AGRO’s finances have hit a temporary bump
The prospect of a budget deficit means that AGRO needs to adjust its staffing plans and introduce a hiring freeze until further notice – but there is no question of layoffs.
Things are actually going quite well in AGRO. We have over-achieved with regard to our KPI goals (Key Production Indicators) regarding number of publications, number of publications with external authors and attracting external funding. We have plenty of work in connection with projects and policy support. And we have hired many talented young people in the form of PhD students and postdocs.
However, things have gone almost too well – and now we need to take a breather for a while because our finances cannot keep up. If we do not do something, we can end up with a large deficit.
- It corresponds to a situation in which we have been driving with 150 km per hour but that now there is roadwork ahead. This means that we need to step on the brake and reduce our speed significantly in order to navigate safely through, Erik Steen Kristensen explained at a department meeting in Foulum on April 4, 2018. A similar meeting will be held in Flakkebjerg on April 9, 2018.
- The numerous policy support tasks are taking our breath away, said Erik Steen Kristensen.
Staffing plans need a service check
The good news is that the budget problems do not mean that we need to lay people off. On the other hand, there will be a temporary hiring freeze until we have a better overview of the situation. The bad news is that we are missing good management tools to help us create a good overview. As it is now, it is not until relatively late in the budget year that we become aware of potential problems.
Many project coordinators have in the course of this spring worked on making project descriptions and internal applications so that all policy support tasks can be carried out satisfactorily. However, a review of the updated budget just before Easter showed that if all wishes for staffing were fulfilled, then we would need to hire more people than the budget can bear.
- If we fulfil all the wish lists, then we would end up with a deficit of 10-15 million kroner in 2018. We therefore need to adjust the staffing plans and introduce a hiring freeze in order to get a handle on recruitment. In addition, transfer of external funds from 2018 to 2019 cannot be approved, explained Erik Steen Kristensen.
Tasks need to be prioritised
Here and now, we need to work on using our present resources even better. This means that the staffing plans need to be reviewed again and that the section managers and project coordinators need to think across sections. The next task will be to prioritise the projects, first internally in AGRO and thereafter in collaboration with DCA and the Dean’s Office. The proposed list of priorities will then be presented to relevant heads of department in the Ministry of Environment and Food of Denmark at the end of May.
Section manager Jørgen Eriksen, JORNÆR, is not worried.
- We need to calm down. The numerous policy support tasks have resulted in a significant over-staffing in the VIP group. When we have a total overview of the staffing plans it will be easier for us to see which tasks we can cut back on so it hurts as little as possible, he says and continues:
- I believe we can make good headway by reducing the over-staffing amongst the VIP without hiring new employees. I am less optimistic with regard to the TAP side. The staff are already working extremely hard and there are some analyses that we have to carry out.
Jørgen Eriksen regrets that we do not have the necessary management tools to avoid unpleasant surprises on the budget.
- It is really frustrating that there are no systems to deal with this. If we had had a good framework, then we could have done it properly from the beginning without any drama. I suggest that next time, we start to get an overview of the projects already in September. As things stand now, we do not have an overview until rather late in the year and such a situation can more easily create panic, he says.
The sections must pull together
When Jørgen Eriksen makes staffing plans, he sits with the plans for all of the sections and applies staffing for his projects from across the sections. The most important consideration is to pinpoint those employees who are best suited for the tasks.
- We must not have fences around the sections. The sections are our ”homes”, where we socialise and share common methodologies, but when scientific tasks need to be solved then we should pull together as a department, he points out.