (i)f the PES (i)s contr(i)but(i)ng to an effect(i)ve and well-funct(i)on(i)ng labour market?

Key performance (i)nd(i)cators are usually set by sen(i)or management (i)n e(i)ther the reg(i)onal head off(i)ceor the nat(i)onal head off(i)ce (depend(i)ng on the governance arrangements (i)n place). The key performance (i)nd(i)cators are then commun(i)cated to local, and/or reg(i)onal PES off(i)ces, so that they have awareness, and ult(i)mately ‘buy-(i)n’, of what these are and what ‘good performance’ means to a spec(i)f(i)c PES. In some European countr(i)es, sen(i)or managers from nat(i)onal off(i)ces have prev(i)ously undertaken ‘roadshows’ to present the(i)r v(i)ews and approaches to local/reg(i)onal PES off(i)ces so that they can commun(i)cate th(i)s personally and they can answer any quest(i)ons from staff on-the-spot. Th(i)s can be a useful approach (i)f and where key performance (i)nd(i)cators are be(i)ng (i)ntroduced for the f(i)rst t(i)me or (i)f ex(i)st(i)ng approaches are be(i)ng changed.

Across the Commonwealth of Independent States (CIS) reg(i)on, some PES have already started to collect data to support the rev(i)ew of key performance (i)nd(i)cators and these look at both process-dr(i)ven (i)nd(i)cators as well as results-based (i)nd(i)cators. By separat(i)ng out process and results-based (i)nd(i)cators, PES can collect (i)nformat(i)on for (i)nd(i)v(i)duals, serv(i)ces and programmes as well as measur(i)ng the qual(i)ty of serv(i)ce del(i)very.
The table below prov(i)des some examples of process and results-based performance (i)nd(i)cators that could be (i)ntroduced by PES (i)n the reg(i)on.

Table 6.1 Key performance (i)nd(i)cators

ILO (2013) ‘Mon(i)tor(i)ng and evaluat(i)on of youth employment programmes: A learn(i)ng package’.

Th(i)s (i)s not an exhaust(i)ve l(i)st, but (i)t prov(i)des some examples of performance (i)nd(i)cators that can be used by PES.

There are d(i)fferent methodolog(i)es to us(i)ng key performance (i)nd(i)cators w(i)th(i)n a w(i)der performance management approach. PES across Europe use a var(i)ety of approaches that cover:

• Includ(i)ng measures of sat(i)sfact(i)on and serv(i)ces among jobseekers and enterpr(i)ses;
• Data presentat(i)on systems, such as balanced scorecards (see the case study below); and
• Analys(i)s of management (i)nformat(i)on and overall labour market (i)nformat(i)on.

When develop(i)ng and (i)ntroduc(i)ng key performance (i)nd(i)cators and a performance management system, PES may want to cons(i)der the follow(i)ng po(i)nters¹¹ that can contr(i)bute to smooth (i)mplementat(i)on:

• P(i)lot(i)ng and pro-typ(i)ng: PES could cons(i)der us(i)ng a small-scale p(i)lot, or prototype, before (i)t (i)s rolled out on a larger scale. Th(i)s can be a useful process to gather feedback and make any necessary (i)mprovements before any systems, or tools, are rolled out further.
• Staged roll out: Th(i)s means that a system and tools can be rolled out slowly and across one, or several, PES off(i)ces or areas at spec(i)f(i)c t(i)me po(i)nts before (i)t (i)s rolled out on a full bas(i)s. Th(i)s can be useful (i)f (i)t (i)s a large-scale change as (i)t allows more t(i)me for commun(i)cat(i)on w(i)th PES staff and for any changes to be made.
• Dashboards can be developed on d(i)fferent levels ((i)f, and where, they are used): They can be adapted to each users’ needs so that (i)nformat(i)on (i)s ta(i)lored to d(i)fferent aud(i)ences, but they st(i)ll reta(i)n an element of transparency.

F(i)gure 6.3 Workflow for Key Performance Ind(i)cators (KPIs)

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The ILO has outl(i)ned some common m(i)stakes to avo(i)d when develop(i)ng (i)nd(i)cators. These (i)nclude:

• Not measur(i)ng the change you want to see: Take t(i)me to make sure that output (i)nd(i)cators measure outputs, and outcome (i)nd(i)cators measure outcomes and that (i)nd(i)cators measure a target group that (i)s the same (i)n wh(i)ch you expect change to occur.
• Not th(i)nk(i)ng about slow change, and fast change: The s(i)ze of change can affect the rel(i)ab(i)l(i)ty of stat(i)st(i)cal (i)nd(i)cators at outcome level. Ind(i)cators need to be carefully selected and cons(i)dered whether roll(i)ng averages need to be prov(i)ded to avo(i)d potent(i)al sp(i)kes (i)n performance.
• Not real(i)s(i)ng (i)nd(i)cators are part of a package: To be able to measure performance, (i)nd(i)cators must come w(i)th basel(i)nes, m(i)lestones and targets as these descr(i)be the start(i)ng po(i)nt and the des(i)red end po(i)nt.

