Appendix 4 Factor analysis

A factor analysis was conducted on a broad range of questions in the 2007 State of the Service employee survey, with the questions in the analysis being selected based on their relevance to employee engagement. These included most of the general impressions questions, and the questions related to work-life balance, merit, learning and development and agency culture.¹ Factor analysis is a ‘data reduction’ technique, which statistically groups together highly related questions. The factor analysis process primarily uses high correlations between question responses to group them together. A high positive correlation between two questions, for example, is where most of the responses to one question show a very similar pattern of responses as those to the other question (i.e. across individuals, high scores on one generally correspond to high scores on the other). Factors are considered to reflect underlying processes or relationships that have created the correlations among variables.²

In this case, a factor analysis was conducted to determine whether, based on the questions from the employee survey, broader groups of engagement issues or ‘factors’ existed. Therefore, each factor represents a measure of a broader construct than the individual employee engagement questions in the 2007 employee survey. The factor analysis for the employee engagement items resulted in a 12 factor structure.³ The factors were then named based on their item content. The 12 factors were:

Senior Leaders
Agency Culture
Immediate Manager
Work Group
Current Job
Governance
Merit
Diversity
Career and Development Opportunities
Learning and Development
Work-Life Balance
Understanding Current Role

Comparability with 2006 factor analysis

Compared to 2006, in 2007 the factor analysis has produced separate factors for Senior Leaders and Agency Culture, as well as for Work-Life Balance and Learning and Development. Other changes include: there is only one Diversity factor in 2007, and an additional factor, Career and Development Opportunities, emerged in 2007. The primary reason for the change in the factors between 2006 and 2007 is the inclusion of new questions and other questions being cycled out.

Results for the 2007 factor analysis are not directly comparable with the 2006 results, as although the factors may measure the same concept, the principal components of each factor are not necessarily the same.

Factor content

The following tables show the principal components of each factor. In the text of the report, factor names appear with the first letter of each word capitalised to distinguish them from other uses of the word(s).

Senior Leaders
q21ia.	In my agency, the leadership is of a high quality.
q21ib.	My agency is well managed.
q21ic.	The SES in my agency are empowered to do their jobs.
q21id.	In my agency, communication between senior leaders and other employees is effective.
q21ie.	In my agency, senior leaders are receptive to ideas put forward by other employees.
q25e.	Within my agency the most senior leaders are sufficiently visible.
q39c.	Generally speaking, in my experience the most senior managers in my agency act in accordance with the APS Values.
q79d.	Senior managers in my organisation lead by example in ethical behaviour.

Agency Culture
q19h.	My work group receives the support and assistance it needs from other areas of the agency.
q23a.	My agency is a good place to work.
q23b.	I feel change is managed well in my agency.
q23c.	In general, employees in my agency effectively manage conflicts of interest.
q23d.	In general, employees in my agency appropriately assess risk.
q23e.	Employees in my agency feel they are valued for their contribution.
q23f.	My agency encourages employees to examine what they do and find ways to do it better.
q23h.	My agency involves employees in decisions about their work.
q23i.	My agency operates with a high level of integrity.
q23j.	My agency deals with underperformance effectively.
q23k.	My agency encourages the public to participate in shaping and administering policy (e.g. seeks and uses feedback, consults and engages communities on issues affecting them).
q24a.	My agency has achieved its stated objectives (e.g. objectives in corporate, business or strategic plans).
q24b.	My agency has earned a high level of public trust.
q24c.	My agency has improved its performance.
q79b.	My input is adequately sought and considered about decisions that directly affect me.
q79f.	I have confidence in the processes that my organisation uses to resolve employee grievances.

