FINNISH GOVERNMENT AND ITS CIVIL SERVICE

Finland is a sovereign Republic, which has been a member of the European Union since 1995. The country’s supreme
governing bodies are the Parliament, the President of the Republic, and the Council of State.

The Parliament is a single-chamber that consists of 200 members elected every 4 years. It is vested with legislative power.
It is headed by the Speaker, also known as the President of the Parliament, who is responsible for parliamentary administration.
The incumbent Speaker is Paula Risikko.

The President of the Republic is elected for 6 years and can be elected for a maximum of 2 consecutive terms. The
governmental powers are exercised by the President and the Government. In Finland, the term “government” refers to the
Cabinet/Ministries of Finland. It consists of the Prime Minister and the necessary number of ministers. Currently, the
Government is headed by Prime Minister Juha Sipilä, along with 17 ministers. Finland’s incumbent president is Sauli Niinistö.

While the legislative power is vested on the Parliament, its main duty is to hear and pass legislation. The drafting of bills
and budget are actually done by the ministries. The Council of state is responsible for scrutinizing the bills and submitting them
to the Parliament for hearing. The Council of State is comprised of the Prime Minister, the ministers, and the independent
Chancellor of Justice, who reviews the council’s proceedings for legality, as well as the president’s actions.

Finland also has a judiciary branch, which the Supreme Court and the Supreme Administrative Court as the highest
instances. The Supreme Court shall have a President and at least 15 members.

Overall, the government is composed of 12 ministries, excluding the Prime Minister’s Office. These ministries are:

 Ministry for Foreign Affairs  Ministry of Agriculture and Forestry

 Ministry of Justice  Ministry of Transport and Communications

 Ministry of the Interior  Ministry of Trade and Industry

 Ministry of Defence  Ministry of Social Affairs and Health

 Ministry of Finance  Ministry of Labor

 Ministry of Education  Ministry of the Environment

The area for which each ministry and minister is responsible is specified by law and is generally indicated by the name of the
ministry. Matters which do not fall within the scope of any other ministry are handled by the Prime Ministers Office.

FINNISH HUMAN RESOURCE AND CIVIL SERVICE

Responsible for the human resource policies and central government employer policies is the Office for the Government
as Employer, under the Ministry of Finance. This, in conjunction with the Public Governance Department, supports government
agencies in their role as employers. It acts as the employer representative on behalf of central government in centralized
collective agreement negotiations and prepares matters concerning protection of the interests of the government as an
employer in incomes policy, labour policy and policy decisions regarding working life. A collective agreement is where general
and basic employment standards or conditions are set and agreed upon for a fixed period between the trade unions and one or
more employers. The personnel policy guidelines are decided at the central level. The state operating units are independent on
their own personnel policy strategies and their implementation. They decide upon their own HR issues including the number of
staff, recruitment, personnel development, salaries, etc.

Finland ranks 5th on the Top 10 Best Civil Service according to the International Civil Service Effectiveness Index. No single
law governs the whole civil service of Finland. Its civil service is said to be governed by multiple laws or acts, which include the
Finnish Constitutional Act, the State Civil Servants’ Act, the Employment Contracts Act, and the law and decree on collective
agreements for state civil servants and public employees. The main legal basis for civil service in Finland are the State Civil
Servants’ Act and the Employment Contracts Act. There are two because public sector employees are categorized into two: civil
servants and public employees. Civil servants are known as the statutory staff, who come under public law. Public employees,
on the other hand, are the contractual staff, who are as a general rule employed on private-law contracts, which may or may
not be fixed-term, for the performance of duties which cannot be assigned to established civil servants because there is no
body of established civil servants able to assume them , or for the performance of duties for which there is a permanent
demand but which involve part-time working.
In 2018, there were approximately 525 000 employees in the public sector. Around 87% are civil servants while the
remaining 13% are public employees. Of the 525 000:
 - 437,000 belong to the Local Government
- 6,000 to State Enterprises; and
- 88,000 to the Central State (of which 5000 to Ministries)

