The Impact of Administrative Reform on Bureaucratic Motivation in the Age of Austerity: Survey Evidence from Central and Eastern Europe Before and After the Crisis

The age of austerity has triggered administrative reforms across Europe and beyond. Reform measures aim to increase efficiency and reduce costs, which has involved – to name but a few – wage cuts, workforce cuts, recruitment and promotion stops and reduced opportunities for staff development. Paradoxically, bureaucrats are not only at the receiving end of the reforms. They are also the agents of the same reforms. Moreover, governments have to rely on them for the implementation of austerity-oriented policy reforms more generally. Yet it might be difficult to realize the objectives of the reform agenda with staff that is subject to potentially de-motivating reforms in the first place. This paper addresses this dilemma. It examines the impact of austerity-related administrative reforms on the motivation of top-level bureaucrats in two European countries, Latvia and Poland. Latvia belongs to the countries that were hardest hit by the economic crisis, while Poland belongs to the group of countries that has been least affected. Specifically, the paper relies on a survey of top-level bureaucrats that was conducted both in 2008 and 2001, hence before and after the economic crisis struck. It compares the impact of changes in recruitment, promotion, salary and training policies on the motivation of bureaucrats at work as well as their commitment to the civil service. In addition to significant differences between the two countries, the paper shows that changes in salary and promotion related policy have the main effect on the motivation and commitment of top-level bureaucrats.