Immediate Manager
q18i.	I receive adequate feedback on my performance to enable me to deliver required results.
q18j.	I am satisfied with the recognition I receive for doing a good job.
q20a.	My manager provides me with the support I need to do my job.
q20b.	My manager ensures fair access to developmental opportunities for employees in my work group.
q20c.	My manager encourages me to build the capabilities and/or skills required for new job roles.
q20d.	My manager treats all staff with respect and courtesy.
q20e.	My manager appropriately deals with employees that perform poorly.
q20f.	My manager demonstrates honesty and integrity.
q20g.	My manager works effectively and sensitively with people from diverse backgrounds.
q20h.	My manager works with staff to find solutions to problems.
q20i.	My manager stands up for his/her staff when necessary.
q20j.	My manager delegates work effectively.
q39b.	Generally speaking, my immediate manager acts in accordance with the APS Values in his or her everyday work.
q79h.	My immediate supervisor is effective in managing people.

Work Group
q19b.	People in my work group use time and resources effectively.
q19c.	The people in my work group cooperate to get the job done.
q19d.	The people in my work group share job knowledge with each other.
q19e.	People in my work group are honest, open and transparent in their dealings.
q19f.	People in my work group treat each other with respect.
q19g.	My work group resolves conflict quickly when it arises.
q19j.	My work group achieves a high level of productivity.
q39a.	Generally speaking, colleagues in my immediate work area act in accordance with the APS Values in their everyday work.

Current Job
q18a.	I enjoy the work in my current job.
q18b.	I am motivated to do the best possible work that I can.
q18c.	When needed, I am willing to put in the extra effort to get a job done.
q18d.	My job allows me to utilise my skills, knowledge and abilities.
q18e.	My current job will help my career aspirations.
q18l.	My job gives me a feeling of personal accomplishment.

Governance
q22a.	My agency has procedures and systems that ensure objectivity in decision-making.
q22b.	My agency has policies and procedures in place that assist employees manage conflicts of interest.
q22c.	My agency has policies and procedures in place to ensure that appropriate assessments of risk are conducted.
q22d.	My agency provides me with information about updates, changes or revisions that relate to financial and other delegations.
q22e.	My agency provides me with information that clearly outlines the agency’s decision-making processes (e.g. relevant committee structures).
q23c.	In general, employees in my agency effectively manage conflicts of interest.
q23d.	In general, employees in my agency appropriately assess risk.
q79c.	My organisation actively encourages ethical behaviour by all of its employees.

Understanding Current Role
q18f.	I have a clear understanding of how my own job contributes to my work team’s role.
q18g.	I clearly understand what is expected of me in this job.
q18h.	I have the authority (e.g. the necessary delegation(s), autonomy, level of responsibility) to do my job effectively.

Merit
q19k.	In my work group, the process of selecting a person for a position is done fairly.
q36ia.	In my experience, my agency routinely applies merit (as defined in the Public Service Act) in the following types of employment decisions: Engagement and promotion resulting from a competitive process.
q36ib.	In my experience, my agency routinely applies merit (as defined in the Public Service Act) in the following types of employment decisions: Movement at level from another agency (i.e. transfer) resulting from a competitive process.
q36ic.	In my experience, my agency routinely applies merit (as defined in the Public Service Act) in the following types of employment decisions: Movement at level within my agency (i.e. transfer) resulting from a competitive process.
q36id.	In my experience, my agency routinely applies merit (as defined in the Public Service Act) in the following types of employment decisions: Temporary assignment of ‘higher duties’ resulting from a competitive process.
q79e.	Recruitment and promotion decisions in this organisation are fair.

Diversity
q33a.	Please indicate your level of agreement that your agency actively encourages the recruitment and employment of … people from all cultural backgrounds.
q33b.	Please indicate your level of agreement that your agency actively encourages the recruitment and employment of … people with disability.
q33c.	Please indicate your level of agreement that your agency actively encourages the recruitment and employment of … Aboriginal and Torres Strait Islanders.
q79g.	This organisation is committed to creating a diverse workforce (for example, gender, age, cultural background, disability status, Indigenous status).

Career and Development Opportunities
q25c.	I am satisfied with the opportunities for development in my current agency.
q25d.	I am satisfied with the opportunities for career progression in my current agency.
q25h.	I am satisfied with the opportunities for development in the Australian Public Service.
q25i.	I am satisfied with the opportunities for career progression in the Australian Public Service.

