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Remuneration outcomes by various parameters

Appendix D

Remuneration Outcomes by Various Parameters

As has been the case in previous reports, along with all the remuneration information, data concerning agency size, work location (by State) and job family have also been collected.

Mercer has conducted a One-Way Analysis of Variance (ANOVA) test to determine whether differences observed in the average TRPs for each of these groups was significant. The following tables reflect these analyses, which essentially assess whether the null hypotheses—that all the averages are the same—should be accepted or rejected.

The greater the ‘F’ value, the lower the probability that the observed differences could have occurred by chance. If the differences in the averages for each category could have occurred by chance in less than 1 per cent of occurrences (p≤ .01), we could safely reject the null hypothesis.

Agency Size

As can be seen in Table D.1, analysing TRP by size of agency (using employee numbers) shows that for SES 3, the average TRP was higher for agencies employing 2,500 or more employees than for the other size categories, and, for SES 1 and SES 2, the highest average TRP was paid by agencies with less than 100 employees.

Table D.1 – Average TRP levels by Agency Size
Agency Size Band
SES 1 SES 2 SES 3
Less than 100 $213,359 $315,133 --
100 to 499 $213,119 $265,354 $341,134
500 to 999 $204,474 $256,992 $337,089
1,000 to 2,499 $211,541 $260,959 $328,633
2,500 or more $211,248 $266,367 $344,877
% Difference from min to max 4.35% 22.62% 4.94%
F 4.004 1.902 2.659
p <0.001 0.058 0.036
significance sg ns sg

Although there were some large differences in average TRP for SES 2, these were not statistically significant, whilst the differences between TRP for SES 1 and SES 3 were statistically significant. This means that the differences noted between the different size categories for SES 2 were no more significant than the variation that naturally occurs within each group of similar sized agencies.

Tables D.2 to D.4 show Q1, median and Q3 values for Base Salary and TRP by agency size, for each SES classification.

Table D.2 – SES 1 Base Salary and TRP by Agency Size
Agency size   Q1 Median Q3
Less than 100 Base Salary $145,078 $154,305 $163,960
TRP $200,294 $209,142 $217,404
100 to 499 Base Salary $153,359 $159,713 $175,091
TRP $198,019 $211,115 $225,083
500 to 999 Base Salary $149,391 $158,201 $168,552
TRP $191,740 $204,283 $216,998
1,000 to 2,499 Base Salary $153,582 $158,430 $173,000
TRP $202,089 $211,062 $222,609
2,500 or more Base Salary $150,910 $158,277 $164,625
TRP $200,026 $210,593 $220,922
Table D.3 – SES 2 Base Salary and TRP by Agency Size
Agency size   Q1 Median Q3
Less than 100 Base Salary $176,831 $238,491 $336,993
TRP $266,883 $290,903 $362,035
100 to 499 Base Salary $192,400 $203,373 $222,578
TRP $252,442 $265,448 $277,231
500 to 999 Base Salary $188,469 $200,477 $217,925
TRP $238,613 $257,665 $269,198
1,000 to 2,499 Base Salary $188,200 $195,803 $208,564
TRP $247,237 $260,474 $274,209
2,500 or more Base Salary $194,986 $201,992 $215,512
TRP $251,849 $265,051 $278,268
Table D.4 – SES 3 Base Salary and TRP by Agency Size
Agency size   Q1 Median Q3
Less than 100 Base Salary -- -- --
TRP -- -- --
100 to 499 Base Salary -- -- --
TRP -- -- --
500 to 999 Base Salary $248,423 $265,946 $277,030
TRP $309,024 $322,337 $341,884
1,000 to 2,499 Base Salary $232,731 $239,891 $281,200
TRP $303,046 $319,958 $361,136
2,500 or more Base Salary $243,413 $262,905 $283,731
TRP $312,996 $341,942 $362,172

Location

APS agencies employ staff in a wide variety of locations across all States and Territories. Within each SES classification, it could be expected that remuneration would vary to some extent by location, given the wide differentials in the labour market between different States, and also cost of living differences between capital cities and the main regional locations.

As can be seen from Table D.5, differences were observed in average TRP levels for SES 1 and SES 2 employees in different locations (SES 1: 7.21 per cent and SES 2: 8.45 per cent). These differences were statistically significant at both SES 1 and SES 2. There was insufficient data available to examine differences between TRP levels for SES 3 employees by location.

Table D.5 – Average TRP Levels by Location
Location Band
SES 1 SES 2 SES 3
ACT $210,202 $264,609 $343,955
NSW $215,766 $262,047 --
NT $218,393 $264,433 -
Queensland $211,866 $256,777 -
SA $216,083 -- --
Tasmania $215,505 -- -
Victoria $210,884 $277,135 --
WA $209,423 $262,562 -
OVS $203,703 $255,538 --
% Difference from min to max 7.21% 8.45% --
F 63.099 5.119 1.476
p <0.001 <0.001 0.116
significance sg sg ns

As can be seen from table D.5, SES 1 employees based in the Northern Territory earned slightly more than those based in other states, whilst the highest paid SES 2 employees were based in Victoria. SES 1 and SES 2 employees deployed overseas were the lowest paid within their band.

Job Family

For the analysis shown below by SES classification and job family, Mercer has not included categories where there were too few respondents, as well as excluding those coded as ‘other’ and ‘missing’. A summary of ANOVA outcomes are shown below.

Table D.6 – Average TRP Levels by Job Family
Job family Band
SES 1 SES 2 SES 3
Audit $208,535 -- --
Communications $210,648 -- --
Corp Services $213,126 $253,810 --
Economics $211,522 $243,800 --
Engineering & Technical -- -- --
Finance $213,250 $282,136 --
HR $207,191 $275,898 --
IT $212,250 $265,659 --
Intelligence & Security $220,489 -- --
Legal $215,982 $265,037 --
Medical $222,525 $282,374 --
Management $214,032 $269,827 $331,069
Policy Development $209,447 $262,684 $328,104
Scientific $218,027 $261,738 --
F 10.960 15.692 0.708
p <0.001 <0.001 0.588
significance sg sg ns

As can be seen, for SES 1 and SES 2 employees, average TRP values for the different job families are statistically significantly different. At SES 1, the Audit and HR job families were below other job families and Medical was the highest. At SES 2, the large difference of 15.69 per cent observed between different job family groups was also statistically significant, with Medical again the highest and Economics the lowest.