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APS Employment and Capability Strategy for Aboriginal and Torres Strait Islander employees

Purpose of the strategy

The employment of Aboriginal and Torres Strait Islander employees within the Australian Public Service provides an important contribution to achieving Government policy development, service delivery, employment and equity outcomes.

The 2003–04 State of the Service Report found that a trend of declining recruitment levels and falling retention rates for Indigenous employment is emerging. The report identified this as a critical business challenge facing the APS, which reduced agencies’ ability to draw on the perspectives and abilities of a diverse workforce that reflects the needs and views of the whole Australian community.

The APS Employment and Capability Strategy for Aboriginal and Torres Strait Islander Employees responds to this challenge. It aims to:

stabilise numbers over the next two years, then increase Aboriginal and Torres Strait Islander employment in the mainstream Australian Public Service;
contribute to increased social equity by improving Indigenous peoples income levels and employment opportunities in the wider Australian employment market;
increase the extent to which government agencies are able to use the existing and potential skills and capacity of Aboriginal and Torres Strait Islander employees in order to meet their business needs for skilled employees, including in areas of specific skill shortage and recruitment difficulty; and
build the capacity of the APS generally to provide more effective service delivery to Indigenous people.

The new strategy seeks to address these national interest concerns through initiatives directed at:

assisting agencies to address key barriers to the employment of Aboriginal and Torres Strait Islander employees, by identifying pathways to employment that allow Indigenous people to develop the required skills and capacity to work within the APS;
supporting Indigenous employees to develop relevant skills that allow them to contribute to business goals and build successful long-term careers within the APS;
supporting agencies to align strategies that promote Aboriginal and Torres Strait Islander employment with their broader strategies for achieving business outcomes through workforce planning and capability development;
encouraging partnerships with other jurisdictions and organisations (including Job Network members) to develop innovative employment solutions that meet agency skill requirements;
ensuring that employees working in whole-of-government service delivery to Indigenous Australians have the skills they need to deliver effective outcomes.

The strategy concentrates on recruiting Aboriginal and Torres Strait Islander employees to the APS and developing existing Indigenous employees so that they have broadly-based APS skills that will equip them to gain jobs anywhere, and providing a supportive work environment.

Labour market context—demand and supply factors

The APS is likely to face increasing difficulty in meeting its demand for skilled employees as the labour force ages and the proportion of new entrants to the labour market declines.

The demand for employees in the APS is increasingly at higher skill levels and for broader administrative and professional skills:

engagements to the APS at the APS 1–2 level have fallen from just over 40% in 1994–95 to around 10% in 2003–04, while engagements at the APS 3–4 level have risen from 17% to 47%, and engagements have also increased at the APS 5–6 and EL levels;
over 60% of recruits to the APS in 2003–04 had a bachelor degree or higher.

For Indigenous Co-ordination Centres (ICCs), the Secretaries’ Group on Indigenous Affairs has identified that the skills base in ICCs needs to be strengthened by introducing ‘solution brokers’ and providing further training on working in a whole-of-government way. The Management Advisory Committee’s report Connecting Government: Whole-of-government responses to Australia’s priority challenges has identified key skills required in whole-of-government work including relationship management; project, program and contract management; and negotiation and mediation.

In contrast to the general Australian population, the Aboriginal and Torres Strait Islander population has higher fertility rates and a younger age profile that is likely to see its share of the total potential labour force grow into the future. The Indigenous population grew by around 11% between 1996 and 2001, compared to the non-Indigenous population which grew by 6% over the same period. The ABS predicts that the Indigenous population will grow by between 15% and 31% between 2001 and 2009; in contrast, the total Australian population is likely to grow by just over 8% between 2003 and 2011.

Labour market participation rates are generally lower for Indigenous Australians (52.1% compared to 63.4% for non-Indigenous in 2001), indicating potential for stronger growth in the Indigenous labour force if more Indigenous Australians are supported to actively look for employment (reforms to CDEP and the Government’s Indigenous Employment Policy generally are moving in that direction).