Learning and Development
q23g.	My agency places a high priority on the learning and development of employees.
q67i.	Overall, how satisfied are you with your own access to learning and development opportunities in your organisation?
q68.	Please rate the overall effectiveness of the learning and development you received in the last 12 months in helping you improve your performance.

Work-Life Balance
q31.	Considering your work and life priorities, how satisfied are you with the work..life balance in your current job?
q79a.	My workplace culture supports people to achieve a good work-life balance.

Calculation of factor scores for each factor

A factor score was calculated for each of the 12 factors. Each factor score is the average (mean) of the responses to the questions contained in the factor. Factor scores will therefore range from 1 to 5 on a continuous scale (i.e. they will not necessarily be whole numbers). Factor scores can be used in a similar way to question results, for example, in cross-tabulations with other questions and other factor scores. Each respondent to the survey has one score for each factor. For ease of interpretation, the factor scores have been recoded as such:

1 to 2.499 = agree/satisfied

2.5 to 3.499 = neutral (neither agree nor disagree)

3.5 to 5 = disagree/dissatisfied

Factor score results

The table below contains the APS-wide frequency results for the 12 factors based on the approach outlined above.

Factor	Agree/Satisfied	Neutral	Disagree/Dissatisfied
Senior Leaders	50%	35%	15%
Agency Culture	46%	42%	12%
Immediate Manager	67%	24%	8%
Work Group	77%	19%	4%
Current Job	72%	23%	5%
Governance	68%	28%	4%
Understanding Current Role	83%	14%	3%
Merit	47%	38%	14%
Diversity	66%	28%	6%
Career and Development Opportunities	50%	31%	19%
Learning and Development	51%	31%	17%
Work-Life Balance	64%	24%	13%

Summary indexes

To complement the factor analysis a series of summary indexes have been created to assist analysis of results of survey questions comprising several parts or of related survey questions.

The indexes operate to condense a multiple response question or a series of questions into a single index for comparative purposes. In exploring respondents’ overall level of job satisfaction, for example, a question comprising 15 attributes was summarised into a single index using a point scoring system. In this way, analysis of the 15 job satisfaction attributes can be supplemented by analysis at the summary level. Similarly, an employee engagement index was created using all the questions in each factor resulting from the factor analysis.

Other summary indexes comprised the following questions:

Productivity
q18m.	My productivity has improved in the last 12 months.
q18n.	I am working to my full potential.

Loyalty/Commitment to Agency
q25a.	I am proud to work in my current agency.
q25b.	I would recommend my current agency as a good place to work.

Loyalty/Commitment to APS
q25f.	I am proud to work in the Australian Public Service.
q25g.	I would recommend the Australian Public Service as a good place to work.

As was the case for each factor, scores for Engagement, Productivity, Loyalty/Commitment to Agency and Loyalty/Commitment to APS were calculated using the same scale as that used for the factors. The following table shows the APS-wide frequency results for these summary indexes.

Index	Agree/Satisfied	Neutral	Disagree/Dissatisfied
Engagement	66%	30%	4%
Productivity	38%	43%	19%
Loyalty/Commitment to Agency	61%	24%	15%
Loyalty/Commitment to APS	76%	20%	4%

The score for Job Satisfaction was calculated using a 10-point scale based on the following approach:

9 to 10 = high satisfaction

6 to 8 = moderately high satisfaction

3 to 5 = moderately low satisfaction

0 to 2 = low satisfaction

The table below shows the APS-wide frequency results for Job Satisfaction using this approach.

Index	9 to 10	6 to 8	3 to 5	0 to 2
Job Satisfaction	31%	51%	15%	4%

1 All of the items included in the factor analysis are listed in this appendix under each factor heading. Individual item results for all employee survey questions are available in the State of the Service Employee Survey Results 2006–07 publication.

2 B. G. Tabachnick & L. S. Fidell 2001, Using Multivariate Statistics, 4th edn, Allyn & Bacon, Needham Heights, MA.

3 Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalisation.