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CHALLENGES FOR PARTICULAR AGENCIES

The particular challenges faced by individual agencies will of course vary. A number of these challenges were identified in the State of the Service Report 2002—03 and remain relevant again this year. Progress made in relation to these challenges is summarised below, as are ‘new’ challenges that have emerged during the compilation of this report.

RELATIONS WITH THE GOVERNMENT AND THE PARLIAMENT (CHAPTER 3)

Last year’s report noted that agencies needed to ensure that the significant number of employees likely to come into contact with Ministers or their advisers have the confidence to manage the challenges that inevitably arise, and that they have available ready and reliable support from those around them. The report also found that employees should be made aware of policies or protocols for interactions with Ministers and their offices.

The 2004 employee survey revealed that there is a reasonably high level of confidence in managing these relationships, but there is variability across agencies and across different classification levels of the APS. The

Commission’s evaluation of agencies’ protocols guiding employees’ interactions with ministerial offices also suggests there is room for improvement. Agencies should find the Commission’s planned good practice guide Supporting Ministers, Upholding the Values useful.

The two previous State of the Service reports suggested that agencies have not been giving sufficient attention to training their SES staff on parliamentary accountability. Evidence outlined in Chapter 3 of this report confirms that this issue has still not been adequately addressed. It should be a key aim of agencies to ensure that those who are likely to be required to appear before committees are able to respond in a manner that is consistent with their rights and responsibilities, and that all new SES employees and relevant EL employees undertake relevant and adequate training.

Last year’s report found that some agencies need to take a more strategic approach to improving record management systems, and some agencies need to ensure that their record keeping policies are implemented.

It was also found that the provision of training and information for middle and senior management is also a priority for many agencies.

The record keeping capability of the APS seems to be improving as agencies place a higher priority on record keeping systems, protocols, awareness and training. However, not all employees are aware of record keeping training available to them.

RELATIONS WITH THE PUBLIC (CHAPTER 4)

Last year’s report indicated that some agencies are making a considerable investment in developing customerfocused service delivery skills and behaviour in their staff, and are developing programs designed to meet the needs of individual customers. However, one of the challenges identified in last year’s report was the need for agencies to improve performance in this area, requiring continued concerted effort into the future.

New results from this year’s employee survey revealed that more than three-quarters of APS employees involved in service delivery agreed that they received appropriate training or had access to information enabling them to undertake their client service responsibilities. Agencies are clearly taking this seriously, and need to continue to do so.

The State of the Service Report 2002—03 identified that the issue of encouraging and utilising public consultation and communication is a growing one for the APS.

The 2004 agency survey results show that consultation is widely used across the APS. The examination of selected agencies highlighted in this report shows significant investment in client feedback and consultation in relation to service delivery, with increasingly sophisticated approaches and evidence of improved service quality.

Other agencies may benefit from looking at the experience of these agencies, and widen the use of client surveys as a means of monitoring and improving service delivery. At present, industry stakeholders are considerably more likely to be consulted than members of the public and other stakeholders.

WORKPLACE RELATIONSHIPS (CHAPTER 5)

This year’s employee survey results on employees’ perceptions of merit were consistent with last year’s results, confirming that while the overall picture is reasonably positive, some agencies have considerable room for improvement and should take action to explore further the factors underlying their employees’ perceptions of merit. Other important factors are the quality of feedback to unsuccessful candidates for positions, and agencies’ improvement of their employees’ knowledge and understanding of how merit is applied in their selection processes.

Last year’s report showed the unevenness of employee survey results on job satisfaction across agencies and suggested that for some agencies there is room for improvement in this area.

This year’s employee survey results indicate that overall job satisfaction is very positive, but remains uneven and therefore an issue for some agencies. Two of the five most important workplace factors for job satisfaction–‘salary’ and ‘regular feedback/recognition for effort’–had relatively low satisfaction ratings (51% and 52% respectively). Employee concerns about salary may only be valid if there are genuine problems surrounding attraction and retention, but greater focus on informal feedback and recognition for effort should have a positive impact on both organisational performance and individual job satisfaction.