These common p(i)tfalls are (i)mportant to factor (i)n when look(i)ng at cl(i)ent sat(i)sfact(i)on (somet(i)mes known as customer sat(i)sfact(i)on) can be (i)ncorporated (i)nto performance management systems and (i)t can be someth(i)ng to cons(i)der when cons(i)der(i)ng and develop(i)ng key performance (i)nd(i)cators. The box below prov(i)des a short summary of what cl(i)ent sat(i)sfact(i)on (i)s, how the(i)r levels of sat(i)sfact(i)on can be measured and how the results can be used to dr(i)ve forward performance.

F(i)gure 6.4 Workflow for cl(i)ent sat(i)sfact(i)on from des(i)gn to results

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6.4 How can PES collate and promote labour market (i)nformat(i)on?

PES have a un(i)que pos(i)t(i)on (i)n the labour market as they have access to (i)n-depth (i)nformat(i)on about the current state of the labour market, future trends and can offer (i)nterest(i)ng (i)ns(i)ghts on what the (i)mpl(i)cat(i)ons of these trends can be on enterpr(i)ses, jobseekers, m(i)n(i)str(i)es and w(i)der soc(i)ety. By hav(i)ng systems (i)n place for mon(i)tor(i)ng the labour market, PES can create data sets that tell the story about the economy wh(i)ch can be of value to other organ(i)sat(i)ons, such as partners and the med(i)a. Shar(i)ng such knowledge and (i)ns(i)ghts can therefore re(i)nforce the knowledge of PES and the(i)r added value.
PES can package labour market (i)nformat(i)on together and prov(i)de th(i)s to stakeholders as a PES serv(i)ce.

D(i)fferent stakeholders such as other m(i)n(i)str(i)es, trade assoc(i)at(i)ons, chambers of commerce and local/reg(i)onal governments are often (i)nterested (i)n the state of the labour market and as PES have access to such data they are (i)n a un(i)que pos(i)t(i)on to prov(i)de th(i)s to partners. PES can also use the data to (i)dent(i)fy key messages, trends and (i)mpl(i)cat(i)ons for w(i)der soc(i)ety or a spec(i)f(i)c group, ta(i)lored to the needs and (i)nterests of the rec(i)p(i)ents. Such act(i)v(i)t(i)es can be part of a PES’ w(i)der strateg(i)c commun(i)cat(i)on act(i)v(i)t(i)es and can be factored (i)nto any plann(i)ng around commun(i)cat(i)ons. By show(i)ng (i)n-depth knowledge and expert(i)se (i)n the labour market, th(i)s can re(i)nforce and strengthen PES’ pos(i)t(i)on (i)n the labour market and demonstrate the(i)r added value.

The f(i)gure below outl(i)nes the process of collat(i)ng and shar(i)ng labour market (i)nformat(i)on and, as a result, demonstrates PES’ knowledge and expert(i)se.

F(i)gure 6.5 Process of collat(i)ng and shar(i)ng (i)nformat(i)on to demonstrate PES’ knowledge

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Across Europe some PES collect labour market (i)nformat(i)on on a monthly bas(i)s and share th(i)s (i)nformat(i)on w(i)th the med(i)a.¹⁴ Th(i)s (i)ncludes the number of reg(i)stered unemployed people, number of vacanc(i)es f(i)lled, number of open vacanc(i)es and the job growth. Th(i)s has helped to create a pos(i)t(i)ve (i)mpress(i)on of PES as they are v(i)ewed as the go-to (i)nst(i)tut(i)on for facts and stat(i)st(i)cs about the current state of the labour market. However, creat(i)ng a pos(i)t(i)ve v(i)ew of PES has taken t(i)me.

Labour market (i)nformat(i)on (i)s also (i)mportant for other partners who want to v(i)ew the sk(i)lls and sectors that are (i)n demand and h(i)ghl(i)ght where there are sk(i)lls gaps. Th(i)s can be useful to educat(i)on prov(i)ders, educat(i)on m(i)n(i)str(i)es, chambers of commerce and trade assoc(i)at(i)ons and others who may be (i)nvolved (i)n the development and des(i)gn of qual(i)f(i)cat(i)ons, part(i)cularly those (i)nvolv(i)ng work-based learn(i)ng.

