Chapter 2: Statistical snapshot

Engagements and separations

There were 14,973 engagements and 7070 separations of ongoing staff during 2002–03. Engagements were up and separations were down (from 12,196 and 8560 respectively the previous year). Engagements have more than doubled in the past five years, and separations have halved over the same period. Figure 2.14 shows ongoing engagements and separations as a proportion of all ongoing staff for the past 10 years. The widening gap between engagements and separations during 2002–03 reflects the increased rate of growth in the APS overall.

Figure 2.15 compares the age profile of engagements and separations during 2002–03 with the age profile of the APS overall. As expected, the age profile for engagements is much younger than for the APS overall. Separations for those aged under 30 are also higher than the APS average. During 2002–03, 22.6% of those who separated were aged under 30. This was a slight increase from 19.5% the previous year. For separations, there are two peaks—in the 25–29 age group and also in the 50–54 age group. For more analysis of ageing trends, see Chapter 8.

Engagements

During 2002–03, there was strong growth in engagements, with a rise of 2777 or 22.8%, after a decline the previous year. The number of engagements has not been this high since 1989–90. Figure 2.16 shows the proportion of engagements at all classification levels for the past 10 years. Engagements at the APS 1–2 levels have dropped dramatically over the period, and fell again during 2002–03, after recovering slightly during the previous year. This was the only classification group to fall in actual numbers in 2002–03 except for SES which fell slightly.

Most ‘base-level’ recruitment now is at APS 3–4, and through trainees and graduate trainees. Engagements at the APS 3–4 levels grew again during 2002–03, after falling the previous year. This group accounted for 54.8% of all engagements (over 8200 people), up from 41.7% the previous year. Those recruited as trainees and graduate trainees also increased in number, but fell slightly in percentage terms. The number recruited as graduate trainees almost doubled from 421 to 815, while the number of other trainees recruited fell from 810 to 529. Most of those engaged at APS 3–4 levels (and above), but not as graduate trainees, are believed also to be graduates. Although data on educational qualifications is incomplete, there is sufficient to show that the trend for new recruits to also be graduates has increased substantially, from around 20% in 1985–86 to over 60% in 2002–03.

A high proportion of the engagements at APS 3–4 and trainees and graduate trainees are women (64.9%, compared with the total proportion of women in the APS—52.8%), suggesting that the trend towards feminisation of the APS will continue. (The trend is tempered a little, however, by the higher proportion of women than men amongst separations—see following section.)

Engagements at higher levels (APS 5–6 and ELs) increased in 2002–03, but the strong growth at the APS 3–4 levels meant that the other classifications fell in percentage share. Nevertheless, engagements at these higher classification levels have been growing over the last five years, both in raw numbers and as a percentage of the APS, if not as a percentage of total engagements.

Figure 2.17 shows changes in the age profile for engagements during the past 10 years. After some years of decline, engagements in the under 25 age group plateaued, and then rose slightly last year, in both actual number and proportion. Engagements in the under 20 age group rose from 188 in 2001–02 to 257 in 2002–03. For the 20–24 age group, the number of engagements rose from 2316 to 3055. The 25–34 age group also showed strong growth, increasing from 4496 (36.9% of all engagements) to 5559 (37.1%). All other age groups also showed growth in real terms; however, their share of engagements fell.

The number of engagements in the 55 and over age group rose again this year to 416, and are now more than double the number 10 years ago. The beginning of this trend corresponds with the removal of the compulsory age 65 retirement provision, with the introduction of the PS Act.

Engagements were concentrated in Centrelink (3465, up from 2116 the previous year), ATO (3076, up from 242 the previous year) and Defence (2071, down from 2662 the previous year); these three agencies accounted for 57.5% of all engagements. In FaCS, which includes the Child Support Agency (CSA), engagements increased from 316 to 986.

Separations

The number of separations fell by 1490 or 17.4% during 2002–03. This decline was mainly due to a fall in retrenchments (from 2137 to 871). This was the smallest number of retrenchments since 1991–92. Separations due to termination of engagement also fell (down from 639 to 344). Resignations and age retirements rose slightly (from 4685 to 4754 and from 802 to 830 respectively). Figure 2.18 shows how the different separation types have varied over the past 10 years.

The decline in separations was mainly due to a drop in retrenchments from ATO (down from 992 to 17). Centrelink (133) and Defence (112) were the only agencies to have substantial numbers of retrenchments during the year.

Women represent 53.1% of separations, dominating resignations in particular (57.1%). This offsets in part the very high proportion of women amongst engagements.

Figure 2.19 shows the impact of retrenchments all age groups over the past 10 years, with the impact on those aged 55 and over particularly noticeable. While retrenchments fell for all age groups during 2002–03, the drop was greatest in the 55 and over group. In 2001–02, 6.7% of those aged 55 and over were retrenched; in 2002–03 the proportion fell to 2.9%.

The Public Service Commissioner wrote to all APS agency heads on 6 May 2003 about the need for agencies to consider the appropriateness and nature of redundancy packages for people approaching retirement, particularly in the light of the abolition of a compulsory retirement age. The Commissioner stated that careful management of these processes is essential to avoid creating expectations that anybody who leaves should receive a redundancy benefit, and stressed that it is essential that redundancy arrangements are not used as an alternative to rigorous performance management processes.

Overall, separations decreased in all age groups, with the greatest decline being for the 50–54 age group (down 439 or 29.3%). Figure 2.20 shows the magnitude of resignations at age 54, compared with others between age 50 and age 55. The sharp rise in resignations between 1996–97 and 2001–02 is most likely due to the effect of the financial incentive for some members of the Commonwealth Superannuation Scheme (CSS) to resign just before their 55th birthday (the 54/11 effect).

This issue of the impact of superannuation was dealt with in detail in MAC’s report on organisational renewal, including by looking at projections of the size of the 54/11 effect into the future.⁹ Based on current trends of around 40% of all CSS members who are approaching age 55 taking a 54/11 exit, MAC estimated that the numbers of 54/11 resignations may rise to just above 600 in 2004–05 before gradually falling to around 300 in 2016–17.

The rise in resignations at age 54 appears to be quite closely matched with a reduction in retirements at age 55, suggesting that, in most cases, employees may have brought their retirement plans only slightly forward. In any case, the trend to resignation at age 54 reversed this year and the number of age 54 resignations fell for the first time in almost a decade from 550 to 479, a decline of 12.9%. This change will be monitored to see if it continues. Despite the fall, age 54 resignations still accounted for 64.7% of all resignations in the 50–54 age group.

 

9 MAC, Organisational Renewal, Report 3, 2003