While the size of the Indigenous population means that it can only be one factor in meeting overall APS demand and expected skill shortages, it will be increasingly important for agencies to address employment barriers that prevent them from drawing on the full range of skills and capacity and potential capacity available in the Australian labour force, from both Indigenous and non-Indigenous Australians.

The skill composition of the Indigenous labour force represents a barrier to the employment of many Aboriginal and Torres Strait Islander people in the APS, with some not having the required qualifications, experience and/or specialised skills to meet APS agencies’ needs, particularly given the increasing emphasis on highly-skilled employees.

Only 3% of Indigenous Australians have a bachelor degree, compared to 15% for other Australians. Aboriginal and Torres Strait Islander employees are over-represented in low skilled jobs, with nearly a quarter employed as labourers or other unskilled occupations (compared to less than 10% of other Australians). Higher unemployment rates mean that some Aboriginal and Torres Strait Islander people have limited work experience - in 2001, 20.0% of Indigenous Australians were unemployed, compared to 7.2% of other Australians. This strategy is aimed at addressing these barriers to ensure a supply of Aboriginal and Torres Strait Islander employees capable of meeting agencies’ increasing demand for skilled employees.

There is anecdotal evidence that some Indigenous Australians are not considering the APS as a career option. High and increasing separation rates from the APS suggest prima facie some degree of dissatisfaction with APS employment among them (even allowing for those that use the APS as a bridge into other sectors). It is likely, given the skill profile of Aboriginal and Torres Strait Islander employees and their location, that targeting service delivery agencies will have the best prospect of immediately improving employment outcomes, in particular:

agencies with a higher than average representation of employment in regional areas which are experiencing recruitment difficulties because of localised constraints - 69.5% of Indigenous Australians lived in regional and remote areas in 2001 compared to 34.1% of non-Indigenous Australians; of these, the majority are in regional areas;
agencies with relatively high demand for employees at the APS 1–4 classification levels or agencies with a business focus which requires particular understanding of issues affecting Aboriginal and Torres Strait Islander communities.

Further research will be conducted to identify the specific areas in agencies where Indigenous employment initiatives could be most cost effectively targeted to meet business skill requirements and improve employment outcomes for Indigenous Australians. This could include identifying specific jobs that may be best targeted (for example, contract managers or solution brokers). However, it is important not to restrict efforts solely to these areas, in order to ensure that agencies can draw on the diverse perspectives of a sustainable cadre of Indigenous people with broad-based public service skills that can compete on merit against other applicants for mainstream public service positions.

Elements of the Strategy

The new APS Employment and Capability Strategy for Aboriginal and Torres Strait Islander employees involves five core elements:

supporting whole-of-government work on Indigenous policies and programmes
pathways to APS employment
supporting Aboriginal and Torres Strait Islander employees in the APS
helping agencies be good employers of Aboriginal and Torres Strait Islander employees
partnerships.

The initiatives included in these core elements relate directly to a number of demand and supply side factors affecting the employment of Indigenous Australians in the APS and the capacity of the APS to meet its business objectives.

1. Supporting Whole-of-Government—Building APS capability to do Indigenous Business

New arrangements for the delivery of services to Aboriginal and Torres Strait Islander.

have the skills and ability to provide effective service to Indigenous Australians; and
understand, and have the skills for, effective whole-of-government ways of working.

These issues apply to Indigenous and non-Indigenous staff working in Indigenous Coordination Centres (ICCs), but the significant representation of Aboriginal and Torres Strait Islander employees among ICC staff may mean that current skill gaps have the potential to have a particular impact on Indigenous employment.

The Australian Public Service Commission (the Commission) is co-ordinating the delivery of training in working in a whole-of-government context to all ICCs, including training in working collaboratively, APS values, negotiation and cultural awareness skills. The Department of Employment and Workplace Relations (DEWR) will build on this by making available to all agencies its contract management Certificates III and IV on a cost recovery basis. The top priority new initiative is to identify additional training and development requirements to support the new whole-of-government operating environment. DEWR also now has a Diploma in Contract Management.

Medium-term strategies include:

developing a cross-agency workforce planning strategy for ICC partner agencies; and
developing a secondment strategy for senior managers working in Indigenous-related areas to move between partner agencies.

Longer-term strategies which the Commission will implement include:

working with agencies more generally (not just ICCs) to promote understanding of Indigenous issues and to address potentially discriminatory attitudes (eg as part of its suite of leadership programmes);
giving consideration to the development of a programme management and community capacity building/relationship management training module that focuses on providing participants with the skills required in Indigenous service delivery. Participants could be from within or outside the APS. (Non-APS graduates of the programme would be highly marketable to agencies, but would not be guaranteed APS employment.) This has particular relevance for ICCs, but could also have wider application, including in the context of specific traineeships providing an alternative pathway into APS employment that meets agency skill requirements.

The estimated additional cost of developing and implementing these strategies is $225,000 per year over three years. Staff training and development and secondment arrangements will involve significant contributions from line agencies in order to make them work effectively.

2. Pathways to employment—Removing barriers to using the Capacity of Indigenous Australians

An increased requirement for graduate qualifications and higher-level work is now an established feature of the APS. Alternative pathways into public sector employment need to be considered that develop Aboriginal and Torres Strait Islander employees so that they have the skills required by APS agencies. There must also be a focus on attracting Indigenous employees with relevant graduate qualifications into the APS. Alternative pathways need to provide Aboriginal and Torres Strait Islander employees with the skills and capability to contribute to APS agencies and compete with other APS employees. The APS also needs to promote itself as an employer of choice for Aboriginal and Torres Strait Islander employees in a tightening labour market.

Currently, only pilot traineeship and school-to-work programmes and a service-wide Indigenous graduate programme are available. Proposed new priority initiatives for immediate implementation are:

transferring to the Commission responsibility for conducting the annual bulk recruitment exercise under the National Indigenous Cadetship Project (NICP) to connect Indigenous prospective cadets with APS employers. The bulk recruitment exercise is to recommence with funding to be provided from the NICP component of the Indigenous Employment Programme. Funding of up to $145,000 per annum will be provided by DEWR to the Commission under a Memorandum of Understanding for a period of two years, subject to review at that time as part of the review of this strategy. The Commission will work with agencies to ensure there are clear pathways for Indigenous employees to move from cadetships into mainstream graduate programmes;
promoting the APS, and in particular agencies likely to have relevant entry-level positions such as service delivery agencies, as an employer of choice, including through structured work experience programmes and school to work models;
identification and promotion of existing pathways for Aboriginal and Torres Strait Islander employees, for example, DEWR’s contract management traineeships;
further research into APS agency skill shortages and recruitment difficulties, to identify areas where alternative pathways to employment for Indigenous Australians are likely to be most beneficial to agencies (including identifying particular regions with both a relatively high Indigenous population and significant APS employment opportunities where efforts could be targeted) and the most effective strategies for attracting high-quality Indigenous recruits to the APS.

Proposed initiatives for medium term implementation are:

the Commission and DEWR working together to encourage targeted APS agencies to make greater use of DEWR’s contracted employment service providers in identifying suitable Aboriginal and Torres Strait Islander applicants for entry level positions including:
- Job Network, Indigenous Employment Centres, and the Community Development Employment Programme
- services provided by these providers may include pre-screening, assessing employability skills, and initial pre-employment training support through the use of the Job Seeker Account
- APS agencies could also be encouraged to participate in DEWR’s “better connection workshops” which bring together a range of stakeholders to target skill and labour shortages at a local level, including for target clients such as Aboriginal and Torres Strait Islander employees;
the Commission and DEWR together with the Deputy Secretaries Group working to encourage agencies to provide structured training, including on the job training, apprenticeships and traineeships depending on agencies’ needs;
development of job ready training packages, then using Job Network members, more generally, to provide the training for unemployed Indigenous Australians.

The estimated additional cost of these initiatives is $750,000 per year for three years (excluding DEWR administered funding related to services provided for the NICP).