RIGHTS, OBLIGATIONS, PRINCIPLES, AND VALUES

Both public and private employees are entitled to rights in relation to their employment. These rights include the right to strike,
the right to join a union, the right to compensation, right to benefits, the right to privacy, the right occupational health care, the
right against discrimination. All these rights are governed and regulated in accordance with laws and regulations, including
employment collective agreements.
On one hand, employees also have obligations, which include the obligation to perform their work carefully, observe the
agreed-upon working hours, follow the instructions of the management, decline from activities which compete with those of
the employer, the obligation to secrecy, and the obligation to take into account the employer’s interests.
Generally, they should conduct themselves in a manner appropriate to their position. They have a duty of confidentiality and
must perform their duties properly and without delay. They shall follow the orders of their superiors and supervisors. They may
not demand, accept or receive any financial or other advantage if this may reduce confidence in them.

Public employees must act in defence of neutrality, sovereignty and impartiality in their work. In 2001, a set of common values
(with highly ethical contents) were defined for the state. These are the following:
1. Expertise 8. Equality
2. Impartiality 9. Economic efficiency
3. Rule of law and responsibility 10. Innovativeness
4. Openness 11. General acceptability
5. Trust 12. Dedication
6. Service principle 13. Collegiality
7. Result-orientedness 14. Obedience

HR CORE FUNCTIONS

I. Recruitment
The Finnish civil service is a position-based system. Entries into the civil service is gained through direct application and
interview for a specific post, with all posts being published and open to internal and external recruitment. There is no career
system except for the military and the foreign service. This means that advancement in the civil service through seniority is not
possible. Measures have been taken to increase the use of external recruitment for management, but decrease it for secretarial
positions and technical support. There are general targets to encourage women to apply for management positions.
While the central government is responsible for collective agreements, recruitment, selection, and placement, on the
other hand, are decentralized to agency level. This means that each ministry or agency organizes the recruitment of its staff.
Civil servants are recruited permanently or for fixed-term. They may be laid off if the post becomes obsolete. There is no
official system of political appointment of civil servants, but there exist “hidden political appointments”, especially at the
highest level of the state central administration and at the municipal administration. Regardless of the political background of
appointment, the position of these civil servants is the same as other civil servants.
There is no single set of specific qualification standards that is required to enter public office. Qualifications for a post vary
from one agency to another. Nevertheless, the Finnish Constitution lays down a number of minimum criteria. Section 125 of the
Finnish Constitution states that the general qualifications for public offices shall be skill, ability and proven civic merit. And that
only Finnish citizens are eligible for appointment to certain public offices or duties. Other conditions may be required such as
education, experience and language ability but this doesn’t apply to all agencies. In a large number of central government jobs
a university degree is required.
In the Philippines, the career civil service system is substantially career-based. Entry into the civil service is based on the
four qualification standards: eligibility, education, experience, and training.

II. Learning and Development

Finland does not have any elite educational establishment for the production of future high ranking civil servants. Some
agencies provide in-house training for almost all of their staff upon entry. Workplace training is mostly voluntary, with no
general statutory obligation on employers to provide or finance training for their employees, however, there are some
exceptions to it. Apprenticeships are open and regulated by statute, and are open to people aged at least 15, with no upper age
limit. Overall, public employees receive an average of 3-5 days of training per year. Each ministry and agency is responsible for
developing the competencies of its staff. The employee has also a responsibility of his own. Every year, employees discuss any
need for further training or other personal development needs with their supervisor.
Unlike in the Philippines, formal or non-formal training courses and human resource department interventions such as
coaching, mentoring, job rotation, seminars, workshops, and others that are part of the employees individual Development
Plan are provided. Continuous learning and development is espoused by the Philippine Civil Service Commission.

