Ref : HRM 7/7(94)

Panel on Public Service
of the Provisional Legislative Council

Staff Recognition Proposals from Trading Funds

Purpose The purpose of this paper is to inform members of staff recognition measures in Trading Funds.


2.At present, there are four civil service wide staff recognition/motivation schemes, viz. Long Service Travel Award, Staff Motivation, Staff Suggestion and Long and Meritorious Certificates Schemes. The purposes of these schemes are to recognise loyal and meritorious service and to motivate staff for improving efficiency of the civil service.

3.The Long Service Travel Award operates on the basis of granting travel allowance to non-directorate officers and their spouses selected on the basis of years of service and performance, and is centrally administered by the Civil Service Bureau. The other three schemes are mainly administered by Heads of Departments who seek necessary resources and develop appropriate recognition measures having regard to the service-wide guidelines on objectives of the schemes and financial limits of individual awards.

4.No cash awards are permitted under the Staff Motivation Scheme and the awards in kind are not to exceed $1,000 per individual and $5,000 per team. As regards the Staff Suggestion Scheme, the awards range from a certificate of commendation to a cash award up to a ceiling of $15,000 on the merits of the suggestions. Under the Long and Meritorious Certificates Scheme, certificates and souvenirs are presented to officers who have served 20 years or more in the Government.

Trading Funds staff recognition/motivation schemes

5.As in the case of other vote-funded departments, Trading Fund departments also organise staff motivation activities, using their own resources, except for the Long Service Travel Awards which are funded and administered centrally. Some examples of staff motivation activities in trading funds are at Annex A.

6. As a means to encourage staff motivation and to promote a new service culture in operating in a commercial environment, Companies Registry and Land Registry have developed more elaborate performance incentive schemes which involve setting of specific departmental-wide performance indicators and levels of awards for achievements. These schemes recognise performance by awards in kind, and are subject to a pre-determined budget. Separately the Post Trading Fund and the Electrical and Mechanical Services Trading Fund have recently submitted proposals for setting up staff recognition/ encouragement schemes, broad outlines of which are at Annexes B and C respectively. These proposals are currently under discussion among relevant Bureaux and the trading funds.

Guiding Principle

7.The guiding principle in formulating staff recognition schemes is that there should be flexibility for Heads of Departments to develop appropriate measures to motivate staff performance within the framework of maintaining service-wide parity in pay and conditions with no adverse financial implications. The following parameters are relevant:

  1. the proposals should aim at recognizing efficiency/productivity gain, at effectively motivating staff and at encouraging improvement in performance;

  2. incentive awards should be in kind and not in cash, should be subject to prevailing service-wide cash limits for the respective staff motivation measures;

  3. the proposed scheme should be self financed by the trading funds subject to a maximum ceiling agreed by the policy bureau, Finance Bureau and Civil Service Bureau, having regard to the size, nature and operations of the trading funds;

  4. awards should be in recognition of improvement in performance as measured by a set of balanced, objective and pre-determined indicators reflecting efficiency, effectiveness and standard of service;

  5. appropriate HRM initiatives should be included to complement those put in the department, so that staff will be given appropriate opportunities and support in attaining the higher levels of performance which the department advocates; and

  6. the relevant expenditure should be capable of being off-set by higher productivity achieved under the scheme and the customers of the Trading Fund should be able to share the benefits with better quality service and smaller magnitude of fee increase.

Advice Sought

8.Members are invited to note the content of this paper.

Civil Service Bureau
November 1997

Annex A

Examples of motivation activities undertaken at the Trading Fund departments

Office of the Telecommunications Authority

- Translation Contest on the Vision/Mission/Value of OFTA

Drainage Services Department

-Operations & Maintenance Branch Work Efficiency Competition - Prompt Processing of Application for Drainage Connection Award

-Operations & Maintenance Branch Work Efficiency Competition of Direct Labour Force

Electrical and Mechanical Services Department

-Outstanding Staff of the Year Award to be organised in 97/98

Post Office

-Best Counter Staff Award

-Best Delivery Staff Award

-Best Uniform Staff (Wanchai P.O.) Award

-Best Staff in Speedpost Section (GPO) Award

Companies Registry

-Best Counter Staff Award

-Best Service Award

-Best Work Improvement Award

-Registry Performance Award

Land Registry

-Best Staff of the Year

-Best Counter Staff Award

-Sticker Design Competition

-Most Customer-friendly Office Competition

Annex B

Hongkong Post Office Trading Fund's Proposed Staff Recognition Scheme

Objectives :--To recognize the commitment and contribution of staff at all levels in delivering efficient effective and quality service across Hongkong Post

--To reinforce Hongkong Post's customer focused culture

--To reinforce Hongkong post's values of caring for customers and colleagues and teaming up for excellence and continuous improvement

Source of funding :--Self financed by the Trading Fund, from surplus after tax.

Financial implications :--A small percentage of surpluses after tax, subject to a ceiling to be agreed. To be met from available recurrent Post Office Trading Fund resources, subject to an appropriate ceiling to be agreed.

Establishment : --Permanent Establishment : 5,806

--Temporary Staff : 830

Administration of the Scheme :--A working committee to oversee the operation and the allocation of funds..

Awards :There will be department or office-wide awards for recognising superlative efforts; and individual-based awards for recognising outstanding performance, efficiency suggestions, etc.

Performance measure :A set of pre-determined performance indicators (e.g. delivery time, turnover, productivity) are drawn up in advance. A certain percentage of staff recognition funds may be drawn upon attainment of these indicators.

Annex C

EMSD's Proposed Encouragement Scheme

Objectives : --To encourage staff of EMSD to improve the quality of their services to customers, enhance their efficiency, increase their productivity.

Source of funding :--Self financed by the Trading Fund.

Financial implications :--to be met from available recurrent EMS Trading Fund resources, subject to a ceiling to be agreed.

Establishment : --permanent establishment 4668

--temporary staff 718

Administration of the Scheme :--A working committee to oversee the operation and the allocation of funds.

Awards :(a) Awards in kind to staff upon attaining the pre-determined performance measurement targets.

(b) Subsidy to the staff activities.

Performance measure :(a) Overall Improvement in Customer Satisfaction.(b) Service Performance Targets.

(c) Meeting Financial Performance Target.