The mix of long and short term strategies under this component should ensure ongoing momentum in relation to improving agencies’ ability to tap into the talent available in the Indigenous workforce by building more effective education-to-APS work strategies; working more strategically with employment services providers, in particular Job Network members and Indigenous Employment Centres; and by opening up recruitment possibilities in a targeted way.

3. Supporting employees—Maximising the contribution of Indigenous Employees to the APS.

Aboriginal and Torres Strait Islander employees in the APS have poor promotion and retention outcomes. They are over-represented in lower classifications, under-represented compared to their share of the workforce in leadership positions, and are more likely to leave the APS than other employees.

Culture, capability and skills development are important in maximising the potential for Indigenous employees to contribute effectively to their agency and the public service more generally. The 2004 State of the Service employee survey indicates that Indigenous employees place more importance than other employees on opportunities to develop and utilise their skills. Agencies that have been more successful in retaining Indigenous staff tend to provide greater workplace support and have used Indigenous staff networks to great effect.

Existing initiatives include targeted development programmes, Indigenous employee networks and an Indigenous exchange programme in WA. Immediate priorities for new strategies include:

further extension of Indigenous employee networks, with the Commission facilitating networks at more senior levels and line agencies being encouraged to develop their own networks and to have an Indigenous staff leader reporting direct to the agency head;
provision of coaching and mentoring services for individual agencies;
a $200,000 pooled training fund to provide Indigenous employees with access to specific development opportunities;
establishment of a central agencies’ Indigenous exposure programme to provide short term secondments for Indigenous officers to the Departments of the Prime Minister and Cabinet, Finance and Administration and the Treasury to gain experience in key central agency processes (including Cabinet, Budget and policy processes). Secondments would be open to Indigenous APS officers from all agencies, including regional offices, and would be funded by home agencies; and
further research (including through a survey of all APS employees identifying as Aboriginal or Torres Strait Islander) into the nature of existing Indigenous employment in the APS; career intentions; capability development requirements for Indigenous employees to allow them to maximise their contribution to the APS; the relative merits of Indigenous specific training versus enhanced opportunities to participate in mainstream training; identifying agency policies that are welcoming/supportive and assist Indigenous employees to improve their capability; and identifying reasons for high Indigenous separation rates from the APS and appropriate strategies to retain high-performing staff and plan for succession.

Medium term priorities include:

further expansion of the Commission’s suite of development programmes to incorporate Indigenous perspectives into mainstream programmes, and consideration of broadening the programmes currently being offered to include Indigenous specific options where agencies identify that this is the preference of their Indigenous staff (ie CDAC);
expansion of the existing Indigenous exchange programme nationally.

In the longer-term, it is intended to develop a post-graduate scholarship programme.

The estimated cost of the initiatives is $550,000 per year for three years.

The expansion of learning and development opportunities will mean that Indigenous employees see and can access career paths that allow them to build productive and longterm careers in the APS.

4. Supporting employers—Aligning Indigenous Employment Strategies with workforce planning

There is a need for agencies to have effective Indigenous employment strategies that are aligned with broader strategic workforce planning. Only 13 agencies had formal Indigenous employment strategies in 2004 and the extent to which these strategies are aligned with broader workforce planning is unclear.

Existing initiatives include regular Indigenous human resource forums coordinated by the Commission. Immediate priorities for new strategies include:

encouraging more agencies to develop Indigenous employment strategies aligned to their workforce planning arrangements;
development of specific recruitment strategies that focus on attracting Indigenous staff at more senior levels into the ICC network and the wider APS;
tailoring the “Get-it-Right Recruitment Kit” and advice to assist agencies in incorporating Indigenous recruitment initiatives in broader workforce planning strategies;
advice to agencies on improving effectiveness and utilisation of data on Indigenous employment within individual agencies
access development opportunities for Indigenous staff by providing support to APS agencies to make those opportunities available through a $500,000 funding pool.