Last year less than half of all employees reported being satisfied with their overall say in decisions that impact on their work, and nearly a quarter reported being dissatisfied. Some positive developments have emerged in workplace consultation this year. More employees reported being satisfied with their overall say in decisions that impact on their work and more agencies reported having policies requiring section/team level meetings. It is to be hoped that this trend persists and is reflected in future employee surveys.

This year’s report analyses further the difficult issue of funding arrangements for labour cost increases. The concern of some small agencies in particular may have more weight than indicated in last year’s report, and there is an argument for case-by-case consideration of some relaxation of current productivity expectations. This is a matter for government policy and Finance.

PERSONAL BEHAVIOUR (CHAPTER 6)

Last year’s report highlighted that greater effort could be devoted to raising awareness about the application of the Code of Conduct and procedures for raising suspected breaches.

High and increasing proportions of APS employees reported being familiar with the APS Code of Conduct and continued to see the Code as relevant to their daily work. All of the six agencies participating in the APS Commission evaluation of how agencies manage suspected breaches of the Code of Conduct took misconduct seriously and generally managed cases in a manner consistent with the requirements of the PS Act and Regulations. However, survey data and agency evaluations indicate that there is room for improvement in agencies’ processes, and a detailed good practice guide will be released in 2005. The evaluation also identified some policy concerns about whistleblower arrangements which the Commission intends to follow through.

Last year’s report identified that agencies had put in place a variety of measures to deal with conflict of interest, although there was room for improvement in a number of areas, particularly on written assessments of interests for SES employees and the regulation of post-separation employment.

There were some positive developments in agencies’ management of conflict of interest this year, with increases in the proportions of agencies having policies on the matters identified in 2002—03. In both of these areas there continues to be room for improvement, however, and those agencies not ensuring a written statement from SES employees should take action as a matter of priority.

EMBEDDING THE APS VALUES AND THE CODE OF CONDUCT (CHAPTER 7)

The State of the Service Report 2002—03 found that agencies generally are taking steps to hardwire the Values into management policies, instructions and guidance, and there was a good degree of employee familiarity with the APS Values and the Code of Conduct.

This year’s employee survey results reflect the success that agencies have had in creating commitment to the APS Values. The results indicate that the great majority of employees felt they were familiar with the APS Values and viewed them as relevant to their daily work. The agency survey results also show that agencies have taken strong steps to integrate the Values into their performance management systems and the progress made is particularly pleasing.

However, although the great majority of APS employees were confident that their immediate managers and colleagues act in accordance with the APS Values, there continues to be a significantly lower level of trust among them that the most senior managers in their agency do so. The importance for agencies in getting this right should not be underestimated. If the leadership group is seen to model and champion the APS Values, other staff in the agency will actively engage with them. Where senior managers are silent or indifferent, other employees may treat the Values as empty rhetoric.

WORKPLACE DIVERSITY (CHAPTER 8)

Last year’s report indicated that agencies’ diversity planning needed to address issues surrounding the retention of Indigenous employees and low levels of workplace satisfaction among people with disabilities.

Indigenous employees were the only EEO group whose representation in the APS fell in both absolute and proportional terms in 2003—04. The relatively high dissatisfaction rates of people with a disability, and to a lesser extent the dissatisfaction rates of Indigenous employees, also remain a concern.

The evaluation of agencies written Workplace Diversity Programs (WDPs) highlighted many positive initiatives agencies have put in place, but also suggested that some agencies need to develop a better understanding of the diverse composition of their workforce and need to pay closer attention to how they can best measure the effectiveness of their diversity programs. Some agencies’ broad focus on diversity needs to be complemented by specific initiatives targeted at groups suffering employment disadvantage and at groups who would most clearly add to the capability of their organisations such as older workers, young graduates and people with direct experience with clients and stakeholders. Agencies should take action to ensure that their WDPs are reviewed as required and remain current.

With the exception of women, agency data for EEO groups remains less systematic than it could be.

The collection of EEO data by agencies and the provision of updated employee profiles to the Commission would assist both the Commission and individual agencies to analyse workforce profiles and to plan strategically for an increasingly diverse workforce.

Last year’s report highlighted that agencies need to refocus on the prevention of discrimination, bullying and harassment, and create effective systems to address it.