The case study below demonstrates how the PES (i)n Kyrgyzstan work w(i)th other partners to use labour market (i)nformat(i)on to forecast sk(i)lls needs and to gu(i)de low-level jobseekers (i)nto the(i)r next steps towards susta(i)nable employment.

1. ^ ILO (2013) ‘Mon(i)tor(i)ng and evaluat(i)on of youth employment programmes. A learn(i)ng package’ (https://www.(i)lo.org/wcmsp5/groups/publ(i)c/-ed_emp/-emp_pol(i)cy/documents/(i)nstruct(i)onalmater(i)al/wcms_384468.pdf)
2. ^ Ib(i)d.
3. ^ European Comm(i)ss(i)on (2019) ‘Gett(i)ng started w(i)th key performance (i)nd(i)cators’ (https://ec.europa.eu/soc(i)al/BlobServlet?docId=20673&langId=en)
4. ^ Ib(i)d.
5. ^ ILO (2018) ‘Decent Work and the Sus ta(i)nable Development Goals A Gu(i)debook on SDG Labour Market Ind(i)cators ‘ (https://www.(i)lo.org/(i)lostat-f(i)les/Documents/Gu(i)debook-SDG-En.pdf)
6. ^ ILO (2016) ‘ILO Decent Work Country Programme: A pract(i)cal gu(i)debook’ (https://www.(i)lo.org/wcmsp5/groups/publ(i)c/-ed_mas/-program/documents/gener(i)cdocument/wcms_561025.pdf)
7. ^ ILO (2013) ‘Mon(i)tor(i)ng and evaluat(i)on of youth employment programmes: A learn(i)ng gu(i)de’ (https://www.(i)lo.org/wcmsp5/groups/publ(i)c/-ed_emp/-emp_pol(i)cy/documents/(i)nstruct(i)onalmater(i)al/wcms_384468.pdf)
8. ^ ILO (2018) ‘Development Cooperat(i)on Internal Governance Manual’ (https://www.(i)lo.org/wcmsp5/groups/publ(i)c/-dgreports/-exrel/documents/publ(i)cat(i)on/wcms_452076.pdf)
9. ^ European Comm(i)ss(i)on (2019) ‘Gett(i)ng s tarted w(i)th key performance (i)nd(i)cators’ (https://ec.europa.eu/soc(i)al/BlobServlet?docId=20673&langId=en)
10. ^ European Comm(i)ss(i)on (2016) ‘AMS – Balanced Scorecard’ (https://ec.europa.eu/soc(i)al/BlobServlet?docId=15215&langId=en)
11. ^ European Comm(i)ss(i)on (2019) ‘Gett(i)ng s tarted w(i)th key performance (i)nd(i)cators’ (https://ec.europa.eu/soc(i)al/BlobServlet?docId=20673&langId=en)
12. ^ European Comm(i)ss(i)on (2016) ‘Pract(i)t(i)oners’ toolk(i)t to ass(i)s t PES w(i)th the development of cus tomer sat(i)sfact(i)on measurement sys tems’ (https://ec.europa.eu/soc(i)al/BlobServlet?docId=15855&langId=en)
13. ^ European Comm(i)ss(i)on (2018) ‘Methods of qual(i)ty management’ (https://ec.europa.eu/soc(i)al/BlobServlet?docId=20389&langId=en)
14. ^ European Comm(i)ss(i)on (2017) ‘Mak(i)ng the PES bus(i)ness case’ (https://ec.europa.eu/soc(i)al/BlobServlet?docId=17482&langId=en)
15. ^ ILO (2017) ‘ILO Toolk(i)t for Qual(i)ty Apprent(i)cesh(i)ps Volume 1: Gu(i)de for Pol(i)cy Makers’ (https://www.(i)lo.org/wcmsp5/groups/publ(i)c/-ed_emp/-(i)fp_sk(i)lls/documents/publ(i)cat(i)on/wcms_607466.pdf)
16. ^ ETF, Cedefop and ILO (2016) ‘Us(i)ng Labour Market Informat(i)on: Gu(i)de to ant(i)c(i)pat(i)ng and match(i)ng sk(i)lls and jobs’ (https://www.(i)lo.org/wcmsp5/groups/publ(i)c/-ed_emp/-(i)fp_sk(i)lls/documents/publ(i)cat(i)on/wcms_534314.pdf)