World Bank sets new rules to rein in hiring

Starting this month, the World Bank is implementing new hiring measures in order to put what management sees as “unchecked and unsustainable” hiring under control. A March 4 memo signed by the bank’s human resources vice president and obtained by Devex detailed two new “employment controls” which came into effect immediately after their announcement: All new positions now need approval at vice president level, and external candidates will require confirmation by the CFO and COO, two of the most senior posts at the Washington, D.C.-based institution — not just by managers in the different units as was the norm until now. The centralization of hiring is intended to align staffing to the “business priorities as defined by the new strategic planning process,” the memo said, painting a picture of a bloated institution that had grown by 2,200 employees over the past five years, with personnel-related costs growing at an annual 6.8 percent, although it did not detail where that growth has come from. “We must rein in these numbers if we are to meet the fiscal targets we have set,” the memo stated. Paul Cadario, a former World Bank senior manager who has followed the institution’s latest reforms, called the new measures “effectively a hiring freeze.” “Very few managers, at a time when their jobs are on the line next year, are going to be willing to bring themselves to the attention of the most senior levels of the bank when the signal is being sent — ‘Hey, look, we have to reduce costs,’” the professor at the University of Toronto told Devex. Despite what may eventually amount to a major hiring reduction, a total freeze was not apparent, though, and jobs vacancies for March and April were still being posted on the bank’s website. While some positions have undoubtedly been put on hold, the immediate impact of the new measures is still unclear. Sources at the bank said that management was still meeting with staff to explain the new hiring procedures. The new rules do not apply to short-term consulting contracts. Read more development aid news online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day. See more: What to watch out for in World Bank new senior directors World Bank reforms not hindering operations — officials Can the World Bank's 'global practices' meet country needs?