Medium-term priorities include:

the development of a suite of evidence-based better practice guides for employers, drawing on what is already working for selected agencies and supported by their Indigenous employees, including guidance on issues related to attracting suitable Indigenous staff to the agency; supporting capability development; encouraging retention of quality staff; leadership development and succession planning; and creating supportive workplace environments;
developing a good practice approach to exit surveys for Indigenous employees, aligned with policies on exit surveys for all employees, to inform strategic workforce planning.

The estimated additional cost of these priorities is $525,000 per year for three years.

The recruitment and retention of Indigenous employees is dependant on agencies identifying the skills they require; providing appropriate pathways to employment that allow Indigenous employees to develop these skills; and providing a culturally inclusive workplace that recognises and supports an employee’s Indigenous identity and allows them to contribute to business outcomes. The Commission will work with individual agencies that are looking to develop or implement agency specific initiatives around the recruitment and retention of Indigenous APS employees. These strategies draw upon proven methods of achieving these outcomes.

5. Partnerships—Working Together to promote Indigenous Employment

In implementing each of these new directions, the strategy seeks to establish collaborative and innovative employment solutions through the development of a range of strategic partnerships between APS and other Commonwealth agencies, State and Territory Governments, Job Network members, Indigenous Employment Centres, and other non-Government organisations. As a central part of the strategy, the APS is committed to working in practical ways with Indigenous peoples and their communities to identify barriers and improve access to APS employment.

To further develop partnerships within the APS, an Indigenous Liaison Officer role will be established within the APS Commission to provide advice to agencies in the development of their Indigenous employment strategies, and strategic linkages with workforce planning and agency-specific requirements. The role will also be able to support agencies seeking to participate in the other recruitment and retention programmes and to provide advice on cross-cultural awareness and obligations around the Values and Code of Conduct.

An employer recognition framework that will reward innovation and commitment to these principles will also be developed to provide valuable recognition for the APS as an employer of choice for Indigenous Australians.

The estimated additional cost of this initiative is $100,000 per annum for three years.

Implementation

A range of successful initiatives to support the recruitment and retention of Indigenous Australians are currently up and running. Key activities include: a pilot entry-level programme for Indigenous trainees; a suite of development programmes tailored for APS and for EL Indigenous staff; and a range of networks and forums to support both Indigenous employees and employers.

The initiatives in this strategy build on these ongoing initiatives and introduce a more comprehensive approach to the recruitment, development and retention of Indigenous Australians that ensures that they have the skills and capability to contribute to the APS.

They also address the urgent requirement for a more effective support structure for the implementation of whole-of-government Indigenous policy development and programme delivery through ICCs.

The full implementation of the expanded APS Employment and Capability Strategy for Aboriginal and Torres Strait Islander employees is dependant on the successful engagement and participation of agencies across the APS. The Commission is well placed to lead a collaborative and collegiate approach to the recruitment and retention of Indigenous Australians, and to work individually and collectively with agencies to improve their ability to tap into the capacity and potential capacity of the Aboriginal and Torres Strait Islander workforce.

In the short-term, strategies that enhance Indigenous employment are likely to require a degree of commitment from agencies, in terms of time, financial and staff resources, and good-will. But, this cost is necessary in order to achieve longer-term equity and employment goals.

The strategy will require strong support and commitment from all APS agencies as well as championing by agency heads across the service. Agency heads will highlight the need to recruit and support more Indigenous staff in their organisations and task their Deputy Secretaries and HR managers to market and implement the new directions in the strategy in their agencies.

The benefits to agencies, while considerable in the medium to longer-term, may take some time to accrue. The strategy involves additional funding of an estimated $2.15 million a year for three years, with a review after two years’ operation to determine whether any funding is required beyond the initial three years.

Initiatives which are top priority will be given immediate attention and others with medium to long-term priority will be implemented over the course of the three year strategy. The Deputy Secretaries Indigenous Group will set up a performance management arrangement to monitor the development and implementation of the strategy and raise any issues with the Indigenous Secretaries Group and the government, as required, prior to the formal review after two years.

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