III. Performance Management

Finland makes substantially less use of performance assessment in HR decisions compared to the average OECD country.
Although, assessment is mandatory for almost all employees and takes the form of an annual meeting with the immediate
superior, with some organizations also using 360° feedback. A narrow range of criteria is used, focusing on outputs,
improvement of competencies and interpersonal skills. Assessment is of high importance to remuneration, and lesser
importance to career advancement and contract renewal.
 Generally, Finland uses much more performance related pay (PRP) than the average OECD country, although, pay systems
are specific to each state agency. Each pay system is based on individual performance and competence. Base salary and
bonuses are set through a collective bargaining framework, with centralized negotiations and adjustments at the decentralized
level. Bonuses are revised annually and base salary is revised every 1-2 years. Job content and performance are the most
important determinants of base salary for all grades, with relevant experience of lesser importance. Individual performance
component may not exceed 50% of the pay assigned to each post.
In the Philippines, the Strategic Performance Management System (SPMS) is used as an assessment tool for government
employees. The SPMS is a mechanism that links employee performance with organizational performance to enhance the
performance orientation of the compensation system. It ensures that the employee achieves the objectives set by the
organization and the organization, on the other hand, achieves the objectives that it has set as its strategic plan. The pay setting
in the Philippines is based on Republic Act No. 6758, or the Compensation and Position Classification Act of 1989. This act
provides a salary grade schedule for the different positions in the government. In this act, there are 33 salary grades, with
Salary Grade 1 being the lowest and Salary Grade 33 being the highest.

IV. Rewards and Benefits

In Finland, rewards and benefits are mostly determined through collective agreements. Collective agreements will be based on
the statutory provisions that will cover the type of benefit to be availed. For example, maternity leave is under the Employment
Contracts Act and the Sickness Insurance Act. Collective agreements must adhere to the provisions of these acts. Different
benefits exist both for public and private employees. These are:
 Maternity Leave  Conscripts Allowance
 Paternity Leave  Housing Allowance
 Parental Leave  Disability Allowance
 Child-care Leave  Rehabilitation Allowance
 Sickness Leave  Health Insurance
 Study Leave
People in Finland are guaranteed the statutory occupational earnings-related pension, or the national pension, in the absence
of an occupational pension or if it is minimal. The old age pension is an occupational pension and national pension benefit. The
disability pension compensates loss of earnings due to long-term work incapacity. The unemployment pension enables older
long-term unemployed people to retire.
Unlike in the Philippines, he Benefits are:
• Wage and Compensation Benefits (Retirement Pay, 13th month pay, overtime pay, Night Shift Differential)
• Leave Benefits ( Maternity leave, Paternity Leave, Solo Parenting leave, Special leave Benefits for women)
• Mandatory Government Benefits and Contributions ( SSS, Pag-ibig benefits, Philhealth)

The Philippines also has the following Rewards and Incentives:

•Honor Awards Program
• Pamanang Lingkod Bayani
• Programs on Awards and Incentives for Service Excellence
•Performance Incentives Bonus

Finland has flexible retirement age (63-68 years) for earnings-related pensions, while the retirement age in the guaranteed
pension scheme is 65 years.

In the Philippines, Retirement Age for government employees can be claimed at the age of 60 but not more than 65 years old.

BEST PRACTICES

Pay system reform

Monthly salaries are calculated mainly around job evaluation systems, measuring the complexity of the tasks assigned, and
individual performance appraisal.

Individual performance component may not exceed 50% of the pay assigned to each post. Agencies also determine their own
performance appraisal methods. In addition, there are annual result-related bonuses in around 25 State Agencies, which is
being extended to other agencies.

Some agencies have other features, such as individualized pay, separate calculations for the emoluments of senior positions
and Ministers, etc. The Office for the Government as Employer does not publish collective salary scales.

Relocation Programme
The aim is to relocate 4,000 to 8,000 government jobs beyond the capital city region by 2015. This reform aims to ensure a
more balanced development of the country. The purpose is to safeguard effective execution of government functions and
ensure adequate staffing for government functions in future; to promote balanced regional development and foster
employment in different parts of the country; and to base relocation decisions on uniform practice and democratic decision-
making.

Finnish Action Programme on Public Sector Productivity

The Productivity Programme has to be drawn up in accordance with the guidelines of Government by every administration
branch. These programmes are coordinated by the Ministry of Finance in close association with other ministries. In the
productivity Programme the ministries have included the main goals, activities, and their effects to the budget frame and plan
since 2005, including the municipal sector and NGOs funded by state.

Central government reform

The objective is to create a central government with a clear structure, steering and management systems, with a capability for
change and risk management, and with customer-responsive, primarily electronic services. The big picture will be managed
across administrative and sectoral boundaries. The focus will be on developing a functionally coherent Government and
government practices as well as utilisation of cross-administrative entities and digitalisation.