This year’s employee survey results on the proportion of employees who have experienced discrimination, bullying or harassment are consistent with those from last year and, despite some improvements in relation to satisfaction with agency support structures, suggest that agencies should improve management skills and agency review mechanisms in this area. There would also be benefit in communicating expected standards of behaviour to agency employees.

BUILDING APS CAPABILITY (CHAPTER 9)

Last year’s report noted that, consistent with Organisational Renewal, agencies need to engage in more systematic workforce planning and to understand their own workforce demographics, paying particular attention to factors such as age and to attraction and retention strategies such as flexible working provisions.

There is evidence that APS agencies are increasingly focussing on the need to meet these challenges through formal workforce planning, and through the introduction of more informal measures. Nevertheless, there is considerable potential for agencies to improve their efforts in this area, and particularly to follow through with preliminary work that has already begun in the area of workforce planning. Particular areas of importance include measures to retain key older workers, succession management and leadership, more structured learning and development and more careful recruitment strategies. An important aspect identified in this year’s report is external mobility: while this is growing and adding to the experience and expertise of the APS, it is particularly important for those working closely with the States and Territories and other partners and stakeholders.

Last year’s report found that while there was evidence of improvement in the area of performance management agencies still faced serious challenges, particularly in the areas of rewarding performance and handling underperformance.

There has been some further improvement in the area of performance management. The use of formal feedback has increased, and agencies appear to have made considerable progress in relation to two of the three critical factors identified by MAC as necessary for successful performance management, that is: alignment with agency goals and objectives and integration of performance management into corporate management structures. However, performance management continues to be a difficult issue for the APS. In particular, key credibility issues remain in the areas of rewarding performance and handling underperformance.

This year’s report suggests agencies pay particular attention to those factors known to motivate staff and improve organisational performance by ensuring employees identify personally with their work and the objectives of the organisation, ensuring managers effectively remove any obstacles employees face in getting their work done and ensuring managers provide fair, accurate, comprehensive, positive and timely feedback.

The State of the Service Report 2002—03 highlighted that a more serious and evidence-based approach to evaluation in the area of learning and development was needed, requiring in particular the collection of information on learning and development expenditure, and on the impact of learning and development programs.

With only few agencies evaluating the benefits of learning and development to individuals and/or the agency, the continuing challenge for many agencies is to collect meaningful and robust learning and development data and initiate disciplined evaluation processes. Assessing the organisational value of learning and development, along with life-long learning itself, is important in building APS-wide capability that is flexible, accountable, and responsive to the Government of the day.

Last year’s report showed that leadership development was one area of capability development that had received substantially increased attention in recent years. Despite a high level of activity in this area, the report also highlighted that more concerted effort was needed, particularly in response to succession management pressures. The report further identified that greater support for Service-wide programs would also help to build the leadership cadre the APS needs, with the capacity to work across organisational boundaries.

In 2003—04 there remained a strong focus by agencies and the APS Commission on providing innovative leadership development activities. This continued focus on leadership development is showing measurable improvement in the APS leadership–with increases in the proportions of employees in 2003—04 having rated their immediate supervisor as ‘high’ in the area of ‘achieves results’ and in the area of ‘cultivates productive working relationships’.

The launch of the Integrated Leadership System represents an exciting advancement in leadership development in the APS, and offers agencies (and employees) the opportunity to more closely align leadership development to particular levels of staff in particular business areas, while also promoting whole of government leadership capacity. It also requires the APS Commission to consider more tailored approaches through bilateral partnerships recognising the necessary mix of leadership capabilities, managerial skills and technical/professional skills required amongst agency managers.

OUTSOURCING (CHAPTER 10)

Last year’s report outlines that contract management is central to successful outsourcing, and indications were that many agencies are facing difficulties maintaining the required level of skilled contract managers needed to support and drive their outsourcing arrangements.

Consistent with last year’s report, it is evident that in some agencies there is still insufficient capability to manage outsourcing effectively. Contract management capability was reported as a difficulty by over one-third of relevant agencies–with large agencies much more likely to have reported it as a difficulty compared to medium and small agencies.